NEPAL COUNTRY PAPER Prepared for Regional workshop on WSIS

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NEPALCOUNTRY PAPER Prepared forRegional
workshop onWSIS integration of ICT policies
and strategies in the development process
Bangkok 29-31 may 2006

• By
• Ramesh Kumar Adhikari, Under Secretary, MOIC
• Pureshottam Ghimire, Under Secretary, MOEST

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NEPAL IN BRIEF

• HIMALAYAN/ MOUNTAINEOUS COUNTRY
• ALTITUTE Ranging from 100 M to 8,848 M
• AREA 1,47,181 sq. KM
• POPULATION 24 Millions
• LITERACY RATE 60
• LIFE EXPECTANCY 62.8
• PER CAPITA INCOME 250
• CAPITAL CITY KATHMANDU

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Country Readiness Towards ICT Based Society

• Networked Access
• 1.Information Infrastructure
• (Radio stn SW,MW,FM 56 TV Channels 7, CATV
  413) all pay and free channels are allowed to
  receive)
• 2.Internet Availability Yes
• 3.Internet Affordability US 6/m(20 hrs 31 of
  per capita income/yr. very expensive)
• 4 Network speed and quality only dial up (56
  kbps) and 2Mbps BB network negligible
• 5 Hardware and software Limited only in urban
  areas
• 6 Service and support. Available

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Networked Learning

• 7 Schools Access to ICTs Adequate access to
  Radio TV, Internet access is very Negligible
• 8 Enhancing education with ICTs Negligible
• 9 Developing the ICT workforce. Approx.4000
  manpower produced every year.

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Networked Society

• 10 People and Organizations on line 50,000
• 11 Locally relevant content Negligible
• 12 ICTs in Everyday life Growing in the
  Business entities
• 13 ICTs in Workplace. Growing

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Networked Economy

• 14 ICT Employment opportunities Increasing
• 15 B2C Electronic Commerce Banking, Travel
• 16 B2B Electronic Commerce Business
  Transactions,
• 17 E-Government. Master plan formulation ongoing

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Networked Policy

• 18 Telecommunications Regulation ICT friendly
  Telecommunications Policy and IT Policy are
  effective, Telecommunications Act and Electronic
  Transaction Act prevail and Independent
  Regulatory body (NTA) in place since 1999,
• 19 ICT Trade Policy. No

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Main ICT Development Indicators

• Main Telephone lines/100 inhabitants 2
• Cellular subscribers/100 inhabitants 2
• Internet (Number of ISPs) 36
• PCs/100 inhabitants
  0.6
• Internet (Users/100 inhabitants) 1

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Millennium Development Goal and ICT as a Tool

• MDG 1- Eradicate Extreme Poverty and Hunger
• Information Dissemination
• Awareness Raising
• Increase Productivity/ High Yield
• Efficient Public Service Delivery
• MDG 2- Achieve Universal Primary Education
• School Net
• Education in/ with ICT
• School Content on Web

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Millennium Development Goal and ICT as a Tool

• MDG 3- Promote Gender Equality and Empower Women
• Equal Access to ICT
• ICT Applications on Womens Initiatives
• MDG 4- Reduce Child Mortality
• E-health
• E-learning
• Program dissemination through Media
• Online Consultation

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Millennium Development Goal and ICT as a Tool

• MDG 5- Improve Maternal Health
• Educational program through Media
• Regular Dissemination of Information
• E-Health
• Online Consultation
• MDG 6- Combat HIV AIDS/Malaria other Diseases
• Awareness Program through Media
• Online Consultation
• Information Dissemination

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Millennium Development Goal and ICT as a Tool

• MDG 7- Ensure Environmental Sustainability
• Raising Awareness
• Information Dissemination
• Geographical Information System (GIS)
• MDG 8- Develop a Global Partnership for
  Development
• ICT friendly Policy, Legislation, Regulation,
  Operation, Financial Mechanism Customer Care
• Integration and Harmonization of Sectoral
  Policies with ICT application and Services

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WSIS Action Lines and National Initiative
Framework

• 1. Role of Public Government Authorities and
  Stakeholders
• Policy Legislation
• Trade and Investment
• Product/ Service/ Application
• 2. ICT Infrastructure
• High Speed, High Volume of Voice and Data
  Carrying Capacity Infrastructure
• Ubiquitous Network

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WSIS Action Lines and National Initiative
Framework

• 3. Access to Information and Knowledge
• Easy Affordable Access to ICT
• Access to Information
• Access to Media
• 4. Capacity Building
• Knowledge
• Skill
• Capacity
• Competitiveness

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WSIS Action Lines and National Initiative
Framework

• 5. Building Confidence and Security in Use of
  ICTs
• Harmonization between Service provider and users
• Fast, Reliable and Secured Service
• 6. Enabling Environment
• Fair, Stable Predictable Policy
• Clear, Understandable, Simple Law
• Neutral and Efficient Regulation
• Ensured Market
• Simple and Transparent Procedure

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WSIS Action Lines and National Initiative
Framework

• 7. ICT-Applications e-government, e-business,
  e-learning, e-health, e-employment, e-
  environment, e- agriculture, e-science
• Multi Years-Multi disciplinary Project
  Implementation for G2G, G2B and G2C Business with
  Multi Stake Holders Partnership in a transparent
  way with Democratic Character

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WSIS Action Lines and National Initiative
Framework

• 8- Cultural Diversity and Identity, Linguistic
  Diversity and Local Content
• Digitization of Culture and Language
• Development of Local content
• Application of Local Content
• 9. Media
• Access to Media
• Access to Information
• Informed Sovereign Citizens
• Responsible Government
• Free Society
• Independent Institution

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WSIS Action Lines and National Initiative
Framework

• 10. Ethical Dimensions of the Information Society
• Fair, Unbiased and Accurate Information
  Dissemination
• Strict follow of Ethical Values Norms on
  Profession
• 11. International and Regional Cooperation
• Technical and Financial Support
• Human Resource Development
• Infrastructure Development
• R D

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POLICY CIRCUMSTANCES

• Globalization
• Liberalization
• Demand of New Services
• Technological Innovation
• Competition
• National Commitment to International Forums
• ( MDG, WSIS, WTO etc.)

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Policy Environment in the Context of MDG and WSIS
Action Line

• Telecommunication policy-2004
• Why this Policy?
• To push forward the telecommunication sector in
  full fledged competition from 2004 as committed
  by Telecommunication policy 1999
• To take advantage of rapid and dynamic
  development in Telecom Technology for the benefit
  of Nepalese People
• Nepals commitment to join hands with global
  community for achieving MDG and contributing in
  creating world information society
• To fulfill the obligation as WTO member

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Paramount Objective of the Policy

• To create favorable environment in order to make
  the telecommunication service reliable and
  accessible to all people at reasonable cost
  throughout the Country in collaboration with
  private sector in order to support the social and
  economic development of the country

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Approaches to Achieve the Objectives

• Service available within shouting distance in
  rural inhabitant area
• On demand service in urban area
• Corporate Telecommunication service to the
  business community
• Use of appropriate ICT for poverty alleviation
  and development of the rural areas

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Strategy

• Universal Access
• Shared telephone ( Fixed / Mobile at least
  within shouting distance)
• Community Center as service provider
• Universal Service Obligation
• On demand service immediately on urban area
• Development of Corporate Service through more
  than one service provider (Leased line /Data/
  Other similar service)

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Strategy (Cont.) Liberalization of the Telecom
Sector

• Multi operators (only Radio Spectrum limits the
  number) / Multi Services
• Open licensing ( Standard License / Individual
  License)
• Private sector participation ( Flow of
  information of reform to the private sector /
  Foreign investment up to 80 in the sector)

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Strategy (Cont.) Enter into Information Society

• Effectively enter into the Information Society
  through extension of Telecommunication service
  and enactment of cyber law

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Strategy (Cont.) Appropriate ICT for users of
Rural Areas

• Capacity and need based ICT to the rural users
  through radio, television and telecommunication
• ICT literacy campaign with the support of private
  sector
• Encouragement of small service provider

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Strategy (Cont.) ICT Application for Development

• Connection of Central Level Offices to the
  Internet
• Availability of Documents of Public Concern on
  web
• Designation of Competent Focal Point

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Strategy (Cont.) Nepal Telecom Commercialization

• Convert into company ( done in 2004)
• Decrease Government Share ( 15 shares will be
  sold within F.Y. 2006/07).

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Strategy (Cont.) Institutional Development

• Capacity building of MOIC and NTA for Policy and
  Regulation respectively
• Define role of MOIC and MOEST to avoid
  overlapping
• Prompt, Simple, Convenient and Transparent
  implementation

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Strategy (Cont.) Economic Efficiency of the
Telecom Sector

• Encouraging fair competition among service
  provider
• Pursuant of WTO best practices to prevent unfair
  and unhealthy action

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Policy Implications( By Clusters)

• Connectivity
• Existing service providers will extend their
  service without subsidy
• Mobile service providers will be selected on the
  basis of rural coverage
• Rural service provider ( STM Telecom Sanchar)
  will provide the service in the eastern
  development region
• The areas, where the service is not available
  through aforesaid measures, will be served by the
  least subsidy tender winner

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Policy ImplicationsRural Focus

• One Percent Custom Duty on Equipments Imported
  for Rural Telecom Service
• license fee and annual fee exempted for rural
  telecommunication service providers earning less
  than Rs. 2 million
• Re-sale of the Telecom Service
• Rural Telecommunication Development Fund

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Policy ImplicationsFull Competition in Telecom
Sector

• Open Licensing ( Simple, Transparent, Stable and
  non-discriminatory regulatory regime)
• Technology Neutral (World Class Standard
  equipment )
• Multi Operators/ Multi Services
• Incumbent Operator as Facilitators

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Policy ImplicationsICT Application

• Radio, Television and Telephone based ICT content
• Small service providers will be encouraged
• Favorable environment for private sectors
  participation
• Full use of ICT in development activities
• Internet connection among central bodies of
  Government
• ICT literacy Training to Government Staff
• Competent Focal point for ICT

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Policy Implications (Cont.)Proper Institutional
Arrangement

• Policy- Ministry
• Regulatory- NTA as an independent body
• Implementation Competent Focal Point
• Monitoring- Ministerial Level Committee

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Policy Environment in the Context of MDG and WSIS
Action Line

• IT Policy Highlights
• IT as priority sector
• Promotion of export oriented IT industry
• Mainstreaming IT into govt. Plans, Program and
  project
• Research and Development
• Appropriate Institutional mechanism
• IT fund for R D
• Custom duty privilege for IT industries
• IT Policy as an integral part of other policies
• Use of IT for rural development
• Nationwide baseline database for e-readiness
  assessment

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IT Policy HighlightsInfrastructure

• Access through community
• Internet service as priority means of IT
• Higher bandwidth communication
• Credit, Loans and Financial support for ISP
• On demand service for Broadband Connectivity for
  the exporters
• Run of IT park in different places
• Wave income tax for the unites established within
  IT park-2015

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IT Policy Highlights Content and Application

• Content and Application
• Socio Economic development
• E-Commerce
• E-Education Computerization
• Automate government office
• Flow of Information website
• MIS application for effective decision making
• Encourage open source software

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IT Policy Highlights Private Sector Participation

• Enabling environment in terms of policy,
  regulatory and legal environment for attracting
  investment
• Tax holiday up to 5 years form the effective date
  of this policy
• Incentive scheme for IT exporters
• Export duty exemption

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IT Policy Highlights Human Resource Development
(HRD)

• Computer education for all by 2015
• IT establishment institutions
• Computer literacy a compulsory qualification for
  the competition
• Computer literacy at community level
• Establish Nepal in a global market
• Wave license fees and taxes to all national
  universities and educational Institutions that
  establish their own ISP

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IT Policy Highlights Institutional Arrangement

• HLCIT as an apex body
• NITC as an executing body

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On Going Initiatives

• Necessary Legislation in line with Policy
  provisions
• e-government Master Plan Development
• Integration of ICT Policy in Sectoral Policies
• Establishment of Rural ICT Centers

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Challenges

• Build a Better Understanding of role of ICT in
  Development Endeavor
• Infrastructure
• Resource Mobilization
• Strategic Institutional Restructuring
• Effective Implementation

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Cooperation and Collaboration for Peace, Progress
and Prosperity

• Government Initiation
• Civil Societys Participation
• Business Entities Investment
• International Communities Technical Support

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Thank You All !!