The total market share of ISPs remained at a mere 1.5 per cent at the end of 2011, whereas a year ago their share was 2.9 per cent, reads a latest report of Nepal Telecommunications Authority (NTA). [break]
Figures show the customer base of internet service providers decreased to 62,000 at the end of 2011 from 65,000 a year ago. The number of internet users, on the other hand almost doubled to 4.04 million from 2.26 million during this period.
President of Internet Service Providers Association of Nepal (ISPAN)Binaya Bohara said although total number of home users was declining, the overall business was looking positive as ISPs were coming up with attractive package and new technology.
The latest statistics of NTA also justifies Bohara´s opinion. Wireless users of ISPs have increased by more than 60 percent. The number of people using internet via fiber optics and wireless has crossed 31,000, up from 13,000 a year ago.
With the hope to grab business, ISPs are focusing home users with WiFi AirMax, DSL, fiber optics technologies.
Of the total internet subscribers, GPRS users have reached more than 3.72 million, 92 percent of total internet subscribers.
Officials opined that although majority of GPRS users were not active, growing 3G users were probably going to be a threat for their business.
Bohara said, “Although 3G can be a threat it is yet to reach larger mass because of the higher cost.”
ADSL users which have the highest customer base after GPRS have also gone up by 44 percent in a period of year. The number of ADSL has reached around 78,5000.
NTA Spokesperson Kailash Prasad Neupane said that attraction in new technology was the major cause for the decline in business. Majority of the operators are still offering dial-up and cable services which customers find costlier and provide poor service.
“Most subscribers these days prefer using mobile technoloy rather than computer which was contributing to the growth of GPRS and 3G users,” added Neupane.
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