OSM Report on NTC
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Transcript of OSM Report on NTC
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ACE INSTITUTE OF MANAGEMENT
A case study on Nepal
Telecom CorporationOperation, Service & Management
SUBMITTED TO
DR. GUNA RAJ POUDEL
SUBMITTED BY
ADITYA KHATRI
NEEMISHA CHOUDHARY
SABINA TAMANG
SAGAR POKHREL
SUSHMITA NEPAL
DECEMBER, 2012
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ContentsCHAPTER 1 .................................................................................................................................................... 2
INDTRODUCTION .......................................................................................................................................... 2
1.1 Brief Introduction .......................................................................................................................... 2
1.2 Operation, Marketing and Finance functions of NTC ......................................................................... 5
1.3 Organization Structure ........................................................................................................................ 6
CHAPTER 2 .................................................................................................................................................... 8
SYSTEM DIAGRAM ........................................................................................................................................ 8
2.1 System diagram of the NTC as an open system .................................................................................. 8
2.2 Plant layout ......................................................................................................................................... 9
CHAPTER 3 .................................................................................................................................................. 10
LITERATURE REVIEW ................................................................................................................................... 10
CHAPTER 4 .................................................................................................................................................. 11
POLITICAL AND LEGAL CONTEXT ................................................................................................................. 11
4.1 Political Analysis ................................................................................................................................ 11
4.2 Legal analysis ..................................................................................................................................... 12
4.3 SWOT analysis ................................................................................................................................... 12
CHAPTER 5 .................................................................................................................................................. 15
OM DECISIONS AND ANALYSIS ................................................................................................................... 15
5. 10 OM Decisions and Its analysis in the organization ........................................................................ 15
CHAPTER 6 .................................................................................................................................................. 23
PROBLEM AND ANALYSIS ............................................................................................................................ 23
6.1 Operation problems faced by NTC .................................................................................................... 23
6.2 IMPROVEMENT PLANS OF NTC ......................................................................................................... 25
6.3 Demand Prediction in NTC ................................................................................................................ 26
CHAPTER 7 .................................................................................................................................................. 28
CONCLUSION & RECOMMENDATION ......................................................................................................... 28
7.1 Conclusion ......................................................................................................................................... 28
7.2 Recommendations ............................................................................................................................ 29
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CHAPTER 1
INDTRODUCTION
1.1 Brief Introduction
In Nepal, operating any form of telecommunication service dates back to 94 years in B.S. 1970.
But formally telecom service was provided mainly after the establishment of MOHAN
AKASHWANI in B.S. 2005.Later as per the plan formulated in First National Five year plan
(2012-2017); Telecommunication Department was established in B.S.2016. To modernize the
telecommunications services and to expand the services, during third five-year plan (2023-2028),
Telecommunication Department was converted into Telecommunications Development Board in
B.S.2026. After the enactment of Communications Corporation Act 2028, it was formally
established as fully owned Government Corporation called Nepal Telecommunications
Corporation in B.S. 2032 for the purpose of providing telecommunications services to Nepalese
People. After serving the nation for 29 years with great pride and a sense of accomplishment,
Nepal Telecommunication Corporation was transformed into Nepal Doorsanchar Company
Limited from Baisakh 1, 2061. Nepal Doorsanchar Company Limited is a company registered
under the companies Act 2053. However the company is known to the general public by the
brand name Nepal Telecom as registered trademark.
Nepal Telecom has always put its endeavors in providing its valued customers a quality service
since its inception. To achieve this goal, technologies best meeting the interest of its customers
has always been selected. The nationwide reach of the organization, from urban areas to the
economically non- viable most remote locations, is the result of all these efforts that makes this
organization different from others.
Definitely Nepal Telecom's widespread reach will assist in the socio-economic development of
the urban as well as rural areas, as telecommunications is one of the most important
infrastructures required for development. Accordingly in the era of globalization, it is felt that
milestones and achievements of the past are not adequate enough to catch up with the global
trend in the development of telecommunication sector and the growth of telecommunication
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services in the country will be guided by Technology, Declining equipment prices, market
growth due to increase in standard of life and finally by healthy competition.
Converting NT from government owned Monopoly Company to private owned, business
oriented, customer focused company in a competitive environment, Nepal Telecom invites its
all-probable shareholders in the sacred work of nation building.
Mission
"Nepal Telecom as a progressive, customer spirited and consumer responsive Entity is
committed to provide nation-wide reliable telecommunication service to serve as an impetus to
the social, political and economic development of the Country"
Vision
"Vision of Nepal Telecom is to remain a dominant player in telecommunication sector in the
Country while also extending reliable and cost effective services to all"
Goal
"Goal of Nepal Telecom is to provide cost effective telecommunication services to every nook
and corner of country"
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Services
Some of the services offered by NTC under different segments are listed as under:
PSTN Service CDMA
Local calls Fixed Postpaid
National Trunk Calls Fixed Prepaid
International Trunk Calls Sky phone
International Telegram Data Services
Domestic Telex
International Telex
Leased Lines
Mobile Internet and E-mail
Postpaid Dial-up Internet/Email Access
Prepaid PSTN Dial-up
Roaming (Incoming & Outgoing) Fixed hour/month package
SMS Night surfing package
3G Service Unlimited single user package
VAS Services Wi-Max
Post-Paid Mobile Bills
Web SMS
PSTN Bills in the Internet
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1.2 Operation, Marketing and Finance functions of NTC
1.2.1 Operation department
The operation function of NTC involves:
Extending the services to different geographical regions Estimate for the procurement of service unit Installation of service unit Maintenance of the equipments and service unit
1.2.2 Finance department
The financial function of NTC involves:
Collecting revenue generated from the services offered Managing cash and working capital with effective coordination with the financial
institutions
Procurement of required materials Provide financial aid to employees
1.2.2 Marketing department
The financial function of NTC involves:
Communicating different services offered by the company Provide customer care services. Build brand image of the company Promotion and advertisement
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1.3 Organization Structure
Managing Director
Corporate Office
DMD Finance
DMD Planning
DMD Business&Change mgmt
DMD Operations&Maintenance
DMD HR
Service Directorate
DMD Director (TTC)
DMD DirectorSatellite services
DMD DirectorWireless telephony
DMD Direcotr
Mobile services
DMD Director IT
DMD Director
Fixed Services
RegionalDirectorate
DMD DirectorKathmanduRegional Diretorate
Director CRD/Birgunj
Director ERD /Biratnagar
DMD
(company secretary)
DMD
(Internal Audit&Inspection)
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1.3.1 Organization structure of individual department
The organization structure of operation department is shown in the below figure:
DMD
Managers
Sr.Engineers
Eingineers
AsstEngineers
Operatives
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Input
HR
Capital
Process
policies
operation
technology
Output
services
customersatisfaction
CHAPTER 2
SYSTEM DIAGRAM
2.1 System diagram of the NTC as an open system
Political Social
Legal Economic
External factors
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2.2 Plant layout
Figure: Plant layout of telecom operation
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CHAPTER 3
LITERATURE REVIEW
A business process can be described simply by a flow of business activities. Each process is an
independent unit that transforms inputs into similar or different outputs but can interact with
other processes. To evaluate and improve a business process company must examine the
transformation of inputs into outputs. The five elements, inputs and outputs, flow units, network
of activities and buffers, resources, information structure of a process characterize the
transformation in the below figure.
Fig: concept of process and process management
In order to assess and improve the performance of a business process, company must measure it
in quantifiable terms. Generally to measure a business process, financial, external, internal
measures are used. Financial measures track the difference between the value provided to
customers and the cost of producing and delivering the product. External measures trackcustomer expectation in terms of product cost, response time, variety, and quality as well as,
customer satisfaction with product performance along these dimensions. Internal measures track
the performance of the process in terms of cost, low time, flexibility and quality. Internal
performance measures can thus be a predictor of customer satisfaction and thus financial
performance if customer expectations have been identified accurately
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CHAPTER 4
POLITICAL AND LEGAL CONTEXT
4.1 Political Analysis
Initially, before 1995 the government used to have only one Telecommunication Company that
was owned by Nepal government. After the privatization Government of Nepal has initiated the
involvement of private sector in the development of telecommunication services i.e 1995
December 25. Nepal Telecom Authority was hence established in 1998.It regulates the telecom
industry containing basic telecom, cellular and internet sectors in it. NTA, in 2007 came up with
quality of service parameters for the basic telephone service based on mobility and mobile
telephone services (Nepal Telecom Authority).
Nepal is in the state of the transition phase politically. So the political instability seems to be
normal during this phase. All the sectors in the economy are more or less affected by it, and the
telecommunication sector also cant remain unaffected. The effect is better seen in NTC because
it is a state owned company. The affects can be seen in the sector of delaying in new projects and
investment, and irregularities in the case of making tender.
The other crucial aspect in political instability is the change in government. With the change in
government, the first thing that falls under the minister priority is to transfer and allocate the
staffs according to their will and need. This process consequently affects the plans and procedure
of the organization.
Since NTC is a government owned company there is a political interference and small change in
political structure of the country might affect the entire management of the company. The rules
and regulations of the company, plan, budget is also dependent on the management of the
company. Hence the political influence is high in this company. There is a positive part that if
there is political stability in Nepal the company will grow respectively.
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4.2 Legal analysis
Nepal Telecommunication Authority is the governing body for the telecommunication sector. It
enacts laws to bind this sector. With the provision of know your customers, it is bound to
distribute the sim cards to its customers only after the full and detailed information. It is also
restricted to distribute the unlimited number of sim cards since the frequency is limited to them.
Being a government owned telecommunication NTC cannot take prompt decisions required
since it has to follow all the legal procedure and rules. This can cause a negative effect in the
company. NTC has to follow the rules like other private telecommunication of NTA, so that it
cannot establish its monopoly in the market.
4.3 SWOT analysis
Strength
Government owned company: NTC is a government owned company so it can easily gainthe trust of the people. There is always support from government and citizen as well.
Largest market share: NTC has the largest market share since it has been in this sectorsince last 30 years and has been leading the market.
Strong Distribution Network: It has a subscriber base of more than 5 million users andreaches customers throughout 75 districts of Nepal.
Economies of scale- It is easier to create economies of scale thereby increasing return oninvestment. The Nepali telecom market especially Kathmandu is a high-density area,
which means more population per tower. This means lower capital expenditure cost.
Active management team- Active management is a big strength to the telecom industrybecause it is due to the effective management team; the telecom industry is able to make
consistent profit over a long period of time.
Manipulate price- NTC has loyal customer base. Eventhough the comparative prices arehigher for its services, customer are ready pay for it.
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Strong brand name-Due to the strong brand name of the company, people have trust andare loyal towards the company. It will not have any problem in introducing its products
and technologies in the new market.
Sustainable business modeling-It is able to sustain itself with the profit it has made over along period of time even though if there is some kind of hindrance.
Weakness:
Low signal strength-Large number of call drops and quality of connection is not good. Late adaptation of new technology- Nepal is probably one of the last countries to adopt
new technology. Example 3g technology, some estimate suggests that nearly 133
countries across the world already had 3G technology and mobile services in one form or
the other.
High overhead cost: NTC is compiled with large number of staffs. NTC is facing hard timeto recruit and assign the employees in right place and in right time.
Low quality customer care services-If there is any problem in the product that you buy, thecustomer care service in not that efficient to solve the problem immediately. It will
probably take days to cater the customer. Companies dont give priority in the
maintenance.
Opportunities
Technological advancement-The technology has been getting more sophisticated andadvanced. The telecom firms can use such technology in their operation to improve the
overall performance and customer satisfaction. This provides the firm the competitive
advantage in the market.
Expansion of territory: Still huge amount of people are there who are far from any or someof the telecommunication services. This is one ofNTCs opportunities to reach the
customer and expand its business.
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Creation of new business opportunities- Development of telecom industry can result tocreation of new business opportunities in other sectors such as hydro power, man power,
import, export etc.
Threat:
Competition- Private Telecom Company entering the industry with new and advancetechnology to satisfy the consumer need and overtake the one or some market segments.
Shrinking economy-Due to the unhealthy and shrinking economic condition, new telecomcompanies are not able to enter and the ones who are already established are not able to
expand.
Increasing rules and regulations-Due to the frequent change in the government and changein the rules and regulations, telecom industry is not able to take risk, explore new
technology and market.
Health related problems-According to studies, there are also many health related diseaseslike cancer which is caused due to the excessive use of mobile phones.
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CHAPTER 5
OM DECISIONS AND ANALYSIS
5. 10 OM Decisions and Its analysis in the organization
5.1 Service and product design
What product or service should we offer?
How should we design these products and services?
In designing the product or service the important aspect to be taken into consideration is what the
requirement of the customer is. And with the customer requirement in mind there is different
stages of for development of product. Like, generate idea about what of service or product to
develop. The source of idea can be Market need; engineering & operations; inventions and
technology; competitors; employees. The design of product or service also depends on the
strategy that the firm is taking into consideration. Like whether the firm is follow cost leadership
strategy, Differentiation strategy or quick response strategy. Also is the firm capable to produce
the good or services that have been generated from different source. Then there is functional
specification.ie Defines product in terms of how the product would meet desired attributes.
Identifying the products engineering characteristics, Prioritizing engineering characteristics
comparing product to competitors. The product specification i.e. determining how product will
be made or service would be provided, Giving products physical specifications and can use
Computer aided design or computer aided manufacturing. Then reviewing the design i.e. are
these product design able to meet the costumer requirement after that the product or services are
then test marketed to ensure that the product or service are gaining the results that were as
anticipated and if not then to determine what kind of improvement is required. After that the
product or services are commercially introduced in the market.Products/services in NTC:
A company that started its service with basic services like PSTN service then extended its
service to Voice call & SMS service, then it extended its voice services like voice sms, call
forwarding, waiting, missed call notification etc and added data services like MMS, SMS to
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email, mobile internet, SMS banking, SMS pack, ADSL service, EVDO service, Wimax service
etc and other services like PRBT, CRBT, video call etc.
To design the service, there is a product development team which is always in a look for the new
technology introduced in the market. After the service has been developed or introduced in the
foreign market then the technical team over here in Nepal then studies about the service and its
feasibility in Nepal. And the sales and marketing team also studies whether there are costumers
available in the country. After the detail analysis had been done then new services are introduced
or the existing services are upgraded. The strategy that NTC uses is usually the Differentiation
strategy. To grab the upper hand in the market, NTC always use the innovative techniques and
technologies. To introduce a new service or product the technical department of that specific
service sends the proposal to the operation team and after review then the operation team calls
for the invoice from different vendors.
5.2 Quality management
How do we define quality?
Who is responsible for quality?
Totality of features and characteristics of a pdt or service having the ability to meet customer
needs (implied or stated). Or it can be user based that is what the user says or manufacturing
based that is does the product or service confirms to the design specifications, or product based
that is the quality can depend on the product characteristics.
There can be different concept of total quality management in which a commitment is stressed
by management to have a continuing company-wide drive toward excellence in all aspects of
products and services that are important to the customer. These concepts can be:
Continuous improvement (Kaizen)
Six Sigma
Employee empowerment
Benchmarking
Just-in-time (JIT)
Taguchi concepts
Knowledge of TQM tools
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In NTC, Quality is given the main preference. As long as quality is there then the services and
product would run is what NTC believes. However there is no specific Quality assurance
department in NTC. But as the Networking i.e. the voice calls and messaging is the core aspect
of NTC hence there is Quality management team in NTC for networking. Also for the
procurement process, quality is given the main emphasis so that better quality service is
maintained. Also there is regular study and detailed analysis of the quality in the service and
product from the head office as well as from different government body. These Quality
management team looks for the quality in the networking, call flow, call drop, network issues ,
bandwidth issues, equipment issues, regular communication with the vendors about the quality
of services etc.
5.3 Process and capacity design
What processes will these products require and in what order?
What equipment and technology is necessary for these processes?
Process and capacity design involves determining how to produce a good or provide a service
within constraints. Its objective is to meet or exceed customer requirements, meet cost &
managerial goals. It has long-run effects i.e. Production efficiency, Product & volume flexibility
and Cost & quality.
Process design can have different strategy like,
Process focused strategy
Repetitive focused strategy
Product focused strategy
Mass customization
Techniques for Improving Service Productivity
Strategy Technique
Separation : Structure service so customers must go where service is offered
Self Service : Self-service so customers examine, compare and evaluate at their own pace
Focus : Restricting the offerings
Modules: Modular selection of service. Modular production
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Automation: Separating services that lend themselves to automation
NTC:
As NTC is a telecom service provider hence to determine the costumer requirement, the sales
and marketing team makes a detail analysis about the market condition. Also the product
development team also looks for the new technology developed. Now once the product
development team has found the new services then it asks the technical team to study the
feasibility of the service or product. If the service is feasible then it sends the proposal to the
operation team. The operation team then send that proposal to the Finance department and
Business team. Once the finance department has approved then the operation department then
call for the invoice. And after the invoice has been accepted then the bid is called and the lowest
bidder is then given the project.
5.4 Location
Where should we put the facility?
On what criteria should we base this location decision?
The main objective of the location strategy is to maximize the benefit of location to the firm.
Location decisions are usually a long-term decision so it is difficult to reverse. It affects fixed &
variable costs like transportation cost and other costs like Taxes, wages, rent etc. There are
different location evaluations methods like
Factor-rating method
Locational break-even analysis
Center of gravity method
Transportation model
The central office of NTC is in Bhadrakali. As the branch of Nepal Telecom is present all over
the country and being the only government telecom company it has extended its service to
almost all part of Nepal either with its PSTN service or GSM or CDMA service or Internet
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service. There are MSC in different places part like Kathmandu, Pokhara, and Biratnagar etc.
Similarly there are BSC and exchanges as different regions. And for NTC to add the new
location, the marketing and sales team first studies the market penetration. If there are large
numbers of existing costumers or expected costumers then depending on that costumer density
NTC can either establish a branch office or just an exchange or call centre. During the market
research NTC first calculate what cost it will bear if it establishes the new branch or call centre
and what revenue could it make from it then after that analysis NTC sends the proposal to head
office and after the approval then the new office or call centre is setup.
5.5 Layout design
How should we arrange the facility?
How large a facility is required?
Layout is the location or arrangement of everything within & around buildings. It helps to
determine long-run efficiency of operations and helps achieve a strategy that supports
differentiation, low cost or quick response
As Nepal Telecom provides variety of services and these services varies from place to place so
the layout design differs from place to place. The incharge of the office decides what type of the
setup is to be maintained so that it helps the employee as well as the costumer for the better
service.
5.6 Human resources and job design
How do we provide a reasonable work environment?
How much can we expect our employees to produce?
In Nepal Telecom most of the employee hired is engineers and only few are from other back
ground. So for the recruitment of the employee the NT publishes the vacancy and takes the
written exam then ones succeeded from the written exam are called for interview and those whoare succeeded are then recruited. To provide the reasonable work environment, there is lots of
opportunity that NT provides to its employees as there is lots of new emerging technology and
also NT provides the training to employees within and outside the country. Also NT has been
providing different incentives, bonus and facilities to its employee so that the employee can
produce the better result.
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5.7 Supply chain management
Should we make or buy this item?
Who are our good suppliers and how many should we have?
Supply chain management is the management of all activities concerned with procurement,transformation and distribution. The main objective of supply chain management is to maximize
value & lower waste. Its key point is to make suppliers partners in firms strategy. As supply
chain management defines whether to make or buy the items so,
Reasons for Making
Maintain core competencies & protect personnel from layoff
Lower production cost
Unsuitable suppliers
Assure adequate supply
Utilize surplus labor
Obtain desired quality
Remove supplier dependency
Protect proprietary design or quality
Increase or maintain size of company
Reasons for Buying
Frees management to deal with its primary business reciprocity
Lower acquisition cost
Preserve supplier commitment
Obtain technical or management ability
Inadequate capacity
Reduce inventory costs
Ensure flexibility and alt sources of supply
Inadequate managerial or technical resources
Item is protected by patent or trade secret
Supply chain Strategic options can be
Many suppliers
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Few suppliers
Vertical backward integration
Keiretsu network
Virtual company
NTC has been outsourcing each of its activities so it finds itself in buying position not in making
position. All services that NTC has been providing are outsourced from different company like
ZTE, Huwaei, and Erricssion etc. If the existing vendor company which is capable of doing the
new project then the preference is given that vendor. But if the service is totally new service then
again the bidding process is implemented. The supply chain strategy can be many to few
suppliers.
5.8 Inventory, material requirements planning
How much inventory of each item should we have?
When do we re-order?
Inventory management helps to to decouple or separate various parts of the production
process, to have a stock of goods that will provide a selection for customers, take advantage of
quantity discounts and hedge against inflation and upward price changes.
There are different Inventory models like,
EOQ Assumptions
Production order quantity model
Quantity discount model
Fixed Quantity model
NTC has its inventory warehouse in different places with its central warehouse at chaauni so all
the different equipment, simcard, datacard etc are kept in the warehouse. Apart from that the
ware house are also present in different other place in different region of Nepal. They have the
stock of these product up to 3-4 months. So usually in 3 month duration the inventory are
reordered. For that, the Business department and finance department approves the reordering
procedure, Purchase ordering is sent and with letter of credit the supplier send the items. These
items after the tax clearance is then bought to the warehouse.
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5.9 Maintenance
NTC has the maintenance for different department like there is maintenance for Mobile both for
the GSM and CDMA, also there is the maintenance for the PSTN and ADSL which looks for the
maintenance of the equipment within the facility and there is the maintenance team which lookafter from the exchange to household. So they hold the responsibility of the customer
satisfaction. Maintenance team also looks for system maintenance, its upgrade and monitoring
the system, analyzing the issues.
5.10 Scheduling
In NTC the project are scheduled so that after the completion of one project the other would start
or two or more project can go across parallely. But due to different external issues like
interruption from CIAA, NTA or sometimes MOIC etc the project are always delayed and are
not completed in time.
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CHAPTER 6
PROBLEM AND ANALYSIS
6.1 Operation problems faced by NTC
6.1.1 Power problem and load shedding
Telecommunication equipments cannot function properly without the continuous and stable
power supply. But as we all are familiar about the power problem and load shedding throughout
the year, it becomes very difficult for NTC to operate its system properly without any
disturbance. Battery backup, use of Generator and solar installation at the remote sites are thesolution NTC is using to cope up with the problem. Depending on available site area such
solutions are different site by site. Still backup provided is not sufficient due to long hours load
shedding problems. Further the frequent fluctuations of voltage case the damage to the
equipments which is another common problem over here.
6.1. 2 Difficulty in continuous maintenance and monitoring
NTC cannot deploy operation teams close to each stand alone sites( BTS, ONU, Exchange) so
the faults cannot be realized as soon as it occurs in a first place. It cant be easily predicted when
an electronic equipment creates any kind of problems and corrections can be only done when
team reaches the respective site. For this it is necessary to take into account various factors such
as:- road availability and conditions, and the required resources.So fixing the problems
immediately when it arises is quite difficult.
6.1.3 Limited infrastructure and complex geographical structure of thecountry
The target of NTC is to reach to every individual at any part of the country. Building exchanges,
Base Transceiver Station (BTS) sites and supporting transmission into the rural and sub-rural
areas of Nepal require huge effort to bring materials and build site and power lines. The limited
development of infrastructure especially roads creates a huge difficulty in operating at the rural
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areas of the country. Even if it does, due to unavailability of power supply and spare parts, the
service quality would be lower than expected which creates a huge disappointment among the
customers.
6.1.4 Unavailability of spare parts
Telecommunication is the fastest moving industry with new technology emerging day by day. So
once a system is implemented it is very difficult to upgrade to the new one as soon as the new
technology enters into the market. Further it is also difficult to get the spare parts as time passes
on since the vendors are more focused on the new technology and stop manufacturing the parts
of old ones. So fastest changing technology creates a bit problem at NTC however it tries to
upgrade and update itself with time and technology.
6.1.5 Government and NTA regulations
With 92% share owned by government, NTC is bound to abide by the rules and regulations of
government which creates a rigid structure and cause various operation problems. For example,
it can only select the vendor which bids the lowest among all and for this it might need to
compromise with the quality of service. The political influence and the old fashioned
management system hampers in the growth of the organization. Not only government but also
Nepal Telecom Authority creates headache by forcefully implementing different regulations like
creating issues in license renewing, charging the used frequencies, etc.
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6.2 IMPROVEMENT PLANS OF NTC
NTC is still no 1 Telecommunication industry of Nepal though its facing a tough competition
with the private sectors especially Ncell. So it is putting the continuous efforts to grow further
and increase the market shares and remain the leader of the market forever. Different
improvement plants that NTC is implementing and willing to implement in future are as follows:
6.2.1 Deployment of new technology
With the rapid changing technology and increasing competition, the main objective of NTC is to
introduce the latest technology of high quality into the country. For this purpose, it is
continuously working on providing the voice service with excellent network quality and high
speed data service. The expansion of GSM mobile service with better quality, mobile BTS tower,
the use of optical fiber network as a backbone, the introduction of the latest and fastest Wimax
service, etc are examples of NTCs new ventures. Hence all the future plans of NTC are directed
towards meeting the high expectation of customers through the best technology of high quality.
6.2.2 Strengthening the relationship with customers
Realizing the fact that NTC is nothing without its customers, It is coming up with different plans
to improve the relation with customers and win their heart. Besides improving its service quality,
NTC is giving different offers to the customers like reducing price, allowing STD from local
numbers, providing bonus etc. As a part of CSR, it also sponsors Nepal police football club.
Thus the new direction followed by NTC directly reaches to its customers heart.
6.2.3 Focus on Data service
With many operators facing stagnating or declining voice revenues, data services adoption and
revenues have moved centre stage in communication service provider strategies. Growth is
being driven by mul tip le fac tors, not least of wh ich is the convergence of services,
devices, and technologies. NTC is thus introducing the variety of data package which they can
subscribe on requirement basis. Some of them are
1. GPRS/EDGE/3G: The internet access is allowed to every NTC SIM user viadifferent services offered.
2. ADSL: Its an internet service for home users in a very reasonable price.3. Dedicated Lease Lines: Targeted for Business oriented market and corporate houses.4. Wimax: The latest and fastest high speed data service.
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6.2.4 Investments in hydropower
The latest movement of NTC is its investment in hydropower which on one hand would generate
benefits to NTC and on other hand solve the power supply and load shedding problems to certain
extent. Its not only beneficial for NTC but the whole country gets benefits out of it. So NTC isencouraged to step ahead on such activities in an active way.
6.3 Demand Prediction in NTC
There is no such distinct procedure to predict the total demand for any NTC service. Since NTC
perceives each individual of the country as its target customer, the main objective of the
company is to make its service available at each corner of the country. More than a profit
organization, its a service provider. So instead of forecasting the demand and expanding the
respective services, NTC tries of establish itself all around the country even at the very rural
areas from where the least profit can be generated.
However, there is a Business department which looks after the market condition and size and
thus suggests the type and quantity of service to be provided at particular region. Moreover the
qualitative approach is followed to forecast the demand rather than the quantitative one.
NTC employs the Decomposition method initially it distinguishes between the two categories of
customers:
1. Corporate customers2. Personal CustomersCorporate customers are the price inelastic customers willing to pay any amount for the
service subscribed but they are very sensitive towards the continuous and qualitative service.Within the corporate customers, it is tried to figure out whether there business houses are
small, medium or large.
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On other hand personal customers are very price elastic but somehow ready to compromise
bit on quality of service. Out of them, different categories are segregated to determine the
approx no of teen agers, professionals and elder people.
Once the target segment is distinguished, NTC allocates the service to be provided on the
respective area and the quantity. Like it separates the number range of mobile and PSTN
lines on the regional basis. It separates the bandwidth for the data service and so on. Then
according to the demand of customers services are distributed.
NTC also tries to figure out whether the people of certain region are satisfied with the
existing service or not and implement the new policies for the expansion and improvement of
existing services. If People at pokhara are demanding for more adsl lines then allocated, then
it modifies its policy to expand the adsl service in pokhara.
Analyzing the national and international market, NTC figures out the requirement of new and
advance service. Then it studies the feasibility and demand for such services. If it finds that
the new technology is beneficial, it starts working on it. It again does the survey on regional
basis to distinguish the quantity of demand and allocate the demanded quantity on respective
regions.
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CHAPTER 7
CONCLUSION & RECOMMENDATION
7.1 Conclusion
WE can see that the fastest growth in our country is observed in the Telecommunication sector
for which the contribution of NTC is extremely appreciable. For years its providing different
services at reasonable price which most of the Nepalese people can easily afford. No doubt that it
has continuously being criticized for its poor network quality but with the emergence of the
tough competitor like Ncell, NTC is continuously working on improving its existing quality and
implementing the new technology of better quality.
NTC is one of the biggest profits making Government Company so its contribution is high to
increase the economic scale of country. Through different services provided by the company at
lower price has been appraised by the people. The company has been aggressively spending to
expand the service area and improve quality of service.
NTC has been a recognized company with large amount of assets and share value. It has not
limited its service to PSTN or mobile communication. Realizing the d emand of people it has
also been able to grab the market share to become a ISP through its services like optical fiber,
ADSL and Wimax. Its new technological advancement is also it biggest strength for growth and
sustainability of the organization
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7.2 Recommendations
NTC main target is to remain the number one telecom brand in Nepal and continue its leadership
in coming days as well. After analyzing the existing operations of NTC, understanding its
strength and weakness, we would like to recommend the following actions for NTC which would
help them to improve their service and enhance the brand image in coming days:
It is better to establish a formal Quality Development section whose sole objective wouldbe the measure of existing quality of services provided by NTC, comparing it with the
desired quality and doing necessary improvements where required. NTC needs to
consider a full range of service quality dimensions in designing policies, standards andprograms.
World has grown smaller with the development of communication technology. So thecompetition faced by NTC is not only with few private organizations but with the whole
worlds technology. Hence NTC needs to set its standard high and achieve the target to
meet its costumers expectation.
NTC needs to distinguish accurately between the competitive and non-competitiveservices. On one hand it desires to generate maximum profit and on other hand it
considers itself to be a service provider. So the policies, plans and programs developed
conflict among themselves. So first and foremost, it needs to be clear in its vision and
develop the policies accordingly to meet the objectives.
NTC is always criticized for its poor customer service. But its high time for NTC torealize that the customers are the prime factors who determine the sustainability of any
organization. So its better for NTC to improve its customers service and all other
related service.