20 January 2020, NIICE Commentary 3075
Ashmita Gautam
“When the digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar,” said George Westerman, Principal Research Scientist with the MIT Sloan Initiative on the Digital Economy. The world has evolved incessantly by gaining an edge in Artificial Intelligence and Virtual reality. Countries like Japan, Korea, China, India and Thailand have already reached the forefront in the IT and Communications Market by building a new technology architecture with unbounded innovations. Nepal can also learn valuable lessons from the on-going project in different countries with the deployment of new business models and disruptive technologies which have already proven to be beneficial globally.
During the last few years, the digital industry of Nepal has already made significant growth driven by the increase in the number of mobile phone users. As per the statistics provided by Nepal Telecom Authority (NTA), 250 new Internet users are added every hour in Nepal. It is expected to grow further over the next five years with the increase in popularity of social media, online communication platforms, expansion of number in mobile connection, and smartphone penetration, entertainment, music streaming, and e-commerce.
The Ministry of Communication and Information Technology had published a report in March, 2019 on “Digital Nepal Framework” that provides a blueprint on creating a roadmap under “One Nation, eight Domains and 80 Digital Initiatives”. Eight sectors: digital foundation, agriculture, health, education, energy, tourism, finance, and urban infrastructure were categorised to unbolt the growth potential of the digital industry in Nepal. The report also highlighted the remarkable journey of digital adoption in Nepal with mobile penetration exceeding 100 percent and Internet penetration reaching 63 percent. The key propositions accentuated in the report are creation of paperless government by digitizing all the internal and external processes and introduction of the Government of Nepal App.
The implementation process of this framework has to be given high priority by solving the issue linked to the outreach of data services in Nepal. It is paramount to relay high speed mobile broadband and transform service delivery in agriculture, e-commerce, educational, health and other sectors through electronic mediums. Even if telecommunication companies have launched attractive data packages for the customers, not all services have reached the remote areas of the country. A deal has been signed with Chinese companies ZTE and China Communication Services International for the expansion of the country’s 4G LTE network to an additional 6.5 million users in Nepal. However, a lot of work still remains on the pipeline.
Further, data storage is another important dimension crucial for the development of digital infrastructure in Nepal. Users of the cloud storage system do not possess any data locally and no specific provision has been provided by the government of Nepal regarding the correctness and availability of data that is stored on the cloud servers. Thus, establishment of a data center at provincial level is necessary to make it easier for the central government to decentralize services in a localized structure. Specific legislation can also be laid out for the localization of all the sensitive data belonging to the Nepali users. Use of personal or sensitive data should be allowed only for emergency uses like crime detection or legal assistance.
Moreover, Nepal lacks a strong ground of expertise on cyber security policy which is highlighted on the draft National Cybersecurity Policy, 2016. An effective mechanism should be built for adhering to the National ICT policy by creating an enabling environment to build a safe, secure and resilient cyber landscape. Priority should be given to decrease the cyber threat by creating an efficient regulatory environment with a focus on the national demand and international best practices. This will build confidence among the stakeholders and businesses to exchange information for diversifying and creating new markets.
National Cyber security and Communications Integration Center’s (NCCIC) mission is already under operation to decrease the risk of systemic cyber security and communications challenges. However, no clear provision has been provided for the Child Online Protection, Securing Government networks and Protection of Critical Infrastructure. Thus, appropriate regulatory arrangement is required on the government level to protect the citizens and businesses from the cyber security threats.
The government of Nepal has also recognized the importance of Information and Communication Technologies (ICT) to create a digitally equipped environment for better governance with transparent and efficient bureaucracies. This can take the country to a new frontier of development by bridging the gap in education and health services while facilitating economic growth and employment creation through enablement of IT-ITeS/BPO based business models. However, it won’t be possible to formulate an effective model of ICT without legislative policy provisions on new technologies like Voice over Internet Protocol (VoIP), Internet Protocol Television (IPTV), new forms of social networking, etc.
Similarly, the current state of policy incongruence needs to be solved with Government-led and Private Sector driven policies. Government leadership should be encouraged on proliferating the access to broadband by making Public Private Partnership (PPP) model as a basis for the mobilization of investment. Another issue faced by the digital industry in Nepal is the lack of specific guidelines for Net Neutrality. With net neutrality, every content available to the public will be given an equal status. No privilege will be provided to a particular ISP and the users can access all the websites at the same speed. Therefore, the giant internet platforms will not be able to trample the small startups or emerging innovative minds. It has already been followed in several countries like India, Netherland, Singapore and others, wherein strict regulations are enforced for ensuring equal rights to access the internet. Nepal has already initiated the process to bar telcos from introducing differential pricing strategies for data services by forming an independent committee in consultation from TRAI and other concerned bodies. Government should pass the policy without any further delay to provide a room for accelerating the growth of digital content in Nepal.
The next wave of economic growth fueled by digital revolution can reach Nepal through a concerted policy framework. Thus, emphasis should be placed on building a roadmap to make Nepal a powerhouse for digital innovation and an offshoring destination for IT companies across the world. With this vision, the day isn’t far when users in Nepal will be able to access all the e-commerce and government services with the click of a button on their mobile phones.
