Broadband and Narrowband Internet in Nepal

Authors: Kingsley Haynes*, George Mason University, Jitendra Parajuli, George Mason University
Topics: Development, Communication, Economic Geography
Keywords: Narrowband, broadband, Internet, dial-up, asymmetric digital subscriber line, Nepal
Session Type: Paper
Day: 4/6/2019
Start / End Time: 1:10 PM / 2:50 PM
Room: President's Boardroom, Omni, East
Presentation File: No File Uploaded


This paper examines the relationship between asymmetric digital subscriber line (broadband) and
dial-up (narrowband) Internet subscribers in Nepal. While the number of broadband subscribers
is increasing, the number of narrowband subscribers has been decreasing over the last couple of
years. As expected, broadband subscribers “Granger cause” narrowband subscribers to decline.
This suggests that digital subscriber lines are a superior good that is a substitute and replace dialup
services. This relationship should be stable in the short-run. The public sector incumbent
Nepal Telecom provides both digital subscriber lines and dial-up access while commercial
Internet Service Providers supply dial-up services. Hence a large proportion of the revenue of the
commercial providers is likely to be eroded compared to the incumbent. Given this context and
in order to ensure that there is free and fair competition to support rapid growth in the Internet
sector, the Government of Nepal needs to address important regulatory and policy issues related
to this narrowband-broadband transition.

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