Digital Nepal

June 18, 2018

Tap new growth with intelligent connectivity and digital economy

Presented at CAN ICT Conference

By

Ananda Raj Khanal

Senior Director, NTA

Vision and Mission

The new digital evolution are part of our lives……

People VerticalsCity

A SaferCity to live

A Bettermobile digital life

A SmarterManufacturing plant

Digitalization is Reshaping the Future

Digital Transformation are influencing Nations / People

Industries are evolving to Smart Industries

Cities are evolving to Smart Cities

The use of information and the need to use

data, are turning into…

156 countries have released national

ICT development master plan

Industry 4.0 Internet PlusAdvanced Manufacturing 2.0

Singapore Smart Nation Digital Canada 150 Smart Digital Malaysia

Nigeria National

Broadband Strategy

Colombia Live Digital Connected Argentina

Countries are setting policies to encourage ICT investmentThe Global GDP forecast

Source: IMFSource: ITU

2.82.7

2.5

3.0 3.1

3.0 2.9

2.0

2.2

2.4

2.6

2.8

3.0

3.2

2014 2015 2016 2017 2018 2019 2020

%Global GDP Growth Rate

ICT is the main drive force for growth

Digital economy drives economy growth and employment increase

Contribution to Asia GDP

2020 ICT

$1.23 tn2020 E-Commerce

4.8%

GDP

$8.93 tn 34.8%

GDPContribution to Asia Employment

MBB direct jobs

11.6 mn

MBB indirect jobs *

9.3 mn

* Jobs related to E-Commerce is not included

Starters Adopters Frontrunners

110K

70K

60K

50K

40K

30K

20K

10K

0

80K

90K

110K

100K

15 25 35 40 45 50 55 60 65 70 75 803020GCI 2018 score

Avg.

Nom

inal

GD

P p

er

Capita 2

017

Las

IndianBotswana

Argentina

Turkey

Colombia Belarus

Brazil

Bahrain Greece

Malaysia

Estonia

China

PortugalItaly

United Arab Emirates

Luxembourg

IrelandNorway

Switzerland

United States

SingaporeSweden

DenmarkAustralia

Germany

France Japan United Kingdom

Finland

South Korea

Most countries have embarked on the road to a digital economy,

but they are at different stages

Nepal here

Bangladesh

Recommendations for Starters:

ICT Policy Priorities for Starters

FOCUS AREAS

ICT Infrastructure

Priorities

Focus on improving high-

speed network access (e.g.

FTTH and 4G)

Industry and

Company Priorities Focus on e-Commerce

and cloud

Workforce

PrioritiesFocus on education for

cloud services and big data

RECOMMENDED ACTIONS

• Expand public-private partnerships for ICT infrastructure to accelerate build-out and control costs

• Expand high-speed broadband coverage: increase Fiber-to-the-Home (FTTH) networks to reach over 20% of households (up from 2% in 2017), and 4G coverage from 4% of the population in 2017 to 40%

• Invest in data centers to provide cloud services once high-speed network coverage expands

• Boost access to affordable computing devices and smartphones to over 60% of the population

• Promote Internet use to cross the 70% threshold, up from an average of 38% today

• Increase investment in cloud services to over 10% of total software investment to create a transformation platform for industry automation

• Promote adoption of e-Commerce and social marketing to reach international markets

• Grow e-Commerce transactions by a factor of five, to more than $5,000 per capita

• Develop education programs to ensure workforce will be capable of using digital devices and have skills needed in the digital economy

• Build programs to upgrade the skills of current workers to meet the needs of digital transformation and industry automation

• Develop advanced programs to prepare IT workers for cloud services, big data and IoT. These workers will play a vital role in moving the country through digital transformation

Laos' National ICT Development Landscape, 2016~2025

Open cloud app platform Smart city innovation

High value realms

Socio-economyTransformationModernization of

traditional industries

New way: Industry 4.0, internet economy…

Enhance self-supporting capacity

Cost↓Efficiency↑ Efficient and Agile Network

National Broadband Network e-Government networks (private& public) Integrated ICT facility for access points

Flexible and Modernized IT Infrastructure

Cloud based e-Government platform and online services Enhanced communication efficiency and Collaboration

Manipulate Data Operation in-depth and knowledge mgt. Enhance app supporting capability and technical standardization Strengthen innovation mechanism and app integration Start industrial innovation with urgent demand, e.g. safe city,

education…

Citizens

e-LearningTelediagnosisElectronic IDSmart meter

SME& famer

e-CommercePublic cloud servicee-High Tech Parke-Logistics

Enterprise& Industry

e-Agriculturee-Financee-TourismSmart energy

Intentional cooperation

Regional joint innovation Trade facilitation

Government

Public service portale-Customse-Transport

Enforced Security

12

3

4

76

5Severn

Objectives in Action Plan, 2016~2018

Reference: 8th Five-Year National Socio-Economic Development Plan(2016~2020) of Lao PDR

National ICT Development Offers Huge Contribution to Laos’GDP

Growth

Each 10% increase in BB penetration, the GDP increases 1.3% in average;

BB speed X2 0.3% GDP increase;

20% increase in ICT investment = 1% growth in GDP.

Source： ITU, Deloitte

14.4

15.9

7%

9.4%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

13.5

14

14.5

15

15.5

16

16.5

2015 2016

Laos GDP(Billions USD) GDP Growth

1.54

2.15

0.2

0.96

26%

46%

0

0.5

1

1.5

2

2.5

2015 2016

3G Subs(Millions) 4G Subs(Millions)

MBB Penetration

Laos’s GDP Growth (2006~2016) Laos Mobile BB (2015&2016)

Source： World BankSource： TeleGeography

16.12

45.07

13.46

21.93

89

68

98

62

37

58

0

20

40

60

80

100

120

0

10

20

30

40

50

Nepal India Cambodia Vietnam Thailand Malaysia Global Average

Download Mbps Upload Mbps Rank

Nepal ICT Insight: Lag Behind, but Huge Potential

Nepal lags behind in many aspects of ICT Nepal mobile experience weaker than other countries

Nepal Fixed experience weaker than other countries

7.2

22.61

4.16

9.1

122113

8570

97

72

0

20

40

60

80

100

120

140

0

5

10

15

20

25

Nepal India Cambodia Vietnam Thailand Malaysia Global Average

Download Mbps Upload Mbps Rank

Source: OOKLA

• Nepal economy maintain steady growth in recent years

• Total population of Nepal is around 29M, of which 19M+ are aged below 35 years old, reflecting huge youth potentiality.

• Youth literacy rate (aged 15 to 24 years) of Nepal is 84.72% , indicates reliable foundation for now and future

20.2

23.69

28.32

32.9334.88

36.7538.42

39.95

72%84%

99%

114%119%

124% 128%132%

0%

20%

40%

60%

80%

100%

120%

140%

0

5

10

15

20

25

30

35

40

45

2013 2014 2015 2016 2017 2018 2019 2020

Mobile subscriber Mobile Penetration

4.2%

8.6%

14.3%

17.0%

20.9%

24.5%

28.0% 31.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2013 2014 2015 2016 2017 2018 2019 2020

MBB User MBB Penetration

16.31%

52.48%

31.21%

only 2G-supported phone

2G&3G-supported phone

2G&3G&4G-supported phone

Nepal ICT Insight: Lag Behind, but Huge Potential

Mobile Penetration towards Saturation MBB Penetration Forecast,

Still Low

Terminal Supporting

Different Technologies

• Mobile subs more than population (mobile penetration > 100%). The main players are NT and Ncell.

• More than 80% terminal support MBB(3G&4G) but MBB penetration is around 20%.

• Poor MBB coverage (3G coverage < 60%; 4G only in 21 cities) is the main cause of low MBB penetration.

Digital Nepal Development Framework

Digital Nepal

Vision: Building a Fully Connected and Intelligent Nepal

Talent FundingRegulation

ICT Infrastructure

Spectrum

• National Backbone Network

• Fixed BB and Wireless BB for

home

• Nation-wide 4G Coverage

• Tower Company and Sites

Alliance

• National Date Center

Enabler

Key Directions and Initiatives

1. Public service delivery through e-Government

2. Safe city for public security

3. Encourage share of passive infrastructure (eg. NEA fiber)

4. Encourage and active competition between operators

5. Optimize NTC procurement process for better competitive6. Cyber security

7. ICT education and training and creating ICT jobs 8. Bridging the digital divide by innovation (eg. IoT)

Environment

Cloud DCs

ICT Industry(Operator/OTT/software vendor…）

Data standardization Data exchange Value reorganization

Ubiquitous access, integrated BB

Agile network

Supporting ability Enablement Collaboration

Mechanism copy Process reengineering Deep correlation

Application

Platform

Horizontal

foundation across

sectors

Open, Agile and Intelligent

Network

Industry info.& app

Integration

Application

development,

revenue sharing

Data digging

and business

intelligence

Pipeline

utilizationNetwork

Data

Service

Knowledge

Data Operation

AppApp App

Citizen Enterprise

Internet

BIG Data

Open service platform

National Cloud DC

Government

National Broadband Network

Content/capability sharing

Nepal Needs to Establish Strong ICT Infrastructure and Embrace

Data Operation Which Features Digitalized Ecosystem

Frequency Bands for Telecommunication

In Nepal

2300MHz 30M

1800MHz15M 11M 9M 12M 12M

2100MHz10M10M

900MHz 9.6M 8M2M5M 4.4M2.4M 3M

850MHz6M2.5M

2300 2330

1960 1970 1980

1710 1725 1732 17431744 1753 1765 1773 1785

880 885

890

899.6

902.6

910.6

915

869 871.5

872 876

NTC

Ncell

SmartT

el

UTL

NST

CG885.2

202020172016 2019

TDD 2300M

2600M (Band7)

700M/800M

1800M(Band3)

2018

Technology

Neutrality

Spectrum auction

expected

Spectrum auction

expected

Operator Spectrum Situation

Potential Spectrum Auction

Source: NTA Spectrum PolicyNT: 39.6MHz @ FDD, 30MHz@TDD

Ncell: 29MHz @ FDD

Speed up Spectrum Allocation/Auction

Operator Merge and re-allocation of spectrum

Information High Way --- National Backbone Network Infrastructure

NT existing fiber

NEA existing

fiber in

transmission

line

New fiber construction

with mid hill high way

National Backbone Network fiber Infrastructure

Reuse and

share

infrastructure

2G Coverage 3G Coverage4G Coverage

National 4G coverage for Pan connections

• Enhance operator obligation of coverage and simplify rural site approval and acquisition.

• RTDF for infra construction and sharing together with tower company.

• Encourage competition between operators with publish network performance by 3rd party monthly.

• Request NTC speed up 4G network rollout construction for national-wide 4G coverage.

General Roadmap of Digital Nepal for 3 Phases

Phase 3 (25-30)Phase 1 (18-20) Phase 2 (21-24)

1.3G/4G service(MBB > 60%)2.FTTH service (FBB home

penetration > 20%)3.E-Government, e-Health ,e-

Education and e-Agriculture (Strategy, requirement, Application, Contain)Master Plan for 5 years and pilot project in selected cities

1.National Backbone Network (NBN) as a foundation

2.Cloud based National Data Center (NDC)

3.National-wide 4G coverage 4.FTTH coverage in major cities5.Infrastructure share

1.Intelligent NBN and international connection enhancement

2.Distributed NDC for geographical redundancy

3.MBB and FBB network enhancement

4.Video Surveillance system deployment for smart city

1.IoT(Internet of Things) platform2.5G network massive deployment3.Intelligent surveillance system

1.E-Government2.E-Public Service3.E-Education4.E-Health5.E-Agriculture6.Smart City7.Smart Home

1.IoT for vertical industry2.Big data Analysis3.Artificial Intelligence (AI)

Serv

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frast

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