Covid Impact: Telecom sector Revenue down by Rs 11 billion
Covid Impact: Telecom sector Revenue down by Rs 11 billion
The revenue of the telecom sector has been limited to billions. The telecom sector's revenue has declined sharply due to the volatile market due to Covid 19. As a result, the market is expected to be limited to around Rs 90 billion.
As per the financial statements submitted by the service providers to the Nepal Telecommunication Authority by mid-December, the total income of the telecommunication service providers in the last fiscal year 2076/077 has been Rs. 87.30 billion. Of these, only 57 companies have financial statements.
According to NEA sources, some of the 116 companies have yet to submit their details.
As most of the big companies have already submitted their financial statements, it does not seem to be more than Rs 3 billion. Therefore, the total revenue of the telecom sector is expected to be limited to Rs 90 billion in the previous fiscal year.
This is about Rs. 11 billion less than that of FY 2075/07. According to NEA, the revenue of the telecom sector was more than Rs 101 billion in that fiscal year. Corona has been blamed for the market shrinking by such large numbers.
In Kovid's time, the increasing use of Internet-based calls reduced the number of calls from the highest-earning telecom company.
Not only that, roaming calls have also decreased significantly due to lack of international travel. According to Min Prasad Aryal, spokesperson of NEA, the impact of Covid on both the roaming and internal calls of the telecom service provider's large revenue source may be seen in the total revenue of the telecom sector.
According to Aryal, the current data of the company is not final, so there may be some ups and downs. However, he admits that the market has shrunk compared to the previous year due to Covid.
According to the NEA, most of the telecom service providers have earned revenue in the last one year. Nepal Telecom and Ncell alone have earned around Rs 71 billion in the last fiscal year.
Out of which, Ncell has managed to earn Rs 46.76 billion in the last fiscal year. Which is 8 billion less than the previous year. Ncell had Rs 55 billion in FY 2075/076.
Similarly, Nepal Telecom has earned Rs 34.73 billion last fiscal year. Telecom has also lost about Rs 1.5 billion in revenue as compared to FY 2075/076. The telco had earned Rs 36 billion in that fiscal year.
Internet service provider WorldLink's revenue has also shrunk significantly during this period. WorldLink, the third largest telecom service provider in terms of revenue, earned only Rs 2.95 billion last fiscal year.
Which is a decrease of Rs. 2 billion as compared to FY 2075/076. According to NEA, WorldLink earned more than Rs 5 billion in that fiscal year.
The revenue of the telecom sector has been limited to billions. The telecom sector's revenue has declined sharply due to the volatile market due to Covid 19. As a result, the market is expected to be limited to around Rs 90 billion.
As per the financial statements submitted by the service providers to the Nepal Telecommunication Authority by mid-December, the total income of the telecommunication service providers in the last fiscal year 2076/077 has been Rs. 87.30 billion. Of these, only 57 companies have financial statements.
According to NEA sources, some of the 116 companies have yet to submit their details.
As most of the big companies have already submitted their financial statements, it does not seem to be more than Rs 3 billion. Therefore, the total revenue of the telecom sector is expected to be limited to Rs 90 billion in the previous fiscal year.
This is about Rs. 11 billion less than that of FY 2075/07. According to NEA, the revenue of the telecom sector was more than Rs 101 billion in that fiscal year. Corona has been blamed for the market shrinking by such large numbers.
In Kovid's time, the increasing use of Internet-based calls reduced the number of calls from the highest-earning telecom company.
Not only that, roaming calls have also decreased significantly due to lack of international travel. According to Min Prasad Aryal, spokesperson of NEA, the impact of Covid on both the roaming and internal calls of the telecom service provider's large revenue source may be seen in the total revenue of the telecom sector.
According to Aryal, the current data of the company is not final, so there may be some ups and downs. However, he admits that the market has shrunk compared to the previous year due to Covid.
According to the NEA, most of the telecom service providers have earned revenue in the last one year. Nepal Telecom and Ncell alone have earned around Rs 71 billion in the last fiscal year.
Out of which, Ncell has managed to earn Rs 46.76 billion in the last fiscal year. Which is 8 billion less than the previous year. Ncell had Rs 55 billion in FY 2075/076.
Similarly, Nepal Telecom has earned Rs 34.73 billion last fiscal year. Telecom has also lost about Rs 1.5 billion in revenue as compared to FY 2075/076. The telco had earned Rs 36 billion in that fiscal year.
Internet service provider WorldLink's revenue has also shrunk significantly during this period. WorldLink, the third largest telecom service provider in terms of revenue, earned only Rs 2.95 billion last fiscal year.
Which is a decrease of Rs. 2 billion as compared to FY 2075/076. According to NEA, WorldLink earned more than Rs 5 billion in that fiscal year.
