TH4233CD PDF

COMPARATIVE STUDY OF TELECOM SERVICES
IN NEPAL
(A case study of Nepal Telecom, Ncell and UTL)
Submitted by:
Shyam Sundar Prasad Yadav
Shanker Dev Campus
Roll No.: 2209/062
T.U. Registration No.:7-3-39-458-2005
Submitted to:
Office of the Dean
The Faculty of Management
Tribhuvan University
In the Partial Fulfillment of Requirement of Degree of
Master of Business Studies
(MIS)
Kathmandu
August, 2012
RECOMMENDATION
This is to certify that the Thesis
Submitted by:
Entitled:
Comparative Study of Telecom Services in Nepal
Has been prepared as approved by this Department in prescribed format of the

Faculty of Management. This Thesis is forwarded for examination.
………….………….… ………………………… ……………………

Shree Bhadra Neupane Prof. Bishweshor Man Shrestha Mr. Prakash Singh Pradhan
(Supervisor) Head, Research Department Campus Chief
Shanker Dev Campus
……………………………
Er. Shankar Nath Adhikari
(Supervisor)
Date:………………………………
Property of Shanker Dev Campus 2

VIVA-VOCE SHEET
We have conducted the Viva-Voce of the thesis presented
By
Entitled:
Comparative Study of Telecom Services in Nepal
And found the thesis to be original work of the student and written according to the prescribed
format. We recommend the thesis to be accepted as partial fulfillment of the requirement for the
Master Degree in Business Studies (M.B.S.).
Viva-Voce Committee
Head, Research Department ……………………………………………………..
Member (Thesis Supervisor) ……………………………………………………..
Member (Thesis Supervisor) ……………………………………………………..
Member (External Expert) ……………………………………………………..

DECLARATION
I, hereby, declare that the work reported in this thesis entitled “ Comparative Study of Telecom
Services in Nepal- A case study of Nepal telecom, Ncell and UTL ” submitted to the Office of
the Dean, Faculty of Management, Tribhuvan University, is my original work done in the form of
partial fulfillment of the requirement for the master Degree in Business studies (MBS) under the
supervision of Shree Bhadra Neupane and Er. Shankar Nath Adhikari of Shanker Dev Campus.
.………………………………………
Researcher
Campus Roll No.:2209/062
Date:………………………... T.U. Registration No. 7-3-39-458-2005

ACKNOWLEDGEMENT
This case study on “ Comparative Study of Telecom Services in Nepal- A case study of Nepal
Telecom, Ncell and UTL ” has been prepared to fulfill the partial requirement of MBS program
under Tribhuvan University.
I wish to express my deep sense of indebtedness to my thesis supervisors Shree Bhadra Neupane
and Er. Shankar Nath Adhikary for his valuable guidelines, insightful comments, endless
encouragement and continuous support to complete this thesis work.
I sincerely acknowledge the help of NT staff who generously provided me with required
information about its services with data and documents while carrying my research work. I would
like to appreciate Mr. Ramesh Joshi, Deputy Manager (Customer Care) and other staff members of
UTL for providing various information and annual reports which were useful to collect
information necessary for the research work. Similarly I would like to thank Mr. Mukesh Pradhan,
Customer Relation Representative working on the sales counter of Ncell for providing information
about its services and forms and documents useful in the course of my research work. Similarly I
would like to thank all the telecom service users who provided me their experiences with various
telecom companies and evaluation of their quality of services.
I would like to thank the library staff and the support team of Shanker Dev Campus for their co-
ordination and availability that helped me with ample resources to analyze and work upon. I would
also like to thank the library staff of Tribhuwan University for their generous support to go through
the journals and thesis for Ph.D. degree. Finally, I extend my deep appreciation to all who have
directly or indirectly motivated me in the process.

August, 2012

TABLE OF CONTENTS
Recommendation
Viva-Voce Sheet
Declaration
Acknowledgement
Table of Contents
List of Tables
List of Figures
List of Graphs
List of Charts
Abbreviations
Chapter I Introduction 1
1.1 Background 19
1.1.1 Telecommunications Service 19
1.1.2 Telecom Services in Nepal 20
1.1.3 Case Studies of NT, Ncell and UTL Companies 21
1.1.3.1 Profile of Nepal Telecom 21
1.1.3.2 Profile of Ncell 22
1.1.3.3 Profile of UTL 23
1.2 Focus of Study 24
1.3 Statement of the Problem 24
1.4 Objectives of the Study 25
1.5 Significance of the Study 25
1.6 Limitations of the Study 25
Chapter II Review of Literature 29
2.1 Conceptual Review 29
2.1.1 Concept of Information System 29
2.1.2 Hierarchy of Information System 29
2.1.3 Introduction to MIS 30
2.1.3.1 Concept 30
2.1.3.2 Architectural Framework of MIS 32
2.1.4 Government Policy for Telecommunications Sector 35
2.1.4.1 Telecommunication Policy of Nepal, 2060 (2004) 35
2.1.4.2 Mission and strategy of FCC of USA 38
2.2 Review of Technical Terminologies 41
2.3 Review of Journals, Articles and Report 43
2.4 Review of Thesis 46
Chapter III Research Methodology 53
3.1 Research design 53
3.1.1 Research Design Methodology 53
3.1.2 Fieldwork Procedure 54
3.2 Sources of Data 55
3.2.1 Data Collection Method 55
3.2.1.1 Primary Source 55
3.2.1.2 Secondary Source 56

3.3 Analytical Tools and Technology 56
3.3.1 General System Models 56
3.3.2 Flowchart 58
3.3.3 Data Flow Diagram 58
3.3.4 Entity Relationship Diagram 60
3.3.5 Table, Figures, Graph and Chart 60
Chapter IV Presentation and Analysis of Data 61
4.1 Conceptual Review: 61
4.2 Status of Telecom Service in Neighbouring Countries 61
4.2.1 Status of Telecommunications Service in Bangladesh 61
4.2.2 Status of Telecommunication Service in Sri Lanka 62
4.2.3 Status of Telecommunication Service in Pakistan 64
4.2.4 Status of Telecom Services in India 65
4.3 Milestones of Telecommunication Service in Nepal 66
4.4 Present Telecom Network Status of the Country 66
4.5 Analysis of the Existing system of Nepal Telecom 71
4.5.1 Organization Structure of Nepal Telecom 71
4.5.2 Facts of Nepal Telecom 73
4.5.2.1 Objectives 73
4.5.2.2 Services Offered by Nepal Telecom 74
4.5.2.3 Projects 74
4.5.3 Hierarchy of management 75
4.5.4 Hierarchy of decision-making 77
4.5.5 Growth Trend of Nepal Telecom 78
4.5.6 Distribution System 79
4.5.6.1 Objectives of PSTN Line Distribution system 80
4.5.6.2 PSTN line distribution System in Nepal Telecom 80
4.5.6.3 Objectives of Mobile Line (GSM/ CDMA) Distribution 93
4.5.7 Tariff Plan of NDCL 94
4.6 Analysis of Existing System of Ncell 95
4.6.1 Technology and Features of Ncell 95
4.6.2 Mobile Line Distribution System of Ncell 97
4.6.2.1 Flowchart for Mobile Line Distribn Information System in Ncell 97
4.6.2.2 DFD of Mobile telephone Distribn Info System in Ncell 98
4.6.2.3 Entity Relationship Diagram (ERD) for Ncell 100
4.6.3 Tariff of Ncell 101
4.6.3.1 Tariff for voice call 101
4.6.3.2 Packages and Prices of Internet & Data Services of Ncell 102
4.7 Analysis of Existing System of UTL 104
4.7.1 Organization Structure of UTL 104
4.7.2 Growth Trend of UTL 105
4.7.3 Products Offered with Fees and Charges Scheme in UTL 105
4.7.4 Line Distribution System in UTL 107
4.7.4.1 Procedural Steps for WLL Line Distribution in UTL 107
4.7.4.2 Flowchart of WLL Line Distribution System in UTL 107
4.7.4.3 DFD of Line Distribution System in UTL 109
4.7.4.4 Entity Relationship Diagram (ERD) in UTL 111

4.7.5 Tariff Plans of UTL: 112
4.8 Comparision of Quality of Service 113
4.8.1 QOS Offered by the Companies in India 113
4.8.2 Quality of Fixed Line Service in Nepal 118
4.8.3 Quality of Mobile Service in Nepal 119
4.8.3.1 Quality of GSM mobile Service 119
4.8.3.2 Quality of CDMA service 126
4.9 Comparision of Tariff Rates 126
4.9.1 Tariff Rates in Other SAARC countries 126
4.9.2 Comparision of Tariff in Nepal 128
4.9.2.1 Comparision of Local and Domestic Call Tariff 128
4.9.2.2 Comparision of Data Packages’ Tariffs 128
4.9.2.3 Comparision of International call (Premium Rate) 129
4.9.2.4 Comparision of International Call (Normal Rate) 130
4.10 Comparision of Subscriber Base of NT, Ncell and UTL 130
4.11 Study Results of Status of Telecom Service in the Country 131
4.11.1 Study Results from Secondary Data Analysis 132
4.11.2 Study Results from Primary Data Analysis 133
Chapter V Summary, Conclusion and Recommendation 136
5.1 Summary 137
5.2 Conclusion 139
5.3 Recommendation 140
BIBLIOGRAPHY
APPENDIX

LIST OF TABLES
Table:1.1 License issued by NTA (Existing as of 2011, July) 20
Table:2.1: Penetration Rates of Mobile and Broadband Services Regionwise 45
Table:4.1 Summary of licenses issued till June 2008 in Bangladesh 61
Table:4.2: Average Tariff of Mobile Telephone Service in Bangladesh 62
Table:4.3 Statistical Overview of the Telecom Sector as (2011, June) 62
Table:4.4 Growth Trend/ Performance of Fixed Access Teleph in Sri Lanka 63
Table:4.5 Growth Trend of Subscrbr (Fixed+Mobile+WLL) in Pakistan 64
Table:4.6 Annual Cellular Mobile Line in Pakistan 65
Table:4.7 Annual Fixed Local Line Subscribers in Pakistan 65
Table:4.8 Annual Wireless Local Loop Subscribers 65
Table:4.9 Broadband Subscribers in Pakistan 65
Table:4.10 Voice Telephony Services (as of 2011, July) 67
Table:4.11 Data/Internet Services 68
Table 4.12 List of Services offered by NT 74
Table:4.13 Growth Trend of Nepal Telecom 78
Table:4.14 Record of PSTN line Cap, Distribn and Waiters in Birganj 81
Table:4.15 Record of Line capacity, Distribution and Waiters in BRD 82
Table:4.16: Record of Line capacity, Distribution and Waiters in ERD 82
Table:4.17 Data Dictionary 93
Table:4.18 Record of GSM & CDMA Line Cap & Distribn in ERD 94
Table:4.19: Local Call Tariff of NT 94
Table:4.20 Domestic Long Distance Calls Tariff of NT 95
Table:4.21 International Call Tariff (access code “00”) of NT 95
Table:4.23 Local and STD Tariff in Ncell (Ramro Tariffs) 101

Table:4.24 International Roaming Operators CAMEL 101
Table:4.25: Prepaid International Tariffs in Ncell 102
Table:4.26: Packages and Prices of Internet & Data Services of Ncell 102
Table:4.27 Normal Data Packages 103
Table:4.28 Unlimited Closed User Group 103
Table:4.29 Growth Trend of UTL 105
Table:4.31 Domestic Tariff for HHT Prepaid/ Postpaid/ FWT Prepaid/ FWT 112
Table:4.32 ISD Tariff of UTL 113
Table:4.33 QOS of Cellular Mobile Telephone Service in India 113
Table:4.34 QOS Basic Telephone Service (Wire line) in India 114
Table:4.35 KPI Comparision of MTN, Globacom, Etisalat and Airtel, India 115
Table:4.36 KPI of MTN, Globacom, Etisalat and Airtel co.s of India 116
Table:4.37 KPI of MTN, Globacom, Etisalat and Airtel co.s of India 117
Table:4.38 Fault Rate of PSTN Lines under ERD 118
Table:4.39 Fault Rate of PSTN Lines under Birganj Reg Directorate 118
Table:4.40 KPI Indicator of GSM Mobile Service in ERD 120
Table:4.41 KPI Indicator of GSM Service in Birganj Reg Directorate 120
Table:4.42 General View of GSM Service of Ncell 121
Table:4.43 General View of GSM Service of Ncell 121
Table:4.44 Comparision of QOS between Ncell and NT 125
Table:4.45 Quality of CDMA mobile Service in ERD of NDCL 126
Table:4.46 Typical Tariff Rates in Sri Lanka 126
Table:4.47 Typical Tariff Rates in India 127
Table:4.48: Comparision of Local and Domestic Call Tariff 128
Table:4.49: Comparision of Data Package among NT, Ncell and UTL 128
Table:4.50 Comparision of ISD Call Rates among NT, Ncell and UTL 129

Table:4.51 Comparision of International Call Tariff 130
Table:4.52 Telephone used Proportion by the Respondent Subscribers 134
Table:4.53 QoS of diff. Co.s as Judged by the Respondent Subscrs 134
Table:4.54 Network Status of the Co.s as Judged by the Respondent Subscrs 134
Table:4.55 Satisfaction from the Service of Co.s expressed by Respondents 135
Table:4.56 Service Quality, Network Quality and Satisfaction in % 136

LIST OF FIGURES
Figure:2.1 Hierarchy of Information System 29
Figure:2.2 Major Roles of Information System 32
Figure:2.3 Architectural Framework of Managmnt Info System 33
Figure:3. 1 Research Design Applied for Methodology 53
Figure:3.2 General System Model Of Line Distribution Centre 57
Figure 4.1 Hierarchy of Management 76
Figure:4.2 Hierarchy of Decision Making 78

LIST OF GRAPHS
Graph:4.1 Growth Trend of Voice and Data Service Penetration in Nepal 70
Graph:4.2 Fault Rate of PSTN Lines under Eastern Reg Directorate 118
Graph:4.3 Fault Rate of PSTN Lines under Birganj Reg Directorate 119
Graph:4.4 2G Network Availability of Ncell 122
Graph:4.5 Traffic and TCH Drop Rate in Ncell 123
Graph:4.6 Performance and Quality of Data Service 123
Graph:4.7: 3G Network Availability of Ncell 124
Graph:4.8: 3G Performance and Quality of Ncell 124

LIST OF CHARTS
Chart:4.1 Growth Trend of Fixed Access Telephone in Sri Lanka 64
Chart:4.2 Penetration Rate of Fixed, Mobile and other Teleph in Nepal 69
Chart:4.3 Technology-wise Data/ Internet Subscribers in Nepal 69
Chart:4.4 Organization Chart of Nepal Telecom 72
Chart:4.5 Capacity, Distribution and Waiters in NT office, Birganj 82
Chart:4.6 PSTN Data of BRD as a whole 82
Chart:4.7: PSTN Data of ERD as a whole 83
Chart:4.8 Flowchart of PSTN Line Distribution Process in NT 86
Chart:4.9 Context Level DFD of PSTN Line Distribn Info System of NT 88
Chart:4.10 System Level DFD of Line Distribn Info System of NT 91
Chart 4.11 ERD of Entities involved in PSTN Line Distribn of NT 92
Chart: 4.12 Flowchart for Distribn procedure of Mobile Teleph in Ncell 97
Chart:4.13: Context Level DFD for Mobile Distributn Info System in Ncell 99
Chart:4.14: System Level DFD of Line Distribn Info System in Ncell 99
Chart:4.15 ERD of Entities involved in GSM Line Distribn of Ncell 100
Chart:4.16 Organization Chart of UTL 104
Chart:4.17 Flowchart for Distribution of Mobile RUIM in UTL 108
Chart:4.18 Context Level DFD of Line Distribution System in UTL 109
Chart:4.19 System Level DFD of Line Distribn Info System in UTL 110
Chart:4.20 ERD of Entities involved in CDMA Fixed Line Distribn of UTL 111
Chart:4.21 Performance of TCH Congestn of MTN, Globacom, Etisalat and Airtel115
Chart:4.22: Performance of CSSR of MTN, Globacom, Eitisalat and Airtel 116
Chart:4.23: Performance of SDCCH of MTN, Globacom, Etisalat and Airtel 116
Chart:4.24 Performance of CDR of MTN, Globacom, Etisalat and Airtel 117
Chart:4.25 Performance of CCR of MTN, Globacom, Etisalat and Airtel 117

Chart:4.26 Market Share of Teleph Subscr of Various Operators in Nepal 131
Chart:4.27 Market Share of Data/ Internet Subscribers in Nepal 131
Chart:4.28 Quality of Service, Network and Satisfaction in % 136

ABBREVIATIONS
3G : Third Generation
Administn. : Administration
ADSL : Asynchronous Digital Subscriber Line
AFS : Advanced Free phone Service
AM : Amplitude Modulation
AN : Access Network
ANP : Access Network Planning
Approx. : approximately
B.S. : Bikram Sambat
BRD : Birganj Regional Directorate
BSNL : Bhartiya Sanchar Nigam Ltd.
BTRC : Bangladesh Telecom Regulatory Commission
Cap : Capacity
CB : Central Battery
CBIS : Computer Based Information System
CDMA : Code Division Multiple Access
CIT : Citizen Investment Trust
Congestn : Congestion
Co. : Company
D.O.T. : Department of Telecommunication
D.P. : Drop Point
DEL : Distributed Exchange Line
Dept. : department
DFD : Data Flow Diagram
DMD : Deputy Managing Director
Dom. : Domestic
E-mail : Electronic mail
ERD : Eastern Regional Directorate
F.Y. : Fiscal Year
Govt. : Government
GPRS : General Packet Radio Service

GSM : Global System for Mobile communication
HCD : Home Country Direct dialing
HF : High Frequency
HRD : Human Resource Department
IN : Intelligent Network
Info : Information
INGO : International NGO
Internat : International
IS : Information System
ISD : International Subscriber Trunk Dialing
ISDN : Integrated Subscriber Digital Network
ISP : Internet Service Provider
ITU : International Telecommunication Union
IVR : Interactive Voice Response
JICA : Japan International Cooperation Agency
MARTS : Multiple Access Radio Telephone System
MCC : Maintenance Control Centre
MD : Managing Director
MDF : Main Distribution Frame
Mgmt. : Management
MI : Management Information
MIS : Management Information System
MoF : Ministry of Finance
MoIC : Ministry of Information and Communication
MoL&J : Ministry of Law and Justice
Msg : Message
N/W : Network
Nat : National
NDCL : Nepal Doorsanchar Company Limited
NGN : Next Generation Network
NGO : Non Government Office
NPR : Nepalese Rupees
NT : Nepal Telecom
NTA : Nepal Telecom Authority

OS : Operating System
OYT : Own Your Telephone
P.P. : Primary Pair
PCC : Prepaid Calling Card
PCL : PSTN Credit Limit
PDSN : Public Digital Switching Network
PSTN : Public Switching Telephone Network
S.P. : Secondary Pair
SD : Service Division
STD : Subscriber Trunk Dialing
Std. : Standard
Subscr : Subscriber
TRAI : Telecommunications Regulation Authority of India
TTC : Telecom Training Centre
UHF : Ultra High Frequency
UK : United Kingdom
USD : United States Dollar
VAS : Value Added Service
VAT : Value Added Tax
VDC : Village Development Committee
VHF : Very High Frequency
VSAT : Very Small Aperture Terminal
WLL : Wireless Local Loop

Chapter I Introduction
1.1 Background
1.1.1 Telecommunications Service

Telecommunications, also called telecommunication, is the exchange of information over
significant distances by electronic means. It is also defined as "the transmission, between or among
points specified by the user, of information of the user's choosing, without change in the form or
content of the information as sent and received.
For purposes of regulation by the Federal Communications Commission under the U.S.
Communications Act of 1934 and Telecommunications Act of 1996, the definition of
telecommunications service is "the offering of telecommunications for a fee directly to the public,
or to such classes of users as to be effectively available directly to the public, regardless of the
facilities used.
Telecommunication services have proved to be very important for the mankind. It has helped to
make the earth closer and safer. It has vital role in raising the economy of the society and the
country as a whole by saving time and money in getting information and instructions thereby
helping in increasing production and finding out market for the industries. It has vital role in the
sector of health and education of the society; especially telemedicine and e_learning, recent
developments, have highlighted the importance of telecommunication services in the health and
education sectors! Telecommunication services helps at all phases of disasters. It can help to find
jobs or to consult experts required. Telecommunication infrastructures, in fact, support people to
achieve in each and every field of their work and lives.
It has been found that there is a direct relation between development and telecommunication
services.
History of telecommunication started with the discovery of telephone by Graham Bell in 1876. The
old analogous communications systems have been converted to digital systems with enhanced
quality of service and increased capacity. There are various types of telecommunications services:
voice, data and video. Again, they may be served through wireline or wireless technology. Fixed
telephone can be served by PSTN exchange through wireline or VHF/ UHF/ MARTS, VSAT
systems. Mobile telecommunuication is accomplished using cellular technology using GSM,

CDMA and other systems. Data and video are the recent high demand telecommunications
services.
The number of Fixed telephones per 100 inhabitants (average of years 2005-10) in poor countries
of Africa is very less (29 ) whereas that of comparatively richer and developing Arab countries,
Asia & Pacific countries, developed American and European countries are more 65, 58, 105 and
153 respectively.
1.1.2 Telecom Services in Nepal

Nepal is a landlocked country occupying an area of 147,181 square kilometers. Approximately 83
% of the country is rugged terrain and only about 17% of its area is flat land. Since it is very
difficult and costly to build transportation infrastructures due to the difficult terrain,
telecommunications services are of utmost importance for Nepal to serve the rural population in
majority.
After the restoration of multi –party democracy in 1990, Government of Nepal adopted a
liberalization policy in communications sector by the formulation of National Communication
Policy 1992 under which Government decided to privatize the telecommunications service sector.
The telecommunications Act, 2053 (1997), Telecommunications Regulations, 2054 (1997), Long
Term Vision of Communication Sector , 2002 and Telecommunication Policy, 2004 are the main
legal and policy framework of telecommunication services in Nepal. Nepal Telecommunications
Authority (NTA), separate regulatory body of Nepal in telecom sector has been constituted in
March 1998 (2054) under the Telecom Act in order to make telecom service available throughout
the country in a competitive manner and regulate the sector.
Telecom Service Providers

At present, the incumbent operator, Nepal Doorsanchar Company Limited (NDCL) is operating
local, domestic, long distance, international telephony, cellular mobile and internet service
including ADSL in Nepal. Besides NDCL, NTA has issued one more full mobility cellular mobile
license to Ncell and two more licenses for Basic Telecom to STM and Smart Telecom Ltd. Till
Ashadh 2068, NTA has issued 293 licenses under different types of telecom services mentioned in
the table 1.1:
Table:1.1 License issued by NTA (Existing as of 2011, July)
S.No. Name of the Services Number of the licensee

1. Basic Telecommunications 3
2. Cellular Mobile 2
3. Network Service Provider 9
4. VSAT User 100
5. Internet (With E-mail) 48
6. GMPCS 3
7. Rural Telecom 2
8. Limited Mobility 108
9. International Trunk Telephone 3
10. Rural VSAT User 9
11. Rural Internet Service Provider 6
Total 293
1.1.3 Case Studies of NT, Ncell and UTL Companies
1.1.3.1 Profile of Nepal Telecom
Nepal Doorsanchar Company Limited (Nepal Telecom) was registered on 2060-10-22 under
company act 2053 and the notice to this effect published in Nepal Gazette dated 26th Chaitra 2060,
after dissolving then Nepal Telecommunications Corporation (NTC). However, the company name
was officially effective from 1st Baisakh 2061 (13th April 2004) and the general public knows it by
the name of NEPAL TELECOM as its registered trademark. Its share structure is composed of 8%
public share and 92% government share.
Milestones of Nepal Telecom

Year Milestone Details
2004 NEPAL TELECOM (Transformation from Corporation to Nepal Doorsanchar

Company Limited)

2004 Pre-paid Calling Card Service (IN Services)
2005 Soft launch of CDMA
2007 GPRS, 3G and CRBT Services introduced in GSM Mobile
2008 Broadband ADSL Service launched
2009 Postpaid CDMA Mobile Service started
2010 EVDO Service started
2010 Telecom Service to all VDCs
2011 Launch of SIP PPP (Permanent Prepaid Phone) service
Services Offered by NT
PSTN (Public Switched Telephone Network):
Local Calls, Domestic Telex, Local Leased Lines, National Trunk Calls, International Trunk Calls,
Operator-Assisted Int'l Telephone, Internet Service, Packet Switching Data Communication,
Activating/ Deactivating Phone Locks, Call Forwarding, Call Waiting, Do Not Disturb,
Conference call, Line Hunting, Abbreviated Numbering, ISDN (Integrated Services Digital
Network), etc.
GSM Mobile Service: Post-paid, Pre-paid, GPRS, 3G, USSD, International roaming, Outbound
SMS, FNF Calls, CRBT, Mobile VMS, etc.
CDMA Mobile Service: C-phone (Post-paid, Pre-paid), Sky Phone (Post-paid, Pre-paid),
SKY Data, EVDO, CDMA VMS, Packet Data Service, Call Forwarding, Call Waiting, Do Not
Disturb, Conference call, Mobile Access Hunting, Password Call Acceptance, Selective Call
Acceptance, Subscriber Pin Intercept, Subscriber PIN Accept, Call Transfer etc.
Intelligent Network Services: PCC Easy Call Service, PCL (PSTN Credit Limit), HCD (Home
Country Direct), AFS (Advanced Free phone Service), IVR (Interactive Voice Response), Notice
board Service, etc.
1.1.3.2 Profile of Ncell

Ncell Pvt. Ltd (known as Spice Nepal Private Limited earlier) was established in 2004 as the first
private operator of mobile communication services in the GSM standard in Nepal. The services
were commercially launched under the Mero Mobile brand on September 17, 2005. Since March
12, 2010 it has been operating under the Ncell brand. ‘N’ stands for Nepal.
Ncell has been part of TeliaSonera, a leading European telecommunication company since October
2008. Supported by TeliaSonera, Ncell has continued expanding coverage, enhancing quality and

bringing new, efficient and easy-to-use services.
Ncell has won the Most Innovative Mobile Operator & Best Consumer Pull Award in the year
2006 in a ceremony organized by Voice and Data, India’s leading information and communication
magazine in Colombo, Sri Lanka. The winners were chosen amongst the best mobile operators in
South Asian countries (SAARC) for their contributions in cellular mobile phone development,
innovative products and services.
Ncell also won the Best Consumer Pull Award for two consecutive years (2006 & 2007). The
award ceremony was organized by Voice and Data a leading Indian magazine related to
information and communication in Kathmandu, Nepal.
Mr. Pasi Koistinen is the CEO and Mr. Aigars Benders is the CTO of Ncell.
Services Offered by Ncell

A company that started its service with basic services like Voice call & SMS service at the
launching phase under the cellular mobile license, has one by one, introduced services like
BlackBerry, 3G, Ncell Connect-browsing internet through a data card, EDGE/GPRS, Call Waiting,
Call Forwarding, Conference Call, Voice Mail, Missed Calls Notification, SMS to e-mail, e-mail
to SMS, USSD, Mobile Internet (GPRS/EGDE), Multimedia Messaging Services (MMS),
Personalized Ring Back Tones (PRBT) and different types of Value added Services.
Ncell has tied up with an array of operators in more than 75 countries, including 225 operators
around the world at present and gradually extending roaming partners day by day for the
convenience of its subscribers.
1.1.3.3 Profile of UTL

United Telecom Limited (UTL) is a consortium of four companies who have come together in a
joint venture, to explore various telecom opportunities in Nepal. Out of four partners, three are the
major telecom players in India and the fourth one is a local partner, i.e., Nepalese company.
The equity participation in UTL is:
Mahanagar Telephone Nigam Limited (MTNL) 26.68%
Telecommunications Consultants India Limited (TCIL) 26.66%
Tata Communications Limited (TCL) 26.66%
Nepal Ventures Private Limited (NVPL) 20%

Structure of UTL Board
The Board of Directors of company consists of four members comprising of one nominee each of
MTNL, TCIL, TCL (formerly VSNL) and NVPL. The following are the directors of the company:
Representative, Nepal Ventures pvt. Ltd, NVPL
Representative, Advisor- Telecom, Tata Group
Representative, Chairman and Managing Director, TCIL
Representative, Chairman and Managing Director, MTNL
Services Offered by UTL

Voice Service, SMS, Voice SMS, Missed Call Alert, CRBT, Internet through USIM, Internet
Lease Line, Conference Bridge, Caller ID, DND, Mobile Access Hunting, Call Transfer, SPINA
Service, SPINI Service, Call Waiting, etc.
Till now 47 cities of more than36 districts under 5 zones have been covered by its services.
Milestones of UTL
• 2003 Operation of service within UTL N/W in March

• 2004 International Gateway Switch in operation on April 19
• 2006 Limited Mobility Service w.e.f. March 24
• 2006 CAC (Carrier Access Code) implemented on march 20
• 2008 Launching of CDMA RUIM cards (U-SIM)
• 2008 Launching of VAS like IN, SMS, CRBT High speed internet
1.2 Focus of Study

The Nepal Government, in the policy and program for Fiscal Year 2068-69, has announced the
slogan of “Broadband in every Village and Phone on Demand in every City”. World Bank study
indicates that there is 1.38 % increase in GDP for every 10% increase in broadband penetration.
The focus of study is to picturize the status of telecom services in Nepal with case study of the
services provided in the eastern and central development region by the telephone operators NDCL,
Ncell and UTL.
1.3 Statement of the Problem

It is required to study the overall status of telecom services in Nepal along with comparative study
of contribution to telecom services by NDCL, Ncell and UTL, the three leading telecom operators
in Nepal. There are many problems in this sector:

i. There is problem of availability of the telecom services in remote rural area- both for
basic voice telephony as well as for data/ internet.
ii. The quality of the telecom services is not up to the international standard.
iii. There is inter- operator connection problem.
iv. There is problem in infrastructure sharing among operators thereby raising cost of
services as well as affecting environment.
v. There is difficulty in getting frequency band to new operators as well as for operating
new services.
1.4 Objectives of the Study

The main objectives of the study are as follows:
1. To analyze the existing PSTN line distribution information system of Nepal Telecom.
2. To analyze the existing Mobile line distribution of Nepal Telecom.
3. To analyze the existing Mobile line distribution of Ncell.
4. To analyze the existing WLL/ CDMA fixed line provided by UTL.
5. To compare the tariff rates of different services of the three companies.
6. To compare the quality of services offered by the three companies.
7. To compare the subscriber base of the three companies.
1.5 Significance of the Study
1. This study serves as a partial requirement for the completion of the master's degree as specified
by the Tribhuvan University, Nepal.
2. This study can be fruitful for the concerned organization because it intends to provide various
information, feedback and conclusions and to suggest suitable recommendations to the
organization.
3. It will be helpful for general readers, researchers, NTA and the government.
4. It is appropriate for library use also.
5. It assists in future study, as it becomes a pilot project.
1.6 Limitations of the Study

Every researcher wants to have every facts and proof for the study. However, this is not possible in
the lack of authority. Some of the major limitations of the study are listed below:

1. It was not possible to get all required statistical data from Ncell as they do not allow to meet
officers in their corporate office. Only Customer relation/ Sales representatives could be
accessed who were not allowed to provide any statistical data. However, they were very
supportive to explain about the available services and the processes. It was also difficult to get
Statistical Data from UTL; however they helped to collect some data and referred to NTA’s
reports.
2. This report is based on primary data collection and their authenticity depends on the answer
provided by the staff of the companies visited.
3. There were no sufficient secondary data available to detect more information about the
company.
4. This study is based on general views and limited interviews.
5. Cost constraints also play a major role in this fieldwork study. The study needed to pay visit to
corporate and field offices of the three telecom operators in Kathmandu as well as in few
places of Eastern and Central Development Region of the country-Birganj, Biratnagar, Damak
and Ilam to name a few.
6. This research is based mainly on head offices of Nepal Telecom, Ncell and UTL, Eastern
regional directorate office of Nepal Telecom in Biratnagar, Birganj regional directorate office
of Nepal Telecom in Birganj, Regional offices of Ncell and UTL in the eastern region of
Nepal.
7. Time constraints are one of the major factors of limitation of the field study. Field visit
included many places of many districts of Central and Eastern Development Regions of Nepal
such as Biratnagar, Itahari, Birtamode, Damak, Ilam, Phidim, Taplejung, Okhaldhunga,
Khotang, Rajbiraj, Siraha, Gaighat, Lahan, Janakpur, Bardibas, Birganj, Kalaiya, Gaur,
Hetauda, Bharatpur etc. Travelling to these places needs appreciable time in the much
disturbed transportation situation of Nepal and poor transportation facility (gravel/soil roads
and fewer vehicles) in the rural districts of the country.
8. Retrieving information from the service users by interview and questionnaire takes ample
time. The student is allocated a limited time to research and submit the report.
This report deals with the normal PSTN line distribution information system of the fixed line of
NT only. The distribution procedure varies a little in cases of VHF, MARTS in which transmission
section is also involved in NT; however, these are almost obsolete now. In case of VSAT lines
Satellite Services Directorate of NT distributes these lines directly from Kathmandu or via rural
telecom or transmission section.

1.7 Organization of the Study
The aim of this thesis is to evaluate the telecom service available in Nepal. For this, the services of
the three major telecom companies of the country, namely, Nepal Telecom, Ncell and UTL have
been studied and compared with that of the neighbouring countries. The study has been divided
into 5 chapters.
Chapter I: Introduction
The first chapter introduces about the thesis with simple background, focus of study, statement of
the problems, objective of study, significance of the study, limitations of the study and the
organization of the study arranged sequentially.
Chapter:II Review of Literature

The second chapter contains the reviews of related literatures from books and journals. Besides,
thesises and available study reports written by research fellows and experts have have also been
reviewed. Similarly, Government Policies prevalent in the country and in the leading country USA
have also been reviewed. Similarly, technical terminologies that came across the study have also
been listed.
Chapter III: Research Methodology

This chapter presents the methodology followed in the study. This deals with the research design,
sources of data and analytical tools and technologies used in the study.
Chapter IV: Presentation and Analysis of Data

The fourth chapter ‘Presentation and Analysis of Data’ presents the relevant data and analyzes
them to fulfil the objective of the thesis. Here, growth trend, tariff trend and quality of of telecom
services in Nepal have been compared with that of the neighbouring countries. The procedure
details of distribution of the services in different companies in Nepal have also been outlined and
depicted with the help of flowchart, DFDs and ERD.
Chapter V: Summary, Conclusion and Recommendation

This chapter describes the thesis in nutshell and draws out the conclusion and recommends to the
related stakeholders- government, service regulatory agency and the operating companies- in order
to improve the telecom service in the country.

Lastly, Bibliography and Appendices have also been attached for reference purpose.

Chapter II Review of Literature
2.1 Conceptual Review

This is the method of collecting data where there has already been some previous research or study
so as to provide information to its readers or researchers who are working to gather information
about the similar subject. If there has been any kind of research done in previous years then the
data and information gathered from such a source is termed review of previous study.
Unfortunately, not much research work has been done on this topic, however, few available and
some conceptual perspectives have been reviewed. For this different thesis submitted by students
of master level and Ph.D. level, research study published by various institutions, presentations
made by authorized government representatives to different international organizations have been
reviewed.
2.1.1 Concept of Information System

Information is of utmost importance for success in any field of life and same is true for successful
operation of any organization. Information can be defined as the data which can be organized and
presented so that the decision maker may take necessary action.
Interrelated components that collect, process, store and disseminate information to support
decision making, control, analysis and visualization in an organization is the information system in
organization. The basic system components are input, output, feedback, environment, interface and
boundary. The boundary defines the system scope of an organization. Interface is the media for
interaction between system and environment.
2.1.2 Hierarchy of Information System

Management Information System (MIS), Decision Support System (DSS), Executive Information
System (EIS), Expert System (ES), Artificial Intelligent (AI) System are all examples of
development of information system. The natures of these information systems are picturized in the
Figure 2.1 .
Figure:2.1 Hierarchy of Information System

Information AI/ES Less More Less More
DSS
Input& Processing
Decision
MIS Routine
Output & analysis
Support
Complexit
y
TPS More Less More Less

Data
(Source: www.mhhe.com/Whitten)
Transaction Processing System (TPS) ia a type of information system that collects, stores,
modifies and retrieves the data transactions of an enterprise. Operational level staff during their
routine job perform so many transactions generating a lot of data for processing. It is of little use
to make decisions and is more of input /output nature.
MIS is used in tactical level. It is a system which handles the databases, provides computing
facilities to end users and gives a variety of decision making tools to the users. The supervisors as
well as planners use this often for relevant information to make decisions.
Decision Support System(DSS) is a extendible system capable of supporting ad hoc data analysis
and decision modeling, oriented toward future planning, and used at irregular, unplanned intervals.
The processing and analysis complexity is more and is more informative.
In artificial intelligence, an expert system is a computer system that emulates the decision-making
ability of a human expert. These are designed to solve complex problems by reasoning about
knowledge. The processing and analysis complexity is much more and is used rarely by the top
management.
2.1.3 Introduction to MIS
2.1.3.1 Concept
As the organization grows up in size the volume of information becomes bigger and bigger. At the
same time it gets difficult and more difficult to supervise the works of the branches. The planning
of the goods and services, implementation of the projects and maintenance of the machines and

services all become quite a tedious task. In order to manage these things more effectively it is
necessary to have good management of information. This is where the “MIS” comes into picture.
Management Information Systems are of vital importance for all kinds of organizations. All
managerial functions are performed through decision making; for taking rational decisions
management information is essential and is procured through the Management Information
Systems (MIS) set up by the organization. The term Management Information System is composed
of three elements viz., Management, Information and System.
Management is the process of getting things done through and with people. It includes Planning,
Organizing, Staffing, Directing and Controlling. Information is data that is processed in a form
which helps the management to take decisions. A System is a set of elements joined together to
achieve a common objective(s). A business organization is the system where the divisions,
departments, function units are the subsystems.
Management information system is a system having a combination of persons, machines,
procedures and data-base, as its elements, which gather data from the intra and extra sources of an
organization: and after processing these data, supply management information to the managers in
an organization, to support the decision-making process of the management.
Robert B. Anthony described three levels of business activities carried out in operating an
organization: Operational control (Operating Management), Management Control (Middle
Management), and Strategic Planning (Top Management).
The first level, strategic planning processes determines what markets or businesses the company
should be in at present or plan to be in the near future.
The next level, management control, includes processes or functions that facilitate the management
of those processes delegated to the operational control level. An example of a management control
process is production scheduling, where a system is established to schedule products through the
various fabrication and assembly points within a factory. The feedback from the production
scheduling process enables management to control the operation.
The bottom level, operational control indicates processes performed to control the basic product or
services produced by the company. It is concerned with individual tasks or transactions such as
procurement or raw material as per prescribed quantity and quality, selling of products to specific
customers. In a bank operational control activities includes physical sorting, recording, and posting
of cheques.

Executive decision-making today in any field is very complex. Both strategic and tactical decisions
rely on information that is timely and accurate and therefore, the use of information procuring
systems has become essential in every significant management activity. The rapid development of
MIS and of its technology itself, its convergence and integration, birth of new concepts like
information resource management, or the extension of the role of information professional within
the organization are the new trend setters. Decision Support System, for example, presents an
impressive picture of senior decision makers having up to date information at their fingertips in
high quality graphic form and are able to borrow into detail to any level they require.
Thus, information is a vital ingredient for the operations and management of any organization. The
scope of a formal information system in an organization is limited by the data that can be obtained;
the cost of obtaining, processing and storing the data; the cost of retrieval and distribution; the
value of the information to the user and the capability of the humans to accept and act on the
information. CBIS is designed to both reduce the costs and increase the capabilities of
organizational information processing and increase organizational effectiveness.
The major roles of MIS can be depicted in figure 2.2 as follows:
Figure:2.2 Major Roles of Information System
Support of
Strategic
Advantage
Support of Managerial
Decision Making
Support of Business Operation
2.1.3.2 Architectural Framework of MIS

The figure 2.3 illustrates a self explanatory organizational system model that express a
fundamental architectural framework for the major components and activities of information

system. In an organization data resources are transferred by information processing activities into a
variety of information products for end users. Information processing consists of input, processing,
output, storage and control activities.
People, hardware, software, data and networks are the five basic resources for MIS. People
resource includes end users/ clients and IS specialists/ system analyst, programmer, computer
operators. Hardware resources include all the physical devices and materials used in information
processing. Software resources include programs to direct and control computer hardware and
procedures to use the software packages. Data resources include database which hold
organizational data and knowledge base that hold various forms of knowledge like facts, rules and
case examples, and other such external data.
The system gathers data from the internal and external sources of an organization process it and
supplies the information output to assist managers in the process of decision making. Here, the
word “system” implies that MIS follows a system approach, which means a holistic approach and
is based on the concept of synergy, where the output is greater than the sum of its parts.
Figure:2.3 Architectural Framework of Managmnt Info System
Control of
System performance
Technical Organization,
standards of Network Structure Management,
MIS, End user, IS
Machine, Output of specialist,
Input of data Processing People,
Media resources data information
Hardware product Resources,
and Software Public policy,
resources and Legal
issues
Storage of data
(Database)
(Source: Adhikary; 2007:26)

Thus, it clearly indicates that MIS is not a single system rather than it is an integrated system
where parts fit into an overall design.
MIS can be defined as the systematic or organized way of providing informational support to the
managerial functions of an organization. The system utilizes computer hardware, software, manual
procedures, and models for analysis, planning control and decision-making and a database. In
other words, “MIS is an automated system which presents information both internal and external to
the business that aids in making a specific set of routine decisions”. The few aspects of the above
definition that warrant closer scrutiny are:
1. MIS is an organized or planned effort and not the result of some sporadic attempts.
2. Integrated and meaningful information is the output of the system.
3. The primary function of MIS is to provide information.
4. MIS is a facilitating or supporting system to aid managerial functions and not merely help
operational tasks, that is, the MIS provides information that assists managers at different levels
in the organization.
5. MIS is formed from a number of components, including hardware, software, manual
procedures, models and a database.
6. MIS is a system of users and machines, the users are as important to the system as the
machines.
Different classes of users of MIS will use it differently. Clerical users primarily provide input and
data control. First line supervisors use it for operational control and detailed exception reporting.
Management uses it for special reports and analysis, often employing a staff specialist to
manipulate decision models and perform analysis.
MIS is a system to support the decision making function in the organization. The difference lies in
defining the elements of the MIS. However, in today’s world, the MIS is a computerized business
processing system-generating information for the people in the organization to meet the
information needs for decision making to achieve the corporate objectives of the organization. MIS
helps in optimizing the use of scarce resources, through their improved utilization, and by
supporting intelligent decision making a co-ordination without wasteful delays. Information
management involves the communication of intelligent or knowledge. It appraises and notifies
surprises and stimulates, reduces uncertainty, reveals additional alternatives and helps eliminate
irrelevant or poor ones, and influences individual and stimulates them to action. In any

organization, information should give early warning and portend the future. Therefore, it is
essential that those in the professional lines should be aware of MIS and be included to its effective
utilization.
In the conclusion, we can say that MIS is a system using formalized procedures to provide
management at all levels in all functions with appropriate information, based on data from both
internal and external sources, to enable them to make timely and effective decisions for planning,
directing, and controlling the activities for which they are responsible. The actual process will
involve the collection, organization, distribution and storage of organization wide information for
managerial analysis and control.
2.1.4 Government Policy for Telecommunications Sector

Strategies and policies followed by the government affects the services directly. The policies can
be such that operators may find easy to enter into business or it can be otherwise- the operators
may not find secured and may not enter into business. If there are more operators there is
competition in the business and the people may get the services of more quality at cheaper rates.
Right of all the people (rural as well as urban) to communication services should be kept in mind
while formulating policies. The strategy and working policies for telecommunication services
formulated by the Government of Nepal in B.S. 2060 (A.D. 2004) and mission and strategies of
FCC of USA are put below to know the government provisions for telecommunications sector:
2.1.4.1 Telecommunication Policy of Nepal, 2060 (2004)

1. Necessity of Telecommunication Policy
The Government has accepted the telecommunication service as the basic prerequisite of
the development. In order to promote private sector’s participation in the
telecommunication sector, the telecommunication policy, 2056 (1999 A.D.) has created
favorable environment to some extent. The government has made commitment to maintain
full competition by keeping the telecommunication sector open since 2004 A.D. through
this policy.
The telecommunication sector is more significant comparison with the other infrastructures
in the context of difficult geographical structure of Nepal. The technological development
rapidly taking place on the telecommunication sector and dynamic change also taking place
in its structure has opened up new opportunities in this sector. It would be possible that the

Nepalese people may be benefited from the gradual depreciation universally taken place in
the tariff of the telecommunication service. In this context, the necessity of timely and
dynamic policy is realized to utilize the additional possibilities and opportunities to be
appeared in the telecommunication sector in future for the prosperity and welfare of
Nepalese peoples by utilizing the achievements gained in telecommunication sector to the
maximum extent and the telecommunication policy, 2060 (2004 A.D.) has, therefore,
hereby been formulated for substitution of the telecommunication policy, 2056 (1999
A.D.).
2. Objectives
The main objective of the telecommunication policy is to create favorable environment in
order to make the telecommunication service reliable and accessible to all people at the
reasonable cost throughout the kingdom in collaboration with the private sector et.al in
order to support the social and economic development of the country. The following
objectives have been determined in order to give support for accomplishment of this
paramount objective.
2.1 In order to bring the access of general public of rural and urban areas of the kingdom to the
telecommunication service, arrangement shall be made in a manner that the
telecommunication service shall be available within the shouting distance in the inhabitated
areas.
2.2 The telecommunication service shall be made available to meet the demand in the urban
areas of the kingdom. Arrangement shall be made in a manner that the corporate
telecommunication service shall be available to the business areas.
2.3 Opportunity shall be provided to the consumers of the urban areas to choose service from
various providers. Arrangement of opportunity to choose service accordingly shall be
gradually extended in the rural areas also.
2.4 Arrangement shall be made for getting opportunity to use appropriate information and
communication technology for poverty alleviation and development of the rural areas.
3. Strategy
3.1 Universal Access to the Telecommunication Service:
The telecommunication service shall be extended in a manner that there shall be universal
access to the service. The telecommunication service shall be made available to the
consumers through the shared telephone. Emphasis shall be given to extend telephone as

fixed, mobile, etc. The satellite system may also be applied for extension of service. Other
services pertaining to information and communication shall be made available through the
Community Centre.
3.2 Universal Service Obligation:
The telecommunication service provider shall be required to provide service to any
consumer of the urban areas immediately after ordering therefor.
3.3 Development of Corporate Service:
Arrangement shall be made in a manner that the leased line, data and other similar
corporate service shall be available to the government bodies and private business sector in
the urban area through more than one service provider.
3.4 Liberalization of the Telecommunication Sector:
The telecommunication sector is kept open for the service providers. However, the number
of service providers may be limited by virtue of radio spectrum. While providing directory
service, the service provider shall be required to provide such service covering all
customers consuming the service.
3.5 Open Licensing Regime to be Applied:
The open licensing regime system shall be applied for providing opportunity to all service
providers to enter into the telecommunication sector. Transparent methods shall be applied
upon granting such license. Moreover, an environment for healthy competition shall be
created.
3.6 Private Sector’s Participation to Be Encouraged:
The private sector’s participation shall be encouraged for the telecommunication sector.
Foreign investment shall be attracted. Arrangement shall make to regularly inform private
sector about the particular of reform taken place in the telecommunication sector and about
the opportunity available in this sector also.
3.7 To Enter into Information Society:
Arrangement of the necessary prerequisites such as extension of telecommunication service
and Cyber Law shall be made and Nepal shall be got to effectively enter into the
information society.
3.8 Appropriate Information and Communication Technology for the Users of the
Rural Area:
Appropriate information and communication technology shall be made available as per the
capacity and need of the users of the rural areas. In this connection, the information and
communication technology based on radio, television and telephone that do not require

special training and literacy shall be made available in collaboration with the private sector
et.al. The service of information and communication technology shall be made available to
the rural users through the small service providers.
3.9 Commercialization of the Nepal Telecommunication Corporation:
In connection with commercialization of the Nepal Telecommunication Corporation, the
Corporation shall be converted into a company and the ownership of the Government of
Nepal shall be gradually decreased. In order to meet the increasing competition, various
reform programmes shall be conducted to make the company competent.
3.10 Economic Efficiency of the Telecommunication Sector:
Emphasis shall be given to increase economic efficiency of the telecommunication sector
by creating an environment that promotes healthy competition among the
telecommunication service providers.
Based on the above strategies working policies have been worked out.
(Source: MOIC:2003)
2.1.4.2 Mission and strategy of FCC of USA
The aim of USA regarding provision of telecommunication services to the people of the country
can be seen from its mission and strategies which is put below:
As specified in section one of the Communications Act and as amended by the
Telecommunications Act of 1996 (amendment to 47 U.S.C. §151) it is the FCC's mission to "make
available so far as possible, to all the people of the United States, without discrimination on the
basis of race, color, religion, national origin, or sex, rapid, efficient, Nation-wide, and world-wide
wire and radio communication services with adequate facilities at reasonable charges." The Act
furthermore provides that the FCC was created "for the purpose of the national defense" and "for
the purpose of promoting safety of life and property through the use of wire and radio
communications."
Consistent with the objectives of the Act as well as the 1993 Government Performance and Results
Act (GPRA), the FCC has identified six goals in its 2006-2011 Strategic Plan. These are:
• Broadband: "All Americans should have affordable access to robust and reliable
broadband products and services. Regulatory policies must promote technological
neutrality, competition, investment, and innovation to ensure that broadband service
providers have sufficient incentives to develop and offer such products and services."

• Competition: "Competition in the provision of communication services, both domestically
and overseas, supports the Nation's economy. The competitive framework for
communications services should foster innovation and offer consumers reliable,
meaningful choice in affordable services."
• Spectrum: "Efficient and effective use of non-federal spectrum domestically and
internationally promotes the growth and rapid development of innovative and efficient
communication technologies and services."
• Media: "The Nation's media regulations must promote competition and diversity and
facilitate the transition to digital modes of delivery."
• Public Safety and Homeland Security: "Communications during emergencies and crisis
must be available for public safety, health, defense, and emergency personnel, as well as all
consumers in need. The Nation's critical communications infrastructure must be reliable,
interoperable, redundant, and rapidly restorable."
• Modernize the FCC: "The Commission shall strive to be highly productive, adaptive, and
innovative organization that maximizes the benefits to stakeholders, staff, and management
from effective systems, processes, resources, and organizational culture."
The FCC is organized into seven Bureaus and eleven Staff Offices, described in the following
sections.
Bureaus
'The Bureaus' include processing applications for licenses and other filings, analyzing complaints,
conducting investigations, developing and implementing regulations, and participating in hearings.
• The Consumer & Governmental Affairs (CGB) develops and implements the FCC's
consumer policies, including disability access. CGB serves as the public face of the FCC
through outreach and education, as well as through their Consumer Center, which is
responsible for responding to consumer inquiries and complaints. CGB also maintains
collaborative partnerships with state, local, and tribal governments in such areas as
emergency preparedness and implementation of new technologies.
• The Enforcement Bureau (EB) is responsible for enforcement of provisions of the
Communications Act 1934, FCC rules, FCC orders, and terms and conditions of station
authorizations. Major areas of enforcement that are handled by the Enforcement Bureau are
consumer protection, local competition, public safety, and homeland security.
• The International Bureau (IB) develops international policies in telecommunications,
such as coordination of frequency allocation and orbital assignments so as to minimize

cases of international electromagnetic interference involving U.S. licensees. The
International Bureau also oversees FCC compliance with the international Radio
Regulations and other international agreements.
• The Media Bureau (MB) develops, recommends and administers the policy and licensing
programs relating to electronic media, including cable television, broadcast television and
radio in the United States and its territories. The Media Bureau also handles post-licensing
matters regarding direct broadcast satellite service.
• The Wireless Telecommunications Services (WCS) such as Advanced Wireless Services
(AWS) and fixed, mobile, and broadcast services on the 700 MHz Band.
• The Wire line Competition Bureau (WCB) develops policy concerning wire line
telecommunications. The Wire line Competition Bureau's main objective is to promote
growth and economical investments in wire line technology infrastructure, development,
markets, and services.
• The Public Safety and Homeland Security Bureau was launched in 2006.
Offices
The FCC's Offices provide support services to the Bureaus. Though the Bureaus and Offices have
their individual functions, they regularly work together on FCC issues.
• The Office of Administrative Law Judges (OALJ) is responsible for conducting hearings
ordered by the Commission.
• The Office of Communications Business Opportunities (OCBO) promotes
telecommunications business opportunities for small, minority-owned, and women-owned
businesses.
• The Office of Engineering and Technology (OET) advises the Commission concerning
engineering matters like frequency allocation and spectrum usage.
• The Office of General Counsel serves as the chief legal advisor to the Commission.
• The Office of the Inspector General (OIG) recommends policies to prevent fraud in
agency operations.
• The Office of Legislative Affairs (OLA) is the FCC's liaison to the United States
Congress, providing lawmakers with information about FCC regulations.
• The Office of the Managing Director (OMD) is responsible for the administration and
management of the FCC, including the agency's budget, personnel, security, contracts, and
publications.

• The Office of Media Relations (OMR) is responsible for the dissemination of Commission
announcements, orders, proceedings, and other information per media requests. OMR
manages the FCC Daily Digest, website, and Audio Visual Center.
• The Office of the Secretary (OSEC) oversees the receipt and distribution of documents
filed by the public through electronic and paper filing systems and the FCC Library
collection.
• The Office of Strategic Planning & Policy Analysis (OSP) identifies policy objectives
for the agency.
• The Office of Workplace Diversity (OWD) develops policy to provide a full and fair
opportunity for all employees.
2.2 Review of Technical Terminologies
Teledensity: Number of telephone for every 100 inhabitant.

Percent of fixed telephone lines in urban areas: This percentage is obtained by dividing the
number of fixed telephone lines in urban areas by the total number of fixed telephone lines in the
country.
Percent of fixed telephone lines in rural areas: This percentage is obtained by dividing the
number of fixed telephone lines in rural areas by the total number of fixed telephone lines in the
country.
Mobile cellular telephone subscriptions (post-paid+ prepaid): Refers to the subscriptions to a

public mobile telephone system and provide access to Public Switched Telephone Network
(PSTN) using cellular technology, including number of pre-paid SIM cards activate during the past
three months. This include both analogue and digital cellular systems (IMT2000 (third Generation,
3G) and 4G subscriptions, but exclude mobile broadband subscriptions via data cards or USB
modems. Subscription to public mobile data services, private trunked mobile radio, telepoint or
radio paging, and telemetry service should also be excluded. This should include all mobile
cellular subscription that offers voice communications.
VoIP Subscriptions: Number of voice over internet Protocol (VoIP) fixed line subscriptions.
Refers to fixed telephone line VoIP subscriptions that have generated in –or outbound traffic
within the past three months. This include VoIP subscriptions through fixed wireless, DSL, cable,

and other fixed internet platform that provide fixed telephony using internet protocol, but excludes
software-based VoIP applications (example:VoIP using Skype, hotmail, or yahoo).
Waiting list for fixed lines: Un-met applications for connection to the Public Switched
Telephone Network (PSTN) due to a lack of technical facilities (equipment, lines, etc.). The
waitlist should reflect the total number reported by all PSTN service providers in the country.
Faults per 100 fixed Lines: The total number of reported faults to fixed telephone lines for the
year. Faults, which are not the direct responsibility of the public telecommunications operator,
should be excluded. This is calculated by dividing the total number of reported telephone faults for
the year by the total number of fixed lines in operation and multiplied by 100. The number of
faults per 100 fixed lines per year should reflect the total reported by all PSTN service providers in
the country.
Percent of fixed telephone faults cleared by next working day: Percentage of PSTN faults
reported that have been corrected by the end of the next working day (i.e. not including non-
working days, e.g., weekends, holidays). The percentage of fixed telephone faults cleared by next
working day should reflect the total number across all PSTN service providers in the country.
Availability: Probability that a device will perform a required function without failure under
defined conditions for a defined period of time. BTS downtime is an indicator of the network
availability.
Network Accessibility: % age of calls made by subscribers and successful within operator’s
network. Call set up success rate is an indicator of this parameter.
Service Retainability: The ability of a service to be kept once it was accessed under given
conditions for a requested period of time. Call drop rate and good quality of voice service are the
indicators.
Call Drop Rate (CDR): This indicator measures the network ability to retain call
conversation when it has established or set up. A value of 7% of CDR means that, out of every
100 calls established or set up, 7 will drop before any of the calling parties voluntarily terminate
the set up call. It is calculated using the expression:
CDR = No. of dropped call/Total no. of call attempts = (1-call complete probability)*100%
Call Completion Ratio (Call Completion Success Rate, CCSR): It can be derived either from
network statistics or from drive test statistics. It is a good parameter for evaluating the network
accessibility and retainability as perceived by the customers. It is derived using the following
expression:

CCSR = Total no.of completed calls/ Total no. of call attempts
Paging Response (Call Set up Success Rate, CSSR): This indicator measures the
ease in which calls are established or set up. The higher the value of CSSR, the easier it is to set up
a call. For instance, a CSSR of 71% means that out of every 100 call attempts, only 71 are
successful while the remaining 29 are unsuccessful. The indicator is calculated using the
expression:
CSSR = No. of Unblocked Call attempts/ Total no. of call attempts = (1 – Blocking
Probability)*100%
Traffic Channel Congestion Rate (TCHR): This congestion is the first level of congestion
experienced by the customer. It measures the relative ease by which the customer seizes a traffic
channel to set up a call after a signaling seizure has been successful. The higher this value, the
higher difficulty it is in making a call.
2.3 Review of Journals, Articles and Report
Articles from Journals about Telecommunications services:
Economic Commission for Europe (1987) published a report on “The Telecommunication Industry
– Growth and Structural Change” discussing about the different aspects of telecommunications
services as below:
Socio-economic impact of telecommunication:
The macro-economic effects of investments in telecommunications are, as pointed out in the ITU/
OECD study “Telecommunications for Development”, very difficult to estimate. It is, however,
“sensed intuitively that telecommunications are much more important than generally suspected,
and have major multiplier effects on development”.
Relationship between economic development and the level of supply of telecommunications

services:
In several studies, calculations are presented of the strong correlation between the overall level of
development in countries, expressed for instance in GDP per capita, and the level of supply of
telecommunications services, expressed for instance in the telephone density. Although this does
not imply a direct or perfect causal relationship between usage of telecommunications and
economic development, there is still a strong partial interdependence. Before demand for
telecommunications shows a substantial increase, a certain economic level must have been

attained. On the other hand, some basic telecommunication facilities are imperative for further
economic development.
The relationship between main stations per 100 inhabitants (variable q) and GDP per capita
(variable x), as of 1978, plotted for 69 countries was obtained as
10
log q = a + b 10log x
10
log q = -3.726 + 1.357 10log x
which indicates that the telephone density increases faster than GDP per capita.
Multiplier effects of telecommunications and their contribution to the gross domestic product: It
has been estimated that, in the European Economic Community in 1981, telecommunications
contributed some 2 % to the GDP (during that same year, investment in telecommunications
corresponded to about 0.7 % of the GDP). By the year 2000, this contribution was expected to
attain 7 %. The multiplier effect of telecommunications is estimated to be in the order of 1.5 in the
community, that is, an investment of 1 million ECUs in telecommunications brings about a total
increase in economic activity of 1.5 million ECUs.
ITU Telecom World 2011 held in Geneva (24 – 27 Oct. 2011) emphasized on the role of
broadband as critical modern infrastructure driving economic growth, trade and productivity.
Nisar, Sarkar and Wu (2011) published an article on “Performance Studies of VoIP over Ethernet
LANs” in International Journal of the Computer, where they have put Voice over Internet Protocol
(VoIP) as a rapidly growing technology that enables transport of voice over data networks such as
Ethernet Local Area Networks (LANs). This growth is due to the integration of voice and data
traffic over the existing networking infrastructure, low cost, and improved network management
offered by the technology. Various VoIP communication software products are already available
on the internet: Skype, Google Talk, and Windows Live Messenger. All of them can provide good
quality, cheap, and even free phone calls. The major factors that affect VoIP quality are delay,
jitter and packet loss.
Dr. Hessa Al-Jaber, secretary general, ict Qatar, put his remarks in “The Connect Arab Summit”
held in Doha on 5 -7 March 2012, as he had one aim: to bring together collective ideas, resources
and resolve to effectively connect individuals, neighbourhoods, cities and nations in the Arabic
region.

The summit set the target as “no one should be denied access to any form of digital
communication, and everyone should be a part of the connected web regionally and globally by
2015 A.D.
His Highness the Emir of Qatar, addressing the summit, said that connectivity had become
essential for people to participate in the knowledge economy – and he believed that it was
becoming a fundamental human right.
In the summit cyber security was taken seriously. Recognizing the importance of protecting users,
especially children and young people, against the risks posed by illegal use of ICT and the dangers
of the internet, the summit agreed to improve pan-Arab co-operation in addressing the growing
threat posed by cyber attacks and cyber crime. The summit set a target deadline of 5 years for all
Arab countries to establish national legal frameworks for cyber security harmonized at the regional
level, and to develop national cyber security strategies aligned with international cooperation
principles, including critical information infrastructure protection (CIIP).
(Source: ITU NEWS No.2, Special edition, 2012 March)
During the Connect Arab Summit, the status of Mobile Cellular Subscriptions, Fixed (Wired)
Broadband Subscriptions and Active Mobile Broadband Subscriptions in terms of penetration rates
by region (2011) were presented as in table 2.1:
Table:2.1: Penetration Rates of Mobile and Broadband Services Regionwise
S.N. Region Cellular Fixed Mobile

Mobile (%) Broadband (%) Broadband (%)
1 Africa 53 0.2 3.8
2 Asia- Pacific 73.9 6.2 10.7
3 Americas 103.3 15.5 30.5
4 World 86.7 8.5 17.0
5 Arab states 96.7 2.2 13.3
6 Europe 119.5 25.8 54.1
7 Commonwealth of 143.0 9.6 14.9
Independent States

Navas-Sabater, Dymond and Juntunen (2002), in their research paper entitled
“Telecommunications and Information Services for the Poor: Toward a Strategy for Universal
Access” has remarked that access to information and communications technologies has become
crucial to a sustainable agenda of economic development and poverty reduction, and yet access
remains concentrated in a few regions and population groups, with the contours of this new ‘digital
divide’ closely following and supplementing existing income and economic divides. However,
technological innovations, economic pressures, and regulatory reforms are making access to
information and communications technologies more affordable and providing opportunities to
close the digital divide.
Rich people have more access to information and communications services than the poor people
because of their affordability. Urban areas have more access to information and communications
services than rural areas because companies do not like to go to rural places due to high
infrastructure cost and low profit.
World Bank had provided technical assistance to Nepal to create rural development fund and
initial investment into the fund. Strategy was to introduce competition by licensing 4 new
providers in separate regions with a rural focus. The project would finance the subsidy portion
associated with one region initially.
Proposed Strategic Directions:
S.N. Strategic Directions Policy/ investment options

1 Policy reform - Competition, regulation, privatization
- Universal access funds, incl for advanced ICTs
2 Mobilization of Investment - Investment in rural telecentre operator
- Seed financing of universal access funds
- Grants & micro-loans for SME development
2.4 Review of Thesis
Joshi (2000) had conducted a research study on “Management Information System in Nepalese
Banks: A case study of Rashtriya Banijya Bank”. It is focused on the fact that MIS, in present

days, has proved to be a dominant factor for the development of any organization. This has
attempted to provide an effective information collection system and recommend some area where
the bank should address with the help of available information.
The objective of her study is to highlight the MIS in Nepalese banks. The specific objectives are:
• To highlight the financial system in Nepal
• To highlight the banking system in Nepal
• To highlight the MIS in Nepalese banks
• To highlight the importance of data and information
• To provide a useful system of collecting data and information
Research methodology followed by her is mainly based on the secondary sources of information
and data. The information needed has been obtained from the Rashtriya Banijya bank under case
study. The study is descriptive and a exploratory research design. Interviews and discussions have
been conducted to strengthen the research.
The researcher has following recommendations:

The overall situation of the bank can be uplifted though effective information system and
effective monitoring unit. The chief executive must have effective management or strategic
information and coordination monitoring system.
Poudyal Sharma (2006) had conducted a research study entitled “MIS in Nepal Telecom” which
states that NTC is one of the growing service industries using information and communication
technologies rapidly in its all service sectors in proper way. The information system of NTC is
computerized but there is lack of effective use of microcomputer in each and every organizational
functions and departments; it is used for the purpose of word-processing, accounting and statistical
analysis. Due to complex and big organizational pyramid, nowadays, NTC has faced different
problems due to management complexities, direct competition with national and international
market and modern industrial and technological revolutions.
The study has following objectives:
• To analyze about system analysis, system design, data flow, networking as well as
information collection and flow through MIS.
• To examine the existing information and communication technologies system of
NTC
• To analyze the users of MIS for overall NTC performance

• To examine the flow of information to coordinate and communicate different
divisions and units
• To find out drawbacks of existing information system and to design the best suited
information system on the basis of findings.
Further, the researcher wishes to discuss the demand and distribution status of basic telecom
service and use of application of MIS in NTC. The researcher mentions to use relevant statistical,
accounting, mathematical and financial tool e.g., mean, correlation, regression line, percentage,
ratio analysis etc in analysis and interpretation.
The researcher has used descriptive research method to obtain a complete and accurate description
of the situation. The study is based mainly on secondary data that comes from MIS report of NTC.
The researcher has tried to focus on study of the personnel department of NTC. Besides this, the
researcher has studied about the registration process, coordinating services and administration
process.
The researcher has following recommendations:
NTC should concentrate on data collection from the various sources to analyze and
conclude the future strategy.
It is necessary to build IS application to support the telecom manager in making decision to
keep a different index, norms and ratios within the acceptable limits.
The IS should identify the training needs of the organization and offer help in designing
training courses for the employees to improve their knowledge about Telecom World.
The customer of Telecom expects the service to be delivered in a smooth, problem- free,
efficient and timely manner. So, it is necessary to set internal standard in terms of accuracy,
responsiveness and timeliness. The system and resources provided to achieve these
standards need monitoring and MIS will provide a feedback on this standard so they can be
regulated and controlled.
Tanguturi and Harmantzis (2008) studied on current state of the telecommunications networks in
India and China in their topic “ICT Infrastructure in two Asian giants: A comparative study of
China and India”.

The researchers objective was to find out the reasons for stark difference between India and China
with regard to telecommunications services whether it is due to affordability, availability of ICT
Infrastructure or lack of awareness or knowledge for adoption of a technology in the two giant
countries.
The researchers have used descriptive research method to obtain a complete and accurate
description of the situation. The study is based mainly on secondary data that comes from reports
of TRAI (Telecom Regulatory Authority of India), UNCTAD (United Nations Conference on
Trade and Development), ITU (International Telecommunication Union), UNDP (United Nations
Development Program), Education and Research network of China and India etc.
The researchers have concluded that China’s self-dependence on home-grown hardware, superior
infrastructure, and availability of higher regional and international bandwidth, makes the country
more attractive for FDI as opposed to India. Furthermore, China’s higher per capita income
coupled with superior access to infrastructure, help in driving telephone (fixed and mobile) and
broadband penetration levels.
The researchers have suggestion that in order for India to reach the same levels, it needs to push its
manufacturing base to offset its dependence on importing hardware: increase network coverage
and user acceptability, which in turn, will help creating jobs. Apart from investing in
telecommunications, large investments are needed in the power sector as well as road
development, which indirectly impact the level of foreign investment and attractiveness.
Chitrakar (2008), in her thesis on “An Evaluation of Privatization in Nepal – with special
Reference to manufacturing Enterprises” had following objectives:
1. To assess the policies, procedures and mode of privatization pursued in Nepal.

2. To examine the impact of privatization on selected enterprises.
3. To compare the performance of the organization before and after privatization.
4. To identify strategies, weaknesses and problems in privatization in Nepal.
5. To recommend policies, procedures and approaches of privatization to make it more
effective.
The research methodology used was exploratory and detailed survey.
Her conclusion is that the privatization process must be continued keeping in mind and trying the
previous experiences and strategizing to overcome hindrances faced by stakeholders.

Her recommendations are:
1. Privatization needs proper regulation. Often the regulated firm capture regulatory agencies
and thereby they control the regulation they face.
2. There must be sequential framing of time for launching the privatization program.
Unnecessary time consumption and lengthy process may affect the enterprises.
3. Out of different modalities – ‘assets and business sale’, ‘share sale’, ‘lease’, ‘management
contract’, the most preferred one is the sale of shares.
4. There is need for amendment in Privatization Act and Labour Act.
5. Public enterprises could do better if they are run and managed by professionally qualified
personnel without any political interference.
6. Privatization should not be carried carried out on an adhoc basis without detailed feasibility
study its worthiness. Successful implementation and continuity of the process is essential.
Adhikary (2009), in his thesis on “Commitment and Performance in Public and Private Sector
Organisation in Nepal” had following objectives:
1. To study whether the commitment- performance relationship stands differently to
differential demographic factors of the employees.
2. To study whether the commitment- performance relatiponship stands differently to
differential works and organizational factors of employees.
3. To study whether the performance subjectively felt by the employees match with the
objective indicators specific to the organization.
4. To study whether the commitment- performance relationship varies by employees and
organizational level variations.
Commitment is composite of three components comprising affective commitment denoting a

desire to hold the relationship, continuance commitment denoting a desire to hold the continuity of
the services, and normative commitment denoting a desire to hold the sense of duty performance is
viewed as composite of several indicators of which the study has included 4 employers specific
indicators (business growth, financial results, productivity and corporate social performance) and 2
employees specific indicators (employees responsiveness, and advancement and well being).
The study has revealed the following facts:

1. The performance would vary by time specific categories such as age, organizational tenure
and positional tenure.

2. The commitment performance relationship is seen to be composite of two components
(affective and normative commitments) affecting organizational performance positively
and significantly than commitment as a composite of three components.
3. The junior professionals stand out as contributing more and within them when they mature
in age and tenure.
4. Female employees are more responsive.
5. Among four variations considered at employees level, degree of job satisfaction is found to
influence the commitment performance relationship.
6. Among the four variations at organizational level, market orientation and total quality
management is found to make differences in commitment-performance relationship.
Given that the commitment of the employees lead to the organizational performance,
commitment can be said as predictor of organizational growth, profitability and social
responsibility, and a contributor to employee responsiveness and advancement. In this
regard, employment contract towards a specific goal or action, reorientation of commitment
performance relationship from organizational standpoint to the objectivity standpoint is
important in the changing environment.
Popoola, Megbowon and Adeloye (2009) in their thesis on “Performance Evaluation and
Improvement on Quality of Service of Global System for Mobile Communications in
Nigeria” had the objective to evaluate the performance and QOS of GSM cellular system
in Nigeria.
The research methodology used structured questionnaire. They used four assessment
parameters (network accessibility, service retainability, connection quality and network
coverage). The parameters were applied on four GSM networks in Nigeria using
customers’ complaint method.
Network Accessibility: Four operators were studied – Celtel, MTN, Glo and M-Tel.
Percentage calculation was done on Mean Opinion Score (MOS).
The researchers recommendations were:

1. The GSM network accessilbility and retainability were unsatisfactory. The operators
have to increase the number of BTSs to increase coverage and resource.
2. The regulatory body, NCC, should inspect the GSM network in the country regularily.
This would aid the GSM operators in improving their network. By this network

accessibility in the country would improve while high congested networks currently
experienced should be reduced.
Research Gap
Joshi’s research study on “Management Information System in Nepalese Bank”: A case study of R
ashtriya Banijya Bank” in the year 2000 has attempted to provide an effective information
collection system and recommended some area where the bank should address with the help of
available data and information. Her research work has not compared MIS of RBB with the status
of MIS with that present in other banks. This research work has considered other companies of the
same nature and thus gives a comparative figure that provides more impetus for improvement of
the system.
Poudyal Sharma (2006) in his thesis on “MIS in Nepal Telecom” has missed to analyze about the
demand and distribution of telecom services as he stated, although he has mentioned about the
direct competition in this service sector nationally and in international market. This research
endeavors to picturize the demand and distribution of the telecom services by the major three
Telecom Service Providers, namely, NTC, Ncell and UTL. Besides, it has attempted to evaluate
the quality of services provided by the 3 operators.
Popoola, Megbowon and Adeloye (2009) in their thesis entitled “Performance Evaluation and
Improvement on Quality of Service of Global System for Mobile Communications in Nigeria” had
used structured questionnaire method and old data of the previous researchers whereas this
research work has tried to collect the recent secondary data by itself besides collecting the primary
data by the use of random stratified structured questionnaire method. This research has not only
considered the GSM mobile communication service but it has also considered other types of
telecommunications services (fixed telephone and data services) available in the country. This
research work has also compared the tariff aspect.
The researcher could not find any previous research work attempted on this particular topic in
Nepal, in fact, hence there was no base available and the research work had to be done from zero
point.

Chapter III Research Methodology
This study is based on operational research methodology. The application of methodology is, in
fact, the eye and the ear of the study. It helps to analyze the data in finding the cause and effects of
relationships to see how the organization is performing its activities.
3.1 Research design
3.1.1 Research Design Methodology

The Field study research design has been followed in the project. The first step in fieldwork is to
design the framework of the research. The task begins with the collection of necessary data and
information concerning the study. The data and information collected must be studied carefully
and presented systematically and should be analyzed to meet the objectives of the fieldwork. The
research design phased for this fieldwork is shown in the figure 3.1 hereunder:
Figure:3. 1 Research Design Applied for Methodology
CONSULTATION
INTERVIEW PUBLISHED WITH STAFFS OF THE
MATERIAL COMPANIES
COLLECTION OF DATA
THOROUGH STUDY OF THE COLLECTED DATA
DATA SORTING
PERSONAL OBSERVATION AND THOROUGH STUDY
PREPARATION OF FINAL FIELDWORK REPORT
As per the above diagram, first of all the necessary data related with Nepal Telecom, Ncell and
UTL companies were gathered. For the collection of data, central offices of the three companies
located in Kathmandu, eastern regional directorate and few branch offices of Nepal Telecom and
offices/ contact points of Ncell and UTL companies located in the eastern development region and
Birganj regional directorate of NT with telecom service business in Janakpur and Narayani zone of
Nepal were visited. Collection of data consists of compiling of data in necessary quantity.

Analysis of the data helps and assists the study of the project. The data collected was thoroughly
studied. After that, necessary data were sorted and analyzed in a systematic manner. Personal
interviews and observations were also conducted as per the requirement in various places of 5
zones (Narayani, Janakpur, Sagarmatha, Koshi and Mechi) of the country. Thus, after the
collection of primary and secondary data, the final fieldwork report was prepared.
3.1.2 Fieldwork Procedure
For the preparation of this fieldwork report, the researcher has followed certain steps. The overall
fieldwork procedure has been divided into five phases:
a) Conception Phase
The researcher selected Nepal Telecom, Ncell and UTL telecom companies for the project as
required for the case study. Firstly, the researcher decided to study about the existing line
distribution information system, QOS and tariff of the three companies under study. Next step was
to find out the gap in the existing line distribution information systems and QOS of the companies.
b) Definition Phase
In the definition phase, the researcher made the description of the problems of the fieldwork topic.
After that, the aim of the fieldwork topic was listed out.
c) Planning Phase
Planning is the very important phase. In this phase, the methodology to gather information was
developed, reference books were collected and the overall work schedule was prepared.
d) Implementation Phase
The researcher visited the three organizations for conducting the study. The appointment was taken
to meet the chief executives of Nepal Telecom. It was not possible to meet the executives of the
other two companies – Ncell and UTL; it was learnt that they did not allow the students for
research study. The researcher met the MIS officer of Nepal Telecom and collected published
materials like Annual reports, MIS reports, newsletters etc. Similarly the researcher met the sales
representatives/ officers of Ncell to collect service brochures and application form sample- they
were eager to explain about the available services for sale. Similarly, the researcher also visited
UTL deputy managers and finance executive to collect annual reports and to discuss about their
services and procedures followed in distribution, operation and maintenance of their offered
services. The researcher made a detailed study of the existing services and information systems of
the above three companies. The researcher also conducted several interviews with the concerned
personnel/ service users for the collection of data regarding their services. The collected data were

analyzed and necessary data were sorted. Finally, the fieldwork report was prepared in electronic
form.
e) Termination Phase
The final report was edited, printed and banded with a copy of collected information. Then the
report was submitted to the college.
3.2 Sources of Data

Data is the foundation of all fieldwork projects. The research design for this fieldwork was based
mostly on the exploratory design method. Thus, the sources of data collection were both based on
primary and secondary sources. For the already existing data, the information was derived from the
secondary source and for the data that was looked for the first time, information was derived from
the primary source. Keeping in the view of explorative nature of the study, primary source is the
main source of information and data.
Primary Data
Primary data are the original data gathered for the research project in hand. During the fieldwork,
the primary data was obtained by conducting structured interviews with the concerned person,
personal observation and also by conducting personal interviews. Secondary Data
Secondary sources of data refer to the readymade data that is already published by the concerned
organization or data that has been compiled by others for some other purpose. Secondary data
sources were the brochures, annual reports, published reports and statements, published official
documents, etc. of the concerned companies – NT, Ncell and UTL.
3.2.1 Data Collection Method
As already mentioned, both primary and secondary sources of data were collected for the
fieldwork. The method of data collection followed are as hereunder:
3.2.1.1 Primary Source

The data collection methods used for primary sources mainly were structured interviews and
personal observation.
Structured Interviews
Structured interviews with the concerned authorities were conducted. At first, a structured list of
question to be asked during the interviews was formulated. Then they were prioritized according to

the importance of the question. The views expressed by the sample service users are put in Chapter
IV.
The questionnaire is relatively quick to collect information. Potentially information can be
collected from a large portion of group. However, questionnaires are standardized so it is not
possible to explain any point in the question that participants might misinterpret. Open-ended
questions can generate large amounts of data that can take a long time to process and analyze.
Respondents may answer superficially especially if the questionnaire takes a long time to
complete. The participants may be biased or may answer vaguely that may be difficult to analyze.
The format of the questionnaire is attached as Annex-11.
(Source: http://www.icbl.hw.ac.uk)
Personal Observation
During the exploratory phase, the researcher also had spent quite a considerable time with Nepal
Telecom. For the observation, the researcher made conversation to know the response of
concerned employees of Nepal Telecom, Ncell and UTL during the work. The service quality of
each company was also observed personally making calls at different locations of different area.
3.2.1.2 Secondary Source

The secondary sources of data were the brochures, annual reports, published official documents,
and published reports /statements and company websites (www.ntc.net.np, www.ncell.com.np,
www.utlnepal.com). Annual report is neither publicly distributed by Ncell nor made available for
research/ thesis purpose. Brochure was not available from UTL. They provided the application
form to receive a telephone connection which details the personal data required from the
subscriber. Annual report was collected with great difficulty from UTL. NTA website (www.
nta.org) was also the important source of data for the above company. Data collected from the
secondary sources were completely internal.
Libraries of Shanker Dev Campus and Tribhuwan University were the sources for books, journals,
dissertations and thesises. Various other websites were visited which are enlisted in the references.
3.3 Analytical Tools and Technology
3.3.1 General System Models

This study is carried out with the general model. The business organization is a man made system
that has a dynamic interplay with its environment, competitors, government and so on.
Furthermore, the business organization is a system of interrelated part working in conjunction with

each other in order to accomplish the specified objectives. The researcher has identified the Line
Distribution centre as a system. The figure 3.2 shows the general system model.
Figure:3.2 General System Model Of Line Distribution Centre
INPUT PROCESSING OUTPUT
ENVIRONMENT
FEEDBACK
SYSTEM
BOUNDARY
The researcher has followed three steps for preparing data:
Preparation Effort
The researcher has taken Line Distribution centre as a system under study. PSTN Land Line
distribution is accomplished with coordination of sales section, outside plant section, switching
section, MDF section, MCC section and revenue section in NT. Mobile Line distribution is
accomplished with sales section and revenue cash counter in NT.
Ncell sells only Mobile Lines. The customer has to go to the sales and cash counters to buy the
mobile line service.
UTL sells WLL Fixed Line and USIM Mobile Line for which the subscriber has to visit the
sales counter for application form processing and has to pay the required charges on the cash
counter of UTL.
The quality of the services provided by the three companies were personally observed and
questionnaires were prepared for the public inquiry about their perception regarding the quality
of the services offered by the companies.
Definition Effort
System analysis is done observing the existing line distribution system. The researcher also
found out the deficiencies and need of the existing line distribution information system of the
different companies. At the same time quality of the service provided by the three companies
(NT, Ncell, and UTL) were also observed and compared.

Solution Effort
The researcher outlined recommendation to make the existing systems more effective. A
detailed observation was done to give the recommendation about making easy subscription and
to maintain high grade of service to the subscribers.
3.3.2 Flowchart
Flowchart depicts the logical flow of the process. It is a pictorial representation of the program or
an algorithm. It indicates the various steps involved in designing a system. A flowchart consists of
a set of ‘flowchart symbols’ connected by arrows. Each symbol contains information about what
must be done at that point & the arrow shows the ‘flow of execution’ of the algorithm i.e. they
show the order in which the instructions must be executed. The purpose of using flowcharts is to
graphically represent the logical flow of data in the system and defining major phases of
processing along with the various media to be used. Some of the notations/ symbols used for
flowchart are following:
Objects Symbols
Start / Stop
Input / Output
Process
Decision
Connector
Flow of data
3.3.3 Data Flow Diagram

During the course of analysis, the researcher had to gather enough information. The researcher
used DFD to record all the information gathered.

Graphical representation of a system’s data and how the processes transform the data is known as
Data Flow Diagram (or DFD). Unlike, flowcharts, DFDs do not give detailed descriptions of
modules but graphically describe a system’s data and how the data interact with the system.
DFDs are constructed using four major components: external entities, data stores, process and data
flows.
DFD is a graphical tool used to describe and analyze the movement of data through a system-
manual or automated- including the process, stores of data through a system. The DFD shows the
inputs and outputs clearly. The DFD has the basic elements namely source, data store and
destination.
DFD of a system is presented by using context level and system level. The researcher has used
Gane/Sarson approach to represent the logical flow of the data, which are mentioned as follows:
DFD object symbols
Objects symbols
External Entity
Data Flow
Data Store
Process
A brief description of the above components is given as follows:

(i) External Entities
External entities represent the source of data as input to the system. They are also the destination
of system data. External entities can be called data stores outside the system. These are represented
by squares.
(ii) Data Stores

Data stores represent stores of data within the system. Examples: computer files or databases. An
open-ended box represents a data/store – data at rest or a temporary repository of data.
(iii) Process
Process represents activities in which data is manipulated by being stored or retrieved or

transferred in some way. In other words we can say that process transforms the input data into
output data. A rounded rectangle stands for a process that converts data into information.
(iv) Data Flows
Data flows represent the movement of data from one component to the other. An arrow identifies
data flow – data in motion. It is a pipeline through which information flows. Data flows are
generally shown as one-way only. Data Flows between external entities are shown as dotted lines.
3.3.4 Entity Relationship Diagram

An ERD is a data modeling technique that creates a graphical representation of the entities, and the
relationships between entities, within an information system. There are 3 main components of an
ERD:
The entity – a person, object, place or event for which data is collected. Entity is represented by a
rectangle and labeled with a singular noun. For a business information system entity could be
customer, customer’s address etc.
The relationship is the interaction between the entities. It is represented by a diamond shape, or
more, simply, by the line connecting the entities. Verbs are used to label the relationships.
The cardinality defines the relationship between the entities in terms of members. The three main
cardinal relationships are: one to one expressed as 1:1., one – to – many expressed as 1: M and
many – to – many, expressed as M:N.
3.3.5 Table, Figures, Graph and Chart
Table is the presentation technique of data in a way to visualize and process it easily. Figures are
diagrams, pictorial view of a subject. Graph is the pictorial presentation of data which is easy to
understand and is helpful to draw conclusions instantly.
Table, figures, graphs and charts are convenient ways to clearly show the data.

Chapter IV Presentation and Analysis of Data
4.1 Conceptual Review:

Telecommunications network is one of the most important infrastructure for development. For a
mountainous (83%) country Nepal where road construction is very costly telecommunication can
be used to support health and education sector by telemedicine and distant education.
Telecommunication can help to people living in any part of country by providing all kinds of
information. To know how far Nepal has achieved in the telecom sector internal data of the
operating companies have been gathered and compared with the achievement of other countries of
the world, especially neighbouring countries: India, Bangladesh, Sri lanka and Pakistan.
While analyzing the status of telecom services teledensity, quality of service and tariff rates have
been considered.
4.2 Status of Telecom Service in Neighbouring Countries

A comparative study of Telephone line bases, their performances in different countries would be
relevant while inferring about the status of telecom services of own country. Few such example
studies are put hereunder.
4.2.1 Status of Telecommunications Service in Bangladesh
In Bangladesh, liberalization of the mobile phone sector led to large increases in the accessibility
of telecommunications to consumers due to low tariff costs. Bangladesh Telecommunication
Regulatory Commission (BTRC) has been able to fix call charges for all cellular phone operators
and has been able to bring all the companies under a uniform regulatory framework.
The growth trend of telecom from 2004 to 2008 , the details of the licenses issued in different
sector of telecom services and average tariff rate of mobile telephone from 2001 to 2008 were
retrieved from the website of the telecom regulatory agency of Bangladesh which are put in table
4.1and 4.2.
Table:4.1 Summary of licenses issued till June 2008 in Bangladesh

S.N. Category No. of Licenses
1 Cellular Mobile Telecom Operator (Private) 5
2 Cellular Mobile Telecom Operator (Public) 1
3 PSTN Operator License (Rural) 1

4 National PSTN Operator License 7
5 VSAT – Provider 20
6 VSAT-Provider with HUB 6
7 Internet Service Provider (ISP) 159
8 Pre-Paid Card Service Operator License 2
9 Network Service Provider License 1
10 International Gateway (IGW) License 4
11 Call Centre Licenses (CC-170, HCC-57 & HCCSP-45 272
Grand Total 562
Item 2008 2006 2004

Population (million) 140.40 138.80 135.20
Mobile Phones (million) 43.70 21.88 4.15
Fixed Lines (PSTN) (million) 1.28 1.0 0.9
Total Telecom Users (million) 44.98 22.88 5.05
Teledensity (%) 32.04 16.48 3.74
(Source:www. btrc.gov.bd)
Table:4.2: Average Tariff of Mobile Telephone Service in Bangladesh
S.N. Month – Year Average Tariff S.N. Month – Year Average Tariff
(BDT/minute) (BDT/minute)
1 Dec – 2001 11.37 5 Jan – 2007 2.09
2 Jan – 2004 4.31 6 Jul – 2007 1.7
3 Oct – 2005 3.55 7 Dec -2007 0.97
4 Dec – 2006 2.43 8 June – 2008 0.88
From the table 4.2 the tariff rate can be seen going down each year.
4.2.2 Status of Telecommunication Service in Sri Lanka
Growth trend of fixed telephone from 1990 to 2011 and the current licensee were retrieved from
the website of regulatory agency of Sri lanka which are put as table 4.3 & 4.4 and Chart 4.1.
Table:4.3 Statistical Overview of the Telecom Sector as (2011, June)
Number of System Licenses 64

Total number of Fixed phones 3,599,250
Teledensity (Fixed Phones per 100 inhabitants) 17.1
Teledensity (Fixed) in Colombo District-2009 Dec 38.5
Total Switching Capacity of Fixed Operators 4,200,000
Number of Cellular Mobile Subscribers 18,176,030
Mobile Subscription per 100 people 86.5
Internet & Email Subscribers-fixed 323,000
Mobile Broadband Subscribers 367,764
Number of Public Pay Phone Booths 6986
Performance of Fixed Access Telephone Operators
Table:4.4 Growth Trend/ Performance of Fixed Access Teleph in Sri Lanka
Year Cumulative Year Cumulative Year Cumulative

1990 121,388 1998 523,529 2005 1,243,994
1991 125,834 1999 669,113 2006 1,884,076
1992 135,504 2000 767,411 2007 2,742,059
1993 157,774 2001 827,195 2008 3,446,411
1994 180,724 2002 883,108 2009 3,435,958
1995 204,350 2003 939,013 2010 3,578,463
1996 255,049 2004 991,239 Jun’11 3,599,250
1997 341,622
The chart 4.1shows there is steep growth from 2005 onwards in Sri lanka.
(Source: www.trc.gov.lk)

Chart:4.1 Growth Trend of Fixed Access Telephone in Sri Lanka
4.2.3 Status of Telecommunication Service in Pakistan
There are 7 providers of mobile phone services: Mobilink (Pakistan Mobile Comm. Ltd.), Ufone
(Pakistan Telecom Co. Ltd// Etisalat),
Etisalat) Telenor, Warid Telecom, ZONG (Paktel/ China Mobile
Pakistan),, SCO(Special Communication Organization) and
an Instaphone. Similarly, there are 7
providers of Land Line/ DSL/ Broadband/ Triple Play/ WiMAX/ WLL/ EV-DO:
EV DO: PTCL, Wateen,
Worldcall, Nayatel, wi-tribe,
tribe, Qubee and NTC (National Telecom Corporation).
Growth trend of telecom services

services(Fixed,
(Fixed, Mobile lines and Broadband data) of 8 -10 years was
retrieved which can be seen to be increasing appreciably faster as put in the tables 4.5, 4.6, 4.7, 4.8
and 4.9.
Table:4.5 Growth Trend of Subscrbr (Fixed+Mobile+WLL) in Pakistan

Fiscal Total Fiscal Total Fiscal Total
Teledensity(%) Teledensity(%) Teledensity (%)
Years Years Years
2002 - 03 4.31 2005 - 06 26.26 2008 – 09 62.0
2003 - 04 6.25 2006 - 07 44.06 2009 – 10 64.1
2004 – 05 11.89 2007 08
2007- 58.90 2010 – 11 68.4

Table:4.6 Annual Cellular Mobile Line in Pakistan
Fiscal Total Mobile Fiscal Total Mobile

Years Subscribers Teledensity (%) Years Subscribers Teledensity (%)
2003-04 5,022,908 3.29 2007-08 88,019,812 54.6
2004-05 12,771,203 8.3 2008-09 94,342,030 58.2
2005-06 34,506,557 22.21 2009-10 99,185,844 60.4
2006-07 63,159,857 39.94 2010-11 108,894,518 64.8
Table:4.7 Annual Fixed Local Line Subscribers in Pakistan
Years Total Fixed LL Years Total Fixed LL

Subscribers Teledensity(%) Subscribers Teledensity (%)
2003-04 4,501,171 3 2007-08 4,416,417 2.7
2004-05 5,277,531 3.43 2008-09 3,533,275 2.2
2005-06 5,240,012 3.37 2009-10 3,417,802 2.16
2006-07 4,806,206 3.04 2010-11 3,016,852 1.9
Table:4.8 Annual Wireless Local Loop Subscribers
Total WLL Total WLL

Years Subscribers Teledensity (%) Years Subscribers Teledensity (%)
2004-05 264,828 0.17 2008-09 2,616,268 1.6
2005-06 1,025,328 0.66 2009-10 2,659,824 1.6
2006-07 1,702,098 1.08 2010-11 2,704,873 1.7
2007-08 2,239,613 1.4
Table:4.9 Broadband Subscribers in Pakistan

Years Total Subscriber Years Total Subscriber
2005-06 26,611 2008-09 413,809
2006-07 45,153 2009-10 900,648
2007-08 168,082 2010-11 1,491,491
(Source:www.pta.gov.pk)
4.2.4 Status of Telecom Services in India
There are 960.9 million telephone lines out of which 929.37 million telephones are mobile and
31.53 million lines are lanadline. Overall telephone density is 79.28% as of May 31, 2012 out of

which 76.68% is contributed by mobile phone and 2.6% is contributed by landline telephone
service. Major telecom operators are: BSNL, Airtel, Idea, Reliance, Tata DoCoMo, Aircel, Tata
Indicom, Vodafone, MTNL and Loop Mobile.
(Source:www.trai.gov.in)
4.3 Milestones of Telecommunication Service in Nepal
The progress in telecom sector was very slow from 1913 to 1982 that is, until the Panchayat
system of government was not reformed. Progress of telecom sector increased with progress in
democratization and privatization in the country.
Year Milestone Details
1913 Establishment of first telephone lines in Kathmandu

1914 Establishment of first Open wire Trunk Link from KTM to Raxaul
1950 Establishment of Telegram Service and CB teleph exchg in KTM
1955 Distribution of telephone line to general public
1964 Beginning of International Telecommunications Service using HF radio to India
and Pakistan
1974 Microwave transmission links establishment for internal trunk
1982 Establishment of Standard "B" Type Earth Station for internat circuits
1983 Establishment of digital Telephone Exchange
1996 Conversion of all Transmission link to Digital transmission link
1996 Independent Int. Gateway Exchange and VSAT teleph. service
1999 Launching of GSM Mobile service
2004 Pre-paid Calling Card Service (IN Services)
2005 Soft launch of CDMA
2007 GPRS, 3G and CRBT Services introduced in GSM Mobile
2008 Broadband ADSL Service launched
2010 EVDO Service started in CDMA mobile
2010 Telecom Service to all VDCs
4.4 Present Telecom Network Status of the Country

• Nepal has made significant progress in the growth and development of the national public
switched telecommunications network (PSTN) in the last decade, particularly during Fifth
Phase Telecom Project (1992-97).

• With the introduction of private telecom operators Ncell and UTL and others besides the
public company Nepal Telecom, the number of distributed lines increased sharply from
approx. 65,000 lines in 1992 to over 7,60,386 (PSTN + WLL). Number of Post-paid and
Pre-paid Mobile Subscribers reached 1,49,630 and 49,71,888 respectively till July 15,
2011.
• There are fixed and mobile telecom services in all the 75 districts of Nepal.
• There are a total of 6406 International telephone circuits including Microwave circuits in
operation by NT. Ncell and UTL also have international gateways operating international
trunk circuits. UTL has installed a total of 657 International Telephone circuits and 4012
national trunk circuits.
• There are 839,317 fixed telephone lines availed by the people (till Ashadh 2068 BS) based
on wire line and wireless technologies in Nepal.
• Similarly, there are 11,602,814 mobile telephone lines in operation based on GSM and
CDMA technologies.
• Similarly there are 721,518 telephone lines in operation based on LMS (Land Mobile
Service/ Technology with Least Mean Square Algorithm to cancel echo in channels) and
GMPCS technologies.
• Thus, there are altogether 13,163,649 number of telephone lines distributed for voice
telephone services. Thus, by Ashadh 2068, overall tele-density has reached 46.05 per 100
inhabitants in Nepal.
• Currently there are 3 operators in land line (PSTN) telephone sector, namely, NDCL, STM
and Smart, out of which NDCL is the dominant having 99.06 % of PSTN market share.
• There are 3 operators providing fixed location type of basic telephone using WLL
technology, namely, NDCL, UTL and NSTPL, out of which NDCL is seen to be the
dominant having 68.20 % of the total WLL line current users.
The above facts and figures are shown by table 4.10 and 4.11.
(Source: NTA:MIS 2011, July)
Table:4.10 Voice Telephony Services (as of 2011, July)
Services Fixed Mobile Others Total

Operators
PSTN WLL GSM CDMA LMS GMPCS
NDCL 603,291 157,095 5,121,518 862,072 - - 6,743,976

UTL - 70,741 - - 502,888 - 573,629
SNPL - - 5,619,224 - - - 5,619,224
STM 5,090 - - - 155 - 5,245
NSTPL 2,502 - - - 88,933 - 91,435
Smart 598 - - - 127,800 - 128,398
(GMPCS) - - - - - 1,742 1,742
Total 608,979 230,338 10,740,742 862,072 694,151 1,742

839,317 11,602,814 721,518 13,163,649
Tele-Density
Services Penetration Rate %
Fixed 2.93
Mobile 40.59
Others (LMS, GMPCS) 2.52
Total 46.05
Note: Projected population for 2010 is 28,584,975 (Source : cbs.gov.np)
Table:4.11 Data/Internet Services

Services Subscribers Total
NDCL UTL SNPL ISPs
Dialup (PSTN +ISDN) 5,745 - - 14,610 20,355
Wireless Modem, Optical Fibre Ethernet - - - 22,288 22,288
Cable Modem, Cable etc. - - - 15,629 15,629
ADSL 68,343 - - - 68,343
GPRS 956,617 - 1,874,078 - 2,830,695
CDMA 1X 103,171 51,377 - - 154,548
Total 1,133,876 51,377 1,874,078 52,527 3,111,858
Internet Penetration Rate % 10.89
There were altogether 31,11,858 data/ internet users by the end of Ashadh 2068 in Nepal through
different technologies – Dial up, Wireless modem, Optical Fibre Ethernet, Cable modem, ADSL,
GPRS and CDMA 1X. Thus, the internet penetration rate had reached 10.89 % and are shown in
table 4.11.

Overall tele-density has reached 46.05 % by Ashadh 2068 in Nepal. The telephone penetration
rates for fixed, mobile and others (Limited Mobility, GMPCS, LMS etc) in the country are shown
in Chart 4.2.
(Source: NTA:MIS 2011, July)
Chart:4.2 Penetration Rate of Fixed, Mobile and other Teleph in Nepal
NDCL provides data/internet services using four technologies, Dial–up (PSTN/ISDN), ADSL,
GPRS and CDMA 1X. Ncell (SNPL) provides data/internet service through GPRS, EDGE and 3G
technologies. UTL serves its data/ internet services through CDMA 1X technology. Other ISPs
(Internet Service providers) provide through Dial-up, wireless, Optical Link and Cable modems.
There are 26 ISPs currently in operation in the country out of which Mercantile Communications
Pvt Ltd, World Link Communications Pvt Ltd, Via net Communications Pvt Ltd and Subisu Cable
net Pvt Ltd are the major ones having subscriber base more than 1000. The subscribers using data/
internet service technology-wise can be seen from the Chart 4.3.
Chart:4.3 Technology-wise Data/ Internet Subscribers in Nepal

Graph:4.1 Growth Trend of Voice and Data Service Penetration in Nepal
The growth trend of landline, mobile and data/internet services in fiscal year 2067/68 has been
recorded month wise and put in graph 4.1 as follows. From the graph it is clear that landline has no
growth- fixed line teledensity dropped from 2.99% to 2.93. Mobile service has attracted more to
the customer- mobile teledensity increased from 28.64 % to 40.59% . Similarly data service also
increased from 6.29% to 10.89%.

4.5 Analysis of the Existing system of Nepal Telecom
4.5.1 Organization Structure of Nepal Telecom
Board Of Directors
Chairman, secretary, MoIC
Member, Managing Director
Member, Joint secretary, MoF
Member, Jt. Sec., MoL&J&Constituent
Member, Joint secretary, MoIC
Member, Shareholder Group
Member, Union Representative
Company Secretary, DMD, NT
A team of board of directors heads the organization. The Board is comprised of a chairman, six
members and one company secretary. The board decides about the major policies of the company.
The managing director, included in the board of directors as a member, looks after the entire
management and day-to-day operation of the company assisted by 7 deputy managing
directors(level 11), 10 regional directors (level 10&11).
There are 7 corporate level offices which supervises, supports and controls all the other offices.
There are 6 field level offices and 6 regional directorates. Each type of service has separate field
office for its planning, implementation and operation& maintenance. So, there is PSTN Directorate
for PSTN (fixed) lines, Mobile Service Directorate for GSM mobile lines, Wireless Telephone
Directorate for CDMA lines, IT Directorate for internet and data services, Satellite Service
Directorate for telephone service using satellite to rural places and for international trunk call
service. Telecom Training Centre for conducting trainings related to telecom services. Regional
Directorates are established in order to distribute the services of the company to the public in easy
and efficient way, to maintain the quality of service by correcting the faults in the services as first
line maintenance and to collect the revenue from the subscribers.
The organization structure of Nepal Telecom is shown in chart 4.4.

Chart:4.4 Organization Chart of Nepal Telecom
NEPAL TELECOM
BOARD OF DIRECTORS
MANAGING DIRECTOR
CORPORATE OFFICE FIELD OFFICE REGIONAL DIRECTORATE
Kathmandu Regional
Finance Department PSTN Directorate Directorate
Internal Audit Mobile Service Eastern Regional

Department Directorate Directorate
Change Management & Wireless Telephone Birganj Regional

Business Department Directorate
Directorate
Planning Department IT directorate Western Regional

Directorate
Development Satellite Service Mid-western Regional

Department Directorate Directorate
Human Resource Telecom Training Farwestern Regional

Mngmnt Department centre Directorate
Operation & Maintce

Department
Company Secretariat

4.5.2 Facts of Nepal Telecom
4.5.2.1 Objectives
Past Objectives
1. To provide basic telephone voice service to the Nepali citizen throughout the country.
2. To support the government administration in maintaining peace, security and law & order all
over the country.
3. To connect the country with outer world.
4. To assist in live broadcasting of functions of public importance on request of particular
institution or the government.
Present Objectives
In addition to above objectives following objectives are included:
1. To provide local, national as well as international telecommunication services under regulation
of NTA, the regulating body of the government of Nepal.
2. To provide high quality data services, e-mail and internet services to the customers.
3. To continually maintain and upgrade reliable and quality telecommunication services for
maximum customer satisfaction.
4. To provide interconnection facilities at NT’s local network as well as national trunk network
and access to the international gateway to the other operators to make their services more
effective ultimately serving people.
5. To maintain its market leader position in the domestic as well as international
telecommunication services.
6. To enhance the development of tourism industry.
Future Objectives
1. To enhance the economy of the country by cutting expenses as well as reducing time needed to
perform various functions in all sectors of life – agriculture, health, education and others.
Helping to conduct information centre, telemedicine and distance education etc.
2. To provide broadband data services- video, data and voice service with one telephone line. i.e.,
TV, Computer and telephone services via the same line.
3. To provide one integrated bill for all services provided by NT.
4. To set up Data Centre for cloud computing to store data of the subscriber safely.
5. To provide additional value added services like number portability so that number may not be
changed when changing the office/ operator of the subscriber.

6. To develop alternate routes for connection of NT with all the countries of the world to make its
services more reliable.
7. To see a telephone line in the hand of every citizen.
4.5.2.2 Services Offered by Nepal Telecom

Table 4.12 List of Services offered by NT
S.N. Name of services Quantity

1 PSTN Telephone line 603291
2 GSM Mobile Telephone Subscriber 5121518
a) Post-paid Mobile Telephone Subscriber 149630
b) Pre-paid Mobile Telephone Subscriber 4971888
3 CDMA lines 1019167
a) C-Phone Post-paid 34396
b) C-Phone Pre-paid 122699
c) Sky Phone Post-paid 42786
d) Sky Phone Pre-paid 819286
4 PCC & HCD(Capacity 500,000) 197974
5 AFS Subscriber (Capacity 4000) 188
6 PCL Subscriber (Capacity 50000) 11931
7 VMS Mail Box (PSTN) 4577
8 Total Internet Subscriber 1133876
a) CDMA PDSN Data Internet 101693
b) GPRS Internet (GSM Post-paid) 956617
c) Dial-up Internet Subscriber ( PSTN+ISDN) 5745
d) ADSL Subscriber 68343
9 Rural Telephones
a) VHF Telephone 88
b) VSAT Telephone (C-Band, Ku-Band) 412
(Source: Nepal Telecom:MIS 2011, July)
4.5.2.3 Projects
In the process to achieve its objectives it has launched following projects:

1. Alternate Transmission Route: Establishment of alternate transmission routes for backbone
network using OPGW with coordination of NEA to increase reliability of the
telecommunication services.
2. NGN: 105 K PSTN lines with NGN technology.
3. IPTV Service: 50 K lines for KTM valley and 125 K lines for Outside KTM Valley.
4. WiMax Service: 200 K lines to serve all VDCs.
5. CRTB: Convergent Real Time Billing to provide one bill for different services provided by
the company.
6. ERP: Enterprise Resource Management for management of all the resources of the
company- Finance, Revenue, Store, Manpower.
7. NOC: Network Operation Centre to manage the maintenance of all the networks
efficiently with centralized supervision and control of all the network systems of the company.
4.5.3 Hierarchy of management

Level of management means the arranged managerial position in an organization as well as it is the
system of dividing the authority and responsibility among the various managerial positions. It is
concerned with the classification of superior subordinate relationship in an organization. The level
of management depends upon the size and nature of the organization.
In Nepal Telecom, the hierarchy of management is divided into four levels.
Top level management

Middle level management
Lower level management
Transaction level management
All levels of management are inter-related with each other and are equally important for the
smooth operation of management. Even a small mistake of one level can affect the whole
management process.
The following figure 4.1 shows the hierarchy of management of Nepal Telecom.

Figure 4.1 Hierarchy of Management
Board of Directors Strategic level mgmt

TOP LEVEL
MGMT
Deputy managing directors and Tactical level mgmt
Managers MIDDLE LEVEL
MGMT
Officers and Senior Operational level mgmt

LOWER LEVEL MGMT
Officers
Assistant, Senior
Assistant and Junior Transaction
TRANSACTION LEVEL MGMT
Officers Level Mgmt
Top level management

Top-level management of Nepal Telecom consists of seven members of board of directors
including chairman and one secretary additional. These people are the governing bodies of the
organization and they exercise all authorities bestowed on by the telecommunication act for
conducting the business smoothly, effectively and efficiently. The top level management of Nepal
Telecom has the highest authority and is responsible for the success and failure of Nepal Telecom
programs.
Middle level management

Middle level management in Nepal Telecom consists of all the directors and managers of various
corporate level offices, field level service directorates and regional directorates. They are level 10
and level 11 employee of the company. This level of management is concerned with the task of
implementing the plans and policies prepared by the top-level management. Middle level
management is fully responsible for all the activities of lower level management and transaction
level management. They act as coordinators between policy makers and the floor level staff. They
are responsible for implementation, monitoring the progress and quality of the activities being
performed in their offices/ sections. They solve the problems faced by the lower level management
while performing their duties. Most of the time they follow the rules made to run different wings
of the organization and at times give own judgments also (consulting the authorities in strategic
level if necessary). They provide important information to the top level management in decision
making process. Thus, this level bridges the gap between top-level management and lower level
management.

Lower level management
Lower level management is also known as supervisory level management or operational level
management. This level carries out the regular works of the organization. Lower level management
of Nepal Telecom includes the senior officers of level 8 and 9 . This level of management is
responsible for the implementation and control of the operational plans developed by strategic and
tactical level management. This level also controls and handles the activities of transaction level
management.
Transaction level management

Transaction level management is the bottom level of the hierarchy of management in Nepal
Telecom. Transaction level management of Nepal Telecom includes assistants, senior assistants
and junior officers who are of level 1 up to 7. They are responsible to perform day-to-day
activities. They are responsible for execution of the different activities performed by the
organization – installation of equipments in different systems (PSTN, GSM, CDMA, Internet,
Rural VSAT and others), distribution of different services (fixed and mobile telephone lines,
leased data lines, IN services etc.), bill processing, revenue collection, maintenance of equipments,
telephone lines and various services, giving feedback about the performances of different systems
and services, survey and collection of demands of the services offered by the organization.
4.5.4 Hierarchy of decision-making

In Nepal Telecom, the hierarchy of decision-making is divided into three levels.
Strategic level management

Tactical level management
Operational level management
Tactical level management

The tactical level management consists of all the directors and managers of the organization.
Decisions taken by tactical level management is based on the policy and agreement procedure of
the organization that is repetitive and rational in nature. Decisions thus made may be programmed
or non-programmed and depends upon the need of the organization. The concerned managers take
decisions and thus, the need of information in this level is internal and structured information is
high. In Nepal Telecom, middle level management assists in allocating and controlling the use of
organization’s resources. Some of the decisions include different technical system planning,
implementation procedure decision, quality control, human resource planning for planning,

implementation and operation, project implementation schedule determination, budgetary control,
revenue monitoring, determination of tariffs of the services, profit sharing with other operators etc.
Operational level management

In Nepal Telecom, operational level management consists of deputy managers and senior officers.
Decisions in this level are made according to the plans and policies formulated by the strategic and
tactical levels. The personnel in this level of management usually make short-term decisions like
daily or monthly. Some decisions made in this level are fault localization team allocation, project
implementation team selection based on available expertise, preventive and corrective system
maintenance scheduling, revenue collection control, procurement of miscellaneous accessories etc.
The need of information in this level is totally internal and is programmed.
The hierarchy of decision making in Nepal Telecom is shown in figure 4.2:
Figure:4.2 Hierarchy of Decision Making
Board of Directors Strategic level

TOP LEVEL
MGMT
Tactical level MIDDLE LEVEL

Managers/ Directors MGMT
Dep. Managers Operational level LOWER LEVEL MGMT

& Sen.
mgmt
4.5.5 Growth Trend of Nepal Telecom
Table:4.13 Growth Trend of Nepal Telecom
Human Resource 2005/06 2006/07 2007/08 2008/09 2009/10

Approved post 6095 6984 7030 7088 7094
Working Manpower 5717 5699 5592 5876 5826
Technical 2005/06 2006/07 2007/08 2008/09 2009/10

Installed teleph exchng 225 231 236 243 256
Districts with exchg 72 72 72 73 75
Installed teleph lines 602252 656070 684942 726980 749205
Distrib. teleph lines 485997 509873 532391 562162 583542
Internat trunk circuits 3140 3423 4568 4841 5206
GSM Mobile Subscrs 622737 909483 1717230 3009962 3960293
CDMA Subscribers 23579 161155 480016 721318 920257
Overall Teleph. Distribn 1152478 1580511 2729637 4293442 5464092
Teleph penetration (Overall) 4.4 5.99 10.12 15.58 19.40
Financial 2005/06 2006/07 2007/08 2008/09 2009/10
Total Inc.(Million Rs.) 11058.9 14751.6 17889.3 22257.7 27221.1
PBT (Million Rs.) 6843.7 7983.3 10871.4 13634.0 14441.1
PAT(Million Rs.) 4936.6 5652.7 7942.9 10178.0 10775.2
NPR (%) 44.64 38.32 44.4 45.72 39.58
Total Capital Employed 23686.0 27985.9 35343.9 46280.6 52504.6
Ret. On Capital Employed, % 22.17 21.88 25.12 29.94 21.82
EBITDA Margin (%) 73.07 63.78 69.53 67.85 71.83
(Source: Nepal Telecom: Annual Report 2010)
Going through the data of table 4.13 it can easily be seen that number of exchange offices has
increased from 225 to 256 in just four years. The number of PSTN lines has increased from
602252 to 749205. The number of mobile subscribers have increased from 622737 to 3960293
during the same period. Similarly CDMA subscribers have also increased from 23579 to 920257.
Operating revenue has been on increase. Net profit ratio has been fluctuating between 38 % and 46
% which indicate towards its successful operation and healthy condition of the only public
company with 90% government share.
4.5.6 Distribution System

Distribution system of any commodity/ service is very sensitive and important part for any
organization.T he distribution system should be short, efficient, less time consuming and
transparent as much as possible.
In order to meet the demand of telephone and related services throughout the country, NT has
established 285 exchange offices. In order to discharge the distribution functions effectively and
efficiently, the organization has divided whole of the national market in 6 regions and has

established regional directorates at the main business centres of the regions. There are 5 regional
directorates in 5 development zones of the country and one regional directorate is dedicated to
meet the huge telephone demand of the Kathmandu valley.
NT offers varieties of telecom services like land line telephone, GSM mobile telephone, CDMA
wireless fixed and mobile telephones, VHF, VSAT telephones, data lease line, internet and IN
services like PCC, PCL, AFS, HCD, SIP etc. The distribution systems of GSM and CDMA
wireless mobile phones are simple and so are the distribution systems of internet and various value
added IN services because detail site survey and specific installation processes at the customer’s
location are not required for them but the distribution system of PSTN land line is rather complex
due to the above detail survey and installation processes involved in it. Here I have attempted to
analyze the distribution system of PSTN line and have tried to investigate the lags/ gaps to be
covered up to make the system faster and more efficient so that the customers can get more
satisfaction aiding to improvement of the telecom service.
4.5.6.1 Objectives of PSTN Line Distribution system

1. To maintain the line inventory and distribution.
2. To distribute the telephone line in shortest time and properly.
3. To generate various reports for the higher authorities to control and support such as number of
telephones issued under different category – normal, priority or OYT.
4. To collect charges for telephone installation and pass the collection statement to the Revenue
department.
5. To ensure proper billing of the telephone lines by coding.
4.5.6.2 PSTN line distribution System in Nepal Telecom

The study covers the overall information system used in PSTN line distribution system. The study
entails the detailed description of the different documents including application form, survey order,
service agreement, Subscriber Identification & Signature Verification and installation order forms
and the entire line distribution process. Forms are attached as annex-2,3,4,5 and 6.
The study covers all the processes covering how it is handled, the flow of information and its
management according to the integrated system approaches.
The line distribution system in Nepal Telecom is quite sophisticated. Almost all of the major
offices (capacity greater than 5000) in the valley are working with computers with SD system
software. The offices outside of the valley use computers for MCC but they do not have SD system
implemented yet.

Provision of necessary guide lines and control is done by the regional directorates according to the
policies received from the operation and maintenance department located in the corporate office.
General status of PSTN Line Distribution

There are approximately 350,000 customers waiting for telephone connections. Nepal Telecom has
not been able to provide a telephone for them. The reasons are many:
NT has been transformed to company since 2060 B.S. Magh 22, 9 years back and still majority of
the board members are from the concerned ministries who think in traditional way. To fulfill the
demand huge procurement of the resources is necessary which demands for big budgets; the board
members from the ministries consider a lot of things parallelly and full budget sanction is not
possible. This situation was even worse in the government’s corporation period and hence, the big
backlog. The customers have been waiting even for more than 5 years in certain parts of the
country. However, there are places where the telephone is on demand. Here we discuss about the
general procedure for providing a telephone connection.
PSTN Line Distribution Trend in EDR and CDR

Line distribution system of NT outside the valley was targeted and for this Biratnagar and Birganj
were selected according to the directive of the supervisor. The capacity, distribution and waiters
are shown in table 4.14 & 4.15 and presented in graphs as chart 4.5& 4.6.
Table:4.14 Record of PSTN line Cap, Distribn and Waiters in Birganj
Line
S. Total Line No.of Spare
Fiscal Year Capacity Distributed Remarks
N. Distribn. Waiters Line
in the F.Y.
1 2057 -2058 12400 6453 8760 5947 N/W insuffic.
2 2058 –2059 12400 9063 2610 9279 3337
3 2059 –2060 12400 10799 1736 9992 1601
4 2060 –2061 12400 11651 0852 9763 749
5 2061 –2062 13900 11992 341 4644 1908 N/W insuffic.
6 2062 -2063 13900 12830 838 4693 1070
7 2063 –2064 13900 13366 536 4569 534
8 2064 -2065 14908 13163 till Chaitra 281 lines returned
9 2065-2066 13904 12964 86 207 lines returned
10 2066-2067 13904 12871 191 214 lines returned

11 2067-2068 13904 12771 264 100 lines returned
Chart:4.5 Capacity, Distribution and Waiters in NT office, Birganj
16000
14000
12000
10000
Capacity
8000 Total Line Distribn.
6000
No.of Waiters
4000
2000
0
2057 - 2058 2058 – 2059 2059 – 2060 2060 – 2061 2061 – 2062 2062 -2063 2063 – 2064
Table:4.15 Record of Line capacity, Distribution and Waiters in BRD
S.N. Fiscal Year Capacity Total Line Line Distributed No.of Waiters
Distribn. in the F.Y.
1 2063 – 2064 69480 58190 2300 50000

2 2064 – 2065
3 2065 – 2066 80796 62000 2288
4 2066 -2067 82808 65620 2538 30000
5 2067 – 2068 79452 67344 1724 300
Chart:4.6 PSTN Data of BRD as a whole
100000
Capacity
80000
40000
20000 Line Distributed in the
0 F.Y.
2063 - 2064 – 2065 – 2066 – 2067 - No.of Waiters
2064 2065 2066 2067 2068
Waiters of PSTN have diminished and service is on demand by F.Y.067/68. Also

public have got cheaper alternative telecommunication service – mobile telephony!
Table:4.16: Record of Line capacity, Distribution and Waiters in ERD
Total Line Line Distributed

S.N. Fiscal Year Capacity Distribn. in the F.Y. No.of Waiters

1 2063 –2064 91444 75882 5000 49791
2 2064 - 2065
3 2065 - 2066 111522 83298 4000 47246
4 2066 - 2067 115964 86643 3612 44699
5 2067 - 2068 119992 90150 4686 37940
From table 4.16 and chart 4.7 it is seen that there are enough waiters in eastern region
for PSTN line in spite of introduction of mobile line. It may be either due to people’s
faith on the quality of service of land line in ERD or the waiting list need to be
confirmed through public notice.
Chart:4.7: PSTN Data of ERD as a whole
140000
120000
100000
80000 Capacity
40000
20000 Line Distributed in the F.Y.
0 No.of Waiters
2063 – 2064 - 2065 - 2066 - 2067 -
2064 2065 2066 2067 2068
Information to be supplied in the application form for PSTN land line
1. Name of the applicant

2. Names of the applicant’s father and grand father
3. Addresses (permanent, temporary and address where line installation is required)
4. Citizenship number
5. Type of connection (permanent, temporary, casual -Charges differ for each type)
6. Type of line required: (Normal land line, VHF line, MARTS line, VSAT line)
7. Class of line ( Normal, Priority, OYT line – charges differ class wise)
8. Acceptance for publication in the telephone directory: Yes or No
9. Number of existing telephone(s) if any and the number(s)
10. Road map of the location where telephone line connection is sought.
11. Nearby telephone number where telephone connection is sought.
12. Acceptance of the rules and regulations of the company.
Fees and Charges scheme

Registration fee: NRs. 50/-
Line installation charge: NRs. 900/-
Deposit money: NRs. 1000/-
Ownership charge: NRs. 1500/-
Line transfer charge: NRs. 500/-
Drop wire charge: NRs.10/ meter
Criteria for Priority Line

Followings get priority in issue of line:
Govt. office, NGO, INGO, Recognized School or College, Recognized professional organization,
Diplomatic offices, Senior Govt. officers, Doctors, Engineers, Chartered accountants, Lawyers,
Journalists on recommendation of their respective organizations, Head masters, Lecturers and
Professors on recommendation of their respective organization, Contractors and others prioritized
by the board of the company.
Procedural Steps for distribution of PSTN line

1. The regional directorate or the concerned branch telecom office notifies to the customers in
waiting list regarding distribution of telephone line with required documents wherever network
and resources are available. The office, generally, require the following documents:
a) Nepali citizenship for Nepali customer and Identification document and recommendation
letter issued by the relevant embassy for foreigners.
b) Passport size photo.
c) Registration/ license of the business/ industry, VAT registration certificate and Tax clearance
certificate in case of priority telephone for the entrepreneurs.
d) Recommendation letter of the recognized professional organizations if the customer wants
telephone on that basis in priority.
2. The applicant contacts the sales section of the office along with the required documents. The
sales section checks out for the sufficiency and validity of the documents. It also verifies if the
applicant is black listed or not. If there is back dues due to discontinuity of bill payment on any
line already issued to the applicant or his family members then he has to clear out the dues.
3. If the customer is eligible to have a connection then the sales section prepares a Survey order in
a prescribed format (Annex -3) and produce before the office – in – charge. The office-in-

charge confirms out the documents, eligibility and issue order for survey to the outside cable
network section.
4. The outside section-in-charge deputes for Survey & Estimation work to a line installation
technical team which gets a good network pair and required material estimate for line
connection.
5. The M.C.C. section checks these data and enters them in the network database. In case it finds
any mismatch (like the pair(s) mentioned has already been reserved for someone else, may be
to a bad payer or to a new connection in process), it may return to check for other pair. The
M.C.C. section forwards this form to the switching section for allotment of an O.K. telephone
number.
6. The switching section allots good telephone switching equipment and sends its number to the
sales section for further processing.
7. The sales section calculates for the installation, deposit and subscription charges and notifies to
the client/ customer for payment within a certain time limit.
8. The client/ customer payment of the installation and other charges notified by the sales section
on the Revenue counter and produces the receipt bill to the sales section.
9. The sales section prepares the legal agreement (format attached as Annex-4) to be signed by
the customer and the office-in-charge. The agreement contains the details of the rules and
regulations to be observed and followed by the customer. At the same time it also gets
completed a Subscriber’s Identification and Signature Verification Card by the subscriber
(Annex-5).
10. The sales section prepares the Line Installation Order form (Annex-6) and produces before the
office-in-charge for check if the proper amount of charge has been paid or not and issue
installation order to the outside section.
11. The outside section-in-charge deputes a technical team for installation of the line at the
premises of the customer.
12. The technical team gets the initial meter reading of the telephone number (sometimes it may
not start from zero for several reasons like test number or returned/seized number) from the
switching section.
13. The technical team requests the MDF technician to jumper the outside pair to the switching
side pair located on the MDF to connect the switching equipment with the telephone set to be
installed at the customer’s premises via the outside cable network.
14. The technical team installs the line according to the survey report, gets the installation quality
acceptance of the customer and reports to MCC for record update.

15. The MCC files the survey and installation order forms, prepares installation summary report
and sends to the sales and revenue section for record keeping and service coding required to
generate monthly bill of the telephone number. The summary report contains following details
about the line installed:
Name and address
Installation date
Cabinet, DP and DP pair number
Meter reading of the tel. no.
Installation team identification
The above procedural steps in course of line distribution can be shown in the form of flow chart
4.8 as follows:
Chart:4.8 Flowchart of PSTN Line Distribution Process in NT

Start
Receive Application, check doc.

(Normal/ Priority) A
Sales sec.Issue installation order to

Outside Section
Are the applicant /
his family member B Outside Sec. sends Order Form to
black listed? Yes MCC for control and meter reading
from Switch Section
No
Is the order in on Put in queue Switch Section sends meter reading to
demand area? No Outside Sec. via MCC
Yes
Issue survey order
(Sales to Outside section) Outside Team goes to sites for
installation
C
Outside check the N/W
No
Testing OK?
resources availability
Yes
Is resource (P. P. & Customer Acceptance
Pending
S..P.) available?
No
Yes Report to MCC for Updating
Outside team estimates the drop wire Report to Sales sec. for Updating
and other required accessories
MCC sends records to Revenue

section monthly for billing
Conform the purpose
assigned N/W pair B
with the MCC C
record. No End
Yes
Assign tel number by switching section
Sales section issues letter to pay required

charges
(Deposit + installation charge +drop wire
Is payment done? Pending

No
Yes
A

DFD of PSTN Line Distribution Information System
Context Level DFD of PSTN Line Distribution information system
Context level DFD gives the bird’s eye view over the system. In the land line distribn system of
Nepal Telecom, there are basically six external entities: Customer, Sales Section, Outside Plant
Section, MCC Section, Switching Section and Revenue Section. (Chart 4.9) Each entity plays a
major role in the process of line distribution.
Chart:4.9 Context Level DFD of PSTN Line Distribn Info System of NT
Wait in queue
Customer Detail
Apply for telephone Verify as per notice
Customer Sales Section
Issue telephone
Issue survey Order &
line installation Order
Deny for telephone
Installation Report
Coding of the
Survey Order telephone for
PSTN Line
Survey Report billing
Outside Distribution
Section Installation Order Information Line Installation Revenue section
System Report
Installation of line
Survey & Installation orders for control
Request for Tel No & Meter Reading

Line Installation report
Control Survey & Install Jobs
Provide Tel No & Meter Reading

Request for initial meter
Update Network data and

Request Tel. No.
MCC Section
Switching
Section

Customers are the most important element for the company. The company earns bread and butter
out of them. They are the ones who come to subscribe the telephone services and thus are the
revenue generators of NT.
Sales section of NT offices notifies to the waiters for line installation in the area when it has
network resources ready. They receive the customers and check out the documents produced
before the office. The sales officer fills up survey and installation order forms in the name of the
subscriber and forwards via the office-in-charge to outside plant section for survey and installation.
Sales section calculates the charge to be paid against issue of the line. It makes legal agreement
with the customer in order to bind with responsibility for the line- regarding bill payment and
misuse thereof.
Outside Plant section supervises the cable network. It looks after the resources of MDF, cabinets
and D.Ps. It is responsible for installation and maintenance of PSTN lines. The section-in-charge
supervises the works of survey, installation and maintenance teams. It can be compared with our
limbs whose works are seen and by which the organization gets much of external environment
information and demand details. Their working style may attract or distract the customers.
MCC section controls and monitors the various activities performed by the technical teams
involved in surveying, installation, maintenance of lines. It calculates the time taken to perform the
jobs for evaluation purpose. It manages the database of the networks. The database contains
following network data:
1. Records of the cabinets – primary/ secondary pair capacities with OK/FLT status.
2. Records of D.Ps.- capacity (10/20 pair), used and vacant secondary pairs with status.
3. Names and addresses of the subscribers to whom the PP and SP have been allotted.
4. The team responsible for survey, installation and maintenance and time taken to do the jobs.
5. Fault repair details including time of clearing the faults with type of faults.
Switching section is responsible for the operation and maintenance of line equipments. It observes
the charging /meter of the lines. It issues the line facilities like STD, ISD, Locking codes and other
value added services. The section is very sensitive and complex in operation. It may be compared
with our heart and brain as it is responsible for all the processes involved in setting up our
telephone calls and completing it as successful calls.
Revenue section codes the telephone lines according to different categories- residential, business,
official, privileged service and non-service, privileged journalist etc. It collects the bill amounts
through its counters, monitors the revenue and follows up the bad debtors, if any. It is so important
for a company’s good economic health.

System level DFD of Line Distribution information system
System level DFD clearly defines the processes of PSTN land line distribution and the relation of
the external entities with the main processor.
Customers requests for telephone line and provides location detail and personal information to the
sales section. If the applicant produces the necessary documents and there is nothing against him
(her) and resources is available, it initiates for the line distribution otherwise puts him (her) in
queue or deny giving reasons. It also prepare bill for payment of charge process. The office-in-
charge coordinates with all other sections responsible for resource information. Customers may
also cancel their intention of getting line at any moment. Site survey and installation of line in the
customer’s premises – these two processes are performed by the outside section which receives
survey and installation order forms from sales section. It performs its functions in close
coordination with MCC and MDF sections. Processes like controls of operations like survey and
installation processes, generation of reports for management as well as preparation of summary
line installation report for billing purpose for revenue section are done by MCC. It also coordinates
with switching section for free telephone number and initial line meter reading. MCC maintains a
huge database comprising of all the network resources, line operation locations, and the user’s
detail. Revenue section completes the coding for billing process based on the data supplied by
MCC and other papers supplied by the customers, if any. It also maintains a database for the
revenue collection records. Allocation of telephone number and Reading of Initial Meter Reading
are performed by switching section.
The system level diagram is shown as chart 4.10.

Chart:4.10 System Level DFD of Line Distribn Info System of NT
Get Customer
Apply for Telephone 1 Application details
Verify from Survey Schedule Sales Section
Deny for Blacklisted blacklist and
Wait in Queue verify the location Inform to wait
as per notice
Issue Tel. No. Update
Sales
Issue Survey order

4 Prepare Bill Database
Ask for Payment Payment of

Customer Bill payment Charge
2
8 Site Survey to Survey Order
report for charging

Provide survey
check n/w Outside Section

Survey Report
Coding for resource
Billing
Survey Order
Issue installation Order

Coding of 3 Installation Order
Telephone for
billing Control of
operation Survey Control
MCC Section
Line Installation
Revenue
Control
Section
7 Update
Update Generate installation MCC
Revenue reports and various Database
Report
Database Generation Reports
Line Installation Report
Request for Installation with 6 Installation Report

bill payment reciept
Installation
Request for free Request for free

OK number OK number
5
Provide Tel No. Allocation Tel Provide Tel No. Switching
Provide initial No. and initial Provide initial Section
MCC Section meter reading meter reading meter reading
Request initial Request initial
meter reading meter reading Meter Reading
Switching
Database

Entity Relationship Diagram (ERD)
Data Dictionary System
The relationship between different entities have been shown in the preceding ERD diagram chart
4.11. The diagram depicts the relationships between different entities involved in the PSTN
telephone distribution system.
Chart 4.11 ERD of Entities involved in PSTN Line Distribn of NT
Date Team no.

Address DP No.
Cust.name Employee id Cust.name Cabinet no.
Cust. name Date
Sales site outside

Customer
request for
survey, sec. S / I
A
connection section team
Employee id Teleph. no.

SP number Cust. name
Employee id Initial.Meter
Cust. name PP number
A MCC Tel. no., Switching

section Meter? section
Employee id Codes
Cust. name Teleph.no.
MCC Installatn. Sales code for Revenue

section Charge ? section billing? section
From the chart 4.11 it is clear that relation between customer and sales section is many: 1
relation (so many customers contact one sales section) and so is the relation between sales section
and different teams of outside section. Relationship between outside section and MCC section,
switching and MCC and sales and revenue sections are 1:1.

Table:4.17 Data Dictionary
Entity: Customer Entity: Sales section
S.N. ATTRIBUTE TYPE S.N. ATTRIBUTE TYPE

1 Customer name TEXT 1 Customer name TEXT
2 Address TEXT 2 Employee Id NUM
3 Date NUM 3 Date NUM
Entity: Outside section Entity: MCC section
S.N. ATTRIBUTE TYPE

S.N. ATTRIBUTE TYPE
1 Customer name TEXT
2 Team number NUM
2 Employee Id NUM
3 Cabinet number NUM
3 PP number NUM
4 D.P. number NUM
4 SP number NUM
Entity: Switching section Entity: Revenue section
S.N. ATTRIBUTE TYPE The types S.N. ATTRIBUTE TYPE

1 Customer name TEXT of 1 Customer name TEXT
2 Employee Id NUM different 2 Employee Id NUM
3 Telephone number NUM data are 3 Telephone number NUM
4 Initial Meter NUM also 4 Code Lookup Wizard
shown in
the table of data dictionary table 4.17. The attribute ‘Code’ of the Revenue section entity is to
differentiate various types of telephone lines like normal, VHF, MARTS, VSAT, Privileged press
etc to implement different types of billing. Primary Key is the Customer name. The attributes and
their types of the entities are also given in table 4.17.
4.5.6.3 Objectives of Mobile Line (GSM/ CDMA) Distribution
1. To distribute mobile line to every hands of the people for fast development of the country
and increase safety while also on move.

2. To distribute the telephone line in shortest time and properly without giving much trouble
to the customers.
3. To maintain the line inventory and generate various reports to produce before the higher
authorities for control and support.
4. To collect charges for telephone and pass the collection statement to the Revenue
department.
The distribution of mobile line in NT is similar to that of Ncell and UTL with a slight difference
that line is approved by the office-in-charge forwarded by the sales section. Capacity and
distribution of GSM and CDMA lines are shown in table 4.18.
Table:4.18 Record of GSM & CDMA Line Cap & Distribn in ERD
Total Total Total CDMA

Line GSM Line Line Line Line
S. Distribn. Distributed capacity Distribn. Distributed
N. Fiscal Year Capacity GSM in the F.Y. CDMA CDMA in the F.Y.
1 2066 - 2067 10,00,000 6,16,862 2,08,923 3,00,000 2,17,034 73,425
2 2067 - 2068 11,95,703 7,71,584 1,51,551 3,00,000 2,36,309 39,430
4.5.7 Tariff Plan of NDCL
Table:4.19: Local Call Tariff of NT
S.N. Rs./minute Rs./minute S.N. Rs./minute

NT to NT 06am-10pm 10pm-6am 24 Hrs
1 Post paid GSM 1.00 0.55 5 NT to UTL 2.6
2 PSTN 1.00 6 NT to Ncell 2.5
3 Prepaid GSM 1.50 0.55 7 NT to STM 3.6
4 Prepaid 1.80 0.75 8 NT to 3.6
CDMA SmartTel
Table 4.19 shows the tariff rates of local calls made within and to other operators.

Table:4.20 Domestic Long Distance Calls Tariff of NT
18:00 – 22:00
S.N. Type of call 08:00 – 18:00 22:00 – 06:00
& 06:00-8:00
Rs./Minute Rs./ Minute Rs./ Minute
Call made from one district to
1 1 1 1
another within one Zone
2 National Zonal Calls (Sun – Fri) 2 1.5 1
3 National Zonal Calls (Sat) 1 1 1
Table:4.21 International Call Tariff (access code “00”) of NT
S.N. Countries Rs./minute

1 India, Pakistan, Bangladesh, Sri Lanka 12
2 Bhutan 15
3 Maldives 40
4 Afghanistan 24
5 Somalia, Falkland Island, Cuba, N.Korea, papua new Guinea, 80
Soloman Island, East Timor
6 Rest of the world except countries above mentioned 30
Table 4.20 &4.21 shows the tariff rates of STD and ISD calls of Nepal Telecom.
4.6 Analysis of Existing System of Ncell
4.6.1 Technology and Features of Ncell

Ncell is using HSDPA technology for internet/data service through 3G capable of 3.6 Mbit per
second online. It has planned to use HSPA add-on-technology to extend the speed further. Also it
has plan to start LTE which can provide internet access up to 100 Mbit speed. The CEO has
written in his blog on Aug 15, 2011 that average data download speed is 1.1 Mbit.
New Features/ Innovations
Ncell has introduced NGN technology claiming to have updated technology. It has introduced
BlackBerry facility. BlackBerry is leading wireless enterprise solution offered by Research In
Motion Ltd (RIM) that keeps professionals connected to people and information while on the go. It

provides wireless access to many applications including e_mail, corporate data, phone, SMS, web,
organizer features and multimedia features. It requires the use of special BlackBerry handset.
Quality Improvement Measures
Ncell claims that 90 % of its rural BTS sites have diesel generator as power back up to make
service more reliable. It has plan to implement power stabilizer, new type of batteries (short
recharge cycle) and replace DG by solar where place allows.
Services available:
Ncell Connect
Ncell Connect is a flexible internet service from Ncell using Data Card and Ncell data SIM to
access internet. Data Card is inserted in the USB port.
There are three packages available for this service- 500 MB package at Rs. 399 (80 paisa per MB),
1000 MB package at Rs.699 (70 paisa per MB) and 5000 MB package at Rs. 1999 (40 paisa per
MB). Without subscribing it costs Rs. 2 per MB.
Short Messaging Service (SMS)
Short text messages up to 160 characters can be exchanged with Ncell subscribers as well as
subscribers of other mobile operators within and outside Nepal. Charges for sending SMS from
Ncell to Ncell is Rs. 1.00 per message and from Ncell to other network is Rs. 1.27 per message
exclusive of taxes.
Mobile Internet
Depending upon the mobile device model capabilities internet connection can be had via different
protocols (WAP, GPRS, EDGE). There is provision of surfing the net, checking emails, using the
handset as modem to connect wireless internet to one’s personal computer, MMS, chatting and
downloading different applications. Charges for Data traffic is Rs. 0.006 per kb (upload and
download) at charging interval of 10 kb (exclusive of taxes).
Multimedia Messaging Service (MMS)
Messages including images, audio and video clips can be sent in addition to text to share captured
moments and experiences instantly. Charge for sending MMS from Ncell to Ncell is Rs. 3.00 per
msg exclusive of taxes.
Personal Ring Back Tone (PRBT)

PRBT service enables the person who calls one to listen to popular tunes instead of the regular
tones. It can also be sent as gift to anyone. Monthly charges for this service is Rs. 10 and tone
downloading charge is Rs. 10 per tone.

Voice Mail
It is a service , which answers ones calls automatically and allow callers to leave messages when
one is unable to answer the calls or when ones mobile phone is switched off. The mobile phone
alerts the owner of the message received. The voice messages can be listened using PSTN phone
with tone dialing. There is activation charge of Rs. 88.50 and for listening to the messages charges
are Rs. 1.99 per minute for prepaid and Rs. 1.60 per minute for postpaid (exclusive of taxes).
SMS-to-Email
SMS-to-Email service relays SMS as emails and the message is delivered to the recipient’s email
address. One can also receive emails sent to ones number as SMS.
Charges for this SMS-to-Email service for Pre-paid includes a monthly fee of Rs. 30 and Rs.1.00
per message and that for Post-paid monthly fee is exempted and Rs. 5.00 per message is charged.
Call Waiting
This service notifies one of another incoming call during a conversation and allows you to keep the
first caller on hold and answer the second call. This service is free.
International Roaming (Prepaid)
This service enables one to carry one’s cell phone with Ncell number while travelling abroad.
Ncell prepaid subscribers can activate/ deactivate roaming service via USSD. This service includes
SMS interworking, balance information and balance refill. Calls to Ncell centre are charged by
roaming partners as international calls to Nepal.
Call Forwarding or Call Divert
This service enables one to divert all one’s incoming calls to any other mobile number or to a
landline number of one’s office or residence when one is busy, out of reach, mobile switched off or
when talking on other line. Charges are according to calling rate.
Missed Call Notification
It is a service which enables one not to miss a single call even when one’s phone is switched off or
when one is out of network coverage. The mobile owner receives detailed SMS of all the missed
calls when the mobile is switched on or when s/he enters the network coverage area. Charge for
Missed Call Notification is Rs. 2.49 including VAT per week.
4.6.2 Mobile Line Distribution System of Ncell

It is explained with the help of self explanatory charts 4.12, 4.13, 4.14 and 4.15.
4.6.2.1 Flowchart for Mobile Line Distribn Information System in Ncell
Chart: 4.12 Flowchart for Distribn procedure of Mobile Teleph in Ncell

Start
Collect the
Application Form
N Application
filled up with
documents?
Check for SIM stock
N
Is there SIM Request to come
in stock? at a later date
Y
Send Customer to
Request to duly
Cash counter for
complete &
Charges
come later
N Reqd.
Charges paid
Y
Issue Mobile Tel No.
Stop
4.6.2.2 DFD of Mobile telephone Distribn Info System in Ncell
Context Level DFD

Chart:4.13: Context Level DFD for Mobile Distributn Info System in Ncell
Apply for Data service
Customer Detail
Apply for Mobile telephone Issue Data services.
Customer Prepare invoice Sales Section
Issue Mobile Tel no.
IssueMobile Tel no.
Deny for service
Sales Report
Collect cash for

Mobile Line Mobile Tel.no.
Distribution
Information Cash section
Cash Collection
System Report
System Level DFD
Chart:4.14: System Level DFD of Line Distribn Info System in Ncell
Get Customer
Check for the Distinguish Services Sales Section
Apply for Data Services documents
required and form
duly filled up
Update
Sales
4 Database
Prepare Bill

Request for Service with bill

payment reciept
6 Provide Mobile no. and
Issue Data Services Provision of Other Services
Mobile Tel no. and
Issue Tel. No.
Other Services
Revenue/ Cash
Section
7 Generate Sales and

Update
other various Reports
Revenue Report
Database Generation
Cash Collection Report
Ncell provides mobile lines based on GSM technology. The customer is required to approach the
sales counter of Ncell with any identification alongwith passport size photo and fee within

business hour. Nowadays, a copy of citizenship certificate or passport has been made compulsory
according to the instruction of NTA.
The sales counter produces an application form before the customer to be duly filled up which
contains the information about the customer and /or user (name, address, occupation, etc). The
form is verified by the sales officer and SIM is issued within minutes.
A sample of application form is attached as Annex-9A and 9B.
The detail distribution procedure depicting the different processes and the involved entities have
been shown in the following flowchart, DFDs and ERD.
4.6.2.3 Entity Relationship Diagram (ERD) for Ncell
Chart:4.15 ERD of Entities involved in GSM Line Distribn of Ncell
Teleph no.
Employee Id Date
Date
Address Teleph no.
Cust.name
Cust. name Cust.name
Date Employee id
request for Sales Service Cash

Customer Charge ? section
connection, section
The relationship between different entities have been shown in the ERD diagram chart 4.15. The
diagram depicts the relationships between different entities involved in the Mobile telephone
distribution system in Ncell. From the diagram it is clear that relation between customer and sales
section is many: 1 relation (so many customers contact one sales section) and so is the relation
between custom er and revenue section(counter). The types of different data are also shown in the
table of data dictionary below. Primary Key is the Customer name. The attributes and their types
of the entities are given in table 4.22.

Entity: Customer Entity: Sales Section

Entity: Cash Section 4 Telephone no. NUM
S.N. ATTRIBUTE TYPE

2 Employee Id NUM
3 Date NUM
4 Telephone No. NUM
4.6.3 Tariff of Ncell
4.6.3.1 Tariff for voice call

Tariff rates of local, STDand ISD calls charged by Ncell are shown in tables 4.23, 4.24 and 4.25.
Table:4.23 Local and STD Tariff in Ncell (Ramro Tariffs)
S.N. Type of all Rate in Rs.

1 Ncell to 3 Favourite numbers 0.99/ minute +VAT
2 Ncell to Ncell 1.99/ minute +VAT
3 Ncell to NTC GSM/CDMA mobile 2.53/ minute +VAT
4 Ncell to other network fixed lines (NTC PSTN, 2.13/ minute +VAT
NTC CDMA fixed, UTL CDMA fixed)
5 Ncell to other n/w within different districts of same zone 2.79/ minute +VAT
6 Ncell to other network within different zones 2.81/ minute +VAT
7 Ncell to LMS local charge 2.33/ minute +VAT
8 Ncell to LMS in different charging area 2.83/ minute +VAT
Table:4.24 International Roaming Operators CAMEL

S.N. Country Operator Local OG Callback to I/C call SMS
call (Rs.) Nepal (Rs.) (Rs.) (Rs.)
1 India Airtel (Delhi, AP, 134 271 240 55
UP west
2 Sri Dialog Telekom 46 256 81 33
Lanka Ltd
Table:4.25: Prepaid International Tariffs in Ncell
S.N. Name of Countries Rate in Rs.

1 USA, Canada 1.99/ minute
2 India 2.99/ minute
3 Bahrain, Bangladesh, China, Hongkong, Malaysia, 6/ minute
S.Arabia, Singapore, S.Korea, Thailand
4 Australia, Bhutan, Japan, Kuwait, Lebanon, 15/ minute
Pakistan, Qatar, Sri lanka,UAE, UK
5 Selected premium destinations for Australia and UK 48/ minute
Night Tariff : 10 pm to 6 am: Rs. 0.70/ minute
4.6.3.2 Packages and Prices of Internet & Data Services of Ncell
Table:4.26: Packages and Prices of Internet & Data Services of Ncell
Small Medium Large

Package 500 MB 1000 MB 5000 MB 10000 MB 20000 MB
Price Rs. 399 Rs. 699 Rs. 1999 Rs. 2999 Rs. 3999
Price per MB Rs. 0.80 Rs. 0.70 Rs. 0.40 Rs. 0.30 Rs. 0.20
Note: Without Subscribing browsing charge is Rs. 2 per MB. All charges are exclusive of taxes.
The data SIM costs Rs. 99 (incl. tax) including Rs. 50 balance to start with. There is free data card
offer worth Rs. 2258 at the purchase of 10 GB Ncell connect data package with validity of 30
days.
MMS: Ncell to Ncell Rs.3.00
Prepaid Data Services Tariff:

S.N. Rate per MSG
1 Ncell to Ncell Rs. 1 +VAT
2 Ncell to other NW Rs. 1.27 + VAT
3 International Rs. 10 + VAT
SMS 2 Email
Monthly Charge Rs.30 + VAT SMS to Email Rs. 1
Table:4.27 Normal Data Packages
S.N. MB Price (Rs.)+VAT S.N. MB Price (Rs.)+VAT

1 25 119 4 250 599
2 50 199 5 500 999
3 100 299 6 1000 1899
7 5000 8999
BlackBerry:
BlackBerry Internet Service (BIS Unlimited): Rs.999 per month
BlackBerry Enterprise Server (BES Unlimited): Rs.1499 per month
Ncell Special Scheme : Pro Plans
Premium: Includes 700 min Local calls/ 700 Nat. SMS/ 70 MB data:Rs.999/ month
Plus: Includes 300 min Local calls/ 300 National SMS/ 30 MB data:Rs.499/ month
Classic: Local calls Rs. 1.2 (to Ncell) Rs.1.5 (to Others), Local SMS Rs.1 within Nepal:
Rs.300/ month
All the Pro Plan charges are inclusive of all taxes.
Table:4.28 Unlimited Closed User Group
Rs./Per Line/ month+Tax No. of Lines Remarks

199 3 – 24 For frequently used numbers within
149 25 – 50 an organization or friend circle this
119 51 – 100 service may prove to be cheaper.
(Source: www.ncell.com.np)

4.7 Analysis of Existing System of UTL
4.7.1 Organization Structure of UTL

The organization structure is shown in the chart 4.16:
Chart:4.16 Organization Chart of UTL
United Telecom Ltd

Board Of Directors
Chief Executive Officer
Chief Technical Officer Chief Financial Chief Commercial

Officer Officer
General manager General manager General manager

Switching/ Core Network Account Marketting
General manager General manager General manager

Transmission/ Access Network Billing Customer Care
General manager
General manager
Information Technology Human Resource
A team of board of directors heads the organization. The Board is comprised of a chairman and
three members. The board decides about the major policies of the company. The chief executive
officer looks after the entire management and day-to-day operation of the company assisted by 7
general managers besides one chief financial officer and one chief commercial officer.
The general manager of switching/core network looks after MSC, IN, Gateway, CRTB etc. The
general manager of transmission/access network looks after the BSC, BTS, MW and Optical links.
The general manager of IT takes care of ISP, Internet (CDMA1X) (154 kbps), Broadband (upto 10
mbps) and Leaseline services. The general manager of human resource takes care of management
of manpower which involves new recruitment, transfer, promotion, punishment and rewarding etc.
The general manager of marketing is responsible for business promotion, launching of new
services etc. The general manager of customer care deals with the sale of services and products and

their post sales services. The chief financial officer operates and controls the budget as well as
controls the collection of revenue.
4.7.2 Growth Trend of UTL
Table:4.29 Growth Trend of UTL
Human Resource 2004/05 2005/06 2006/07 2007/08 2008/09

Working Manpower 78+250
Manpower per 1000 line 2.8
Technical 2004/05 2005/06 2006/07 2007/08 2008/09
Districts Covered 3 3 5 14 14
Cities Covered 3 3 5 16
Distributed Teleph Lines 27500 66500 91940 116972 163636
Financial 2004/05 2005/06 2006/07 2007/08 2008/09
Total Income (Mill. Rs.) 82.37 163.3 543.4 590.94 643.8
Total Cost (Mill. Rs.) 280.3 413.7 401.7 414.45 386.36
PBT (Million Rs.) (430.38) (4.89) 16.89 4.36 (18.3)
Net Profit (Mill. Rs.) (430.38) (4.89) 16.89 4.36 (18.3)
EBITDA Margin (Mill. Rs.) (3.58) 54
No. of Shares (in Million) 272 13.6
Traffic Handled
Local (Million minutes) 186 324 406 412
DLD(Million minutes) 18 27 48.27 62.6
ILD(Million minutes) 5.42 11 46.6 70.1
License Fee 65.79 77.37 55.27 42.93 31.1
The table 4.29 shows the progress of UTL is very slow and is running in loss.
4.7.3 Products Offered with Fees and Charges Scheme in UTL

Products in sale/ service:
A. Fixed wireless terminal connection
B. CDMA RUIM cards (USIM)
A. CDMA Fixed Wireless Terminal Connection:
• Cost of Connection: Rs. 3650

• UTL-UTL Talk Value: Rs. 200/- per month for a period of 18 months
• UTL-Other Network Talk Value: Rs. 50/-
• Validity of Connection: 19 Months
• Warranty for set is 3 Month
B. Two types of USIM are available: 1. Voice USIM 2. Data USIM

1. Voice SIM
• Cost of Connection for Voice SIM is Rs. 267 inclusive of VAT.
• Free UTL-UTL talk value will be Rs. 1,200(Rs.100*12 Month).
• Initial Talk Value for Other Network will be Rs. 5.
• Free UTL-UTL SMS will be 600(50*12 Month).
• Data Service is not available in the voice SIM.
2. Data SIM
Four different types of Data Plan are available for USIM Data Subscriber. Different plans
available are:
• Unlimited 24 hour surfing for 1 month
• Unlimited 24 hour surfing for 1 year
• Unlimited night surfing (8 pm to 8 am) for 1 month
• Unlimited night surfing (8pm to 8am) for 1 year
1. Unlimited 24 hour surfing for 1 month
• Cost of Connection is Rs 848.
• 1 month internet free.
• Activation charge for each month is Rs 565 (Rs 500 + 13% VAT)
2 .Unlimited 24 hour surfing for 1 Year
• Cost of Connection is Rs 5933
• 1 year internet free
• Activation charge for each year is Rs 5650 (Rs 5000 + 13% VAT)
3 . Unlimited night surfing (8 pm to 8 am) for 1 month
• 1 month internet free
• Activation charge for each month is Rs 339 (Rs 300 + 13% VAT)
4 . Unlimited night surfing (8 pm to 8 am) for 1 year

• 1 year internet free
• Activation charge for each year is Rs 3390 (Rs 3000 + 13% VAT)
NOTE:
Once initial free internet period is over, one can recharge with ordinary UTL's recharge card
available in any UTL's outlet so that his/her balance becomes equivalent to the activation charge.
Once one is connected to the internet after recharge, His/her balance will get deducted by the
activation amount and S/He will get the uninterruptable internet service for the next cycle.
4.7.4 Line Distribution System in UTL
4.7.4.1 Procedural Steps for WLL Line Distribution in UTL

The distribution procedure is shown in charts 4.17, 4.18, 4.19 and 4.20. The procedural steps can
be summarized in following points:
1. The customer care centre asks the customer to fill up an application form (annex-10). The
customer needs to submit, generally, the following documents alongwith the application
form:
a) A copy of citizenship for Nepali customer or a copy of passport for a foreign
customer or copies of license and income tax registration certificate for
organizations, government and non government offices.
b) Passport size photo of the customer.
2. The applicant contacts the sales section of the office along with the required documents.
The sales section checks out for the sufficiency and validity of the documents. It also
verifies if the applicant is black listed or not. If there is back dues due to discontinuity of
bill payment on any line already issued to the applicant or his family members then he has
to clear out the dues.
3. The sales section calculates for the installation, deposit and subscription charges and
notifies to the client/ customer for payment within a certain time limit on the cash counter.
4. The customer needs to pay the fees/ charges as required by the company.
4.7.4.2 Flowchart of WLL Line Distribution System in UTL

Chart:4.17 Flowchart for Distribution of Mobile RUIM in UTL
Start
Collect the
Application Form
Application filled
up with
documents?
Check for RUIM

stock
Is there RUIM Request to come

in stock? at a later date
Send Customer to
Request to duly Cash counter for
complete & Charges
come later
Reqd. Charges
paid up?
Issue Mobile Tel

No.
Stop
5. The sales section prepares the Line Installation Order form and produces before the office-
in-charge for check if the proper amount of charge has been paid or not and issue
installation order to the line installation section.

6. The customer contacts the installation section of the office.
7. The technical team of installation section collects the required set and other installation
materials and gets the initial meter reading of the telephone number (sometimes it may not
start from zero for several reasons like test number or returned/seized number) from the
switching section.
8. The installation section prepares installation summary report and sends to the sales section
for record keeping.
4.7.4.3 DFD of Line Distribution System in UTL
Context Level DFD in UTL
Chart:4.18 Context Level DFD of Line Distribution System in UTL
Wait in queue
Customer Detail
Apply for telephone Prepare invoice
Customer Sales Section
Issue telephone line
Issue installation order
Deny for telephone
Installation Report
Survey Order Collect cash for

PSTN Line telephone for
Survey Report installation
Installation Distribution
Installation Order Information Cash section
Section Line Installation
System Report
Survey & Installation orders for control
Request for Tel No & Meter Reading

Line Installation report
Provide Tel No & Meter Reading

Update data for maintenance
purpose
MCC Section
Switching
Section

System Level DFD in UTL
Chart:4.19 System Level DFD of Line Distribn Info System in UTL
Get Customer
Verify from Survey Schedule Sales Section
Deny for Blacklisted blacklist and
Wait in Queue Coverage area Inform to wait
Issue Tel. No. Update
Sales
Issue Survey order

4 Prepare Bill Database

2
8 Site Survey to Survey Order
report for charging

Provide survey
check n/w Installation

Survey Report
Coding for coverage area Section
Billing
Survey Order
Issue installation Order

Coding of 3 Installation Order
Telephone for
billing Control of
operation Survey Control
MCC Section
Line Installation
Revenue/ Cash
Control
Section
7 Update
Update Generate installation MCC
Revenue Report reports and various Database
Database Generation Reports
Line Installation Report
Request for Installation with 6 Installation Report

bill payment reciept
Installation
Request for free Request for free

OK number OK number
5
Provide Tel No. Allocation Tel Provide Tel No. Switching
Provide initial No. and initial Provide initial Section
MCC Section meter reading meter reading meter reading
Request initial Request initial
meter reading meter reading Meter Reading
Switching
Database

4.7.4.4 Entity Relationship Diagram (ERD) in UTL
Chart:4.20 ERD of Entities involved in CDMA Fixed Line Distribn of UTL
Date Employee Id
Address Teleph no.
Date
Cust.name Cust.name Teleph no.
Cust. name Date Employee id
Sales Installation Cash

Customer
request for
Charge ? section A
connection, section
Team id
Teleph.no.
Cust. name Cust. name Teleph. no.
Date Employee
Addres Employee
Cust. name Teleph no. s Initial.Mete
A Installation Data MCC Tel. no.,

Meter?
Switching
section section section
record
The relationship between different entities have been shown in the ERD chart 4.20. The diagram
depicts the relationships between different entities involved in the WLL telephone distribution
system. From the diagram it is clear that relation between customer and sales section is many: 1
relation (so many customers contact one sales section) and so is the relation between customer and
revenue section(counter). The relationship between sales section and technical section is 1:1.
Primary Key is the Customer name. The various entities with attributes and types of data are
shown in the table 4.30.
Entity: Customer Entity: Sales Section

4 Coding NUM
Entity: Cash Section Entity: Installation Section

2 Employee Id NUM 2 Team Id NUM
4 Telephone No. NUM 4 Telephone No. NUM
Entity: MCC section
Entity: Switching Section
S.N. ATTRIBUTE TYPE

S.N. ATTRIBUTE TYPE
2 Employee Id NUM
2 Employee identity NUM
3 Telephone number NUM
3 Telephone number NUM
4 Initial Meter NUM
4 Address of Teleph NUM
4.7.5
Tariff Plans of UTL:
Table:4.31 Domestic Tariff for HHT Prepaid/ Postpaid/ FWT Prepaid/ FWT
S.N. Call Type Rate/ Pulse

1 UTL-UTL(any where in Nepal) 0.99
2 UTL to Other Networks (NDCL, Ncell, STM, Smart Tel) 1.5
anywhere in Nepal
Tariff rates for local call within the lines of UTL and to lines of other operators are
cheaper as shown in table 4.31. Tariff for ISD calls are shown in table 4.32. From the
table it is seen that the tariff depends on the types of resources/ links; calling via
‘1220’ code is cheaper than that of calling via ‘00’ code. The tariff also varies
according to time: busy hour or slack hour. The rates of UTL are cheaper in
comparision to that of NT.
(Source:www.utlnepal.com)

Table:4.32 ISD Tariff of UTL
Time Slab 08:00-18:00 18:00-22:00, 22:00-6:00 Rate/Pulse

6:00-8:00
Countries Rate/Min Pulse Rate/Min Pulse Rate/Min Pulse
With Dialling Code 1220
USA, Canada, 2.59 0 2.59 0 2.59 0 2.59
China, Singapore,
HongKong
Thailand, Malaysia, 4 60 4 60 4 60 4
S.Korea,
Bangladesh &
Macau
Bahrain 6 60 6 60 6 60 6
Taiwan & Pakistan 8 60 8 60 8 60 8
Sri Lanka, Japan, 10 60 10 60 10 60 10
Russia, Kuwait
Saudi Arabia& 12 60 12 60 12 60 12
Qatar
With dailing Code 00
India 6 10 6 10 6 10 1
China 7 8.57 7 8.57 7 8.57 1
USA, Canada, 8 7.5 8 7.5 8 7.5 1
Malaysia,
Singapore &
Hongkong
SAARC except 15 4 15 4 15 4 1
India
Rest of the World 15 4 15 4 15 4 1
4.8 Comparision of Quality of Service
4.8.1 QOS Offered by the Companies in India

Comparative Performance of Telecom Service Providers in Delhi Service Area, Key Quality of
Service Parameters for Quarter Ending September 2011 as recorded according to Telecom
Regulatory Authority of India, Mahanagar Doorsanchar Bhavan for mobile and fixed land lines are
shown in tables 4.33 - 4.37 and charts 4.21-4.25.
Table:4.33 QOS of Cellular Mobile Telephone Service in India

Name of QoS Parameters (Benchmark)
Service Connection Maintenance Resolution of
Provider Base Stations Accessibility: (Retainability) billing/
Accumulated % of calls Call Drop Rate % age charging
downtime: Non made by %age of of call complaints
availability of subscribers established with resolved
network in a and successful calls getting good within 4
month in % within disconnected voice weeks (100%
(=2%) operator’s due to network quality within 4
network problems (=95 %) weeks)
( =95%) (=2%)
Aircel 0.15 98.03 0.91 97.22 100.00
Bharti Airtel 0.01 99.86 0.64 99.00 100.00
Etisalat 0.01 97.99 1.52 96.02 100.00
Idea 0.11 99.63 0.85 98.09 100.00
MTNL 0.43 97.36 1.68 97.86 100.00
MTNL-CDMA 1.63 98.78 1.69 98.87 100.00
Table:4.34 QOS Basic Telephone Service (Wire line) in India
Name of the QoS Parameters (Benchmark)

service Fault incidence: Fault Repair: % of Mean Time to Resolution of billing/
provider No of faults per fault repair within Repair: the charging complnts:
100 subscribers one day of booking average time % of billing
per month (=5) (=90%) taken to repair a resolved within 4
fault. weeks (100% within
(=8 Hrs) 4 weeks)
Bharti Airtel 2.14 96.05 5.77 89.32
MTNL 6.06 81.05 7.10 92.08
RCOM 0.33 100.00 2.22 100.00
TTSL 0.23 85.81 15.07 100.00
• *The audited data pertains to the audit period July’11 to Sept’11

• (Issued in Public Interest by TRAI)

Key Performance Indicators Comparision of GSM in India
Table:4.35 KPI Comparision of MTN, Globacom, Etisalat and Airtel, India
Month CSSR (> 98%) TCH Congestion (< 2 %)

MTN Globacom Etisalat Airtel MTN Globacom Etisalat Airtel
Jan
Feb 92 97.5 98 96 3.9 3.15 1.35 1.15
Mar 94 97.7 98 96 4.5 2.4 1.1 0.8
Apr 96 96 98 96 2.5 1.8 1.6 0.9
May 97 97.7 98 95 1.1 2.1 1.65 1.25
Jun 97.5 96 98 94 2 1 1.5
Jul 97.5 96 98 94 0.8 1.4 1.3
Aug 96 95 98 96 1.2 1.25 1.5 1.2
Sept 97 94 98 96 1.6 1.25 1.8 1.1
Oct 97.5 95 98 94 1.4 3.2 1.7 1.45
Nov 98 94.5 98 97.7 1 2.8 1.75 0.6
Dec
Chart:4.21 Performance of TCH Congestn of MTN, Globacom, Etisalat and Airtel
5
4.5
4
3.5 TCH Congestion (< 2 %)
MTN
3
TCH Congestion (< 2 %)
2.5 Globacom
2 TCH Congestion (< 2 %)

Etisalat
1.5 TCH Congestion (< 2 %)
1 Airtel
0.5
0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Chart:4.22: Performance of CSSR of MTN, Globacom, Eitisalat and Airtel
100
98
96
CSSR (> 98%) MTN
94 CSSR (> 98%) Globacom
92 CSSR (> 98%) Etisalat
CSSR (> 98%) Airtel
90
88
Table:4.36 KPI of MTN, Globacom, Etisalat and Airtel co.s of India

Month SDCCH (< 0.2 %) Drop Call Rate ( < 2 %)
Feb 1.15 1.35 1.4 2.05 1.2 1.3 0.85 1.2
Mar 1.45 0.9 1.5 1.6 1.3 1.4 0.84 1.2
Apr 1 2.65 0.81 1.2 1.25 1.35 0.8 1.3
Jun 0.61 1 1.1 2.5 1.25 1.49 0.8 1.51
Jul 0.52 0.9 1.39 1.51 1.27 1.5 1.6 0.75
Aug 0.54 1.7 1.62 1.49 1.35 1.65 1.1 1.2
Sept 0.63 1.5 1.8 1.52 1.4 1.4 1.1 1.1
Oct 0.62 1.3 1.58 3.05 1.4 1.5 1.1 1.2
Nov 0.48 1.4 1.78 0.35 1.98 1.35 1.1 0.85
Chart:4.23: Performance of SDCCH of MTN, Globacom, Etisalat and Airtel

3.5
3
2.5
SDCCH (< 0.2 %) MTN
2
SDCCH (< 0.2 %) Globacom
1.5 SDCCH (< 0.2 %) Etisalat
1 SDCCH (< 0.2 %) Airtel
0.5
0

Chart:4.24 Performance of CDR of MTN, Globacom, Etisalat and Airtel
2.5
2
Drop Call Rate ( < 2 %)
MTN
1.5 Drop Call Rate ( < 2 %)
Globacom
1 Drop Call Rate ( < 2 %)
Etisalat
Drop Call Rate ( < 2 %)
0.5 Airtel
0
Table:4.37 KPI of MTN, Globacom, Etisalat and Airtel co.s of India
Month CCR ( > 96 %) Month CCR ( > 96 %)

Feb 90 95 96 92 Jul 94 94 96 91
Mar 87 95.5 96 92 Aug 91 93.5 96 94
Apr 90.5 94 95.5 92 Sept 93 94.5 95.5 94
May 94 94.5 96 91.5 Oct 94 94 96 92
Jun 94.5 94 96 91.5 Nov 95 94.5 96 96
Chart:4.25 Performance of CCR of MTN, Globacom, Etisalat and Airtel
98
96
94
92 CCR ( > 96 %) MTN
90
CCR ( > 96 %) Globacom
88
CCR ( > 96 %) Etisalat
86
CCR ( > 96 %) Airtel
84
82
Sept
Oct
Dec
Jan
Mar
May
Jun
Nov
Jul
Feb
Apr
Aug

4.8.2 Quality of Fixed Line Service in Nepal
Fixed line is provided by two technology – PSTN (wireline) and WLL (wireless). 72.56% of fixed
line is served by PSTN system. The quality of service of PSTN line is measured by the fault
complain per hundred subscriber. Nepal Telecom is the dominant provider of PSTN fixed line with
99.06% market share. Accounting the WLL technology fixed line NT has 90.06% share in fixed
line. Standard for fault per hundred subscriber has been fixed at 8 lines per hundred subscriber by
NT. The fault rate in ERD and BRD can be seen to be within standard from the tables 4.38 & 4.39.
However, the fault rate/ complaint rate is on increase that indicates that quality of service is on
decreasing trend. Fault rate in the Birganj region has exceeded the limit! Due to decrease in quality
of service PSTN lines were being returned back from F.Y.2064 upto F.Y.2067. The decrease in
PSTN quality is thought to be due to network getting old and escaping tendency of technicians.
The data for quality of service of PSTN in eastern and central region of Nepal can also shown by
graph 4.2 & 4.3. Data was not available for F.Y. 2064/65 which has distorted the actual picture.
Table:4.38 Fault Rate of PSTN Lines under ERD
F.Y Compl/100 F.Y Compl/100

2063 – 2064 4 2066 – 2067 6.58
2064 – 2065 3.52 2067 – 2068 6.85
2065 – 2066 4.50
Graph:4.2 Fault Rate of PSTN Lines under Eastern Reg Directorate
Complaint/100
8
7
6
5
4
Compl/100
3
2
1
0
2063 - 2064 2064 - 2065 2065 - 2066 2066 - 2067 2067 - 2068
Table:4.39 Fault Rate of PSTN Lines under Birganj Reg Directorate

F.Y Compl/100 F.Y Compl/100
2063 – 2064 5.46 2066 – 2067 7.10
2064 – 2065 3.90 2067 – 2068 8.50
2065 – 2066 5.81
Graph:4.3 Fault Rate of PSTN Lines under Birganj Reg Directorate
Complaint/100
10
8
6
4
Compl/100
2
0
2063 - 2064 - 2065 - 2066 - 2067 -
2064 2065 2066 2067 2068
Compared with the performance of other operators in the neighbouring countries (table 4.34) it is
seen that Nepal is quite behind in QOS of wire line (land line). The fault rates of Bharti Airtel,
MTNL, RCOM and TTSL were seen to be 2.14, 6.06, .33 and .23 respectively where as that of NT
(table 4.38 & 4.39) were seen between 3.5 and 8.5. Similarly the percentage of faults repaired
within 24 hrs were found to be between 81 and 100 where as that of NT between 10 and 25% only!
4.8.3 Quality of Mobile Service in Nepal

The mobile service is provided using two technology in Nepal – GSM and CDMA. The quality of
GSM as well as CDMA mobile service can be evaluated in terms call drop rate, paging response,
call completion ratio and answer seizure ratio.
4.8.3.1 Quality of GSM mobile Service
There are two operators using GSM technology for mobile service – NT and Ncell.
Quality of NT mobile Service

The call drop rate should not exceed 5%- the lower the better. The call drop rate were seen to be
below 2 in ERD that are within limit. Paging response are seen between 70% and 75% which were
also more than the standard of 60% and this parameter was also met. Call completion ratio should
be more than 50% for acceptable performance; the call completion ratio were found to be between
70 and 79 meeting the standard. ASR should be greater than 15% . ASR was 14.22 in F.Y. 2066-
67 which was not acceptable but it was found to have met the standard in the F.Y.2067/68 (Table
4.40).
Table:4.40 KPI Indicator of GSM Mobile Service in ERD
F.Y. Call Drop Paging Response Call Completion ASR (>15%)

Rate( <5%) (>60%) Ratio (>50%)
2066 – 2067 1.83 70.16 70.6 14.22
2067 – 2068 0.95 75.4 78.83 15.26
The QOS of GSM service of NDCL in BRD region was also seen to have met the standard
according to the KPI report taken from Hetauda BSC of NT (Table 4.41).
Table:4.41 KPI Indicator of GSM Service in Birganj Reg Directorate

[iBSC10 CDR KPI Weekly Report (Busy Hour: 18:00 to 19:00)]
SDCCH TCH TCH TCH

SDCCH Hand Call SD
in in assign total
IBSC in over setup Assign
congesti service failure traffic
MEID service success success Success
on rate rate rate number
rate (%) rate(%) rate Rate
(%) (%) (%) (erl)
24-Jan-12 iBSC10(5) 85.54% 3.44% 80.10% 92.84% 2.10% 82.33% 96.28% 6398.785
25-Jan-12 iBSC10(5) 84.06% 3.89% 78.97% 92.53% 1.67% 82.95% 95.46% 6269.375
26-Jan-12 iBSC10(5) 89.52% 0.62% 84.25% 92.69% 1.84% 89.17% 96.22% 6292.588
27-Jan-12 iBSC10(5) 88.52% 0.93% 4.16% 91.13% 2.20% 87.85% 96.91% 6364.696
28-Jan-12 iBSC10(5) 86.35% 1.72% 82.69% 89.36% 2.37% 84.24% 96.81% 6254.793
29-Jan-12 iBSC10(5) 89.06% 0.85% 85.11% 91.92% 2.12% 87.30% 95.99% 6500.531
30-Jan-12 iBSC10(5) 88.98% 1.81% 84.97% 92.50% 1.99% 87.10% 96.68% 6165.68
31-Jan-12 iBSC10(5) 88.32% 2.60% 83.76% 91.64% 1.93% 83.01% 96.47% 6210.058
Quality of Ncell GSM mobile Service

The table 4.42 & 4.43 give general views of certain parameters out of which TCH congestion rate,
Handover success rate, Network availability, Drop out, Call set up rate reflects the quality of
service of mobile line. The QOS of Ncell is seen OK.
Table:4.42 General View of GSM Service of Ncell
Table:4.43 General View of GSM Service of Ncell
Performance of 2 G Network of Ncell

Availability of 2G service of Ncell in the month of August 2011 has been recorded as in graph
4.4. The graph indicates that 2G performance of Ncell is OK.
Graph:4.4 2G Network Availability of Ncell
The standard for availability has been fixed between 93% and 99 %. On 2 days network
availability was seen to be 96%. Thus the network availability for 2G service can be taken as OK.
Lower values (marked in red circles) were due to transmission and MUX card problems.
Performance of GSM mobile service of Ncell

Traffic and TCH drop rate indirectly indicates the performance of the service. When the signal
strength is low or there is hardware problem due to failure of cards or there is bad connection (loss
of signal/ high error rate) the traffic channel is released and the call is dropped and consequently
the traffic is also dropped. Maximum TCH drop rate is fixed at 2% and maximum traffic is fixed at
10,000 Erlang in Ncell. The graph 4.5 shows the TCH drop rate in Ncell and is within standard of
2%.

Graph:4.5 Traffic and TCH Drop Rate in Ncell
Data Service of Ncell
Performance of GSM Mobile Data Service of Ncell in the month of August of 2011 AD has been
produced in graph 4.6 . Speed recorded during the month varied from about 1055 kbps to 1135
kbps. Data service has become very essential part of our requirement. Speed made available may
be taken to be OK.
Graph:4.6 Performance and Quality of Data Service

Performance of 3G Service of Ncell
Availability of any service is important for its performance and quality. Availability of 3G service
of Ncell in the month of August 2011 has been recorded and shown in graph 4.7. On 2 days
network availability was seen below 99%. Thus the network availability for 3G service can be
taken as OK.
Graph:4.7: 3G Network Availability of Ncell
Graph:4.8: 3G Performance and Quality of Ncell
The graph 4.8 shows that the call drop rate is below the std 2% and Call set up success rate is
above 98%(std) value for 3G service which are OK.

No MIS publication seen Ncell. MIS is so helpful for the employees at all levels to perform as well
as evaluate their works. Mismatches, deficiencies in the different resources can be found out easily
and in time.
Comparision of GSM Mobile Service of Operators in Nepal
Mobile telecommunications service based on GSM technology is being operated by NT and Ncell.
The quality parameters (Key Performance Indicators,KPIs) of the GSM mobile service of both the
companies were compared and are put in the table 4.30. This shows that quality of service of Ncell
is better than that of NT.
Table:4.44 Comparision of QOS between Ncell and NT
Call Set up Success Handover Success Call Drop Rate TCH Congestion
Rate (>98%) Rate (<5 %) Rate (<2%)
Ncell NT Ncell NT Ncell NT Ncell NT
99.42 85.64 97.18 91.75 0.58 0.95 2.17 2.05
Comparing the performance of mobile service with that in India (table 4.33, tables
4.35, 4.36 & 4.37 and graphs 4.21- 4.25) it is found that call set up success rate of
MTN, Globacom, Etisalat and Airtel companies in India lies between 95.5% and
98%. NT doesn’t compete in this parameter and has to improve. Similarly, call drop
rate in the above Indian operators lies in between 1.011% and 1.727%. Ncell and NT
both have less than 1% call drop rate and can be said to be better. Similarly, TCH
congestion rate of above Indian operators ranges from 1.125 to 2.075 and NT and
Ncell have this rate more than 2% as seen from table 4.44 which is NOK.
Comparing the performance of mobile service with that of Celtel, MTN, Glo and M-
Tel companies of Nigeria it is seen that their CSSR are 57.3%, 85.9%, 94.1% and
89.9% respectively. Similarly, their CDR are 64%, 67%, 64% and 71% respectively.
Likewise, their CCSR are 36%, 33%, 36% and 29% respectively. Looking over these
figures, QOS of mobile service can be taken as better in Nepal.
(Source:www.jiti.net)

4.8.3.2 Quality of CDMA service
NT and UTL provide mobile service based on CDMA technology. The quality of
CDMA service can also be evaluated in terms call drop rate, paging response, call
completion ratio and answer seizure ratio and the standards are same as for GSM. The
CDMA service of NT has met the standard and the quality of service is OK. The
relevant data can be seen in table 4.45.
Data for quality of service could not be obtained from UTL. It can be judged from
feedback of the informants contacted that is mentioned under field survey result.
Table:4.45 Quality of CDMA mobile Service in ERD of NDCL
F.Y. Call Drop Rate Paging Response Call Completion ASR (>15%)
(<5%) (>60%) Ratio (>50%)
2066 – 2067 2.08 90.43 73.94 22.39
2067 – 2068 2.17 91.5 79.3 24.74
4.9 Comparision of Tariff Rates

4.9.1 Tariff Rates in Other SAARC countries
Tariff Rates in Sri Lanka
Table:4.46 Typical Tariff Rates in Sri Lanka
Company Scheme Call Type Rate (Home) Rate(Office)

Active Leisure Upto Beyond
Hr rd
Hr 3 min. 3rd min.
Sri Lanka Voice only SLT to SLT 1.90 1.00 1.90 1.00
Telecom SLT to Other 2.90 2.00 2.90 2.00
Voice+BB SLT to SLT 1.70 1.00 1.70 1.00
Internet or TV SLT to Other 2.70 2.00 2.70 2.00
Voice+BB SLT to SLT 1.50 1.00 1.50 1.00
internet + TV SLT to Other 2.50 2.00 2.50 2.00

Tariff Rates in India
Table:4.47 Typical Tariff Rates in India
Vodafone Type of Service Charges Type of Service Charges

India Local OG 1.00 Satellite Calls 550
STD OG 1.50 USA, SE Asia, UK 6.4
SMS(National/ 1.5/3.45 China, Russia, S.Africa, 10
International) Egypt
Incoming 1.00 OG Vodafone to Vodafone 0.015
To Landlines 0.02
The table 4.47 shows there is great variation in tariff rates of STD and ISD calls via
satellite where as Local calls are very cheap in India.
Tariff Regulation in Pakistan
Pakistan Telcommunication Authority (PTA) has set a cap of PKR500 and PKR750
respectively for new wireline connection charges in rural and urban areas
respectively, with monthly line rental at maximum of PKR199. The PTA has also
capped calling rates, with calls to on-net and off-net fixed line numbers to be set at
PKR1 per minute and PKR2 per three minutes respectively. Lon-distance calls have
to be charged no more than PKR1 per minute (on-net) or PKR2 per minute (off-net).
Fixed to mobile calls have to be charged at no more than PKR2.50 for both local and
long-distance calls.
Tariff Regulation in Bangladesh
In Bangladesh, liberalization of the mobile phone sector led to large increases in the
accessibility of telecommunications to consumers due to low tariff costs. Bangladesh
Telecommunication Regulatory Commission (BTRC) has been able to fix call
charges for all cellular phone operators and has been able to bring all the companies
under a uniform regulatory framework. Average tariff rate year wise can be seen in
Table 4.1 (Article 4.2.1). The tariff rate is clearly seen to be decreasing year after
year.

4.9.2 Comparision of Tariff in Nepal
4.9.2.1 Comparision of Local and Domestic Call Tariff

Table:4.48: Comparision of Local and Domestic Call Tariff
Company Rate Rate

(Rs./min)
Rs./min)
UTL UTL – UTL 0.99 UTL- Other NW 1.5
NT NT – NT (PSTN, Postpaid) 1.00 NT GSM Prepaid – Ncell 2.5
NT – NT(GSM Prepaid) 1.50 NT GSM/CDMA Prepaid – UTL 2.6
NT – Prepaid CDMA 1.80 NT GSM/CDMA Prepaid – STM 3.6
NT GSM/CDMA Prepaid –SmartTel 3.6
Ncell Ncell – Ncell 1.99 Ncell - NTC GSM/CDMA 2.53
Ncell - other nw fixed lines local2.13
Ncell- other nw within diff. zones2.81
Ncell - LMS in diff. charging area
2.83
Looking over the tariff table 4.48 for local and domestic calls, Ncell is seen comparatively costlier
although it has not been criticized seriously yet by the people.
Rates of National/ STD and International ISD calls have gone down tremendously compared to the
past times when there was no competition and no VOIP telephone service. However, comparing
among NT, Ncell and UTL, UTL is seen to be selling service at cheaper price although UTL is not
able to compete in the market. NT’s ISD service rate is costlier than that of Ncell’s although for
some destinations Ncell’s rate is higher. Whatever may be, overall telephone call rates are cheaper
in Nepal.
4.9.2.2 Comparision of Data Packages’ Tariffs

Table:4.49: Comparision of Data Package among NT, Ncell and UTL
S.N. Package NT Ncell UTL
1 500 MB Rs. 399
2 1000 MB Rs. 699
3 3000 MB Rs. 660
4 5000 MB Rs. 660 Rs. 1999

The data service of NT is seen cheaper as compared to that of Ncell from table 4.49. In fact,
quality of service does matter most.
4.9.2.3 Comparision of International call (Premium Rate)
Table:4.50 Comparision of ISD Call Rates among NT, Ncell and UTL
S.N. Country Rate in Rs. Per minute

NT Ncell UTL
1 USA 8 1.99 2.59
2 Canada 8 1.99 2.59
3 India 6 2.99 2.59
4 China 8 6 2.59
5 Singapore 8 6 2.59
6 Hongkong 8 6 2.59
7 Thailand 12 6 4
8 Malaysia 8 6 4
9 S.Korea 12 6 4
10 Bangladesh 6 4
11 Bahrain 12 6 6
12 Pakistan 15 8
13 Sri Lanka 15 10
14 Japan 12 15 10
15 Kuwait 12 15 10
16 Saudi Arabia 12 6 12
17 Qatar(New) 12 15 12
18 UAE 12 15
The premium tariff rates for international calls of UTL are cheaper than that of
Ncell and NT. The NT’s rate are costlier as seen from the table 4.50.

4.9.2.4 Comparision of International Call (Normal Rate)
Table:4.51 Comparision of International Call Tariff
S.N. Country Rate in Rs. Per minute

NT Ncell UTL
1 USA 30 8
2 Canada 30 8
3 India 12 6
4 China 30 7
5 Singapore 30 8
6 Hongkong 30 8
8 Malaysia 30 8
10 Bangladesh 12 15
11 Pakistan 12 15
12 Sri Lanka 12 15
13 Japan 15
14 Bhutan 15
15 Maldives 40
16 Afghanistan 24
The table 4.51 shows the normal tariff rate for international calls of UTL are cheaper
than that of NT. Data for Ncell was not available.
4.10 Comparision of Subscriber Base of NT, Ncell and UTL

Position of different telecom service providers based on the number of their telephone
subscribers (market share) irrespective of the technology type can be seen from the
chart 4.26.
Similarly market share of the data/internet business in the country of the major
operators – NDCL, UTL, Ncell (SNPL) and ISPs (all 26 combined) can be visualized
by Chart 4.27.

Chart:4.26 Market Share of Teleph Subscr of Various Operators in Nepal
Chart:4.27 Market Share of Data/ Internet Subscribers in Nepal
From the charts 4.26 & 4.27 it is seen that Nepal Telecom is number 1 in voice
communication service (51% market share) whereas No.2 in data service (36% market
share). Similarly, Ncell is No.1 service provider in data communication service (60%
market share) whereas No.2 in voice telephony (43% market share). UTL is far behind
the other two operators with only 4% share in voice and 2% in data service.
4.11 Study Results of Status of Telecom Service in the Country

4.11.1 Study Results from Secondary Data Analysis
Fixed Telephone Service
The number of Fixed telephones per 100 inhabitants (average of years 2005-10) in poor
countries of Africa is very less (1.5 ) whereas that of comparatively richer and
developing Arab countries, Asia & Pacific countries, developed American and
European countries are more 9.7,15.15, 30 and 43 respectively. The number fixed of
telephones per 100 inhabitants in Nepal was 2.93 in July,2011.This fixed teledensity for
India, Bangladesh, Pakistan and Sri Lanka are 2.87, .61, 1.97 and 17.15 respectively
(2010 ITU data). The demand of fixed telephone has decreased and the existing data is
not unsatisfactory for Nepal.
Number of faults per 100 subscribers was from 2.14 to 6.06 (in July 2011) and 81 to
100% faulty lines were maintained within one day in India. In Nepal, number of faults
per 100 subscriber is about 8 and only 20 to 25 % lines are maintained within one day
which indicates how poor is the QOS of PSTN lines here.
Mobile Telephone Service
The number of Mobile telephones per 100 inhabitants (average of years 2005-10) in
poor countries of Africa is very less (27.4 ) whereas that of comparatively richer Arab
countries, Asia & Pacific c ountries, developed American and European countries are
more 55.2,42.8, 75 and 109.8 respectively. The number of Mobile telephones per 100
inhabitants in Nepal is 40.59. The mobile teledensity for India, Bangladesh, Pakistan
and Sri Lanka are 61.4, 46.2, 57.14 and 83.22 respectively (2010 ITU data). The
demand of mobile telephone is very high every where. The demand of mobile telephone
in Nepal has also not been met. Call set up success rate and Traffic Channel congestion
rates do not meet the standard. QOS has to be improved.
Data/ Internet Service
Usage of internet service is less in poor and developing countries and more in rich and
developed countries. In developed and developing countries internet user was 71.6%
and 21.1% respectively. In Asia and Pacific countries there are 21.9% internet users
(ITU data 2010). In Nepal there are 10.89% internet users.

(Source: NTA MIS 2011, July)
The data figures depicting the above facts is attached as Annex 1: Key Global Indicator
for World Telecommunication Service Sector.
Telecom Sector in General

Further it is also revealed from the data in Annex- 1 that mobile telephone line is
getting more and more popular and the fixed telephone line is facing decreasing trend.
Tariff rate of telephone service is on continuous decrease all over the world.
Development of telecom infrastructure directly affects development of the country and

is reflected in GDP. According to a study in Bangladesh an increase of 10 mobile
phones per 100 people boosts GDP growth by 0.6 %. A 1 % increase in the number of
internet users increases total exports by 4.3 %. Telecom sector contributes
approximately 1.46 % of national GDP and its significant proportion is contributed by
mobile sector.
The population of Bangladesh is 140.4 million and there are 562 licensee out of which
6 are for mobile telephone, 8 for PSTN telephone and 159 internet and data services.
India, about 20 times bigger than Nepal in area, has 11 cellular mobile operators and 4
Fixed telephone operators. Sri Lanka has 64 system licensees. Nepal a smaller country
with population of 28.6 million has 293 licensee out of which 3 are for basic telecom
service and 2 for cellular mobile and 48 for internet & e_mail service. This indicates
that there is need to increase QOS and not the number of operators now.
4.11.2 Study Results from Primary Data Analysis

Stratified Random Sampling method was used. Here the population is systematically
segmented under various strata prior to the selection of samples at random. It was done
to get correct picture by collecting data from rural as well as urban population areas.
Codified and Uncodified both types of Structured questionnaire were used in the field
survey to collect data. Altogether 175 persons were requested to respond to the
questionnaire regarding their views on the quality of services of the various companies
in Nepal. The questionnaire used in the survey is attached as Annex-11.
Sample Size: 175

Table:4.52 Telephone used Proportion by the Respondent Subscribers
S.N. Service Type NT Ncell UTL
1 PSTN 97
2 GSM Mobile 283 118
3 CDMA Mobile 16 2
4 WLL 1
Total Services Used from 396 118 3
The above data for ‘Telephone used proportion’ shows that people have used more
services (396 points) from NT than that of Ncell (118 points) where as people have
rarely used UTL services. Secondly, the data also indicates that GSM mobile is more
prevalent than PSTN and CDMA mobile services. In fact, availability of PSTN
service is limited to densely populated area and hence less users. Almost all users of
PSTN service are also users of GSM and/or CDMA services.
Table:4.53 QoS of diff. Co.s as Judged by the Respondent Subscrs

S.N. Service Type OK POK NOK
1 NT PSTN 63 2 5
2 NT GSM 90 2 4
3 NT CDMA 10
4 Ncell GSM 61
5 UTL CDMA 3
6 UTL WLL 1
The above data for ‘Quality of Service’ shows that 63 out of 97 NT PSTN users, that is,
65% users have graded the NT PSTN service as of good quality.
Similarly, 32% (90 out of 283) users of GSM mobile were in favour of NT where as
51.69% (61 out of 118) were in favour of Ncell. Similarly, 62.5% (10 out of 16) of
CDMA users had appraised the CDMA service of NT.
Table:4.54 Network Status of the Co.s as Judged by the Respondent Subscrs
S.N. Service Type OK POK NOK

1 NT PSTN 61
2 NT GSM 88 3 10

3 NT CDMA 9
4 Ncell GSM 85 3
5 UTL CDMA 4 1 4
6 UTL WLL 1
The data for ‘Network status’ reveals that 63% (61 out of 97) users evaluate the
network quality of PSTN network of NT to be high. Similarly 72% users accept the
network quality of GSM network of Ncell to be OK whereas 31% (88 out of 283 points)
users only accept the network quality of GSM of NT to be OK. The quality of CDMA
network of NT is appraised as OK by 56% of the users. The quality of performance and
network both of UTL are appraised as good but the availability of UTL services is very
much limited so it cannot be treated as real.
Table:4.55 Satisfaction from the Service of Co.s expressed by Respondents
S.N. Service Type OK

1 NT PSTN 80
2 NT GSM 106
3 NT CDMA 32
4 Ncell GSM 54
5 UTL CDMA 2
6 UTL WLL 1
The data for ‘Satisfaction’ reveals that 82.47% users are satisfied with PSTN service of NT.
37.46% of users expressed satisfaction with NT GSM service whereas 45.76% of users expressed
satisfaction with Ncell GSM service.
However, 42% (218 out of 517) users express overall satisfaction and belief on NT whereas
10.44% (54 out of 517) users only express overall satisfaction and belief on Ncell. Less number of
user of UTL may also be treated as company with less goodwill of customers!
Interconnection:
According to the World Trade Organization (WTO), interconnection refers to “linking with
suppliers providing public telecommunications transport networks or services in order to allow the
users of one supplier to communicate with users of another supplier, where specific commitments
are undertaken.”

From the feedback of field survey it was learnt that the inter-operator connection is a big
problem - almost all informants have mentioned that they face problem in making calls to people
with line of another operator; that is the interconnection problem is not addressed seriously by the
operators.
The above mentioned figures can be seen in the table 4.56 and graph 4.28.
Table:4.56 Service Quality, Network Quality and Satisfaction in %
S.N. Service Type Users in Sample OK Quality% OK Network% Satisfaction%

1 NT PSTN 97 64.95 62.89 82.47
2 NT GSM 283 31.80 31.10 37.46
3 NT CDMA 16 62.50 56.25 200.00
4 Ncell GSM 118 51.69 72.03 45.76
5 UTL CDMA 2 150.00 200.00 50.00
6 UTL WLL 1 100.00 100.00 200.00
Chart:4.28 Quality of Service, Network and Satisfaction in %

OK Network%
Satisfaction%
Satisfaction%
300
OK Quality%
250 Chapte
rV
OK Network%
OK Quality%
200
Satisfaction%
S
OK Network%
OK Network%
Users in Sample
OK Network%
OK Quality%
OK Quality%
OK Quality%
Satisfaction%
150 ummar
Satisfaction%
OK Quality%
OK Network%
Satisfaction%
OK Quality%
100
OK Network% y,
Satisfaction% Conclu
50 sion
0
and
NT PSTN NT GSM NT CDMANcell GSMUTL CDMAUTL WLL Recom
mendat
ion

5.1 Summary
The telecommunications services have proved to be very important for the mankind. The whole
world has become like a village - informations from one end of the world can be transmitted and/
or received to/ by people living at the other end of the world instantly ! The telecommunications
services have supported every sector – health, education, business, security and many many others.
The telecommunications infrastructure has become the human right at present. From the data of
ITU (Key Global Indicators for the World Telecommunications Service Sector) it is learnt that
developed countries have high number of telephone lines than that of developing countries. By
July 2011, Nepal had density of fixed and mobile telephone 2.93 and 40.59 respectively against the
Asia & Pacific data of about 14 and 73.9 respectively (ITU:2010 ). Similarly, internet data
penetration rate of Nepal is 10.89 against 21.9 (ITU:2010) of Asia and the Pacific. The world
average for fixed line, mobile line and internet are 17.3, 76.2 and 30.1 (ITU:2010). Today is the
world of mobile communication and broadband data services for the fast and competitive life of
the people!
The Field Research Design method has been followed for this thesis work. The primary data has
been collected from structured questionnaire according to stratified random sampling method.
Secondary data has been collected from annual reports, MIS reports, brochures made available by
the service operators, NTA, internet and other sources. Personal observation was also done to
make opinion about the quality of services and behavior of the service providers.
The Govt. of Nepal has treated telecom services as the basic pre-requisite for the development and
telecommunication Policy 2056 (1999 AD) has created competitive environment to make the
services cost effective, reliable and accessible to all people of the country. NTA (established in
1998 AD) has issued 293 licenses under different types of telecom services. Out of that 15
operators are noticeably active. NDCL serves almost all types of telecom services – fixed and
mobile telephone with voice, data and video facilities. It uses PSTN system for fixed telephone and
data, GSM and CDMA systems for mobile telephonic voice, data and video services. To introduce
new services and make the services user friendly it uses IN system. NDCL has been working as a
public company since 2003 AD. Ncell has been serving since 2005 AD. For 3 years it served under
the trade name ‘Mero Mobile’ and since 2008 under the trade name ‘Ncell’. It serves mobile phone
service using GSM technology. It serves voice, data and video services. It has won the most
innovative mobile operator and best consumer pull award among the SAARC countries in 2006

organised by voice and data magazine in Sri Lanka. UTL has been serving since 2003. It serves
fixed and mobile phones with voice and data facilities using CDMA technology.
The analysis of the data indicates that the demand of good quality telecommunications services of
the customer has not been met. Customers face problem in getting a land line or mobile phone
connection, especially in rural area. The quality of mobile phone service is still questionable. Ncell
and UTL have to do a lot for carpet coverage. NT, which has introduced mobile service 12 years
back, has also not achieved carpet coverage yet. The quality of mobile service of NT faces many
technical problems. However, it has maintained the standard fixed and is proved to be satisfactory
looking on the subscriber base and satisfaction rating by the service users. Ncell has become leader
in mobile service – both quantitatively and qualitatively but users are not satisfied with its billing.
UTL’s market share is only 4% whereas that of NDCL (NT) and SNPL (Ncell) is 51% and 43%
repectively as of July, 2011.
Ncell is seen comparatively costlier in local and domestic call rates. Rates of National/ STD and
International ISD calls have gone down tremendously compared to the past times when there was
no competition and voice over internet (VOIP) service. However, comparing among NT, Ncell and
UTL, UTL is seen to be selling service at cheaper price although UTL is not able to compete in the
market. NT’s ISD service rate is costlier than that of Ncell’s although for some destinations
Ncell’s rate is higher. Whatever may be, overall telephone call rates are cheaper in Nepal. The data
service of NT is seen cheaper as compared to that of Ncell.
The inter-operator connection is a big problem in the country and the interconnection problem
need be addressed seriously by the operators.
65% users have graded the NT PSTN service as of good quality. 32% users have evaluated the
GSM mobile service of NT as of good quality where as 51.69% have evaluated Ncell’s GSM
service as of good quality. Similarly, 62.5% of CDMA users had appraised the CDMA service of
NT. 63% users evaluate the network quality of PSTN network of NT to be high. Similarly 72%
users accept the network quality of GSM network of Ncell to be OK whereas 31% users only
accept the network quality of GSM of NT to be OK. The quality of CDMA network of NT is
appraised as OK by 56% of the users. The quality of performance and network both of UTL are
appraised as good but the availability of UTL services is very much limited so it cannot be treated
as real. 82.47% users expressed satisfaction with PSTN service of NT. 37.46% of users expressed
satisfaction with NT GSM service whereas 45.76% of users expressed satisfaction with Ncell
GSM service.

However, 42% users express overall satisfaction and belief on NT whereas 10.44% users only
express overall satisfaction and belief on Ncell. Less number of user of UTL may also be treated
as company with less goodwill of customers!
The price/rates of telecommunications services has gone down and it can be accepted as
affordable. In fact, prices of the telecom services have gone down globally due to price cut in
electronic goods. (e.g. In Bangladesh prices have gone down from BDT 11.37 in 2001 to BDT
0.88 in 2008.)
Telecom service providers and internet service providers are required to pay 2% of their total
annual revenue to the Rural Telecom Development Fund but NTA has not been able to use the
fund to increase the access of telecom services to the rural parts of the country. So far, till
jan’2012’ Rs.4.25 billion is accumulated in the fund.
ADSL, Lease Line with ADSL, SIP phone, 3G IP CDMA, VSAT, Voice & data service in rural
area via VSAT Link - all are available in Nepal but the new services like 3G, EVDO, SIP and
Broadband services are limited to urban area only.
Extreme politicization and non-stability of the government has also affected adversely to the
development of telecom sector.
Due to mismanagement of rare resource of frequency spectrum, NTA is in shortage of frequency

spectrum for allotment to new entrants in this sector.
NTA has directed all the three operators NT, Ncell and UTL to improve their network coverage
and QOS along highways at the earliest.
(Source: The Kathmandu Post, Oct.17,2011)
5.2 Conclusion
Nepal is lagging behind in telecommunications infrastructure as compared to other countries of
the Asia and the Pacific region and the world as a whole. The telecommunications services
should be available to the rural parts of the country as well for balanced progress of the
country. Privatization Act and Labour Act require to be amended. Proper regulation by the
regulating authority is necessary. Coordination between different companies for optimum

utilization of resources is optional. Long procedures/ formalities should be made short but the
customer should be made responsible to minimize the misuse of the telecom services. Services
must be prompt and the process should be fully automated. Major portion of rural areas of the
country are not covered, so operators should expand their network coverages. There should be
post sales customer care service in each company to support the customer to resolve technical
problems in using the services. There should be enough exercise in selection of the technology.
A research and development department should be established to care for technical as well as
non technical problems in telecom sector. Also, there should be an information database.
5.3 Recommendation
After study of the above facts, improvements on different stakeholders was felt necessary in order
to enhance the status of telecommunications services in Nepal, and hence, recommendations have
been worked out for different stakeholders as follows:
Recommendation on to the government:
1. Public enterprises could do better if they are run and managed by professionally qualified
personnel without any political interference. NDCL is a public company with very good
image but it is suffering from political interference. So make the company politically free.
2. Privatization is the need of the time so it is better to privatize NDCL fully immediately by
selling the shares (most preferred model). Unnecessary time consumption and lengthy
process is affecting the company.
3. There is need for amendment in Privatization Act and Labour Act.
4. Strengthen the regulatory body by delegating more rights in distribution of frequencies and
in controlling the service operators.
5. Provide more subsidies/ financial support to operators for providing services in the rural
area.
6. Research and development works pays in long term although it requires huge investment.
One operator may not like to invest in this. So the Govt should establish one.
7. A central database is required for the use of all.

Recommendations to the Regulatory body, Nepal Telecommunication Authority:
1. The regulation should be fair. The regulatory body should analyze the demand and/or
suggestions of the operators and compare with provision in other countries also and then
should decide.
2. NTA should evaluate the performance of the operators from time to time (once in a year)
independently and instruct the operators accordingly to improve the service and extend all the
telecommunications services to the rural parts of the country as well.
3. NTA should exploit the RTDF capital to extend the services to the remote areas by giving
subsidy to the operators to extend all the telecommunications services in the rural areas.
4. Frequency spectrum is a very important and scarce resource which should be allotted carefully
taking care of new entrants.
5. There are sufficient number of operators for competition as compared to other countries and
struggle for frequency allocation is being seen in public media. It is necessary to focus on
improving QOS now and not on increasing number of operators.
Recommendations to the Operators:
1. Customer has to reach too many tables in the process of installation of a PSTN land line. Nepal
Telecom should implement one window system for all its services through well managed,
comfortable customer care centre.
2. Customer has to reach to the office at least 5 times – for application, contact at the time of
notice, survey, payment and installation. This can be reduced to 2 to 3 times- for application,
survey (optional, because the customer has to provide his address as well as the route map to
reach the site he or she wants to have a connection) and Payment of the installation charges.
3. Nepal Telecom may decrease one process of network data verification by MCC because it is
confirmed on the site itself by the technical team.
4. Nepal Telecom should expand its PSTN network more in rural areas also.
5. Nepal Telecom should increase the number of GSM BTS to increase its GSM network
coverage and traffic channel resources.
6. Nepal Telecom needs upgradation of CDMA network and increase the number of BTS as well.
7. Nepal Telecom should replace old Pentium 2 or 3 version computers by faster Pentium IV or V
computers.

8. Nepal Telecom is using maximum numbers of Dot Matrix computers. These printers are slow,
noisy and have low printing quality. Nepal Telecom should replace those printers by non-
impact printers like Laser printer which is fast and which has a good printing quality.
9. Ncell and UTL should increase the number of customer support centres throughout the
country.
10. Ncell should increase the number of BTS to increase network coverage and traffic channel
resources.
11. Ncell should audit its billing system to improve its image.
12. UTL should increase its network coverage by increasing number of BTSs and upgrade its
system.
13. UTL should expand its infrastructure either on its own or by hiring on lease from other
operators.
14. UTL should do more homework before deciding about charging; reduction in charges only
cannot help in attracting customers – coverage, features and quality matters much!
15. Every company should manage to receive the bill from any place in the country.
16. Every company should manage to receive the bill amount from all banks so that customer may
not bear the trouble of coming long way to the office.
17. Operators should start e-payment system.
18. Every operators should emphasize on promptness in actions.
19. Each operator should provide full in-house support to train the customer on the use of E-mail
and internet services.
20. Each operator should make information flow easy, clear, accurate and timely so that it can help
in decision-making process by integrating each and every sections/ units of the office using
office automation. Ncell and UTL both do not publish MIS, it is a useful tool.
21. Each operator should pay proper attention to inter-operator connection.
22. Operators should share infrastructure for cost minimization and fair environment.

BIBLIOGRAPHY
BOOKS
Adhikary, S. N. (2000). Introduction to Management Information System. Kathmandu:

Buddha Publication Pvt. Ltd.
Economic Commission for Europe. (1987). The Telecom Industry Growth and Structural
Change. Geneva: United Nations Publication.
Goyal, D.P. (1994). Management Information Systems. New Delhi : Deep & Deep
Publications.
Jawadekar, W.S. (1998). Management Information System. New Delhi: Tata McGraw Hill
Publishing Company Limited.
Joshi, P.R. (2005). Research Methodology. Kathmandu: Buddha Academic Publishers &
Distributors Pvt. Ltd.
Laudan, K.C. and Laudan, J.P.(2004). MIS Organization and Technology. Fourth Ed.New
Delhi: Prentice Hall of India.
Michael, V.P.(2000). Research Methodology in Management. Mumbai: Himalaya Publishing
House.
Pant, P. R. (2000). Fieldwork Assignment and Report Writing. Kathmandu: Buddha

Enterprises Pvt. Ltd.
Stoner, J.A.F., Freeman, R.E., & Gilbert, D.R. (2005). Management. London: Pearson
Education Inc.
Thierauf, R.J. (1982). Decision Support System for Effective Planning and Control. Engelwood
Cliffs, New Jersey: Prentice Hall Inc .
Turban, E., Aronson, J.E. (2006). Decision Support Systems and Intelligent Systems. Upper
Saddle River, New Jersey: Prentice Hall Inc.
Whitten, J.L., Bentley, L.D., & Dittman, K.C. (2002). Systems Analysis and Design Methods.
New Delhi: Tata McGraw-Hill Publishing Company Limited.
JOURNALS

Al-Jaber, H. (2012, March).Technology and Knowledge as Strategic Tools for Development.
ITU NEWS,2,5-7. In Proceedings of The Connect Arab Summit, Doha,5-7 March 2012.
Conroy, S. (2011, December).Broadband Leadership Summit. ITU NEWS. Geneva:ITU,10, 12.
In Proceedings of the ITU Telecom World 2011, Geneva, 24-27 October 2011.
Lagrana F.(2012 March). Cyber Threats and Cyber Crime – the Scale of the Challenge. ITU
NEWS,2,38. In Proceedings of The Connect Arab Summit, Doha,5-7 March 2012.
Nishar, K., Sarkar, N.I., & Wu, D.(2011).Performance Studies of VoIP over Ethernet LANs.
International journal of the computer, The Internet and Management. Samut Prakan,
Thailand:Assumption University Press, 19,3
REPORTS
Bangladesh Telecommunication Regulatory Commission. Annual Report(2007-2008).
Retrieved from http://www.btrc.gov.bd/annual_report_07_08_Bangladesh.PDF
MOIC. (2003). Long- term Policy of Information and Communication Sector 2059 (2003).
Kathmandu: MOIC. Retrieved from
http:// www.moic.gov.np/ policies-directives/ Long-term-Policy- of- Information-and-
Communication -Sector-2059-eng.pdf
Navas-Sabater, J., Dymond, A., & Juntunen, N.(2002), Telecommunications and Information
Services for the Poor: Toward a Strategy for Universal Access. Washington D.C.: The
World Bank.
Nepal Telecom. (2007). Annual Report. Kathmandu: Nepal Telecom.
REPORTS
Nepal Telecom. (2007, November). Management Information System. Kathmandu: Nepal

Telecom.

Nepal Telecom. (2011, July). Management Information System.(Issue 276). Kathmandu: Nepal
Telecom.
Nepal Telecommunications Authority. (2004, July). Management Information System. (Issue

4).Kathmandu: Nepal Telecommunications Authority.
Nepal Telecommunications Authority. (2008, August). Quarterly Performance Indicator of

Telecom Services/Sector. Kathmandu: Nepal Telecommunications Authority.
Popoola, J.J., Megbowon, I.O.,& Adeloye, V.S.A. (2009). Performance Evaluation and
Improvement on Quality of Service of Global System for Mobile communications in
Nigeria. Journal of information technology impact, 9(2),91-106. Retrieved from
http://www.jiti.net/Jiti.v92.091-106. Pdf
Shakya, S.(2007). Country Paper on ICT Status in Nepal. In Proceedings of the 2007 Capacity
Building Workshop on Information Society Statistics: Infrastructure and Household
Indicators. Bangkok. Retrieved from http://www.itu.int/ITU-
D/events/bangkok07/doc/16.country%presentation_Nepal.pdf
United Telecom Limited. (2005/06). Fifth Annual Report. Kathmandu: United Telecom
Limited.
United Telecom Limited. (2007/08). Seventh Annual Report. Kathmandu: United Telecom
Limited.
United Telecom Limited. (2008/09). Eigth Annual Report. Kathmandu: United Telecom
Limited.
THESIS
Adhikary, D.K. (2009). Commitment an d Performance in Public and Private Sector
Organization in Nepal. Kathmandu: Central Department of Management,T.U.
Chitrakar Devi, T. (2008). An Evalutation of Privatization in Nepal; with Special Reference
to Manufacturing Organization.Kathmandu: Central Department of Management,T.U.

Joshi, Neeru Baba (2000). Management Information System in Nepalese Bank: A case study of
Rashtriya Banijya Bank. Unpublished Master Degree Thesis, Central Department of
Economics, T.U.
Nurag Poudyal Sharma(2006). MIS in Nepal Telecom. Unpublished Master Degree Thesis,
Shanker Dev Campus, T.U.
Tanguturi,Venkata Praveen, Harmantzis , Fotios c. (2008). ICT Infrastructure in Two Asian
Giants: A comparative Study of China and India. Retrieved from
http://www.papers.ssrn.com/sol3/papers.cfm? Abstract_id=1085928
WEBSITES
http://www.worldbank.org/poverty/strategies/sourctoc
http://www.itu.int/ITU-D/ict/statistics
http://www.devdata.worldbank.org/wdi
http://www.trai.gov.in/Content/Comparative_performanceUser.aspx?
http:www.trai.gov.in/WriteReadData/Comp_Performance/Document/20111222062834782
750.DL.pdf
http://www.trc.gov.lk/informationStatistics.html
http://www.trc.gov.lk/images/docs/statis_jun_2011
http://www.pta.gov.pk/index.php/Telecom_Indicators_php_pakistan.mht
WEBSITES
http:/www.ntc.net.np
http://www.utlnepal.com
http://www.ncell.com.np
http:/www.nta.gov
http:/ www.google.com
http://www.mhhe.com/Whitten
http://www.wikipedia.com
http://en.wikipedia.org/ wiki/ Federal_Communications_Commission
http://hdr.undp.org

Annex-1: Key Global Telecom Indicators for the World Telecommunication Service Sector
(millions) Per 100 inhabitants

Fixed telephone lines 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
Developed 570 565 546 521 511 506* 46.9 46.3 44.6 42.4 41.5 40.9*
Developing 689 715 726 719 704 691* 13.0 13.3 13.3 13.0 12.5 12.1*
World 1'259 1'280 1'271 1'240 1'215 1'197* 19.3 19.4 19.0 18.3 17.7 17.3*
Mobile cellular
subscriptions
Developed 1'001 1'139 1'250 1'342 1'409 1'436* 82.3 93.4 102.0 109.2 114.3 116.1*
Developing 1'216 1'617 2'104 2'670 3'243 3'846* 22.9 30.0 38.5 48.2 57.7 67.6*
World 2'217 2'756 3'354 4'012 4'652 5'282* 33.9 41.7 50.1 59.3 67.9 76.2*
Mobile broadband
subscriptions
Developed 57 132 253 352 505 631* 4.6 10.8 20.7 28.7 41.0 51.1*
Developing 16 27 54 105 198 309* 0.3 0.5 1.0 1.9 3.5 5.4*
World 73 159 307 458 703 940* 1.1 2.4 4.6 6.8 10.3 13.6*
Estimated Internet
users
Developed 620 654 720 762 821 885* 51.0 53.6 58.8 62.0 66.6 71.6*
Developing 416 505 673 850 1'037 1'199* 7.8 9.4 12.3 15.3 18.5 21.1*
World 1'036 1'159 1'393 1'611 1'858 2'084* 15.9 17.5 20.8 23.8 27.1 30.1*
Fixed broadband
subscriptions
Developed 145 187 224 253 273 304* 11.9 15.3 18.3 20.6 22.2 24.6*
Developing 71 96 127 160 197 251* 1.3 1.8 2.3 2.9 3.5 4.4*
World 216 283 351 413 471 555* 3.3 4.3 5.2 6.1 6.9 8.0*
The developed/developing country classifications are based on the UN M49

(http://www.itu.int/ITU-D/ict/definitions/regions/index.html)
(millions) Per 100 inhabitants

Fixed telephone lines 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
Africa 10 11 11 11 12 13* 1.4 1.5 1.5 1.5 1.5 1.6*
Arab States 30 31 33 35 34 33* 9.3 9.5 9.9 10.2 9.8 9.4*

Asia & Pacific 575 596 596 580 561 549* 15.5 15.9 15.8 15.2 14.5 14.0*
CIS 64 69 72 73 73 74* 23.0 24.9 25.8 26.3 26.4 26.6*
Europe 273 273 265 261 255 249* 45.2 45.0 43.5 42.6 41.4 40.3*
The Americas 291 284 278 264 263 262* 32.8 31.7 30.7 28.9 28.5 28.1*
Mobile cellular
subscriptions
Africa 88 130 174 246 295 333* 12.3 17.8 23.3 32.1 37.6 41.4*
Arab States 85 126 174 209 255 282* 26.6 38.7 52.1 61.3 73.3 79.4*
Asia & Pacific 834 1'071 1'377 1'743 2'159 2'649* 22.5 28.6 36.4 45.6 55.8 67.8*
CIS 166 227 267 313 356 364* 59.7 81.9 96.4 113.0 128.6 131.5*
Europe 550 610 677 721 729 741* 91.0 100.5 111.1 117.7 118.5 120.0*
The Americas 469 564 656 750 826 880* 52.9 63.0 72.4 81.9 89.3 94.1*
Mobile broadband
subscriptions
Africa - 1 2 7 23 29* - 0.1 0.3 1.0 3.0 3.6*
Arab States - 1 3 11 21 34* 0.1 0.2 0.8 3.3 6.2 9.7*
Asia & Pacific 44 87 129 170 221 278* 1.2 2.3 3.4 4.5 5.7 7.1*
CIS - - 2 5 54 72* - - 0.7 1.8 19.5 25.9*
Europe 24 55 108 158 217 286* 3.9 9.0 17.8 25.9 35.3 46.3*
The Americas 4 13 56 94 152 226* 0.4 1.4 6.2 10.3 16.4 24.2*
Estimated Internet
users
Africa 16 22 27 45 69 77* 2.2 3.0 3.6 5.9 8.8 9.6*
Arab States 26 35 46 58 71 88* 8.0 10.6 13.8 16.9 20.5 24.9*
Asia & Pacific 251 399 513 636 755 857* 9.5 10.7 13.6 16.6 19.5 21.9*
CIS 30 36 51 70 99 127* 10.7 12.9 18.4 25.2 35.7 46.0*
Europe 277 300 333 361 380 401* 45.9 49.4 54.7 59.0 61.8 65.0*
The Americas 322 351 406 424 466 514* 36.3 39.2 44.8 46.3 50.4 55.0*
Fixed broadband
subscriptions
Africa - - 1 1 1 1* - 0.1 0.1 0.1 0.1 0.2*
Arab States 1 2 3 4 6 8* 0.3 0.5 0.9 1.2 1.7 2.3*
Asia & Pacific 80 103 126 150 180 223* 2.2 2.7 3.3 3.9 4.7 5.7*
CIS 2 4 6 12 17 24* 0.6 1.3 2.3 4.5 6.1 8.7*
Europe 66 89 111 126 137 148* 10.8 14.6 18.3 20.6 22.2 23.9*

The Americas 63 81 99 114 125 145* 7.2 9.1 10.9 12.4 13.5 15.5*
Regions in this table are based on the ITU BDT Regions (http://www.itu.int/ITU-
D/ict/definitions/regions/index.html)
Note: Rounded values. * Estimates.
Source: © INTERNATIONAL TELECOMMUNICATION UNION, 2010.

Updated on 21 October 2010.
Annex -2: Application Form of NT

Annex 3: Survey Order Form

Annex 4: Legal Agreement Form

s

Annex 5: Signature Verification Form

Annex 6: Installation Form

Annex- 7: Prepaid Mobile Application Form

Annex-8: CDMA Telephone Registration Form

CDMA Telephone Application Form(backpage)

Annex-9: Ncell Subscription Form for Individual Subscriber

Ncell Subscription Form for Individual Subscriber(backpage)

Annex-10: UTL Customer Registration Form

UTL Customer Registration Form (backpage)

Annex-11: Questionnaire for Status of Telecommunications Services

Questionnaire for Status of Telecommunications Services

Annex-12: Telecommunications and Information services for the Poor
Navas-Sabater, Dymond and Juntunen (2002), in their research paper (World Bank Discussion
paper number 432) entitled “Telecommunications and Information Services for the Poor: Toward a
Strategy for Universal Access” has remarked that access to information and communications
technologies has become crucial to a sustainable agenda of economic development and poverty
reduction, and yet access remains concentrated in a few regions and population groups, with the
contours of this new ‘digital divide’ closely following and supplementing existing income and
economic divides. However, technological innovations, economic pressures, and regulatory
reforms are making access to information and communications technologies more affordable and
providing opportunities to close the digital divide.
Two issues need to be addressed when designing strategies to promote universal access to
information and communications services: 1. Market efficiency gap and
2. Access gap.
The market efficiency gap can be closed with a well- known set of policy and regulatory measures
such as introduction of competition in all service segments and geographic areas.The access gap is
very challenging as it is hard to reach isolated poor customers in uneconomic areas. Government
need to employ a mix of several possible approaches including specific universal access policies
and public investment subsidy schemes.
The researchers have analyzed access problems and put them as:
A. There are two dimensions of access problem:
i. Rich and Poor, and
ii. Urban and Rural/ Remote areas
Rich people have more access to information and communications services than the poor people
because of their affordability. Urban areas have more access to information and communications
services than rural areas because companies do not like to go to rural places due to high
infrastructure cost and low profit.
B. Basic Access Indicators:
i. Teledensity : Rural areas have very low teledensity.
ii. Residential Penetration: Low in rural/ remote areas due to lack of
infrastructure.
iii. Affordability: Countries, regions, households and individuals of all income levels
spend somewhere between 1% and 3% (avg. 2%) of their income on

telecommunications. Some of the poorest countries of the world spend less (low
income countries average 1.25).
C. Urban – Rural Gap: Assuming conservatively that 80% of all the telephone lines outside
the largest city indeed serve other smaller urban areas, as opposed to villages and rural
locations, the scale of the problem can be estimated. Disparities between 20:1 and 60:1 are
common.
Technology and Market Solutions for the Access Gaps:

1. Wireless and Satellite Technologies: Cellular, WLL, VSAT etc.
2. Declining Costs: Low cost wireless solutions, ranging from multi-access radio to cellular to
fixed wireless are now available for rural areas.
The technological feasibilities for different types of locations have been worked out as shown in
the figure below:
Figure:2-4: Typical Market Niches For Various Technologies
Satellite
Low
Density Wireless Multi-
Area and access Wireless
Cellular Radio additions to
multi-access
& Satellite
High
Density
Normal
Area Wire& Microwave, Cable or Fibre
wire
Distance from exchange
World Bank had provided technical assistance to Nepal to create rural development fund and
initial investment into the fund. Strategy was to introduce competition by licensing 4 new
providers in separate regions with a rural focus. The project would finance the subsidy portion
associated with one region initially.

Proposed Strategic Directions:
S.N. Strategic Directions Policy/ investment options

1 Policy reform - Competition, regulation, privatization
- Universal access funds, incl for advanced ICTs
2 Mobilization of - Investment in rural telecentre operator
Investment - Seed financing of universal access funds
- Grants & micro-loans for SME development
3 Institutional - Organisational planning and capacity building for
development regulatory agencies
- Modernization of Govt agencies, e-govt initiatives
4 Pilot Projects and - Pilots to innovate policy and technology for universal
knowledge access
- Local content creation and dissemination

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COMPARATIVE STUDY OF TELECOM SERVICES

Shyam Sundar Prasad Yadav

Shanker Dev Campus

Roll No.: 2209/062

T.U. Registration No.:7-3-39-458-2005

Office of the Dean

The Faculty of Management

In the Partial Fulfillment of Requirement of Degree of

Master of Business Studies

This is to certify that the Thesis

Has been prepared as approved by this Department in prescribed format of the

………….………….… ………………………… ……………………

Property of Shanker Dev Campus 2

Property of Shanker Dev Campus 3

Property of Shanker Dev Campus 4

Shyam Sundar Prasad Yadav

Property of Shanker Dev Campus 5

Property of Shanker Dev Campus 6

Property of Shanker Dev Campus 7

Property of Shanker Dev Campus 8

Table:1.1 License issued by NTA (Existing as of 2011, July) 20

Table:2.1: Penetration Rates of Mobile and Broadband Services Regionwise 45

Table:4.1 Summary of licenses issued till June 2008 in Bangladesh 61

Table:4.2: Average Tariff of Mobile Telephone Service in Bangladesh 62

Table:4.3 Statistical Overview of the Telecom Sector as (2011, June) 62

Table:4.4 Growth Trend/ Performance of Fixed Access Teleph in Sri Lanka 63

Table:4.5 Growth Trend of Subscrbr (Fixed+Mobile+WLL) in Pakistan 64

Table:4.6 Annual Cellular Mobile Line in Pakistan 65

Table:4.7 Annual Fixed Local Line Subscribers in Pakistan 65

Table:4.8 Annual Wireless Local Loop Subscribers 65

Table:4.9 Broadband Subscribers in Pakistan 65

Table:4.10 Voice Telephony Services (as of 2011, July) 67

Table:4.11 Data/Internet Services 68

Table 4.12 List of Services offered by NT 74

Table:4.13 Growth Trend of Nepal Telecom 78

Table:4.14 Record of PSTN line Cap, Distribn and Waiters in Birganj 81

Table:4.15 Record of Line capacity, Distribution and Waiters in BRD 82

Table:4.16: Record of Line capacity, Distribution and Waiters in ERD 82

Table:4.17 Data Dictionary 93

Table:4.19: Local Call Tariff of NT 94

Table:4.20 Domestic Long Distance Calls Tariff of NT 95

Table:4.21 International Call Tariff (access code “00”) of NT 95

Table:4.22 Data Dictionary 101

Table:4.23 Local and STD Tariff in Ncell (Ramro Tariffs) 101

Property of Shanker Dev Campus 9

Table:4.25: Prepaid International Tariffs in Ncell 102

Table:4.27 Normal Data Packages 103

Table:4.28 Unlimited Closed User Group 103

Table:4.29 Growth Trend of UTL 105

Table:4.30 Data Dictionary 111

Table:4.32 ISD Tariff of UTL 113

Table:4.33 QOS of Cellular Mobile Telephone Service in India 113

Table:4.34 QOS Basic Telephone Service (Wire line) in India 114

Table:4.38 Fault Rate of PSTN Lines under ERD 118

Table:4.40 KPI Indicator of GSM Mobile Service in ERD 120

Table:4.41 KPI Indicator of GSM Service in Birganj Reg Directorate 120

Table:4.42 General View of GSM Service of Ncell 121