Nepal Telecom has reported a decline in net profit for the first half of the current fiscal year, reflecting mounting pressure on traditional telecom revenue streams as over-the-top (OTT) communication services continue to reshape the market. The company’s unaudited financial results show net profit falling by 12.98% to NPR 4.16 billion, compared to NPR 4.78 billion during the same period last year.
The decline has largely been attributed to the growing adoption of OTT platforms such as WhatsApp and Viber, which have significantly reduced demand for traditional voice and SMS services. As users increasingly shift to internet-based communication, telecom operators are facing intensified competition from digital platforms that operate outside conventional telecom infrastructure.
Despite the drop in profit, Nepal Telecom recorded modest growth in operating income, which rose by 1.73% to NPR 17.30 billion. The increase reflects continued demand for data services, broadband, and internet connectivity, areas that are gradually becoming the primary revenue drivers for telecom operators as consumption patterns evolve.
The results highlight a broader industry transition, where telecom companies must adapt to declining legacy revenues by strengthening digital infrastructure, expanding data-led services, and exploring new business models. Analysts note that diversification into digital services, partnerships, and value-added offerings could help offset OTT-driven revenue pressures in the long term.
Nepal Telecom’s performance underscores a transitional phase for the operator, balancing stable operational performance with the need to accelerate transformation as data consumption rises and competition from global digital platforms intensifies.
