Nepalese telco Ncell has denied market rumors that it has struck a deal to take over fixed-broadband ISP Classic Tech, although it confirmed that is seeking some sort of deal with an ISP.
Last Thursday, several local media outlets reported that Ncell had secured an initial deal to acquire shares in Classic Tech that would pave the way for a complete takeover of the ISP. The reports, citing anonymous sources, noted that the alleged deal had yet to be finalised.
On Friday, Ncell said in a statement that such reports were “premature and speculative”, and that it has not struck any such deal with any ISP.
However, Ncell did say it was looking for some sort of tie-up with an ISP to expand its service portfolio.
“While Ncell is actively exploring opportunities in the ISP market, we remain committed to conducting thorough discussions and assessments,” the statement said. “Our goal is to ensure that any potential decisions align with both the strategic objectives of Nepal and the broader telecommunications industry.”
The telco added that “by expanding our offerings, we can empower individuals, support businesses, and ultimately foster a more connected and digitally inclusive Nepal.”
According to the latest stats from the Nepal Telecommunications Authority, Classic Tech is the sixth largest fixed-broadband ISP in the country as of July 2024 with just over 163,000 subscribers (including around 700 FWA subscribers), which works out to a market share of 5.79%.
Overall, there are 2.8 million fixed-broadband subscribers in Nepal, with a market penetration of around 42%. However, the fixed-broadband segment itself accounts for just 8.2% of Nepal’s overall broadband internet space.
Mobile broadband accountsfor most of the rest at 31.2 million subscribers. Out of that, state-owned Nepal Telecom dominates the market with 71.85% market share, with privately-owned Ncell holding the remaining 28.15%.
Nepal Telecom is also the third-largest fixed-broadband provider in the country with over 313,000 subscribers and a market share of 11.1%.
