According to data published by the Nepal Telecommunications Authority (NTA), overall teledensity in the mountain Kingdom reached 41.5% in March 2011, up from 27.7% a year earlier, driven by a 13% increase in mobile users to 10.37 million (including 9.49 million GSM and 871,447 CDMA subscribers). However, a lack of competition has been blamed for a fall in fixed teledensity which stood at 2.95% at the same date, down from 2.98% in March 2010.

A spokesperson for national fixed line incumbent Nepal Telecom (NT), Surendra Prasad Thike, said that tough competition from GSM service providers was one of the major reasons for the decreasing fixed penetration rate. However, he also pointed out that the number of fixed lines had not actually decreased Ė only the penetration rate.

Source: TeleGeography