Telecom Companies Of Nepal Telecom Companies Of Nepal

Research Report On Telecom Companies of Nepal

Prepared by: Atit Gurung Madhupriya Dugar Ravi Keyal Sophie Shrestha

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INTRODUCTION

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LITERATURE REVIEW

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THEORITECAL FRAMEWORK

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RESEARCH DESIGN

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DEMOGRAPHICS

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ANALYSIS

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QUESTIONS

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Introduction
Objective
Effect of the branding strategies, network service and service plans of various telecom companies of Nepal on the consumer choice. Also, to find out which of the various companies are doing well by examination of peoples perspective on the telecom services of Nepal.

Outcome
The outcome of this research will help the various telecom companies to have an idea about the consumers perspective and their current status in comparison to other companies.

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Overview of Telecom Industry of Nepal

As compared to the rest of the world history of development of telecommunication in Nepal is very young. Telecommunication was introduced with the installation of open wire trunk telephone line between Kathmandu and Birgunj for the first time in Nepal around 1914 beginning of the First World War. Until 2003, Nepal Telecom (NT) formerly known as Nepal Telecommunication Corporation (NTC) was the only state owned telecommunication company of Nepal. Private sector was later involved to create a competitive environment for the development and expansion of telecommunication sector in Nepal. United Telecom Limited (UTL) started providing services in 2003. NTC was converted into a Public Limited Company on April 14, 2004. Spice Nepal Private Ltd., popularly known under its brand name "Mero Mobile" earlier and now known as NCELL, is the first private GSM mobile operator in Nepal.
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Review of Literature
The telecommunication service was initially commenced on 1970 B.S, in Nepal. Came into formal existence only after the establishment of MOHAN AKASHWANI in 2005 B.S. According to the First National Five year plan (2012-2017), Telecommunication Department was established in 2016 B.S. Converted into Telecommunications Development Board in 2026 B.S. as per the third five-year plan (2023-2028) Enactment of Communications Corporation Act 2028 Turned out into a fully owned Government Corporation called Nepal Telecommunications Corporation in 2032 B.S.
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Previous Research Findings

Few researches had previously been conducted on the telecommunication services in Nepal.
However, the particular research topic in the concerned subject area is unknown.

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Telecommunication companies in Nepal

Nepal Telecom Corporation (NTC) Ncell Pvt Ltd.

United Telecom Limited (CDMA)

Smart Telecom Pvt. Ltd.

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Nepal Telecommunication Corporation

Previously known as Nepal Doorsanchar Company Ltd. After 29 years, transformed to Nepal Telecommunication (NTC) Corporation on 01/01/2061. Provides both GSM and CDMA services in Nepal.

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NCELL
First private operator in the GSM standard in Nepal. Established on 2004 AD as Spice Nepal Pvt Ltd and broke the NTC monopoly. Commercially launched its only GSM service under the Mero Mobile brand on September 17, 2005 A.D.

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United Telecom Limited

Providing CDMA services since 2003 A.D. A joint venture of four different companies.
Company Mahanagar Telephone Nigam Limited (MTNL) Capital Share 26.68 %

Telecommunications Consultants India Limited (TCIL)

Tata Communications Ltd (TCL)

26.66 %

26.66 %

Nepal Ventures Private Limited (NVPL)

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Smart Telecom
Telecommunications Service (RTS) provided license in July 1, 2008 A.D. Launched its VSAT services on 26th November 2009 A.D. and the GSM service since 9thJuly 2010. Launched its services by building a mixed network of fixed and wireless technology, whichever is appropriate for the location.

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Statement of problem
What is the brand position and status of various telecom companies according to the consumers point of view?

Why this problem:

The requirement for this problem to be analyzed arises to identify the current position of the companies due to the increasing competition in the market by entry of new companies, increasing promotional and advertising activities, the network services and the service plans and the changing taste of the consumer- provided to benefit the consumers.
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Hypothesis
Set 1: H0: Choice of selection is independent of branding and advertisements. HA: Choice of selection depends on branding and advertisements. Set 2: H0: Choice of selection is independent of quality of network provided. HA: Choice of selection depends on quality of network provided. Set 3: H0: Choice of selection is independent of the versatility of service plan. HA: Choice of selection depends on the versatility of service plan.
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Theoretical framework

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Research Design
Descriptive research design was adopted for the research. The questionnaire method was used to collect the data which were administered through face to face interview with the consumers and retailers. The sample size and the sample were selected based on convenience sampling method.

The study was restricted to Kathmandu city. The sample size for consumers was 150 (aged between 15-60).

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Demographics
Age Composition
10% 17% 11% 40%
10-20 yrs 20-30 yrs

Gender

20%

42%

30-40 yrs 40-50 yrs 50 and above

60%

Male Female

Occupation
13%

Marital Status
Student Business Man Employed

13%
22%

37%

37% 63%
Single Married

15%

Retired Others

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5%
9% 5% 9%
Nil <10,000

Awareness of the Brand

7% 20% 41%
NTC

25%

10,000-25,000

NCELL

47%

25,000-40,000 40,000-55,000 >55,000

32%

UTL SMART

Brand Usage
3% 2% 22%
NTC NCELL

Service Plan Usage

40% 60%
Postpaid

73%

UTL SMART

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7% 2% 7%

Monthly Usage
20%
< Rs. 500 Rs. 500-1000 Rs. 1000-2000

GPRS Usage
34%
Yes

8%

31%

25%

Rs. 2000-3000 Rs. 3000-4000 Rs. 4000-5000 Others

66%

No

Internet Plan Usage

Effect of Avertisements & Promotions

33%
Usage Based Unlimited Usage

34%

39%

67%

Yes No

27%

Not Using

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1% Chances of Switching Brands

18%
Yes No

81%

2% Ranking 8%
NTC

36%

54%

NCELL UTL SMART

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RELATIONSHIP BETWEEN CHOICE OF SELECTION AND BRANDING AND ADVERTISEMENTS:

Value Pearson Chi-Square Continuity Correctionb Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association .829a .406 .874 .824 Chi-Square Tests df Asymp. Sig. (2sided) 1 1 1 1 .362 .524 .350 .425 .364 .267 Exact Sig. (2sided) Exact Sig. (1sided)

N of Valid Cases 150 a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.67. b. Computed only for a 2x2 table

The chi-square test of dependency between choice of selection and branding and advertisements shows that the asymmetric significance is .216 which is greater than 0.05. Hence, we accept H0 i.e. both these parameters are independent of each other. From the above Chi-square results for NTC, NCELL, UTL and SMART we can conclude that branding and advertisements do not have effect on the choice of selection of consumers. Very less portion of people are affected by advertising and branding promotions in the market. 10/2/2012

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RELATIONSHIP BETWEEN CHOICE OF SELECTION AND QUALITY OF NETWORK PROVIDED:

Chi-Square Tests Value df Asymp. Sig. (2-sided)

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

43.647a 34.903 18.847 150

5 5 1

.000 .000 .000

a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is 1.93.

The chi-square test of dependency between choice of selection and the quality of network provided shows that the asymmetric significance is .002 which is smaller than 0.05. Hence, we reject H0 i.e. both these parameters are independent of each other. Therefore it is concluded that quality of network provided determines his/her choice of service provider telecom company. It can be thus said that the choice of selection of consumers is highly dependent on the quality of network provided by the telecom companies. 10/2/2012

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RELATIONSHIP BETWEEN CHOICE OF SELECTION AND THE VERSATILITY OF SERVICE PLAN:

Chi-Square Tests Value df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association 43.131a 33.257 23.782 5 5 1 .000 .000 .000

N of Valid Cases

150

a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is .23.

The chi-square test of dependency between choice of selection and the versatility of service plan shows that the asymmetric significance is .002 which is smaller than 0.05. Hence, we reject H0 i.e. both these parameters are independent of each other. Therefore it is concluded that versatility of service plan provided determines his/her choice of service provider telecom company. Thus, it can be concluded that the versatility of the service plan provided affects the choice consumers make while selecting the telecom service brand. 10/2/2012

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A Comparative study of various levels of satisfaction of consumer from different telecom companies:
Importance of Various Attributes to Consumers
160 140 120 100 80 60 40 20 0 Quality of Network Quality of Message Service Versatility of Service Plan Affordability Internet Facility Comfortability of Usage

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Overview of Consumer's Satisfaction for Quality of Network services

50 45 40 35 30 25 20 15 10 5 0 NTC NCELL UTL SMART

Axis Title

Highly Satisfied 20 19 2 0

Satisfied 30 46 0 0

Neutral 32 5 0 3

Less Satisfied Not Satisfied 27 0 0 0 17 4 0 0

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Overview of Consumer's Satisfaction for Quality of Message services

60 50 Axis Title 40

30
20 10 0 NTC NCELL UTL SMART Highly Satisfied 21 15 0 0

Satisfied 52 48 0 0

Neutral 36 5 2 1

Less Satisfied 17 0 0 2

Not Satisfied 0 4 0 0

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Overview of Consumer's Satisfaction for Versatility of Service Plan

80 70 60 Axis Title 50

40
30 20 10 0 NTC NCELL UTL SMART Highly Satisfied 15 11 0 0 Satisfied 31 32 0 3 Neutral 70 21 2 0 Less Satisfied 8 2 0 0 Not Satisfied 2 6 0 0

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Overview of Consumer's Satisfaction for Affordability

70 60 50 Axis Title

40
30 20 10 0 NTC NCELL UTL SMART Highly Satisfied 13 6 0 0 Satisfied 64 17 2 0 Neutral 38 37 0 3 Less Satisfied Not Satisfied 9 8 0 0 2 4 0 0

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Overview of Consumer's Satisfaction for Internet Facility

45

40
35

30
Axis Title 25 20 15 10 5 0 NTC NCELL UTL SMART Highly Satisfied 17 20 0 0 Satisfied 37 21 0 0 Neutral 39 21 0 0 Less Satisfied Not Satisfied 12 8 0 0 17 2 0 0

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Overview of Consumer's Satisfaction for Comfortability of Usage

60 50 Axis Title 40

30
20 10 0 NTC NCELL UTL SMART Highly Satisfied 22 11 0 0

Satisfied 53 26 0 0

Neutral 40 29 2 0

Less Satisfied 9 2 0 3

Not Satisfied 2 4 0 0

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Overview of Consumer's Satisfaction for Customer Service

40 35 30 Axis Title 25 20 15 10 5 0 NTC NCELL UTL SMART Highly Satisfied 22 12 0 0 Satisfied 29 34 0 0 Neutral 32 19 2 3 Less Satisfied 23 5 0 0 Not Satisfied 20 2 0 0

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