Leadership

Honesty, Diligence And Knowledge Are Undeniable Traits Of A Good Leader

Binod Dhakal, President of the Federation of Computer Association Nepal (FCAN) has spent more than a decade in Nepal’s information technology (IT) sector and has been associated with CAN for the same period. CAN has been promoted to Federation status in January this year under his leadership. Dhakal, an engineering student and IT professional, believes that the country’s IT sector won’t grow until the rural connectivity of the Internet and IT takes place. Also a member of Information Technology Advisory Committee under the Ministry of Science, Technology and Environment (MoSTE), Dhakal claims that the elevation of CAN to FCAN will help the institution stay close and work together with the government in a bid to foster the development of Nepal’s IT sector. He complains that the government lacks vision and will-power for the development of this sector, stating that the same has deterred the overall socio-economic development of Nepal and Nepalis likewise.

How do you define leadership? What are the traits of a good leader?
I never began my career thinking or aiming that I would be President of FCAN one day. Back then, a friend had suggested that I join CAN, and I did. From there I met new people and expanded my network. I was asked to be Secretary and then Secretary General. I also assumed those responsibilities. And today I find myself as President at FCAN. This leads me to conclude that leadership cannot always be something that one dreams of. For me, it’s rather a continuous process that requires ceaseless effort and loyalty towards work. If these things are combined in a balanced way, leadership comes automatically. Otherwise, nobody - including myself – would have thought that a person like me would lead an organisation. If you work diligently and honestly, you will be recognised, and leadership for me is recognition. Hence, leadership can be of two sorts: one self-planned and achieved, the other unplanned yet borne out of circumstances. Honesty, diligence and knowledge are undeniable traits of a good leader.

What are some problems that the country’s IT sector is suffering from at present?
Rural access or rural connectivity, power shortage, and lack of governmental priority and vision have hit the sector most.

What are some prerequisites for the development of IT in Nepal?
The first and foremost is rural internet connectivity. If the state wants its citizens to operate computers and benefit from modern luxuries through the internet, there needs to be an infrastructural backbone in every nook and corner of the country. We have both funds and knowledge for it. However, prioritising is always a problem. IT was and has never been prioritised. Everything is leaning towards IT and is going digital these days, yet an individual from a far flung area has to rush to Kathmandu even for simple tasks. Had IT been developed well, this would not have been the case. While China has grown from hardware and India from the software, we can also aim to make Nepal a hub for software development. This is a knowledge-based industry and people only need motivation. Hence, making the sector a priority and developing a vision accordingly is most important for the development of this sector.

Does the sector lack leadership to be able to grow?
Yes it does. The sector is not doing well due to the lack of leadership and vision. The private sector is doing its best but its resources are limited. When it comes to the government, there is neither leadership nor vision or willingness to develop the sector. It’s not that there is no one who understands the sector, but the problem lies in will power and taking initiatives. For example, National Planning Commission (NPC) that prepares paper work for the whole country lacks someone who is serious about the IT sector. That’s why even though there are uncountable policy papers, there is nothing substantial about IT.

What are your plans for IT development at FCAN?
We have just upgraded FCAN from CAN and it’s always tougher to sustain an institution than creating it. So sustaining FCAN with strong institutional foundations is my first priority. For until the institution becomes strong, our efforts and seriousness towards the sector can never bear success. My second major plan is to develop a better infrastructure in this sector. For this we will work in dialogue and collaboration with the government. I also have an opportunity to represent the Information Technology Advisory Committee under the Ministry of Science, Technology and Environment (MoSTE) which will be best platform to raise my voice for the development of the sector.

How do you define success?
Success is a symbol of achievement. I consider myself successful as President of FCAN, which is the umbrella organisation of Nepal’s IT sector. However, spending too much time for the organisation, I have not been able to take care of my family properly. I might have been able to make more money even had I focused only on my work. However, these are simply random thoughts and emotions. In totality I perceive myself as successful.

Face 2 Face

Telecom Market Has Room For A Third National Player

Digambar Jha is Chairman of Nepal Telecommunications Authority (NTA), the telecommunications regulatory body of Nepal. He was appointed as chief of NTA in December 2012. Prior to this, Jha was the Managing Director at Nepal Oil Corporation (NOC).
He could not assume office for around a year due to the Supreme Court’s order against his appointment by the government. Jha has now promised to aggressively expand telecom services to rural areas and bring people into the broadband network across the country by 2020.
In an interview with Gaurav Aryal of Business 360°, he talked about the telecom industry of Nepal and NTA’s stand on this sector’s reforms.

Telecommunication penetration is said to have crossed 80 percent of the total population, along with annually growing internet users. How do you see this trend?
Telecom penetration in Nepal has crossed 80 percent of the total population, while 65 percent of Nepal’s geography is penetrated. If SIM sales data is considered, 98 percent of the population uses mobile telephones but not all SIMs sold are in use.
As per the liberalisation policy, the telecommunication sector was privatised and doors were open for foreign direct investment (FDI). Up to 80 percent of the investment can come through FDI in this sector. At present, six operators have taken license. The private sector reaches to commercially viable sectors. However, some remote places in hilly and mountainous regions are yet to be connected with telecom services. For this purpose, the Rural Telecommunication Development Fund (RTDF) was established. We have made plans to expand services to such places by using the money collected in the RTDF.

Keeping the growing users in mind, can the Nepali telecom market welcome more players?
The ideal number of telecom operators in any country is three and can reach four at maximum. In Europe, 13 countries have three while 16 of them have four operators. However, there is no place for more than four national operators. We have two well established players: Nepal Telecom (NT) and Ncell. The market can easily sustain a third nationwide operator. People are searching for alternatives. There is tremendous potential for a new player. A new operator will immediately get 20-25 percent market share which is very good for survival and making profit.

Even though the number of users is growing for voice and data services, service providers are charged with not offering quality service. What is NTA doing to improve the quality of telecom services?
We have a set of standards for voice quality and an acceptable number of calls dropped for every 100 calls. If there is network congestion, the operator should increase the capacity. We repeatedly monitor to see whether the standards are met. Three consultants are working in Kathmandu, Biratnagar and Pokhara for monitoring this at the moment. We are serious about quality. However, practicalities too should be considered. One of the culprits is Nepal’s power outage. To fully charge the battery at base transceiver station (BTS) tower, there should be uninterrupted power supply for at least six hours. However, we have put pressure on operators to increase the service quality. One of the operators has already improved its infrastructure. Others too are replacing old equipment with new and less power-consuming ones. Similarly, they have started using batteries that charge in three hours. I hope the issues related to quality will be resolved soon with the upgrade of equipment.

Despite many attempts, less has been achieved towards rural telecommunication services. What are the obstacles?
I don’t have much understanding for the situation. Around Rs 10 billion are remaining unused in the RTDF. I have set rural telecom service expansion as top priority. The second priority is to see real competition between network operators. At present, only NT and Ncell are competing with each other, but the public sector can never be a competitor to a private company.
Optical fibre is laid along both sides of the East-West Highway. Similarly, it will be laid along the Mid-Hill Highway. Our aim is to connect every district, every school, every health post and every VDC office with a broadband network. We have the required money for that in the RTDF. But having network connectivity is not enough; it also needs to operate. A study conducted by World Bank shows that a 10 percent increase in ICT access leads to 1.5 percent increase in the GDP.We are also working with the same belief. However, choosing appropriate technology is a major challenge. A very small aperture terminal (VSAT) can be reached anywhere but it is a very costly technology. Optical fibre is a viable option, but it also has its own issues. One of the challenges is lack of proper infrastructure and transportation in rural areas. There are places where VSAT transceivers can only be transported using helicopters. We are carrying out a study starting this year regarding the most appropriate and feasible technology for difficult terrains. Based on the report, a tender will be issued next year for rural telecommunication.
We have made a broadband policy and the government has approved it. As per the policy, a master plan is made that sets targets to be achieved by 2016, 2018 and 2020. Our target for 2020 is that every Nepali will have a broadband connection. Broadband could be mobile technology, wireless or cable. Optical fibre is the backhaul, as it can transmit huge volumes of data. Where optical fibre cannot be taken, microwave links will be used. In Himalayan regions, VSAT could be more appropriate. The connection needs to be sustainable and operational. It has to be accessible as well as affordable, including for rural people.

Both NT and Ncell have been successful in maintaining their status as one of the top ten income tax payers. Is this sector still lucrative for investment?
Of course, the market is lucrative. We are unable to give choices to people. If a consumer is dissatisfied with NTC, they will go to Ncell and vice versa. Consumers should be delighted. So, there is a prospect for one more operator. Competition should lead to more choices. Both operators have shortcomings. The market is attractive for a new player. Within two years of rollout, the new player will receive good market coverage.
Two companies, UTL and Smart Telecom, were given permission for nationwide operation. But they have not been able to rollout as promised. Your thoughts.
During the first few days of my first tenure in 2012, I had called for a new operator from the private sector. Two operators, UTL, a limited mobility operator, and Smart Telecom (ST), a rural telecom operator had applied. ST took the license while UTL is yet to take it, as no time boundary was set. These two companies have internal problems. This industry needs large investment. Maybe they could not find investors or something else happened with them. But we cannot wait forever. We have set a time limit and an ultimatum was issued to UTL to take the license within 30 days from April 20. If it fails to take it, it will be seized and given to another company through open competition. Similarly, ST has not rolled out across the country as promised, so, if it also fails to meet the deadline, its license will be scrapped.

How do you compare the service of the private operator Ncell with the government owned NT?
I have been openly speaking about it. We receive complaints from consumers and we also conduct regular surveys. Survey data shows that the voice quality of NT is lower than that of Ncell. Similarly, complaints are registered against Ncell about high data billing. We have informed Ncell through meetings and in written. They are saying that if 3G is left turned on, apps consume data in the background even though a user is not using the smartphone. We are investigating to find out the truth. Other complains about them were high data charges. After our pressure, they have now lowered the charges as low as Rs 1 per MB data depending on usage volume from earlier Rs 6 per MB. It is decreasing and such complaints should not come in the future. NT is also upgrading its technology, so its voice quality can be expected to improve in the near future. We are continuously watching operators as a watchdog.

What are the new plans of NTA?
My first priority is to have a new national operator so that people have more choices. The second goal is to expand the broadband network to all places of the country and take ICT to villages. RTDF should be utilised to connect villages so that e-education, e-health, e-governance and public services can be available online. In cases of crisis like that of Jajarkot, expert doctors in Kathmandu can offer their services through telemedicine to health posts in remote places. There is a huge digital divide in citizens. I want digital inclusion for all and everyone should be connected to ICT.
It is thirdly important to implement infrastructure sharing. One tower can hold three to four operators’ antennas. This will help share the cost of infrastructure between operators and also make the city’s look less cluttered. We are working on it and have forwarded the process to the Ministry of Information and Communications for approval. None of the authorities have proper records of the BTS tower and optical fibres. Such infrastructure is being mapped to create a GIS (Geographic Information System) database. Once we have the database, a click of a computer will show details of available infrastructure. This will help reduce duplication and haphazard infrastructure development. I wish to see investment in underserved and uncovered areas. We also do not have proper standards and authority to look after the quality and structure of towers. Such things will be implemented soon. Likewise, Nepal has received an orbital slot from the International Telecommunication Union (ITU). We have never studied it. If the government cannot do anything, it can be given to the private sector. Just for using the space, we will earn revenues and royalty up to Rs 40 billion in a year for no cost. I am concentrating on this issue too.