How did Telecom lose Rs 2.29 billion in revenue?
Kathmandu. The revenue of Nepal Telecom Company Limited (Nepal Telecom) has decreased by more than two billion compared to last year. The company’s revenue, which earned a total of Rs 36.86 billion in the previous fiscal year, has declined by 6.2 percent this year. In the last fiscal year, the company was able to earn a total of Rs 34.57 billion. What is the reason for such a big decline in a period of one year? Telecom has issued its opinion in this regard. According to the telecom, the first reason for the decline in revenue is the revenue from all services except lease line, fiber to the home (FTTH) GSM data during the Corona epidemic.
“As the leased line is in much less use than other services of the FTTH service company, the revenue from these services has not been able to make up for the shortfall in revenue from other services,” the telecom said in a statement. 2.8 million has been reduced. In addition, the company has started calculating discounts on the sale of recharge cards from March 1, 2075, instead of commission. The commission is paid after calculating the total sales, not before the recharge card sale Telecom has stated that there is a decrease in income even though the discount will be provided.
According to the telecom, the discount amount has increased by 793.19 million in the last fiscal year as compared to the previous fiscal year. The company argues that the discount amount should be added as compared to last year and adding it will reduce the revenue by only 3.9 percent. Also, due to the Corona epidemic, international roaming and other services have also declined sharply, the telecom said. According to the company, due to the increasing use of OTT services, GSM and PSTN voice services have declined by about Rs 2.16 billion and international services by about Rs 540 million. However, revenue from data services increased by about Rs 750 million.
Due to various reasons, the revenue has declined by about 15 percent (Rs. 1.95 billion) in the corresponding period of the previous year as compared to the same period of the previous year. To support the government’s move to control the corona epidemic, the company has offered more than Rs 534 million in top-up bonuses, up to 30 per cent discount on mobile data rates, more than Rs 228.3 million and more than Rs 53 million for zero value calls.
This has also affected the company’s revenue. In addition, the company had given discounts on various services at the request of the Nepal Telecommunication Authority during the lockdown period. Similarly, the company has contributed Rs 100 million to the Corona Relief Fund established by the Government of Nepal.
Apart from this, the increase in the minimum wage rate of manpower received from external sources, increase in rent, electricity, etc. along with the Forge expansion, increase in salaries of employees, loans provided to employees, etc. have also added to the expenses and caused loss of income, the company said.
And that is the end of the topic: How did Telecom lose Rs 2.29 billion in revenue?
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