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Internet Service Market in Nepal

Internet Service Market in Nepal. By: Sanjeev Maharjan. Contents. Internet History in Nepal Growth of Internet Market Internet Market Today Earlier Technologies Introduced By ISPs Need for High Speed Internet High Speed Technologies Introduced by ISPs ADSL as Superior Technology

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Internet Service Market in Nepal

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  1. Internet Service Market in Nepal By: Sanjeev Maharjan

  2. Contents • Internet History in Nepal • Growth of Internet Market • Internet Market Today • Earlier Technologies Introduced By ISPs • Need for High Speed Internet • High Speed Technologies Introduced by ISPs • ADSL as Superior Technology • Why to prefer ADSL? • Lessons for us!!!

  3. Internet History in Nepal • E-mail services by Nepal Academy for Science and Technology: First instance of use of Internet Technology • Mercantile Office Systems: First Private Sector to provide commercial e-mail service in June 1994 • Internet Services by Mercantile Started: Connection with Singapore Telecom via 64 kbps leased line through NTC in 1995 • Mercantile became the First ISP of Nepal

  4. Internet History in Nepal • 1995: 2 more ISP proposed to start Internet services • World Link Communications & Computerland Communications • September 1997: License issued to all three ISPs • 1998: Formation of Nepal Telecommunications Authority (NTA) as per Telecommunications Act, 1997. • NTA is a telecommunications regulatory body

  5. Growth of Internet Market TABLE & GRAPH: Growth of ISPs Since the Introduction of Internet Service in Nepal

  6. Internet Market Today • Total number of Valid ISPs: 35 • Total Number of VSAT Network Providers: 7 • Total Number of VSAT Service Users: 110 • Total Number of Internet Users: 249,400 Internet users as of August, 2007;1.0% of the population, according to ITU

  7. Need for High Speed Internet • With the popularity and growth of internet services, the need of the customers also grew • Need of High Speed Internet emerged among different business houses and the financial organizations

  8. Earlier Technologies Introduced By ISPs • PSTN Dial-up: slow speed • ISDN Dial-up: Speed not as desired but expensive • Leased Line: High Speed but very costly

  9. High Speed Technologies Introduced by ISPs • Cable Internet Technology • Wireless Technology • ADSL Technology (The most recent buzz in Internet Market)

  10. High Speed TechnologiesCable Internet Technology • First introduced in Nepal By Subisu Cablenet Pvt. Ltd. • Uses the broadband coaxial cable as the medium • Requires cable modem as customer premise equipment (CPE) • Raw Capacity of 30 Mbps • But available speeds: up to 256 Mbps • Uses artificial Speed caps to limit speed of their customers

  11. High Speed TechnologiesCable Internet Technology

  12. High Speed TechnologiesCable Internet Technology Speed & Cost Structure by Subisu Cablenet Pvt. Ltd

  13. High Speed TechnologiesWireless Technology • Introduced for commercial purpose in Internet in Nepal By: Wordlink Communications Pvt. Ltd. • Uses the Motorola’s Canopy Technology to distribute the wireless technology (802.11)

  14. High Speed TechnologiesWireless Technology • Speed and Cost Structure

  15. High Speed TechnologiesADSL Technology • Stands for Asymmetric Digital Subscriber Line • Type of DSL Technology • Asymmetric in a sense: Higher downstream rate from 512 kbps to 6Mbps • Can be implemented in existing PSTN network with the use of ADSL Modems or Switch and the splitters • Cost-Effective solution to high speed internet service need of the people

  16. High Speed TechnologiesADSL Technology

  17. High Speed TechnologiesADSL Technology Speed and Cost Structure

  18. ADSL Vs Cable Vs Wireless

  19. Why to prefer ADSL? • Maximum districts reachable by other technologies: 20 • With 72 district telephone exchanges, ADSL has larger network potential & reach • High Broadband Speed • Minimized Switching and Installation cost • Popularity and Growth of this technology all over the world

  20. Why to prefer ADSL?

  21. Lessons For Us!!! • Cost-Reduction is a technique to enter the market with new technology • New Technology accepted all over the world generates the positive feedback • New Technology grows faster if the network base for the technology already exists in large • Switching Costs are significant for shifting customers from one base to other

  22. Thank You Switch Switch

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