Creating a Conducive Environment for Investment

1
Creating a Conducive Environment for Investment
Trade

• Mr. Ratna Raj Pandey
• Joint Secretary
• Ministry of Information Communication, Nepal

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Agenda

• Overview of Nepal
• Institutional Arrangements
• National ICT Policies Status
• Government Strategies on foreign investment
• Challenges in ICT
• Investment Opportunities
• Key Areas that need to be focused
• Areas of Cooperation

3
Nepal in a Brief

• Total Area 147,181 sq. km.
• Total Population 23.4 million
• Development Region 5
• Zones 14
• Districts 75
• Municipalities 58
• VDCs - 3914

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Geographical Division
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Institutional Arrangements

• Ministry of Information Communication
• Policy making body for Telecommunication Sector,
  Radio and TV Broadcasting, Postal, Press.
• Overall in-charge of telecommunication matter
• Ministry of Environment, Science Technology
• Policy making Body for Information Technology
  Sector
• Implement Information Technology plans to enhance
  ICT field

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Institutional Arrangements

• Nepal Telecommunication Authority
• Regulatory body
• Prepare guidelines for operators
• Prepare guidelines for consumer protection
• Provide suggestions to MoIC in the
  telecommunication matters
• Does research on what telecommunication services
  to implement.

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Institutional Arrangements

• High Level Commission for IT
• Promoter, facilitatator and regulator to develop
  the IT sector and create conducive environment
  for increased participation of the private sector
  
• Implement National IT Policy Strategies
• Make recommendations to the government to meet
  the challenges in the IT sector
• Establish, develop, assist and manage existing as
  well as future physical and virtual IT parks
  within the kingdom
• Encourage national and foreign investments to
  build/develop IT infrastructure

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Institutional Arrangements

• Nepal Telecom
• Key operator (backbone of ICT infrastructure )
• Provide services on Fixed line, Cellular Mobile
  communication and Internet
• United telecommunication Limited
• WLL based Fixed line Operator
• STM Telecom Sanchar Limited
• Rural Operator for Eastern Nepal
• Spice Nepal Pvt. Limited
• Cellular Mobile Operator

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National ICT Policies

• Main ICT policy Components
• National ICT Policy (10th Plan)
• Telecommunication Act Regulation
• IT Policy 2000
• Telecommunication Policy 2004
• Cyber Law

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National ICT Policies

• National policy for ICT development (10th Plan)
• To provide 40 telephone lines to every thousand
  people,
• To provide telephone services in each VDC,
• To develop sustainable and competitive
  information technology by using modern technology
  in the rural areas.
• To introduce new development programs in
  information technology for socio-economic
  development
• Tp encourage private sector participation in
  providing services related to Information and
  Communication.

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National ICT Policies

• IT Policy 2000
• To build knowledge based society industries
• To encourage private sector
• To develop manpower
• To increase employment
• To legalize e-Commerce
• To promote foreign investment in IT

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National ICT Policies

• Telecommunication Policy 2004
• To make telecom service universally accessible to
  all at an affordable price
• To fully liberalize telecom sector
• To adopt open licensing regime
• To encourage private sector participation
• To commercialize incumbent operator
• To develop Human Resource
• To increase economic efficiency of telecom sector
  by creating a healthy competitive environment

13
ICT Infrastructure

• Telecommunication Infrastructure
• Telephony
• Internet Availability
• IT Infrastructure
• IT Professional Institute
• High level professional 1,500
• Middle level professional 10,000
• IT related University -4
• Training institute 177
• IT Industries
• Hardware Software

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ICT Service Providers in Nepal
15
ICT Service Providers in Nepal
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Total Subscribers of Different Services in
Nepal (as of 14th April 2006)
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Total Subscribers Penetration
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Government Strategies on foreign investment

• Foreign investment allowed up to 80
• 1 Custom duties on equipment imported for rural
  telecommunication
• Full liberalization on telecommunication sector
• Open licensing regime with technology neutral
  approach

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Challenges in ICT Sector

• Service provision as per demand of urban
  population.
• Expansion of telecommunication services to rural
  areas.
• Implementation of the ICT strategies.
• Lack of skilled manpower.

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Investment Opportunities

• Network Expansion.
• Provide services in the rural areas.
• Start new services to promote e-activities such
  as e-commerce, e-health, e-learning, etc.
• Develop IT industries.
• Be partner with incumbent operator or any other
  industry.

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Difficulties Encountered in Creating a Conducive
Environment

• Delays in formulating necessary legislation to
  implement ICT policies
• Lack of one window policy for investors
• Lack of coordination among the implementing
  agencies
• Lack of knowledge on the institutions functions
  among the Government bodies
• Brain drain of the trained manpower
• Political Instability

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Key Areas that need to be focused

• Formulate Rules Regulations to facilitate
  growth
• Develop Adequate Manpower (training, higher
  study)
• Encourage private investors by adopting one
  window policy (simplify)
• Set the long term goal on infrastructure
  development IT applications
• Research and Development Facilities
• Technical Assistance from Regional Institutions

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Areas of Cooperation

• Regional cooperation on creating awareness about
  ICT development among the member countries
• Regional Connectivity using Fiber Optic or
  Appropriate Technology
• Sharing Resources Knowledge
• Concept of Regional Gateway
• Regional Recognition Establishment of
  Standardization Certification System

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Thank you for your kind attention!Ministry
of Information CommunicationSingh Durbar,
Kathmandu, NepalPh 977-1-4225556Fax
977-1-4227310Email moichmg_at_ntc.net.npWebsite
www.moic.gov.np