Kathmandu: Although there are more than 44 wire-based Internet service providers, about eighty percent of the market is controlled by five companies.
According to the data released by the Telecommunication Authority of Nepal, 79.87 percent of the total subscribers using Internet services through copper wire and fiber cable are controlled by World Link Communications, Nepal Telecom Company, Subisu Cable Net, Vaya Net Communication and Classic Tech Pvt. Ltd. Out of the total 17 lakh 11 thousand 445 customers, 13 lakh 66 thousand customers belong to these five main companies.
Of these, World Link Communications Pvt. Ltd. has the largest market share of 31 per cent.In Fiscal year 2076/77, WorldLink had a market share of 32 per cent, but now it has shrunk to 31 per cent.
Based on the number of internet subscribers, Nepal Telecom Company Ltd. has occupied 17 per cent market share by Sawan 2078 BS. Compared to Fiscal year 2076/77, the market share of Nepal Telecom based on the number of wire-based internet users has declined by 4 per cent by Sawan 2078.
Subisu Cable Net improved its market share to 13.32 per cent.In 2077/78, Subisu had a total of 12.68 per cent customers. The market share of Classic Tech Pvt. Ltd. has declined slightly. Classic has 9.29 per cent of total number of subscribers.
Internet service requires huge investment in infrastructure construction and expansion. The higher the number of subscribers, the more cost-effective the operation and the more profitability.
However, due to the high number of companies with low number of subscribers, most of the small companies are struggling to sustain their business based on the income received from the subscribers.
Compared to Fiscal Year 2077/78, the number of internet users other than mobile data users has increased by 3.14 per cent in the first month of FY 2078/79. Compared to FY 2076/ 77, new subscribers were added by 41 per cent in last financial year.