Ncell completes 21 years as Nepal’s telecom sector faces revenue and investment pressures

Kathmandu, September 18, 2026 — Ncell, Nepal’s first private-sector GSM mobile service provider, has completed 21 years of commercial operations, marking more than two decades of expansion in the country’s telecommunications and digital sectors.

Ncell began commercial service on September 17, 2005, under the name Mero Mobile. At the time, mobile penetration in Nepal was around 6 percent. The company now serves more than 14 million customers, while overall mobile penetration in Nepal has crossed 100 percent, according to figures presented in connection with its 21st anniversary.

The company was incorporated as Mero Mobile in 2004. TeliaSonera entered Nepal through the acquisition of Spice Nepal in 2008, and Mero Mobile was rebranded as Ncell in 2010. Axiata Group acquired Ncell in 2016. On December 1, 2023, UK-based Spectrlite UK Limited acquired 100 percent of Reynolds Holdings Limited from Axiata UK; Reynolds holds an 80 percent equity stake in Ncell.

Ncell was converted into a public limited company and renamed Ncell Axiata Limited on August 3, 2020. This corrects an earlier reference to 2021.

Over its 21-year history, the company has expanded from basic mobile services to 3G, 4G and a range of digital services. Ncell's 4G network currently reaches around 95 percent of Nepal’s population, according to figures reported for its anniversary.

Among the company's major milestones were the expansion of 3G service to the Everest region in 2010, the launch of 4G in 2017, the commercial introduction of VoLTE in 2022 and the launch of eSIM services later that year. Ncell also introduced the 970 mobile number series in 2023.

Ncell has also highlighted its contribution to Nepal’s public finances. The company says it has contributed more than Rs 300 billion in taxes and fees since its establishment. More recent company-related figures show that its cumulative contribution had exceeded Rs 340 billion by the end of fiscal year 2023/24, while it contributed Rs 20.30 billion in taxes and fees during that fiscal year alone.

Ncell also paid around Rs 47 billion in capital gains tax related to the 2016 ownership transaction involving Axiata and TeliaSonera. The payments were made in multiple instalments following the legal and tax proceedings surrounding the transaction.

The company has received government recognition for its tax contribution, including recognition as a leading income taxpayer in Nepal’s information and communications technology sector for fiscal year 2023/24.

Ncell says it has invested more than Rs 130 billion in capital expenditure over the past decade, including licence renewal costs. Its corporate social responsibility initiatives have included programmes in health, education and environmental protection, with cumulative CSR spending exceeding Rs 2 billion.

The company established the Ncell Foundation in September 2024 to bring its CSR initiatives under a single institutional framework. At the time of its launch, Ncell said it had spent more than Rs 2 billion on CSR programmes over the previous 19 years.

Its social initiatives have included the Kathmandu Ring Road Green Belt, telemedicine and health programmes, and digital information technology laboratories in 60 government and community schools. The company has also reported providing assistance during the 2015 earthquake, the COVID-19 pandemic and subsequent floods and other disasters.

Despite its expansion, Ncell’s anniversary comes as Nepal’s telecommunications sector faces declining revenue and reduced capital investment.

Ncell’s industry assessment shows that telecom service revenue declined from Rs 92.08 billion in fiscal year 2018/19 to Rs 66.38 billion in fiscal year 2024/25. Normalised profit after tax fell from Rs 18.65 billion to Rs 5.11 billion over the same period, while capital expenditure declined from Rs 17.19 billion to Rs 4.13 billion.

The company attributes the pressure partly to the growing use of over-the-top services, declining international voice revenue and intense competition that has pushed data prices downward. It estimates that the overall telecom market, which once approached Rs 100 billion, has contracted to below Rs 70 billion, while the sector’s contribution to gross domestic product has fallen from around 5 percent to about 2 percent.

Ncell has also pointed to taxation and regulatory costs. It has cited the increase in the corporate tax rate for telecommunications companies and internet service providers from 25 percent to 30 percent, the inclusion of internet services under the Telecommunications Service Charge regime and the increase in the service charge from 11 percent to 13 percent as factors affecting the sector.

Capital investment has also weakened. Industry figures show that capital-expenditure intensity fell to 6 percent in fiscal year 2024/25, compared with substantially higher levels in earlier years. Ncell has warned that declining profitability could make it difficult for operators to finance the investment required to upgrade networks.

The company estimates that expanding 5G technology in Nepal over the coming five years would require additional investment of around Rs 45 billion. Ncell has argued that predictable regulation, sustainable pricing and an investment environment supportive of long-term infrastructure spending will be important for such expansion.

The company has also called for reforms to Nepal’s telecommunications regulatory framework, including updates to the Telecommunications Act, clearer spectrum-pricing policies and mechanisms to review tariffs in line with investment requirements and inflation.

Ncell's 21st anniversary therefore comes at a point when the company has expanded its customer base and network substantially while the wider industry is dealing with falling revenue, lower capital expenditure and the financing requirements of newer technologies.

Ncell has said maintaining investment in telecommunications infrastructure and creating a more predictable regulatory environment will be important for sustaining connectivity and supporting Nepal’s broader digital-economy ambitions.

Ncell completes 21 years as Nepal’s telecom sector faces revenue and investment pressures

Ncell has completed 21 years of operations in Nepal, serving more than 14 million customers while facing declining telecom revenue, weaker capital investment and the challenge of financing 5G expansion.

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