Internet Service Market in Nepal By Sanjeev Maharjan

Internet Service Market in Nepal By: Sanjeev Maharjan

Contents n n n n n Internet History in Nepal Growth of Internet Market Today Earlier Technologies Introduced By ISPs Need for High Speed Internet High Speed Technologies Introduced by ISPs ADSL as Superior Technology Why to prefer ADSL? Lessons for us!!!

Internet History in Nepal E-mail services by Nepal Academy for Science and Technology: First instance of use of Internet Technology n Mercantile Office Systems: First Private Sector to provide commercial e-mail service in June 1994 n Internet Services by Mercantile Started: Connection with Singapore Telecom via 64 kbps leased line through NTC in 1995 n Mercantile became the First ISP of Nepal n

Internet History in Nepal n n n 1995: 2 more ISP proposed to start Internet services World Link Communications & Computerland Communications September 1997: License issued to all three ISPs 1998: Formation of Nepal Telecommunications Authority (NTA) as per Telecommunications Act, 1997. NTA is a telecommunications regulatory body

Growth of Internet Market Fiscal Year License Cumulative Issued ISP No 055/56 9 9 056/57 4 13 057/58 2 15 058/59 3 18 059/60 2 20 060/61 6 26 061/62 6 32 062/63 7 39 063/64 3 42 064/65 3 45 TABLE & GRAPH: Growth of ISPs Since the Introduction of Internet Service in Nepal

Internet Market Today n n Total number of Valid ISPs: 35 Total Number of VSAT Network Providers: 7 Total Number of VSAT Service Users: 110 Total Number of Internet Users: 249, 400 Internet users as of August, 2007; 1. 0% of the population, according to ITU

Need for High Speed Internet n n With the popularity and growth of internet services, the need of the customers also grew Need of High Speed Internet emerged among different business houses and the financial organizations

Earlier Technologies Introduced By ISPs n n n Technologies Available Speed PSTN Dial-up 56 kbps ISDN Dial-up 64 kbps, 128 kbps Leased Line 64 kbps up to 8192 kbps PSTN Dial-up: slow speed ISDN Dial-up: Speed not as desired but expensive Leased Line: High Speed but very costly

High Speed Technologies Introduced by ISPs Cable Internet Technology n Wireless Technology n ADSL Technology (The most recent buzz in Internet Market) n

High Speed Technologies Cable Internet Technology n n n First introduced in Nepal By Subisu Cablenet Pvt. Ltd. Uses the broadband coaxial cable as the medium Requires cable modem as customer premise equipment (CPE) Raw Capacity of 30 Mbps But available speeds: up to 256 Mbps Uses artificial Speed caps to limit speed of their customers

High Speed Technologies Cable Internet Technology

High Speed Technologies Cable Internet Technology Speed & Cost Structure by Subisu Cablenet Pvt. Ltd 64 Kbps Link S. No. Speed Data Limit (in MB) Price (in Rs) 1 64 500 2585 2 64 1000 3500 3 64 1500 4 64 2000 5500 128 Kbps Link 1 128 500 3000 2 128 1000 4000 3 128 1500 5000 4 128 2000 6000 256 Kbps Link 1 256 500 4000 2 256 1000 5000 3 256 1500 6000 4 256 2000 7000

High Speed Technologies Wireless Technology n n Introduced for commercial purpose in Internet in Nepal By: Wordlink Communications Pvt. Ltd. Uses the Motorola’s Canopy Technology to distribute the wireless technology (802. 11)

High Speed Technologies Wireless Technology n Speed and Cost Structure Speed: Upto 120 kbps Wi-ZOOOM Cost 1 Month-Rs. 3500 3 Months-Rs. 9900 6 Months-Rs. 18000 12 Months-Rs. 34000 Speed: Upto 150 kbps Wi-ZOOOM Cost 1 Month-Rs. 4500 3 Months-Rs. 12900 6 Months-Rs. 24600 12 Months-Rs. 45000 - 20 hrs Dial-up account free for back up purpose -20 hrs Dial-up account free for back up Installation cost: Rs. 3500. 00 Subscription and Activation: Rs. 6000. 00 purpose

High Speed Technologies ADSL Technology n n n Stands for Asymmetric Digital Subscriber Line Type of DSL Technology Asymmetric in a sense: Higher downstream rate from 512 kbps to 6 Mbps Can be implemented in existing PSTN network with the use of ADSL Modems or Switch and the splitters Cost-Effective solution to high speed internet service need of the people

High Speed Technologies ADSL Technology

High Speed Technologies ADSL Technology Speed and Cost Structure ADSL Speed (Kbps) Monthly rate for Internet (Rs) 3 Month Package (Rs) Monthly port charge (Rs) 128 Kbps 800 2400 100 256 Kbps 1400 4200 100 512 Kbps 2600 -- 100 1 Mbps 4900 -- 100 2 Mbps 9200 -- 100

ADSL Vs Cable Vs Wireless Factor ADSL Cable Internet Wireless (802. 11) Raw Speed Maximum 13 Mbps Maximum 30 Mbps Maximum 2 Mbps Available Speed 128 Kbps, 256 Kbps 64 Kbps, 128 Kbps, 256 Kbps 120 Kbps, 150 Kbps Cost (per month) Rs 900, Rs 1500 Rs 2585, Rs 3000, Rs 4000 Rs 3500, Rs 4500 Medium PSTN copper cable Broadband Coaxial cable -------- Infrastructure All over the country Limited to major Limited areas cities around country

Why to prefer ADSL? n n n Maximum districts reachable by other technologies: 20 With 72 district telephone exchanges, ADSL has larger network potential & reach High Broadband Speed Minimized Switching and Installation cost Popularity and Growth of this technology all over the world

Why to prefer ADSL?

Lessons For Us!!! n n Cost-Reduction is a technique to enter the market with new technology New Technology accepted all over the world generates the positive feedback New Technology grows faster if the network base for the technology already exists in large Switching Costs are significant for shifting customers from one base to other

Thank You Switch