Internet based Commerce Nepals Perspective Gaurab Raj Upadhaya

Internet based Commerce Nepal's Perspective Gaurab Raj Upadhaya gaurab@lahai. com

Background • • • 250, 000 telephone lines 100, 000 computers 30, 000 Internet / E-mail customers 1 computer used by 8 people in average 1 internet/e-mail account used by 5 people in average. • 13 ISPs licensed, 11 operating. 14 cities

Internet in Nepal – First Phase • First effort in 1992 – by RONAST • Commercial e-mail connection in 1994 (UUCP), dialup to Australia • Internet access in late 1995, leased line to Singapore • Most users used only e-mail • Very few websites-most of them by univiersity students in the USA • Access limited to Kathmandu

Internet … - Second Phase • Licensing of ISPs in 1997 • VSAT liberation in 1999 – 7 network operator license granted so far. More than 20 user licenses • Low price results in increased Usage • At least 14 cities outside Kathmandu have service providers • In 2000, free internet telephony contributed largely to the growth.

E-commerce Using Internet technology for monetary / commercial transactions inside Nepal Outline of presentation • Potentials • Problems • Next Steps

E-commerce Potentials • • In information industry Business to Government (B 2 G) Banking Industry Tourism Industry Export / Trading Industry Domestic B 2 C, and B 2 B (? . . ) In all other areas ….

E-commerce Problems • • Monetary transaction/ foreign currency act. No law governing e-transactions. Traditional business weary of the concept. Insurance system not mature enough to insure etransaction. • Low penetration of technology. • Technology in Local language. • HR for system development & maintenance.

E-commerce- some examples • Nepalshop. com – payment on delivery • pasal. com, munchahouse. com – targeted towards foreign markets • Handicrafts sale through world 2 market. com • Software exports by Yomari Inc. • Personal expertise export

E-commerce – Next steps • Laws to be enacted • Active government participation – ’Either lead the way OR get out of the way’ • Infrastructure development keeping data services in mind • Telecenter for rural markets

Conclusion • At present, without government support, there is not much that can be done. • The government needs support from private as well as foreign parties • Necessary regulations and acts to be promulgated

Questions Thank You gaurab@lahai. com