Nepal Telecommunications Report 2014

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Nepal's difficult terrain and remote geographic position are largely responsible for its low mobile penetration rate. The country had reached 71.5% penetration at the end of 2013, a rate BMI expects to remain below 100% during our 2014-2018 forecast period. A new competitor could lead to faster growth, but BMI believes there is not really sufficient demand in more rural areas. Mobile technologies do offer great potential for expanding broadband to more rural areas of the country and already take up of mobile data is strong, although often using slower technologies than 3G. Key Data ■ The fixed-line market showed slight growth in 2013, but we forecast decline over 2014-2018 as mobile technologies increasingly dominate the landscape. ■ Mobile growth is expected to be strong throughout our forecast period pushing the penetration rate to 97.1% by the end of our forecast period. ■ Mobile broadband technologies will be responsible for the bulk of growth in Nepal, pushing the growth rate to 8.8% on average over our five-year forecast period.

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