1 AIT Asian Institute of Technology

Telecommunications sector reform in Nepal : privatization as the solution

AuthorAdhikari, Anil Chandra
Call NumberAIT RSPR no.SM-94-09
Subject(s)Telecommunication--Nepal

NoteA research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration
PublisherAsian Institute of Technology
AbstractThe challenge of the sector and institutional reform is to meet the diverging needs of service users and social goals of universal service with efficient and effective use of resources. The policy, regulatory, and management environment in which a telecommunication authority operates has a profound effect on the efficiency of the telecommunications sector. Now there is an emerging consensus in Nepal on the need to undertake major restructuring of the sector due to economic and social importance of the sector, unmet demand and rapid technological developments and the calls for the provision of an efficient, effective range of services in a timely manner. While there is no single model available, this study aims to develop its own model to highlight the desirable features of sector restructuring. The research is based on the discussion of the four layers of sector reform namely the issues of ownership, regulation, competition and autonomy. The research identifies the main institutional issues and the ways alternative structures may be implemented in the Kingdom of Nepal. Policies and regulations are highlighted as some of the more essential elements in a framework which fosters a progressive, flexible and responsive approach to sector development. An analysis of the present issues and likely future scenarios is followed by a discussion of the role that various players should play in the development of the telecommunications sector. Different privatization scenarios have been developed and each layer of the sector reform have been analyzed with regard to the impediments of the sector development and the additional decision criteria of the terms of reference, namely the effect on the grants and soft loans and the effects of the total transfers from the sector to HMG. At the end, possible sector reform scenarios have been presented in three phases with initial phase occupying the initiation of competition and final phase providing the full privatization. According to the findings of the research, limited competition in this sector should be generated first along with the formation of strong and independent regulatory body in the initial phase of sector restructuring. Privatization should be followed only after the strengthening of the initial phase.
Year1994
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Swierczek, F.W.
Examination Committee(s)Igel, Barbara;Do, Ba Khang;
Scholarship Donor(s)Austrian Government;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1994


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