BDP Plan on NetBolt

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    (A Wireless Broadband Data Service of N

    Submitted to: Submitted by:

    Ace Institute of ana!ement Anant Pra"as# alli"In partial ful$llment of %BA %BA& 3rdSemester

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    Acknowledgement

    This comprehensive Business Development Plan of a Net Bolt a !ireless "road"and data

    service of Nepal Telecom is the partial fulfillment of eMB# of #ce $nstitute of Management

    affiliated to Pokhara niversity.

    $ e&tend my sincere gratitude to all our course instructors of #$M and specially Mr. #shish

    Ti!ari Mr. Bishal 'hrestha and Mr. Pradeep (a)opadhyay our course instructors*facilitators

    for their valua"le guidance and advice on Business Development Plan !hich !ill have a great

    importance in our professional life. $ !ould also like to thank them for giving me this

    opportunity to apply the concept of "usiness development plan for a ne! "usiness and its

    marketing operation financial as !ell as +( plan of ,ireless Broad"and Data 'ervice underthe "rand name of -Net Bolt. $t has helped me to "e familiar !ith the general marketing

    practices applied in real life scenario in Nepal as !ell as give me confidence ho! a ne!

    "usiness plan "e done "efore starting the "usiness.

    $ !ould also like to take this opportunity to e&press my special thanks to Mr. 'urendra Prasad

    Thike DMD Business Department Mr. 'hiv Bhusan /al DMD $T Department and Mr.

    Narendra Mahar)an 'r. 0ngineer Business Department of Nepal Telecom for their valua"le

    contri"ution on providing me the relevant information.

    $ !ould also like to give my sincere thank to all the classmates !ho helped me "y providing

    their valua"le input and suggestions for completing BDP.

    Thanking you all

    'incerely

    #nant Prakash Mallik

    1anuary 232

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    Table of Contents

    1. EXECUTIVE SUMMARY..............................................................................5

    2. INTRODUCTION........................................................................................7

    . VISION! MISSION AND O"#ECTIVES............................................................$

    3' ISI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' +

    3', ISSI*N'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''+

    3'3 *B-%.TI%''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''+

    %. "USINESS DESCRI&TION...........................................................................'

    4' /%N%0A1''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''2

    4', P0*-%.TSA0'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''2

    4'3 P0*D.TD%S.0IPTI*N'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',

    5. MAR(ET RESEARC) AND ANA*YSIS.........................................................15

    5' 0%S%A0.6%T6*D*1*/'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''5

    5', *%0A11A07%T'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''5

    5'3 SITATI*NANA1SIS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''8

    5'4 A07%TT0%ND'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''8

    5'5 B./ A07%T/0*WT69S6A0%ANA1SIS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''2

    5'8 /*%0N%NTP*1I.'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''2

    5': .*P%TIT*0ANA1SIS''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''2

    +. ENVIRONMENTA* ANA*YSIS....................................................................21

    8' A.0*%NI0*N%NTA1ANA1SIS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',

    8', SW*T ANA1SIS''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',,

    8'3 .*P%TITI%;A.T*0S'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',4

    7. O&ERATIONA* &*AN...............................................................................25

    :' S%0I.%D%SI/NANDSP%.I;I.ATI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',5

    :',

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    >' 0%.0IT%NTANDS%1%.TI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''38

    >', D%%1*P%NTANDT0AININ/'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3:

    >'3 0%WA0DAND*TIATI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3:

    >'4 60 ASS%SS%NT*; NT'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3:

    >'5 .*ND.TAND.APABI1IT'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3+

    11. /INANCIA* &*AN AND ANA*YSIS...........................................................$

    ' .APITA10%

    '5 0%TAIN%D%A0NIN/STAT%%NT(ID%APP%NDI? >')'''''''''''''''''''''''''''''''''''''''''''''''''4

    '8 BA1AN.%S6%%T(ID%APP%NDI? ,)''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4

    ': P0*;ITA0/IN0ATI*''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4

    '+ 0%T0N*NASS%TS''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4,

    '2 ;NDANA/%%NT'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4,

    12. CRITICA* RIS(S AND CONTIN,ENCIES..................................................%2

    1. CONC*USION......................................................................................%

    Appendix

    #ppendi& 5 Market 6ro!th and 7ompetitor #nalysis

    #ppendi& 25 7apacity Planning of Net Bolt 'ervice

    #ppendi& 85 Tariff (ate #nalysis

    #ppendi& 45 $ncome "y 'u"scriptionMonth !ise

    #ppendi& :5 $ncome "y selling device

    #ppendi& ;.a5 0&penditure

    #ppendi& ;."5 Prei&ed #ssets

    #ppendi& ?5 Depreciation

    #ppendi& 95 $ncome and e&penditure

    #ppendi& 35 (etained earning

    #ppendi& 5 7ash >lo!

    #ppendi& 25 Balance 'heet

    #ppendi& 85 0@uipment cost

    #ppendi& 45 $T DepartmentAs structure

    #ppendi& :5 $TAs M$' (eport

    #ppendi& ;5 uality of 'ervice Benchmark

    #ppendi& =5 Nepal TelecomAs #nnual (eport

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    1. Executive Summary

    This is era of technology and Nepal is not the e&ception. Nepal has moved three places up

    from the ranking of 8= in 233? to 84 in 233 among :2 countries in the $nformation and

    7ommunication Development $nde& C$D$ as pu"lished "y $nternational Telecommunication

    nion C$T. Nepal has e&perienced unprecedented mo"ile gro!th E has the potential to

    repeat the same for "road"and data service. $T notes in the release that !ireless "road"and

    $nternet access remains the strongest gro!th sector in developing countries !ith mo"ile

    "road"and gro!ing "y ;3% "et!een 2339 and 233. (ecent Nepal Telecom #uthority

    CNT#Fs M$' report also sho!s the overall market gro!th of internet*data service is gro!ing

    up more than dou"le every year in Nepal e.g. in 2339 233 and 23 it !as 2.:% :.?% and

    4.% respectively. Thus there is a tremendous gro!th in this segment of telecom "usiness in

    Nepal.

    $n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/CNepal Telecom NT T/ N70// and $'Ps. #s of 4 Novem"er 23 though there are 29 $'Ps

    altogether in operation thorough out Nepal "ut their market share is )ust .;% C;:32. The ma)or

    su"scri"er holder $'PFs are ,orldlinkC94:3 BroadlinkC?;28 MercantileC9:3: and 'u"isu

    C;;:2. 'imilarly T/ also has )ust 2% market share and hence the ma)or data su"scri"ers are !ith

    Nepal Telecom and N70// C'NP/. 'imilarly it is found that the ma)or data*internet service medium

    is !ireless Cappro&. 9;%. Though there is a niche market for data service through ca"le modem and

    optical fi"er "ut the market is very limited. 'o $ have focused on !ireless data service in this "usiness

    plan. #nother region to select this "usiness plan is as per the B76 matri& analysis at present it is seen

    that the ma)or data "usiness of NT is #D'/ service C7ash co!. But "efore it goes to Dog state it !ill

    "e very !ise to introduce anther ne! service like it !hich is !ireless "road"and data service

    C,ima&*Net Bolt !ith more coverageless time to deploy E more economic.

    This "usiness plan is focusing on more advanced and efficient !ireless technology

    called ,iM#H !ith "rand name given as et !olt". ,iMa& C,orld!ide $nteropera"ility

    for Micro!ave #ccess "road"and !ireless data services can give up to =: M"*s throughput

    C"ased on 83 M+G of spectrum availa"ility. ,iMa& is already a matured standardiGed

    technology as compared to /T0C/ong Term 0volution !hich can give up to 33 M"ps

    throughput.

    +ere is the description of this pro)ect in summary5

    a# !rand ame$ et !olt

    b# Tec%nology used$ &i'ax (&orldwide )nteroperability for 'icrowave Access#

    wit% )EEE *+,.1-e standard (wit% mobility#

    c# Spectrum (freuency#$ ,./ 02 !and (,./+ to ,.// i.e. /+ '2 already licensed to

    T#

    d# 'ax bandwidt% availability to a customer$34 'bps

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    ,. )ntroduction

    #ccording to definition "y $T C$nternational Telecom nion and NT# CNepal Telecom

    #uthority aBroadband Internet subscriber is someone !ho pays for highspeed access to

    the pu"lic $nternet Ca T7P*$P connection. +igh speed access is defined as "eing e@ual to or

    greater than ,4- kbit7s as the sum of the capacity in "oth directions. No! a day almost in

    every sector of life $nternet is used !idely and the demand is gro!ing rapidly. $n Nepal

    presently there are 8.= million internet su"scri"ers out of !hich 8.; million C9;% are

    !ireless internet su"scri"ers Csource !!!.nta.gov.np.

    /ike the international trend NepalFs data service market is also gro!ing rapidly. #ccording to

    M$' report of NT# as of Jartik 23;? C4 Novem"er 23 the internet penetration rate of Nepal is

    4.39%. /ast year it !as )ust :.=9% during the same month i.e. the internet penetration rate has "een

    more than dou"led )ust !ithin one year of time.

    $n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/ CNepal

    Telecom NT T/ N70// and $'Ps. #s of 4 Novem"er 23 though there are 29 $'Ps altogether

    in operation thorough out Nepal "ut their market share is )ust .;% C;:32. The ma)or su"scri"er

    holder $'PFs are ,orldlinkC94:3 BroadlinkC?;28 MercantileC9:3: and 'u"isu C;;:2.

    'imilarly T/ also has )ust 2% market share and hence the ma)or data su"scri"ers are !ith Nepal

    Telecom and N70// C'NP/. 'imilarly it is found that the ma)or data*internet service medium is

    !ireless Cappro&. 9;%. Though there is a niche market for data service through ca"le modem and

    optical fi"er "ut the market is very limited. 'o $ have focused on !ireless data service in this "usiness

    plan.

    The present scenario of Data*$nternet market in Nepal is sho!n "elo!5

    C'ource5 !!.nta.gov.np

    nder this "usiness plan our target customers are people !ho are migrating to smart phones

    people*office having laptop or P7 of different category. $t is pro)ected that "y 238 #ndroid

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    internet compliments 'martphone there !ill "e higher demand for !ireless data services C!ifi

    !ithin 2 8 years. 'imilar is the case for computers. ser siGe of 6P(' compared to "road"and

    validates the need of a relia"le "road"and service in Nepal. Nepal is a mountainous country

    and considering the cost of laying fi"er to home ,iM#H can greatly contri"ute to

    "road"and penetration. (ecently NT# CNepal Telecom #uthority has given fre@uency license

    to NT for ,iMa& operation. 'o ,iM#H C,orld!ide $nteropera"ility for Micr!oave

    #ccess a highly efficient technology has "een chosen for this pro)ect and the "rand name

    has "een given as -et !olt.

    This pro)ect Business Development Plan on -Net Bolt 'ervice of Nepal Telecom has "een

    prepared to learn a"out ho! "usiness development plans are developed and implemented in

    real life scenario. By applying different management tools and techni@ues !hich !e learnt

    during our 0MB# course $ tried to analyGe the Business development plan for the upcoming

    NetBolt service of Nepal TelecomFs Broad"and ,ireless Data 'ervice a much gro!ing

    market in Nepal as a u"i@uitous and any!hereany time to connect type of data*internetservice.

    /. Dision8 'ission and :bectives

    /.1 Dision

    -Kision of Nepal Telecom is to remain a market leader in $nformation and 7ommunicationTechnology C$7T sector of the country !hile also e&tending relia"le and cost effectiveservices to all.

    The deployment of !ireless "road"and data services all over Nepal shall provide leverage to$7T sector and shall provide many opportunities to people of Nepal. #s par !ith ourgovernmentFs vision as -mo"ile on every"odyFs hand and internet in every"odyFs home $think NT can reflect this thing also in itFs vision238.

    /., 'ission

    LNepal Telecom as a progressive customer spirited and consumer responsive 0ntity iscommitted to provide nation!ide relia"le telecommunication service to serve as an impetusto the social political and economic development of the 7ountryL.

    /./ :bective

    To provide ,ireless Broad"and #ccess using ,iMa& $000 ?32.;e or higher technology

    in2.832.43 6+G "and to the ma)or cities like Jathmandu valley Pokhara Biratnagar

    Birgun) Bhairaha!a Nepalgun) and Dhangadhi !ith minimum data rate of 2:; k"ps

    do!nlink*uplink and Ma& data throughput of =: M"ps. $n second phase the net!ork is

    envisaged to "e deployed in all KD7 and municipalities of Nepal.

    To provide @uadplay services of voice data video and mo"ility !ith high relia"ility to

    33333 su"scri"ers !ithin a year.

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    @. !usiness 9escription

    @.1 0eneral

    Nepal Telecom is a leading incum"ent telecommunications service provider in Nepal

    and has "een providing !ireless data services like 86 6P(' and 7DM# H*0KD?ree.

    %# C5E cost$:utdoor>=s @8+++8 )ndoor>=s ,4++ and ;S!>=s 184++

    i# 5roect 9uration$4 years

    # Service launc% time$Approx B mont%s

    k# Subscriber Capacity$1++8+++ subscribers

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    l# Service are$ 6at%mandu valley8 5ok%ara valley8 C%itawan8 !iratnagar8

    !irgun8 !%aira%awa( including !utwal# and epalgun.

    m# Typical Coverage illustration$

    n# 9imensioning met%odology$

    +ere o"serving the market scenario of geometric gro!th rate Cmore than dou"le

    gro!th annuallysource5 !!!.nta.gov.np it has "een assumed that to tap %

    penetration during styear !ill not "e a pro"lem !ith our premium service Cmore

    "and!idth at lo! cost and high @uality. >or the 2ndyear it has "een assumed as

    .:% and in the su"se@uent 8 years it has "een assumed as 2% penetration.

    Because a saturation level may "e e&perienced or ane! efficient Technology may

    appear in the market. $n order to protect from threat of ne! comers !ith ne!

    technologies the e@uipments are chosen such that it can "e upgraded to upcoming

    /T0 C!ith 33 M"*s throughput !ithout changing any hard!are Cavaila"le in the

    market !ith soft!are up gradation. sing this dimension methodology appro&

    33333 potential su"scri"ers are coming in the ne&t : years C32=?. The silver

    su"scri"er Clo! volume user gold su"scri"er Cmedium volume user and

    diamond su"scri"er Chigh volume user has "een assumed as ?3% :% and :%

    respectively.

    43

    http://www.nta.gov.np/http://www.nta.gov.np/
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    No! to calculate the num"er of B' CBase 'tation 'erving node re@uired average

    contention ration Cshared "and!idth has "een assumed as 5?. The market trend

    is 5; to 53. +ence it is "etter than others. 'imilarly in order to penetrate in

    more service area than other competitors more than re@uired num"er of B' has

    "een planned Ce.g. re@uired is =2 "ut planned is 33 "ased on market analysisCPlease refer to #nne& 2 E Diagram. 233 ,i>i #P C#ccess Points also have

    "een provisioned for u"i@uitous ,i>i coverage in the service area for the general

    ,i>i users C!ithout "uying any 7P0

    To set the tariff first of financial calculation has "een carried out. 'ince NT has its

    o!n infrastructures like Building To!er Po!er e@uipments etc. and enough

    manpo!er those !ill also "e shared for this pro)ect. 'o investment for those things

    is not necessary. No! "ased on market price analysis Cplease refer #ppendi& 8 a

    very competitive price has "een set !hich is less than other competitors "ut !ith

    more usages "and!idth and more speed Cmore value to customer.

    $n order to give more choices of 7P0 Ccustomer premises e@uipments it has "een

    provisioned for )ust 3% for the styear su"scri"ers during pro)ect launch time.

    (est !ill "e opened to the market. # su"scri"er can "uy it from local market and

    configure it remotely Cusing

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    6'M or 7DM# net!ork i.d. there is a core e@uipment to handle "ase station Cnear the

    customers house put on the to!er "ase station CB' to provide !ireless "road"and service

    to the customer and 7P0*,i>i #P Cto connect !ith su"scri"erFs P7*/aptop Mo"ile set.

    sing this !ireless service depending on the service providers fre@uency license a su"scri"er

    can get more "and!idth for internet*data service for the application of data voice video !ith

    mo"ility C@uad play. >or e&ample in this pro)ect NT has recently got license of 83 M+G!ith this spectrum it can provide up to =: M"ps at each B' siteFs coverage area. $000

    C$nstitute of 0lectrical and 0lectronics 0ngineers defines all the protocols Cconnectivity

    rules for this system. NT !ill "ring the latest ?32.;e C!ith mo"ility standardsF e@uipment

    under this pro)ect to delight our customer i.e. customer can en)oy roaming of internet service

    during their move on the car.

    +ere is a net!ork structure of ,iMa& service5

    '' 'u"scri"er 'tation*7ustomer premises e@uipment e.g. /aptop Mo"ile etc.

    B' Base 'tation Cmounted on a Pole*To!er near the vicinity of su"scri"ers

    +ere customerFs 7P0*'' are connected to service provider through !ireless

    connection to B' "ut B' are connect to a central #'NC#ccess 'ervice Net!ork

    gate!ay through micro!ave radio or optical fi"er or D'/ line. The #'N gate !ay is

    connected to the central 7'N C7onnectivity 'ervice Net!ork (outer. sually for a

    small*medium net!ork #'N gate!ay and 7'N router resides in a same

    place*"uilding. The 7'N router is then connected to the e&ternal internet !orld

    trough fire!all Cfor net!ork protection. Billing system

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    +ere are the illustration of the components of a ,iMa& system5

    43

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    &i'ax !ase Station (!S# &i'ax Antenna System

    &i'ax C5Es$

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    4. 'arket =esearc% and Analysis

    Market research analysis !ill help the company to define its target market. $t !ill help to

    understand the people !ho might "e interested in "uying the product and the competitors inthe market.

    4.1 =esearc% 'et%odology

    >or this pro)ect $ have collected materials from Nepal TelecomFs M$' reports*#nnual (eport

    Nepal Telecom #uthority CNT#Fs M$' report $TFs (eport ma)or competitors like N70//

    T/ E $'PFs like ,orldlink Broadlink Mercantile etcFs !e"siteFs information 7omputer

    #ssociation of NepalC7#NFs !e"site information C!!!.can.org.np $nternet 'ervice

    ProviderFs #ssociation of Nepal C$'P#NFs !e"site informationC!!!.ispan.net.np and had

    intervie! sessions !ith NTFs "usiness departmentFs DMD and senior staff. $ have also

    conducted a small survey of data users of Nepal Telecom.

    4., :verall market

    Nepal has moved three places up from the ranking of 8= in 233? to 84 in 233 among :2

    countries in the $nformation and 7ommunication Development $nde& C$D$ that is pu"lished

    "y $nternational Telecommunication nion

    C$T. Nepal has e&perienced unprecedented

    mo"ile gro!th E has the potential to repeatthe same for "road"and. $T notes in the

    release that !ireless "road"and $nternet

    access remains the strongest gro!th sector in

    developing countries !ith mo"ile "road"and

    gro!ing "y ;3% "et!een 2339 and 233.

    NT#Fs M$' sho!s the overall market gro!th

    of internet*data service is gro!ing up more than

    dou"le every year e.g. in 2339 233 and

    23 it !as 2.:% :.?% and 4.%

    respectively. Thus there is a tremendous

    gro!th in this segment of telecom "usiness.

    $n Nepal currently there are 8:O $'Ps "ut only :; $'Ps actively contri"uting to the

    "road"and penetration. The technology used are5 dial up #D'/ 7a"le Modem radio link

    C!i fi 6P('0D607DM# & 7DM# & 0KD

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    greatly contri"ute to "road"and penetration. ser siGe of 6P(' compared to "road"and

    validates the need of a relia"le "road"and service in Nepal yearly gro!th of #D'/ is a"out

    39% !here as for data service including 6P(' is 43=%.

    4./ Situation Analysis

    Situation analysis of wireless data service at a glance

    . Product /ife 7ycle 'tage 6ro!th stage

    2. 6ro!th rate $ncreasing C33%

    8. Predicta"ility of gro!th potential Potential !elldefined competition specialiGed to

    satisfy needs of specific segments.

    4. Product line proliferation >ast proliferation

    :. Num"er of competitors Many competitors e&ists "ut Ma)or 4

    ;. Market share distri"ution neven pattern of share distri"ution

    =. 7ustomer sta"ility ,elldeveloped "uying patterns !ith customer

    loyalty. 7ompetitors understand purchase

    dynamics and it is difficult for ne! service

    providers to !in over accounts.

    ?. 0ase of entry Difficult. Market leaders esta"lished.

    9. Technology # thrust to rene! the industry adopting moderntelecom technology.

    4.@ 'arket Trend

    /ike the international trend NepalFs data service market is also gro!ing rapidly. #s of Novem"er

    23 the internet penetration rate of Nepal is 4.39%. /ast year it !as )ust :.=9% during the same

    month i.e. the internet penetration rate has "een more than dou"led )ust !ithin one year of time.

    $n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/ CNepal

    Telecom T/ N70// and $'Ps. #s of 4 1uly 23 though there are 2? $'Ps altogethers in

    operation thorough out Nepal "ut their market share is )ust 2% C:2:2=. The ma)or su"scri"er holder

    $'PFs are ,orldlinkC9.9J BroadlinkC.?J and MercantileC9.:J. 'imilarly T/ also has )ust 2%

    market share and hence the ma)or data su"scri"ers are !ith Nepal Telecom and N70//. 'imilarly it

    is found that the ma)or data*internet service medium is !ireless Cappro&. 9;%. Though there is a

    niche market for data service through ca"le modem and optical fi"er "ut the market is very limited. 'o

    $ have chosen !ireless data service in this marketing plan.

    Nepalese people are facing pro"lem !ith either slo! speed data rate or !ith high cost of internet

    usage. Num"ers of laptops and computers sold in the market have increased "y more than 2:333 "ut

    due to lack of proper marketing and limited resources there is not much usage of internet "and!idth.

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    $n Nepal as internet is accessed predominantly through mo"ile devices than from any other means

    and "ecause high speed internet compliments 'martphone there !ill "e higher demand for !ireless

    data services !ithin 2 8 years. This demand for the !ireless data services shall "e augmented "y

    glo"al trend to!ards data services and availa"ility of smartphones at cheaper price.

    The present scenario of Data*$nternet market in Nepal is sho!n "elo!5

    'u"scri"ers volume of Data services in NepalC'ource5 !!.nta.gov.np

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    #s per the annual report C2339233 of NT it is seen that Nepalese people are hungry for

    "and!idth and ready to pay more. +ere is the scenario5

    4.4 !C0 'arket 0rowt%>S%are Analysis

    +ere is the B76 6ro!th'hare Matri& analysis of Nepal TelecomFs Data*$nternet 'ervice.

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    Thus it is seen that the ma)or data "usiness of NT is #D'/ service C7ash co!. But "efore it goes to

    Dog state it is !ise to introduce anther ne! service like it !hich is !ireless "road"and data service

    C,ima&*Net Bolt !ith more coverageless time to deploy E more economic.

    4.- 0overnment 5olicy

    6overnment of Nepal has policy to "uild "road"and infrastructure in all =: districts. 6overnment has

    already announced to provide internet in every house and mo"ile service to all the people. >or this

    NT# has already called a tender to "uild optical fi"er net!ork to district head @uarters. (ecently NT#has given license of ,iMa& to Nepal Telecom !ith 83M+G "and!idth in 2.86+G "and. $t !ill also

    give license to other t!o Cone from telecom operator and other from $'P very soon. Thus there is a

    favora"le situation to "uild !ireless "road"and data service in Nepal.

    4.3 Competitor Analysis

    $n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/ CNepal

    Telecom T/ N70// and $'Ps. #s of 4 1uly 23 though there are 2? $'Ps altogether in

    operation thorough out Nepal "ut their market share is )ust 2% C:2:2=. The ma)or su"scri"er holder

    $'PFs are ,orldlinkC9.9J BroadlinkC.?J and MercantileC9.:J. 'imilarly T/ also has )ust 2%

    market share and hence the ma)or data su"scri"ers are !ith Nepal Telecom and N70//. 'imilarly itis found that the ma)or data*internet service medium is !ireless Cappro&. 9;%. Though there is a

    niche market for data service through ca"le modem and optical fi"er "ut the market is very limited.

    The main competition for NT high speed data services is from N70//Fs Data connect services. #s per

    Nepal Telecommunications #uthority CNT# data the data su"scri"ers of N70// are around 2.2

    million !hich is almost ==% more than NTFs data su"scri"ers. People feel more speed in NcellFs data

    connect than NTFs data service. But the tariff of data connection of N70// varies depending on the

    package E on an average it is (s 2.3*MB !hile that of NT is flat (s .3 *MB. Thus the data tariff of

    N7ell is almost t!ice that of NT data tariff. +o!ever N70// has only provided data connectivity in

    : cities in Nepal !hile plan of NT is to deploy it all over the Nepal. Moreover NT has a potential to

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    get more market share of data service segment as NT can get lo!er economics of scale due to e&isting

    transmission "ack"one all over Nepal.

    +ere is the 'trength and ,eakness analysis of the ma)or competitors$

    S.o. Service 5rovider Strengt% &eakness

    N7ell +igher !ireless

    data rate

    'upport from

    $nternationalgroupCTeleasonera

    6ood am"ience

    at customer care centre

    More P

    group

    More fre@uencyavaila"le

    Kery less

    coverage area

    Kery less

    gro!th rate

    Poor service

    /ess fre@uencyavaila"le forhigh dataservice C0KD

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    $'P licensed "andlike ,iMa&.

    More

    interference

    >ocused more

    in Jathmanduvalley

    : Broadlink More

    su"scri"erstrength

    (each in 2

    places

    +igh cost

    /ess

    infrastructure

    No fre@uency

    license inlicensed "andlike ,iMa&.

    /ess coverage

    in !esternregions

    -. Environmental Analysis

    0nvironmental analysis is the study of company environment to pinpoint environmentalfactors that can significantly influence its operations. This !ill help to understand !hat ishappening "oth inside and outside the company and to develop its strategies.

    -.1 'acro Environmental Analysis

    -.1.1 5olitical>legal

    Though government of Nepal has put development of $7T and development of infrastructure

    for internet access to every household in its development plan "ut there is no clear cut policy

    for its actual implementation. $mplementation of $T park at Dhulikhel concrete 7y"er la! etc

    are fe! e&amples of failure of government policy. Due to political insta"ility and

    unavaila"ility of effective la!s $7T sector of Nepal has not "een flourished to its large e&tent.#s the government changes fre@uently its policy also gets changed. #s far as "road"and data

    service is concerned government is still not clear !hether voice over $P CKo$P should "e

    allo!ed. $t took almost : years for government to give license for ,iMa& to NT and license

    to other t!o operators is still pending Cauction "ased on "eauty contest. Being the incum"ent

    operator like B'N/ in $ndia Nepal Telecom got opportunity to "ecome early "ird for ,iMa&

    service in Nepal. This is a good advantage for NT "ut it is still in dilemma !hether ne&t

    government !ill also follo! the same policy 7ivil Procurement inspection authority and

    7$## allo! the spectrum fee charged to NT etc. !ithout giving 86*46 license.

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    -.1., Economic

    0conomy is a ma)or factor !hich affects the "usiness of internet service. #s the national

    economy gets improved internet users num"er also get increased. Based on $T and $M>Fs

    report it has "een noticed that though Nepal is a least developed country "ut it seen that as the

    6DP % increases Ce.g. 'Q 8== to 'Q :22 during 233=233 NepalFs internet users also

    got increased C249433 to ;2:?33 i.e. more than dou"le. This is a positive sign for

    investment.

    -.1./ Socio>cultural

    The population of Nepal has "een increasing at a steady up!ard level in recent years. #s per

    the census data C!!!.c"s.gov.np in 233 the population !as consisting of 28. million and

    in 23 this num"er has increased to 2;.; million. $n terms of population density in 23 the

    density has "een noticed as ? people*km2 up from )ust := people*km2in 233. The degree

    of ur"aniGation also has "een increased from 8.9% to =% of population during the decade.

    'imilarly the population of age group ::9 has "een increased to :4.2% from :2.?% during

    that period. #s the ur"an population increases as the youth population increases it tends to

    create additional demand for ne! technology ne! computer ne! mo"ile sets and ne!

    applications. This !ill generate more "and!idth for internet service like surfing social

    net!ork sites listening online music gaming e"anking etc. Thus for !ireless "road"and

    service there is a very good scope.

    -.1.@ Tec%nological

    The diffusion of technology innovation in Nepal has dramatically increased in recent years.

    These changes can "e clearly seen in the $T sector. # very easy !ay to see the increase in $T

    technology is the storage space availa"le in the market. >rom flash drive to hard disk the

    storage space at minimum is at 2 giga"yte and this had replaced the use of 7D(

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    External ?actors

    e&perience and insight

    'trong financial condition

    'trong "rand name

    #n attractive customer "ase

    0conomies of scale

    'uperior intellectual capital

    Product innovation

    capa"ilities

    ,ide geographical

    coverage

    nionism

    Monopolistic attitude

    (esistance to change

    /ack of harmony among

    staffs

    ,eak customer care

    Pro)ect Delays

    'lo! decision making

    /o! coordination among

    various departments

    :pportunities

    6ro!ing market siGe

    $ncrease in purchasing po!er

    (ising "uyersF demand

    (apid technological changes

    'erving additional market

    segments

    S:$ 'axi 'ax

    Provide communication

    services "ased on latest

    technology.

    $ncreased investment in

    further esta"lishment of

    infrastructure like optical

    fi"er etc.

    (apid deployment of BT's

    to further increase the

    reach.

    Ne! services can "e

    deployed at once in large

    scale all over the country.

    e! more operators to start

    services

    6ro!ing "argaining po!er of

    customersF

    ST$ 'axi 'in

    >ull utiliGation of the

    infrastructure and capital

    "ase to install stateofthe

    art technology and "eat

    competitors in terms of

    service @uality service

    variety and geographical

    coverage.

    7onstantly "ring in

    innovations

    &T$ 'ini 'in

    0sta"lishment of full

    functioning customer

    care unit in all regional

    offices.

    Provide services "ased

    on !hat customers !ant

    not )ust !hat the

    company has.

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    No! a day ,iMa& e@uipments in the market can "e upgraded to /T0 through minor soft!are license.

    +ence it is future proof no need of much additional investment in future and can offer 33 M"ps

    throughput in future Cif NT# opens the /T0 license.

    3. :perational 5lan

    3.1 Service 9esign and Specification

    The main o")ective of this pro)ect is to provide the customer a high speed C"road"and !ireless

    internet service at very lo! cost "ut !ith high performance. #ccording to the customer segments

    three category has "een classified viG 'ilver Clo! 6oldCMedium and Diamond C+igh. +ere is

    the service design for those services5

    'ilver Package5 2:; J"ps average throughput !ith monthly usage of : 6B

    6old Package5 :2 J"ps average throughput !ith monthly usage of 3 6B

    Diamond Package5 2 M"ps average throughput !ith monthly usage of :3 6B

    'ervice area5 = ma)or cities viG Jathmandu valley 7hit!an Pokhara Biratnagar Birgun)

    Bhairaha!a*But!al and Nepalgun)

    Targeted customer capacity5 #ppro& 33333 Cover su"scription !ill not "e done if

    demands shoots up more Base 'tation CB' and other resources !ill "e added gradually.

    7ustomer Premises e@uipments C7P05 During pro)ect launch time "y NT C$ndoor

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    customer care service and uality related issues. 'o for this pro)ect those unmet needs !ill "e

    addressed. +ere are the ma)or steps that NT !ill carry out for "etter @uality of service Co'5

    . Net!ork Performance5 $n order to provide +igh @uality of net!ork performance these

    things !ill "e carried out

    a. More num"er of B' C e.g. appro& B' re@uired during styear is 8: "ut :3 B'

    has "een provisioned.

    ". #verage contention ratio C"and!idth sharing ratio in the Nepales $7T market

    is 5; to 53 "ut for this pro)ect 5? has "een considered i.e. less congestion.

    sing e&isting optical fi"re link !ith $ndia and 7hina enough international

    "and!idth !ith redundancy !ill "e provisioned C#ppro& 4 6"ps estimated.

    c. Net!ork operation maintenance and regular net!ork optimiGation !ill "e

    carried out "y an internationally reno!ned company Coutsourced to meet theset "enchmark C Please refer #pendi& =.

    2. 'ervice #ctivation Time5 sing NTFs !e" portal the service activation !ill "e done

    immediately Cas soon as the customer pays the "ill.

    8. Node unavaila"ility5 sing managed service i.e. third party maintenance service and

    having dual po!er "ackup the do!ntime !ill "e minimiGed.

    4. Throughput5 By using ,iMa& technology Chaving =:M"ps throughput at each B'

    optimiGed net!ork and less contention ratio Clocal 5? international 5 ma&imum

    throughput as compared to other service providers !ill "e provided.

    :. 7ustomer care5 24&= customer care units !ill "e esta"lished. To make more efficient

    and customer friendly for this service also a third party solution !ill "e utiliGed like

    e&isting 9= and 49? service.

    ;. Billing complains5 ,iMa& is very secure system and since all the su"scri"ers are

    prepaid type there !ill not "e any detail "illing. 0ven if there is any complain a"out

    the amount deducted it !ill "e settled as soon as possi"le !ith high priority.

    =. 7ustomer perception 5 "y using a"ove factors high performance highly relia"le and!ith high availa"ility service !ill "e provided to the customers and hence it !ill help

    NT to reposition its "road"and data service CNet Bolt.

    3./ )nventory management

    >or this "usiness no need to keep any inventory. $n ordered to give more choices to thecustomers the customer premises e@uipments C7P0 are ordered in styear only. That is also

    )ust for 3% of the su"scri"ers during pro)ect launching time C)ustintime 1$T. 'o no need

    to do inventory management.

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    3.@ 5roect )mplementation Sc%edule

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    *. 'arketing strategies and 'arketing 5lan

    *.1 'arket forecast

    #s sho!n a"ove there are plenty of resources Csecondary data !hich indicates that there are

    tremendous opportunities for !ireless "road"and data service in Nepal. ,hether it is

    improvement from 8= to 84 in $TFs $D$ inde& or :.?% to 4.% increase Cmore than

    dou"le gro!hth of internet*data service penetration during last year all indicates the

    favora"le condition for data service in Nepal. 'pecially the figure -9;% of market share of

    !ireless data service in Nepalese data market segment proves the rapid demand of !ireless

    "road"and data serive in Nepal. Jeeping this scenario in my mind $Fve chosen !ireless data

    servie "randed as NetBolt service C,iMa& for this BDP.Based on a"ove more than 33% gro!th rate of data service in Neapl it has "een envisaged

    that to occupy % penetration under this pro)ect !ill "e @uite on safe side for this "usiness

    plan. $t has "een envisaged that the gro!th rate !ill keep on increasing at least for ne&t three

    years Cunntill it reaches to itFs saturation stage. 'o for this pro)ect $Fve assumed to serve %

    of total population in the st year .:% in 2nd year then 2.% in su"se@uent 8 years

    C assuming that ne! innovative technologies may appear in the market during that period.

    Jeeping up coming technologies in mind $Fve propsed to ugpgrade the e@uipmetns to /T0

    Cupcoming technology !ith higher data rate 33M"ps "y the end of third year so that NT

    can retain itFs su"scri"ers.

    ,ith communications services moving from voice only services to fundamentally data dominated

    services uick development of smartphones !ith diminishing price many gadgets !ith !ifi

    $ntelFs (ED on integrating ,iMa& chipset in every laptop scenario of -More data rate more

    #(P Caverage revenue per unit in NTFs net!ork etc. are supporting factors for this market

    forecast.

    *., ST5 of et !olt Service

    *.,.1 Segmentation$

    'egmentation is done to kno! !ho are the "iggest customers the most profita"le ones and

    the most attractive ones. The varia"les considered for segmentation are5

    6eographic /ocation5 Jathmandau valley Pokhara valley 7hit!an Biratnagar

    Birgun) Bhaira!a Cincluding But!al and Nepalgun).

    Psychographics

    'ocial class5 for medium and high income group

    /ife style5 energetic having either P7 /aptop 'martphone or any gadget !ith

    ,i>i

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    *./.1 'arketing 'ix (35s#

    # com"ination of marketing tools !ill "e used to satisfy customers and company o")ectives.

    # proper market analysis has "een done to create a successful marketing mi&.

    1. 5roduct

    Jeeping in mind that "road"and data service is in gro!th stage here are the different

    products that !ill "e offered to fit the customers need5

    a# Services$ 1. Silver8 ,. 0old /. 9iamond

    'ilver package !ill "e targeted for lo! volume users C#verage 2:; Jp"s speed and

    monthly usage : 6B 6old package !ill "e targeted for medium volume users C#verage

    :2 Jp"s speed and monthly usage 3 6B and Diamond package !ill "e targeted for

    high volume users C#verage 2M"ps speed and monthly usage :3 6B.

    $f Nepal Telecom #uthority gives the license of /T0 NT can add 5latinum package!ith

    84 M"ps speed and unlimited usage for its premium su"scri"ers.

    b# Customer 5remises Euipments (C5E#$ 1. :utdoor8 ,. )ndoor /. ;S!

    $n order to cater different types of customers needs NT !ill offer variants of customer

    premises e@uipment C7P0 viG

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    $n order to give more choices of products NT !ill also allo! the 7P0 product to the local

    market through franchisers. 7ustomer !ill have various choices in the local market !hich

    can "e configured to NTFs system through the provision of

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    *.4 6eys to Success

    The keys to success are providing error free lo! do!ntime high average speed throughput data

    net!ork all over the country in afforda"le price "y ordinary su"scri"ers. NT should ensure that

    optimiGation of mo"ile net!ork C"oth for data and voice is done periodically. $n addition NT should

    also take care of customer satisfaction in completely ne! !ays. This means customers should "ecatered not only through conventional customer care centers "ut ne! medium such as internet !e"

    pages "logs forums and social media such as face "ook pages should "e used for this purpose.

    *.- 'arketing control mec%anisms

    NT already has good e&posure in data services. +o!ever the high speed data connectivity is

    some!hat different from lo! data rate service in that su"scri"erFs aspirations from high speed data

    service are naturally higher. +ence services such as TK video portals video conferencing !hich

    re@uires intensive data throughput must !ork seamlessly. To ensure this some of the critical issues

    that NT should take care of are5

    The data net!ork should "e closely monitored. This means to generate performance data and

    analyGe them day to day so as to ensure that there is no surge in data users at any place or at any

    point in time.

    There should "e no congestions in data servers and other net!ork elements directly affecting the

    data connectivity. NT shall make policies regarding operation and maintenance of any net!ork

    elements so that least do!ntime is o"served in case of failure and optimiGe itFs net!ork regularly.

    NT shall try its "est to ensure customer satisfaction. This includes proper training of customer

    care staffs outsourcing proper information flo! and training of outsourced company employees

    taking regular feed"ack from users etc. . >or e&ample doing 'M' Pole putting feed"ack "o&es

    placed at all ma)or outlet tracking records of regular customers and contacting personally

    "y sales persons for their feed"ack Cpersonal touch and encouraging online feed"ack on

    NTFs !e"site are some of the !ays.

    B. :rgani2ation and 'anagement 5lan

    >or this pro)ect of !ireless "road"and data service NT !ill follo! itFs present organiGation

    structure and utiliGe its staff. ,ithout adding more staff for this pro)ect NT !ill opt to go for

    the managed service "y third party. The "idder !ill operate and maintain the net!ork. Morepoint of sales CP

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    $nternal #udit and +uman (esource DevelopmentI ; Directors of /evel in >ield

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    $n order to handle $7T related services NT has already formed an $T directorate in its

    organiGation structure. The organogram of $T department is sho!n in #NN0H4.

    B., 'anagement team

    $T departmentFs director !ill take lead for this pro)ect. $T department provides nation!ide

    internet and data services for fi&ed net!ork of NT and recently it has also started !ireless ,i>i

    pro)ect. This department is responsi"le for the generation of "ills for the P'TN customer. $t is also

    maintains the internal computer net!ork of the organiGation $P address handling. ,ith the increase

    in "usiness volume additional manpo!er involved in technical department as !ell as

    marketing department !ill "e done.

    B./ Team members

    $t departments director is an $7T engineer holding MB# degree. 'imilarly Mangers of

    development and operation Dpt managers all have masters degree in $7T. 'imilarly :3% of

    the engineers are holding masters degree and developed skill through various trainings.

    Basically all the staffs are very competent.

    B.@ Staff composition

    Present staff composition is sho!n "elo!5

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    1+. uman =esource 5olicies

    +uman resource C+( policies provide an organiGation !ith a mechanism to manage risk "y

    staying up to date !ith current trends in employment standards and legislation. The policies

    must "e framed in a manner that the companies vision E the human resource helping the

    company to achieve it or !ork to!ards it are at all levels "enefited and at the same time not

    deviated from their main o")ective.

    1+.1 =ecruitment and selection

    #ll the re@uired vacant posts are fulfilled "ased on follo!ing provisions are made in Jarmachari

    Biniyama!ali 23;85

    ?or level 1 ,5 #ll re@uired num"er of seats !ill "e called for free open competition.

    ?or level / -5 :3% of total re@uired num"er of seats !ill "e called for free open

    competition and remaining :3% !ill "e secured for internal L>ile

    Badhu!aL and internal e&amination

    ?or level 3 (Tec%nical#5 =:% of vacant seats !ill "e called for free open competition and

    2:% of the remaining seats !ill "e secured for internal L>ile

    Badhu!aL and internal e&amination.

    ?or level 3 (on>tec%nical#5 33% of the remaining seats !ill "e secured for internal L>ile

    Badhu!aL and internal e&amination.

    ?or evel * 115 #ll vacant seats are secure for L>ile Badhu!aL and internal

    e&amination.

    (ecruitment secretariat then su"mits the details to the (ecruitment 7ommittee !hich comprise of the

    follo!ing.

    . Managing Director R 7hairman

    2. DMD +( Mem"er

    8. DMD Technical appointed "y MD Mem"er

    4. (ecruitment Manager R 6eneral 'ecretary

    (ecruitment secretariat carries out the )o" vacancy advertisements as per the decisions for "oth

    Cinternal*e&ternal posts and instructs e&am section to conduct the selection procedures Ce&am

    intervie!s internal competition

    (ecruitment committee finaliGes and pu"lishes the result of successful candidates as per e&am or

    internal performance evaluations and sends it to Personnel #dministration 'ection for appointment

    and socialiGation Cinduction for ne! and posting as per re@uirement.

    1+., 9evelopment and training

    #ll the technical staff as !ell as sales counter people !ill "e given training a"out NetBolt

    service. # "udget for personal development of amount (s =33333 has "een allocated in st

    year and there !ill "e increment of 3% in each year. This training is aimed at providing the

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    kno!ledge a"out Net Bolt service >ault diagnosis Net!ork optimiGation and "usiness

    development tactics.

    1+./ =eward and motivation

    NT has "een applying a 232?;3 grade techni@ue for performance appraisal. The score of 23 pointsis a!arded "y the supervisor 2 points is a!arded "y a person a"ove the immediate supervisor and ?

    points is a!arded "y the +( committee. The remaining ;3 is divided into three segments. >irst 24

    points for the num"er of years !orked at NT second 23 for the geographical location !here the

    person has !orked third 2 for the educational @ualification and final 4 points for the num"er of

    years the person has !orked as an office incharge at any office of NT all over Nepal. #s per the

    "yla!s only Technical people can "e an office incharge. +ence for nontechnical the division of ;3

    !ould "e 8?232.

    Based on financial performance NTFs staff used to get "onus and incentive as a motivation

    remuneration. But it !as not "ased on performance appraisal of the individual staff. But since last

    year a fund has "een allocated to re!ard and motivate fe! staff "ased on performance. 'o for this

    service staffs have opportunity to get re!arded "ased on their performance. Beside this they used to

    get a"road training promotion as a motivation factor.

    1+.@ =' assessment of T

    Based on a +(M assessment done "y a team Cincluding me on 1anuary ? 23 here is the

    findings summary5

    >rom the +( #ssessment matri& !e have analyGed the area of strength and !eakness of the Nepal

    TelecomFs +(M >unction. Most of the indicators lie "et!een 2 and 8 !hich mean the overall

    !orking area of this function is less than satisfactory. +o!ever further detail analysis of all those

    functions need to "e done in order to assure the overall status of +( functions practiced in NT.

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    1+.4 Conduct and capability

    NT has staff "yla! 23;; CJarmachari Biniyama!ali23;; !hich govern all the +(

    activities. The company !ill put an effort to ensure that there is a strong management

    frame!ork and key principles to support people at !ork. The purpose of the policy is to help

    manager to deal effectively !ith staffs !hen their conduct performance falls "elo!

    accepta"le standards.

    11. ?inancial 5lan and Analysis

    >inancial plan is essential for opening of any "usiness. The plan provides the pro)ected financial

    status of the "usiness. The financial plan includes calculation of capital re@uirement revenue and

    e&penditure forecast profita"ility pay"ack period cash flo! management return on investment

    etc. Preoperating e&penses for ; months and a five years pro)ected financial status is calculated to

    understand the feasi"ility of the "usiness.

    11.1 Capital =euirement ?orecast

    9escription Amount

    >i&ed #ssets =9892:

    Preoperating 0&penses 34948?;

    ,orking 7apital ?;899

    Total Capital =euirement B+8+++8+++

    Total capital re@uirement of N(s. 93333333 !ill "e invested "y the company itself from its

    reserve E surplus fund of (s 8249:9942= Cas per audited "alance sheet of NT on #shadh 82

    23;=. Please see #nne& ; for the details.

    11., =evenue forecast

    'ont% wise =evenue forecast from subscription (vide Appendix @.#

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    (evenue forecast from selling of 7P0(vide Appendix 4#

    4./ )ncome and Expenditure Statement (vide Appendix B#

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    Hear 1 Hear , Hear / Hear @ Hear 4

    4:.92% ;2.=8% ;:.?4% ;:.=4% ;:.2%

    The a"ove profit margin ratio indicates positive trend of the "usiness. #s the pro)ect isutiliGing e&isting facilities "y adding some facilities !hich adds value to the planned pro)ect

    has sho!n very good return "y the pro)ect. Market trend for loan is supposed to around ;

    ?% interest rate the return in the first year itself is 4:.92% and hence the pro)ect seems

    vital for the e&isting NT "usiness.

    11.3 =eturn on Assets

    Hear 1 Hear , Hear / Hear @ Hear 4

    89.2% :4.33% 44.?8% 8.93% 24.42%

    (eturn on assets is also positive during : years of services. +o!ever from 8rd year on!ard

    the % is in the decreasing trends !hich indicates to plan for the investment in ne! pro)ect so

    that assets could "e mo"iliGed rather than keeping idle .

    11.* ?und 'anagement

    #ny accumulated profit !ill "e transferred to reserve and surplus account periodically and surplus

    cash "alance !ill "e transferred to NTFs head office account. Board of directors and NTFs

    management !ill decide a"out itFs reinvestment Ce.g. pipe line pro)ects like crore 6'M 2:

    /akh $P 7DM# pro)ect etc. "onus incentive etc.

    1,. Critical =isks and Contingencies

    ,iMa& is completely ne! technology in Nepal though there are some other technologiesavaila"le in the market. People are not much satisfied !ith the @uality of 6'M net!ork of

    NT. 'o people may have perception that this Net Bolt service may also "e the same. 'o thecompany in the first hand need to reposition its "rand and create a!areness a"out the @ualityof the service and its various useful applications to its customers. 'imilarly other players may

    play a game and try to delay NTFs pro)ect for service launching Cas in the case of 7DM#.

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    $t has "een envisaged that market for Net Bolt service !ill depend on follo!ing ma)orfactors5

    Price

    uality

    #fter sales support

    Ne! entrants !ith more competitive price and technology

    NT !ill of course meet all those re@uirements !ith the strategies as e&plained a"ove "utincase there is any unavoida"le circumstance due to !hich NT canFt attract more su"scri"erthen in that case as a contingency plan $ have planned to use this net!ork as the "ackhaul linkfor the upcoming and running pro)ects like 6'M and 7DM#. Being $P "ased net!ork it !ill

    "e cost effective solution for Point to Multipoint link. No need to put many antennas on ato!er and link setup time !ill very less. By this our investment !ill "e @uite on safe side.

    1/. Conclusion

    Nepal Telecom has gone a long !ay to understand the market it is trying to serveI good

    solutions have "een identified. The company is very positive that it !ill "e recogniGed "y its

    customers as a "rand name for high @uality "road"and internet service at the most

    competitive price. >inally the company is very positive that the "usiness "ill "ring profit as

    predicted and !ill contri"ute immensely in economic E $7T gro!th of the nation "y

    promoting the use of fast internet.