Department of Engineering
North South University
Project topic: VOIP Solution in Nepal
Prepared by …
Dept. of Electronics & Telecommunication Engineering
North South University
Faculty of Computer Science & Engineering
North South University, Dhaka.
VOIP Issues in Nepal
Technologically, VOIP is not an issue. The exisiting policy do
not prohibit the use of VOIP technology. But it specially
prohibits providing end user telephony service. The bone of
contention with existing situation, is illegal use of NTC's
telephone service to terminate international calls. The policy
doesn't at point prohibits the carrying of Voice in data form,
and thus the reluctance of parties concerned to go to court
The use of VOIP technology is a result of lack of competition
in telephony service, which has enabled NTC to keep the
price of it's domestic services subsidized through
international revenue. This is also partly result of NTC's non
co-operation with ISPs in their initial stage of functioning.
* Telecom liberalization should be taken
forward at speed. This may mean
bringing the dates for complete
opening of telecom services earlier
* The current thought of licensing
particular technology is short term
thinking and should be discouraged.
* The incumbent telecom provider
should be divided into different units,
and cost based tariff implemented to
disable cross subsidy of tariff.
* International movement in
telecommunications, and data
networks needs to be more closely
monitored and technologies made
welcome by the authority to avoid
illegal use of such technologies in
VOIP in Nepal started around mid-1999, after VSAT services
were allowed, and ISPs could afford bandwidth. There were a
couple of factors in why ISP did that
* The ISPs were paying phone bills for the phones
that were being used for dial-in only access for
subscribers. This was a complete wastage of their
resources, and they wanted to make use of it. NTC
didn't want to talk about it , despite strong lobbying
by organizations here. Their contention – since we
are loosing money to e-fax, and e-mail, we will
continue charging it.
* The more appropriate reason was the high
accounting settlement rate of NTC with
international operator. As late as Sept 2001, the
accounting rate was USD2, thereby resulting in a
settlement rate of USD 1.00 for NTC. This was
very very high by International standards, and
naturally companies shopping for cheaper rates
found a cheaper way to terminate calls.
* Last year, around June 2001, there were almost 10
VOIP phone operators (basically bypass operators
– they used NTC's subscribers line to terminate
calls locally). some had big operations (ask
internationally for big bandwidth buyers in Nepal..
:-), and you'll know the companies)
* The main reason for NTC creating the noise was
the deep cut in it's revenue from settlements. In the
year 98/99 (fiscal year), it was around
USD15million (translated figure – do not quote..
can provide exact amount if required).. It dropped
to around USD11 million in one year. the impact
was only half, as it takes around two years to
completely settle the amounts. the drop is probably
sharper going by the recent crackdown by NTC on
* The number of minutes have also decreased sharply
– from 2.2 million minutes earlier to 1.7 million
minutes (in august 2001) per month.
* In call percentage as well this drop was seen –
specially in calls originating in USA. While total
incoming calls from US were around 20% in 98/99,
in April 00, it was only 6% of total incoming calls.
This was not VOIP, but traffic was being re-filed
through New Zealand.
* For sometime afterwards, to take revenge (??) on
AT&T, NTC refilled all of its traffic through
Singapore. Ironically, Singtel was sending inwards
traffic through cheaper bypass operators. – A NTC
guy told me.. this ..:-)
* NTC decreased it's accounting rate for 2000 to 60
cents and for 2001 to 30 cents, which has now
made operations difficult. Major operators now go
with NTC again, as the ASR (Acute Seizure Rate)
is almost 70% country wide with NTC, while with
VOIP operators, it is around 50% for Kathmandu,
and lot less for outside valley.
* A source inside NTC told me that, since 1997-98
itself, the volume of international traffic had not
grown proportionately, which it should have
–owing to good international economy largely due
to increased use of e-mail, and e-fax. But, most of
this shortfall was made up by local revenue arising
out of internet usage. NTC was alarmed, when call
rates actually dropped. He actually said – if there
were not so may VOIP operators, there would
probably not have been such a fuss..
* VOIP operators, as their numbers grew..
compromised on quality in order to make call
cheaper. some were even using only 6K per voice
channel.. making connections from many countries
impossible. For example, in June 2001.. I couldn't
make a call from Stockholm to kathmandu despite
repeated tries with the calling card. Using Telia's
business network – it was possible. These concerns
reach the public/ governments quickly – but they
don't understand the underlying dynamics of
* People inside NTC too realize that this cannot be
stopped., and if they stop cross subsidizing their
domestic operations with international revenue
* From HMG's perspective, which is highly skewed
by NTC's reporting of its revenue – the biggest
concern seems to be decreasing revenue. Operators
and industry has been contending that if the VOIP
operators can be brought under tax net, then the
revenue will actually grow – while NTC's income
may decrease. But government sources (the bell
heads), don’t' seem to get the point.
* NTC actually uses VOIP technology in some of its
trunk routes to increase existing capacity, which
make the question of quality and technology
The telecommunications authority is hard at work to publish
the new regulations legalizing VOIP operators. But it seems
that it is buying time, so that when time comes for opening up
of telecom sector in basic services (2004).. the licensing can
allow all sorts of things. Thereby making things easier to
license and less administrative work.
The regulations could be skewed (check out India's – a lot of
doesn't make sense to us net heads). which is why currently
there is a huge lobbying effort ongoing.
* NTC should be privatized – or it be broken up
like AT&T, and private parties be able to tap
into its national backbone.
* Technology specific licensing should not be
* The date for opening of basic services should be
brought earlier, so that there can be fair
competition. but without breaking up NTC..
competition will never succeed as there would
issues with interconnection and laying fibre all
over the city and country.
Nepal routes Needed AD 240 12/16 KHz Billing Pulse Generator
The AD240 Billing Pulse Generator is designed to locally produce 12 or 16 KHz billing
It can generate billing pulses for up to 2000 prefixes (max 8. digits). The billing start can
be triggered by either polarity reversal or by a DTMF tone.
When is it needed?
Enterprises using local call accounting and billing solutions that are dependent of the 12 or
16 KHz billing pulse services provided by national telecom carriers, will be unable to bill
the calls sent via alternative carriers like ITSP since those carriers don’t supply these
billing pulses. For these cases, the AD240 can be integrated in their telecommunications
system in order to produce the required billing pulses locally. The AD240 is a 4 port
device that can generate billing pulses on 4 Trunk lines independently.
How does it work?
The AD 240 should be connected in serial between the PBX and the interconnection device(s) (gateway or auto
dialer) on the CO lines.
This way, the AD240 Billing Pulse Generator can capture the dialed number and compare the prefix with its
prefix table. If, the prefix of the number dialled can be found on the configuration table along with a period of
pulses, , the AD240 Billing Pulse Generator will produce billing pulses by given interval.
The AD240 Billing Pulse Generator can be connected to a PC via a USB cable. Thanks to the accompanying
software, you can easily access and modify the rate table as well as the trigger properties of the device.This PC
connection is only necessary for setting up or modifying the rate table. Normal operation does not require a PC.
Nepal VOIP to get legalised?
They say one man’s meat is often another man’s poison, and for us VoIP lovers –
especially the Nepali VoIP lovers – this couldn’t be truer. What came as a rude shock to
the Nepalese Government is a celebration cause for all advocates of VoIP. After an
estimate revealed that the Government is losing NRS 8 billion annually due to illegal
International Long Distance call bypass services offered by VoIP powered public phone
booths and cyber cafes, the Nepal Telecom Authority has finally given the green signal
to United Telecom Limited and Nepal Telecom to employ VoIP technology. And when
you come to think of it, who can blame them? If I was losing that kind of money, I’d want
it back too!
United Telecom Limited is a Bangalore based joint venture between India’s MTNL,
VSNL and Telecommunications Consultants India. In Nepal, it operates in collaboration
with Nepal Venture Private Limited, and is also the country’s first private telecom
operator. Nepal Telecom – the other company that has been given the go-ahead – is a
state owned enterprise. The VoIP project is still in its initial phases, with UTL only
beginning to conduct feasibility studies to identify partners it can ally with overseas to
offer the new technology to its subscribers in Nepal. If initial estimates are to be
believed, UTL will need to invest about NRS 150 Million (Over $2 Million) to implement
the new technology.
I like the fact that the government has granted licenses to two companies to negate the
possibility of a monopoly. But even though everything seems bright and positive so far, I
won’t be surprised if hitches crop up in the plan concerning the rights and licenses of the
two telecom operators. Discrimination against the privately owned UTL is not unheard of
in Nepal, and petty politics could spoil the whole thing. An example of the prejudice
would be that even though both UTL and Nepal Telecom have identical licenses to offer
phone service based on the wave technology employed by cellular phones, the Nepal
Telecom Authority has allowed Nepal Telecom to offer full mobility to their customers,
while UTL has been restricted to limited mobility.
This means that while a UTL subscriber can use his phone as a mobile only up to a
certain area, Nepal Telecom’s phones using the same technology can be used
anywhere in the country. If such discrimination seeps into the new VoIP plan, it can be a
heavy setback to the development of a strong, robust VoIP network in Nepal.
This post is written by Samarth Chandola. Samarth is full time VOIP News Editor for
Nepel routes needed VOIP on your mobile
Vyke Mobile – How it works…
Vyke Mobile Pro (beta) is a small program that you install on your mobile phone. With its easy to
navigate menus, text entry and address book access, Vyke Mobile Pro is just like using your normal
phone – only cheaper!
With Vyke Mobile Pro, you get:
• Free mobile messaging to other Vyke Mobile Pro users
• Low cost SMS messaging to anywhere in the world
• International calling (from your mobile!) at fantastic Vyke prices
• No set-up fee, no monthly charges - pay as you go!
Vyke Mobile exists in two versions, Vyke Mobile Pro and Vyke Mobile Lite. With Vyke Mobile Lite,
you get all the same services as in Vyke Mobile Pro, except for free mobile messaging. If your mobile
phone does not support Vyke Mobile Pro, try Vyke Mobile Lite - it is still a great way to save money on
SMS and international calls!
Vyke Mobile connects to the Vyke network using the mobile internet connection provided by your
mobile operator. To use Vyke Mobile, your mobile phone service plan must include mobile internet
access and your mobile phone must be configured correctly. Please follow these instructions to verify
For more detailed instructions on how to set up your phone to use Vyke Mobile, please click here to
How Vyke Mobile Works
Sending a message
Sending a message from Vyke Mobile is just like sending a normal SMS.
From the New message screen in Vyke Mobile use your phone’s address
book to select who you want to send the message to. Then type your
message! You can check to see if the person you are messaging with is
online with Vyke Mobile Pro before you send the message – if so the
message is free, if not you pay regular Vyke SMS charges. If your
friend’s Vyke Mobile Pro is offline, the first message will automatically
start his Vyke Mobile Pro. As long as you both stay online, messaging is
free! If your friend is not a Vyke Mobile Pro user or you are using Vyke
Mobile Lite, your message will be delivered as a regular SMS with your
mobile phone number as the sender.
In Vyke Mobile Pro’s messaging menu, you have access to normal
messaging features. Vyke Mobile pro’s Inbox is where messages from
other Vyke Mobile Pro users are stored in your phone. Messages sent
from Vyke Mobile Pro are accessible and stored in the Sent items folder.
Make a call
Once you have entered the phone number you want to call, Vyke Mobile
sends the call information to the Vyke platform. A few seconds later, your
mobile phone will ring and, once you answer the phone, you will be
connected with the number you are calling.
Making a call @
If you are roaming or if you want to save more on your call charges, using
the Call @ function allows you to specify the number where you want to
call from. Once you have entered the number you want to call to and the
number you want to call from, Vyke Mobile sends this information to the
Vyke platform. A few seconds later, your “call from” number will ring
and you will be connected with the number you are calling.
Connect / Disconnect and Refill your account
In the options menu in Vyke Mobile Pro, you have a choice of connecting
or disconnecting from the Vyke network. To send or receive free
messages with Vyke Mobile Pro, please stay connected at all times. Are
you getting low on credit? You can top-up your Vyke account directly
from your mobile phone.
Tell a friend
The more friends you have online with Vyke Mobile Pro, the more free
messages you can send! The Tell a friend feature allows you to send Vyke
Mobile Pro directly to the mobile phone of your friends and family. Your
friends and family will receive Vyke Mobile Pro with Free Trial credit
already included. They can be ready to use Vyke Mobile Pro within
For more information on Vyke Mobile services, please see the Vyke Mobile FAQ Page.
How it works / Requirements:
Your mobile operator must support mobile internet (such as GPRS, UMTS, 3g, etc).
Your phone must support Java.
To use Vyke Mobile Pro, your phone must support WMA.
Your phone must be configured for using mobile data connection.
To access your phones address book your phone must support PIM.
Some phones might require special configuration to have a Java program work with mobile Internet,
please refer to your phone's user manual.
UTL gets Nepal nod to start VOIPservice
Tuesday 26th of June 2007
Indian joint venture United Telecom Ltd, the first private operator in Nepal's telecom sector, has been given the go-ahead to
start VOIP (voice over internet protocol) service - a technology that is expected to slash international long distance (ILD) call
costs from here substantially.
After the green signal came from Nepal Telecom Authority (NTA) late last week, UTL, a joint venture between India's MTNL,
VSNL and Telecommunications Consultants India Ltd and Nepali partner Nepal Venture Pvt Ltd, has begun a feasibility study
to identify the partners and phone routes it can ally with overseas to offer the new technology to its subscribers in Nepal.
Though the study will take at least a month, according to initial estimates, UTL will need to invest about NRS 150 million (Over
$2 million) to implement the new technology.
Along with the Indian joint venture, NTA also authorised the state agency, Nepal Telecom, to operate VOIP technology. VOIP
is a technology and not Internet services used for call bypass by illegal operators.
The move comes after the Himalayan nation has been losing annually around NRS 8 billion, at a conservative estimate, due to
illegal ILD call bypass services offered by public phone booths and cyber cafes mushrooming all over Nepal.
Though Internet calls - routing ILD calls through computers by adding a voice card and other modifications - is illegal in Nepal,
as in India, phone booths and cyber cafes in both countries thrive on it, causing the government as well as telecom service
providers a loss of billions.
The VOIP technology means sending calls through several routes simultaneously though without using the Internet.
The Nepal gesture comes as a placatory offer after NTA made a discriminatory gesture earlier this month.
Though UTL and Nepal Telecom have identical licences to offer phone services based on the wave technology employed by
cellular phones, NTA this month allowed the Nepali company to offer full mobility while UTL has been given only limited
This means while a UTL subscriber can use his phone as a mobile only up to a certain area, Nepal Telecom's phones using
the same technology can be used anywhere in the country, like mobile phones.
This is not the first time that UTL has suffered discrimination.
Though its licence, acquired in 2002, said it would be able to offer ILD calls to both UTL and Nepal Telecom subscribers from
2004, the facility was given only in 2006.
Also, during the 15 months that King Gyanendra ruled Nepal from February 2005, triggering violence and intense political
instability, UTL phone services were closed for six times, causing a loss of millions.
Nepal VoIP Rate Exchange
Routes in Nepal
Voixium 0.262 $
Neo 0.0208 $
GLOBALICONNECT 0.0725 $
Hello2hello 0.129 $
Glovi 0.158415 $
R.K Telecom 0.16 $
ACO Global 0.16 $
Skyfair Network Tech. Ltd. 0.2145 $
GAFACHI 0.2731 $
Quivoice 0.358927 $
SOYO Group, Inc 0.38 $
Altokom 0.413 $
Rising Era Marketing - VoxNow! 0.443 $
Call IT ApS (ADPHONE) 0.515 $
IT Comm Works Pte Ltd 0.62 $
In order for Nepal to communicate among the rural areas remotely.
Nepal VoIP example can be a guideline for most economic &
practicable telephone system based on VoIP system affordable to
most Nepalese in Nepal and abroad.
Legalizing VoIP in Nepal, I fervently believe that the examples set
by our neighbouring countries especially SAARC countires will be
the right path to follow for the most economic and practical
overall communication systems so that every single Nepali citizen
will benefit from the latest technological development in VoIP.
NTA to equip themselves with latest technological know-how,
required specialized manpower, monitoring equipments for QoS etc.
to regulate the market in the best consumer interests.
# http://www.get voipsolution.com