osm report on ntc

7/28/2019 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.

osm report on ntc

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