Ncell’s two-decade journey: transforming Nepal’s telecom sector and uplifting communities

KATHMANDU: Over the last two decades, the world has experienced rapid and unprecedented technological changes. The primary driver of this transformation has been the advent of mobile technology, particularly smartphones. In Nepal, one company has played a pivotal role in revolutionizing the telecom sector and making modern communication accessible to millions: Ncell.

Ncell, established as Mero Mobile in 2005, brought about a fundamental shift in Nepal’s telecommunication industry. It broke the state monopoly of Nepal Telecom and introduced competitive services, dramatically changing the way Nepalis communicate.

From the introduction of easily accessible SIM cards to advanced 4G services, Ncell’s journey has been synonymous with the development of the telecom sector in Nepal. But beyond business, Ncell has also been a key player in contributing to social causes, environmental sustainability, and national development. This article delves into Ncell’s journey, its contributions, and the impact it has made on Nepal’s society and economy.

The Transformation of Telecom in Nepal

Twenty years ago, Nepal’s telecom landscape was vastly different from what it is today. Access to mobile phones was limited, and acquiring a SIM card was a significant challenge. Back then, Nepal Telecom, a government-owned entity, monopolized the industry. Obtaining a SIM card was a tedious process, involving long waiting periods and administrative hurdles.

This changed in 2005 with the entry of Mero Mobile (later rebranded as Ncell). It made SIM cards available through retail outlets, significantly reducing the barriers to mobile access. Suddenly, ordinary citizens could walk into a shop and purchase a SIM card without the bureaucratic red tape.

Within three years of its establishment, Mero Mobile attracted the attention of European telecom giant TeliaSonera, which acquired 80% of the company’s shares. This marked a watershed moment for Nepal’s telecom sector.

TeliaSonera’s entry brought international expertise, research, and technological innovations to the Nepali market. In 2009, Mero Mobile rebranded as Ncell, and with this rebranding came a host of new services, better network quality, and a nationwide expansion that put mobile phones in the hands of millions.

Ncell’s expansion was rapid. It introduced new services such as data packs, corporate solutions, and affordable voice plans. At a time when Nepalis were migrating in large numbers to work abroad, Ncell provided affordable international call rates, helping families stay connected across borders.

By breaking the monopoly and fostering competition, Ncell also pushed Nepal Telecom to improve its services. Over time, the overall quality of telecom services in Nepal improved, benefiting consumers and the economy alike. Mobile penetration, which was at a mere 6% when Ncell entered the market, has now surged to over 115%.

Ncell’s Corporate Social Responsibility (CSR) Initiatives

While Ncell’s business achievements are commendable, its impact extends far beyond the telecom industry. Over the years, Ncell has been a leader in corporate social responsibility (CSR) activities, channeling significant resources into social and environmental causes.

Healthcare Initiatives

Ncell has been actively involved in improving healthcare access in remote parts of Nepal. One of the most notable initiatives is its partnership with the Nepal Red Cross Society. Through this collaboration, Ncell has supported blood donation drives and awareness campaigns about the importance of donating blood. In addition, Ncell has also contributed to the construction of health posts in rural areas, ensuring that underserved communities have access to basic healthcare services.

During the COVID-19 pandemic, Ncell stepped up by providing essential support. The company donated personal protective equipment (PPE), medical supplies, and testing kits to hospitals across the country. Moreover, it launched public awareness campaigns to educate people about the importance of hygiene, social distancing, and vaccination, playing a crucial role in the fight against the pandemic.

Educational Programs

Ncell has also been involved in promoting education, particularly in rural and underprivileged areas. It has provided scholarships to students from marginalized communities, ensuring that they have access to quality education. Furthermore, Ncell has supported the construction of school buildings and provided digital learning resources, helping bridge the educational divide between urban and rural areas.

Ncell’s investment in education also extends to digital literacy. Recognizing the importance of technology in the modern world, Ncell has organized workshops and training programs to improve digital literacy, particularly among women and young people. These programs have empowered individuals to harness the power of technology for personal and professional growth.

Environmental Sustainability

Ncell has taken significant steps toward environmental sustainability, recognizing the importance of preserving Nepal’s natural resources. The company has adopted eco-friendly practices in its operations, including reducing carbon emissions, promoting energy efficiency, and minimizing electronic waste.

One of Ncell’s most significant environmental initiatives is its commitment to tree plantation and reforestation efforts. Ncell has planted thousands of trees across the country, contributing to Nepal’s efforts to combat deforestation and promote environmental conservation. In addition, the company has installed solar-powered mobile towers in remote areas, reducing the reliance on traditional energy sources and promoting renewable energy.

Disaster Relief Efforts

Nepal is prone to natural disasters, particularly earthquakes and floods. Ncell has consistently been at the forefront of disaster relief efforts, providing critical assistance to affected communities. During the devastating 2015 earthquake, Ncell played a key role in disaster response, ensuring that communication networks remained operational in the aftermath of the quake.

The company also provided financial assistance, food supplies, and temporary shelters to earthquake survivors. Ncell’s quick response during the disaster earned it widespread praise, and its role in helping communities recover demonstrated its commitment to social responsibility.

Economic Contributions

Ncell’s contributions to Nepal’s economy go beyond the telecom sector. Over the years, Ncell has been one of the largest taxpayers in Nepal, contributing billions of rupees to the national treasury. Since its establishment, Ncell has paid over NPR 320 billion in taxes, fees, and other charges to the government. In 2022 alone, Ncell contributed NPR 20.3 billion to the government through various taxes, including license fees and telecom service charges.

Furthermore, Ncell has created thousands of jobs in Nepal. It employs over 25,000 people, both directly and indirectly, and has helped build a skilled workforce in the telecom sector. By providing stable employment and career development opportunities, Ncell has played a key role in improving the livelihoods of countless Nepali families.

Road Ahead

Despite its many successes, Ncell has faced its share of challenges. The telecom market in Nepal has become increasingly competitive, and the sector as a whole has seen a decline in revenue. The market, once valued at NPR 100 billion, has shrunk to NPR 75 billion due to various factors, including declining international call revenues and slower growth in data usage. Only 20% of 4G users in Nepal are regular data users, a challenge for telecom operators like Ncell that are trying to grow their data services.

Moreover, Ncell has faced regulatory challenges and high tax burdens. The company has been subject to capital gains tax disputes, and frequent changes in government policies have created uncertainty for long-term planning. However, Ncell continues to innovate and invest in its services, focusing on expanding its 4G network, improving service quality, and exploring new opportunities in digital services.

However, as Ncell celebrates nearly two decades of service in Nepal, it stands as a key player in the country’s telecom revolution. From breaking barriers in mobile access to leading social and environmental initiatives, Ncell has made a lasting impact on Nepalese society. Its contributions to healthcare, education, environmental sustainability, and disaster relief demonstrate its commitment to being more than just a telecom provider.

Looking ahead, Ncell faces challenges in a competitive market, but its track record of innovation and social responsibility suggests that it will continue to be a major force in Nepal’s economic and social development. Through its business operations and CSR efforts, Ncell has not only transformed the telecom industry but also touched the lives of millions, making it a true champion of change in Nepal.