Ncell Marks Two Decades in Nepal; Flags Policy Challenges Ahead

Ncell, Nepal’s first private mobile service provider, has completed two decades of operation in the country, but the company has warned that its future journey could be challenging without favorable government policies.

Ahead of its 20th anniversary, Ncell issued a statement highlighting declining revenues in the telecom sector and pointing out that the lack of clear, supportive regulations threatens not just Ncell but the long-term sustainability of the entire industry.

Despite Nepal having only two mobile operators—Ncell and Nepal Telecom—revenues have fallen by 25 percent over the past five years, the company said. Ncell noted that the policy requiring GSM license renewal every five years (at a cost of Rs 20 billion per renewal after the first ten years) raises questions about the sector’s sustainability.

Regulatory changes in the past six years have already impacted approximately Rs 13 billion in telecom revenue, with an estimated additional Rs 16 billion expected to be lost in the next five years. The company cited the exit of operators such as United Telecom, Smart Telecom, Nepal Satellite Telecom, and CG Telecom as examples of the consequences of an unsupportive policy environment.

Looking ahead, Ncell estimates that deploying 5G technology will require around Rs 60 billion—12 times higher than its current annual profit. The company emphasized that achieving the government’s IT sector goals—exporting Rs 3000 billion worth of services and producing 1.5 million IT professionals in the next decade—will be difficult without supporting the telecom sector.

Founded as “Mero Mobile” in 2004 and operational from 2005, Ncell was Nepal’s first private GSM mobile service provider. The company has played a transformative role in expanding mobile access: when it entered the market, only six percent of the population used mobile phones, but today, mobile penetration exceeds 100 percent, with over 14 million subscribers.

Ncell was acquired by Sweden’s TeliaSonera Group in 2008, renamed “Ncell” in 2010, and became part of Malaysia-based Axiata Group in 2016. Most recently, on December 1, 2023, Spectralite UK Ltd. acquired full ownership from Axiata and became the major shareholder. The company became a public limited company on August 3, 2020.

Ncell reported contributing more than Rs 360 billion in taxes and fees to the Government of Nepal up to FY 2024/25 and claims to have created around 100,000 direct and indirect jobs. Under its corporate social responsibility initiatives, the company has invested over Rs 205 million in health, education, and environmental projects.