Nepal Telecom is restructuring its ownership structure to increase public participation to 25 per cent. Currently, the government holds a 92 per cent stake in the company, while the public owns the remaining 8 per cent. Public participation in Nepal Telecom began in 2008 when the company first issued shares to the general public.
Speaking at Nepal Telecom’s 21st anniversary celebration on Tuesday, Minister for Information and Communications Prithvi Subba Gurung stated that the government had decided to reduce its stake and expand public ownership to 25 per cent within this year.
“The aim of increasing public ownership is to give people a greater sense of involvement in the company while ensuring more accountability and transparency in its management,” he said. “With changing perspectives on government-run enterprises, efforts are being made to enhance public participation in Nepal Telecom.”
This plan to offer shares to Nepal Telecom’s customers was announced back in the budget of 2021 by then-Finance Minister Bishnu Poudel. The proposal stated that 22 per cent of Nepal Telecom’s shares would be sold to its customers, allowing landline, mobile, and internet service users to participate in the share purchase process. At the time, the government had promised to finalize the share allotment process and pricing by mid-October 2021, but no action was taken. While the current minister has reiterated the plan to increase public ownership to 25 per cent, there remains uncertainty about its implementation.
Nepal Telecom’s Financial Performance
Nepal Telecom has been experiencing a decline in both revenue and profit. In the last fiscal year (2023/24), the company generated NPR 42.11 billion in revenue, down from NPR 44.43 billion in the previous fiscal year (2022/23).
The company’s net profit has also been on a downward trend. In FY 2023/24, Nepal Telecom recorded a net profit of NPR 6.23 billion, lower than the previous fiscal year. In fiscal year 2022/23, the company's net profit stood at NPR 7.94 billion, while in 2018/19, it was NPR 8.47 billion.
Launch of ‘Voice over Wi-Fi’ Service
On its 21st anniversary, Nepal Telecom officially launched its ‘Voice over Wi-Fi’ (VoWiFi) service for commercial use. This technology enables users with a compatible mobile device and an activated VoLTE service to make calls and send SMS messages using a Wi-Fi network, both within Nepal and abroad, while using their Nepal Telecom mobile number.
According to the company, domestic users will be charged based on their existing voice/SMS package or the standard pay-as-you-go rate. When using the service from abroad, incoming calls will be free, while outgoing calls will be charged at NPR 3 per minute.
With this launch, Nepal Telecom aims to provide customers with more convenient and user-friendly communication services. Traditionally, mobile calls are made via cellular networks such as 2G, 3G, and 4G. However, VoWiFi allows users to make calls and send messages even in areas with no mobile network coverage, as long as they have access to Wi-Fi.
