 |
Kathmandu Friday October 27, 2000 Kartik 11, 2057.
|
Lack of infrastructure
hinders IT growth
By Ram Sharan Sedhai
KATHMANDU, Oct 26 - Though information
technology is the fastest growing industry elsewhere, its pace is slower in Nepal, which
is attributed to the dearth of infrastructures.
Countries advanced in the knowledge-based
industry boast of timely infrastructures like: information superhighwayxs across their
territory in most cases, enabling them to expand their business in an astronomical
magnitude.
Though the technology makes geography
irrelevant, it has not delivered the same in Nepal in the absence of basic needs like
electricity and telephone facilities. Some people take the pace of development of IT as
natural while others say the growth is below expectation.
Bhoop Raj Pandey, Chairman of Nepal
Telecommunications Authority (NTA), a regulatory body of telecom services, says, "The
present growth of IT in the country is not disheartening though it is below
expectation".
The growth of information technology (IT)
largely depends upon the development of telecom and electricity, which itself is below
expectation and is reeling under state-monopoly. Internet Service Providers (ISPs) grumble
at the bureaucratic hassle that even doesn't supply telephone lines in time, which
discourages the entry of such service providers.
Muni B Sakya, Executive Director of High
Tech Pioneer Private Limited, says, Nepal Telecommunications Corporation (NTC) should fix
lower phone tariff to internet users and it should end bureaucratic hassles. Sakya also
suggests government to provide Very Small Aperture Terminal (VSAT) to private ISPs as the
existing VSAT is underused. This brings down the cost of ISPs, ultimately benefiting the
end users and spreading the internet use.
It has been hardly over three years
that ISPs began their services. And there are over 10 ISPs providing internet and e-mail
services, mostly stationed in the capital city alone. Over the years, the number of
internet subscribers has reached approximately to 22,050 including that of the NTC. It is
estimated that the number of internet users could be four times higher than the number of
subscribers.
According to Shishir Kumar Singh, Office
Secretary of Internet Service Providers Association of Nepal (ISPAN) the number of
internet accounts were calculated on the basis of internet usage, which he says is more
reliable.
Chairman Pandey, takes the growth as
natural. He says that currently students are using internet most, which is very good. It
takes some years to show its economic impact, he adds.
However, current researches on new
technology show that it begins to show impacts on productivity only when its use crosses
the 50 percent penetration rate. From this account Nepal has a long way to go.
At the current level of use, there is even
no return to investors. ISPs say they are not making any profit from those services
compared to their investment. They claim that they are taking hardly a peanut return from
the business, while the consumers are demanding for free use of internet.
Shishir K Singh, Administrative Manager of
Everest Net says, "Until there is no revenue sharing with NTC, we cannot make those
services cheaper or free and unless they are free, the number of clients would not
rise". If NTC fails to do so in time, the ISPs would lay their own cables making the
services more efficient and cheaper, which will ultimately affect NTC very badly, Singh
says.
Chairman Pandey says the idea of revenue
sharing is very good if it reduces the prices or even makes the services free but NTA
can't force NTC for revenue sharing among ISPs. We can encourage them in this direction
but cannot impose it, says he.
ISPs have been arguing that the recent
decision of the government to double the license fee and renewal fee for frequency would
be detrimental to the nascent industry. They say that as soon as the increased price comes
into effect, they would be forced to raise their service charges, which will discourage
the end users.
Pandey says the government should rethink
about it as it pushes up charges, it directly affects the end users.
Singh says the business calls for unlimited
investment but government has neither recognized ISP as an industry nor a public limited
barring foreigners to invest in them. This has kept the prospective foreign investment in
one of the most globalized technologies at bay.
Other Story
|
