1. Internet Service Market in Nepal
By:
Sanjeev Maharjan

2. Contents Internet History in Nepal Growth of Internet Market
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!!!

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

4. Internet History in Nepal
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

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

6. Internet Market Today 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

7. Need for High Speed Internet
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

8. Earlier Technologies Introduced By ISPs
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

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

10. High Speed Technologies Cable Internet Technology
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

11. High Speed Technologies Cable Internet Technology

12. 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
1000
3500 3
1500
4500 4
2000
5500
128 Kbps Link
128
3000
4000
5000
6000
256 Kbps Link
256
7000

13. High Speed Technologies Wireless Technology
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)

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

15. High Speed Technologies ADSL Technology
Stands for Asymmetric Digital Subscriber Line
Type of DSL Technology
Asymmetric in a sense: Higher downstream rate from 512 kbps to 6Mbps
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

16. High Speed Technologies ADSL Technology

17. 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
512 Kbps
2600 --
1 Mbps
4900
2 Mbps
9200

18. ADSL Vs Cable Vs Wireless
Factor
ADSL
Cable Internet
Wireless (802.11)
Raw Speed
Maximum 13Mbps
Maximum 30Mbps
Maximum 2Mbps
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 cities
Limited areas around country

19. Why to prefer ADSL?
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

20. Why to prefer ADSL?

21. Lessons For Us!!!
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

22. Thank You
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