Business Case for Ncell
1. Company Overview
Name: Ncell Axiata Limited
Industry: Telecommunications
Parent Company: Axiata Group Berhad (Malaysian telecom conglomerate)
Services Offered: Mobile network services, data, voice, SMS, mobile broadband, digital
services
Market Position: Ncell is one of Nepal’s leading telecom providers, focusing on high-quality
network services to drive digital transformation.
2. Market Landscape
Telecom Market in Nepal: Rapidly growing with high demand for mobile services, especially
in rural areas.
Competitive Landscape: Ncell’s primary competitor is Nepal Telecom (NTC), which holds a
significant share of the market and is state-owned.
Consumer Demographics: Majority of the population are mobile-first users, with high
growth potential in mobile data usage and digital services.
3. Current Challenges
Regulatory Pressure: Ncell faces scrutiny from regulatory authorities, including high taxes
and frequent policy changes, impacting profitability and operational freedom.
Network Expansion Costs: Extending network coverage to remote and mountainous regions
is costly due to challenging terrains.
Competition from NTC: As a government-backed entity, NTC has certain operational and
regulatory advantages.
Digital Adoption Hurdles: While there’s a growing demand for data, educating and
encouraging rural populations to adopt digital services remains a challenge.
4. Opportunities for Growth
5G Implementation: Introducing 5G could attract tech-savvy users and set Ncell apart from
competitors, allowing for high-speed services that enhance user experience.
Rural Expansion: Targeting underserved rural areas offers potential for growth, especially
with tailored services and affordable pricing.
Digital Services Expansion: There’s an increasing demand for mobile payments, digital
entertainment, and IoT services. Ncell can innovate in these areas to diversify revenue.
Strategic Partnerships: Collaborating with local businesses, financial institutions, and tech
companies can enhance service offerings, especially in fintech and e-commerce.
5. Proposed Strategic Initiatives
Infrastructure Investment: Continue investing in network expansion and quality,
particularly in underserved areas, to improve coverage and user experience.
Affordable Data Packages: Roll out data packages targeting different demographic
segments, including budget-friendly options for low-income users and high-data packages
for urban areas.
Digital Literacy Campaigns: Partner with local governments and NGOs to improve digital
literacy, making it easier for rural populations to adopt and use digital services.
Brand Positioning as a Digital Leader: Promote Ncell’s image as a leader in digital
transformation, emphasizing the quality of network services and innovation in digital
offerings.
6. Financial Outlook
Revenue Growth: Expansion into rural markets, coupled with digital services, could
increase revenue streams.
Cost Implications: Initial investments in infrastructure and digital literacy initiatives may
increase short-term costs but are expected to pay off through customer acquisition and
retention.
Return on Investment (ROI): Increased customer base and reduced churn rate should
improve ROI in the medium to long term.
7. Risk Assessment
Regulatory Risks: Changes in government policy or tax structure could impact profitability.
Operational Risks: Expansion in difficult terrain involves logistical and maintenance
challenges.
Market Risks: Increasing competition, especially with Nepal Telecom and potential new
entrants, could lead to price wars, affecting margins.
8. Conclusion
Ncell has a strong position in the Nepali telecom market with ample opportunities for
growth in 5G and digital services. With strategic investments in network expansion, digital
literacy, and affordable services, Ncell can capture a larger market share while driving
digital transformation in Nepal.
