ncell private limited · 2019-09-18 · eff orts especially within technopreneurship development,...

Ncell Sustainability Report FY 2074/75 (2017/18)

Ncell Sustainability Report 2017-18

Ncell Private LimitedRegistration Number: 15888/2057/2058

Registered OfficeLalitpur District, Lalitpur Metropolitan City,

Ward No. 4, Ekantakuna, Nepal

Corporate and Contact OfficeLalitpur District, Lalitpur Metropolitan City,

Ward No. 4, Nakkhu, Nepal

Tel: +977 980 555 4444www.ncell.axiata.com


We believe, that technology should work towards making every day

simpler and easier. So Tomorrow, becomes more promising. Reason why,

everything we do, is directed towards taking the Nation towards a brighter

and a digital future.

This Sustainability Report, is an encapsulation of the process by which

we bring our vision to life. Every page will walk you through an in-depth

analysis of how at Ncell, we’re committed to the cause of people, planet

and the society. While adhering to the highest standards of governance all

through.

We hope you enjoy the journey.

Today.Tomorrow.Together.

CONTENTS

30 Digital Ecosystem/Digital Solutions

32 Accessibility and Aff ordability

35 NURTURING PEOPLE

37 Nurturing People

37 Talent Management

38 Promoting Culture of Integrity & Performance

40 Ensuring Conducive Workplace

41 Freedom of Association and Collective Bargain

41 Workplace Health, Safety & Wellbeing

43 PROCESS EXCELLENCE AND GOVERNANCE

45 Strong Governance

45 Procurement Practices

46 Customer Centricity & Digitising Processes

47 Improving Customer Experience

47 Online Recharge

47 Flood, 2017

47 Self-care Empowerment

47 Damage Recharge Card Resolution Time

48 Reduce Waiting Time for SIM Re-verifi cation

48 Clarity of Charges

48 Double Saapati

48 SEE Result

48 Awareness on Background Data

49 Data Privacy

51 PLANET AND SOCIETY

54 Environment Management

55 Environmental Conservation

56 Contribution to the Society

56 Pillar I: Nurturing Technopreneurship

58 Pillar II: Digital Literacy

58 Pillar III: Disaster Response and Humanitarian Support

60 Emergency Communication Support

61 Rebuilding of Earthquake Aff ected Schools

62 Livelihood Support for Girls through Music Education

62 Water for Agricultural Livelihood

65 NATIONAL CONTRIBUTION REPORT

67 Economic and Financial Contribution

67 Investing and Innovating for Long Term

67 Contribution to Public Finance

67 Talent Development

68 Annexure

4 MESSAGE FROM THE MD

9 OUR BUSINESS

11 About Ncell

12 National and International Awards

13 Telecommunication Operating Landscape

13 Market Share of Telephone Service

13 Market Share of GSM Mobile Operators

14 Current Scenario

16 Sustainability at Ncell

17 Sustainability Eff orts of Ncell

20 CSR Pillars for 2017/18 and Year Ahead

21 Stakeholder Engagement

23 BEYOND SHORT TERM PROFITS

25 Long Term Investments

26 Contribution to Digital Economy

26 Digital Inclusion

27 Connecting the Unconnected

Ncell Sustainability Report FY 2074/75 (2017/18) 54

Message from

the MD

Our Business

Planet & SocietyN

urturing PeopleBeyond Short Term

Profi tsProcess Excellence

& GovernanceN

ational Contribution Report

MESSAGE FROM THE MD

This is a special privilege for me to welcome you to fi rst sustainability report of Ncell.

Ncell, as a subsidiary of Axiata Group - Asia’s leading telecommunications group - and a leading mobile service provider of Nepal, is a long term investor and remains committed to development of Nepal. To deliver on our development promise, we have placed sustainability at the heart of our operations.

Our approach to sustainability is aligned to the international understanding and measures of Economic, Environmental and Social Indicators which is in line with Axiata Group’s four major sustainability pillars; Beyond Short Term Profi t, Nurturing People, Process Excellence and Planet & Society. Our method takes a long term and holistic view of sustainable business custom in Nepal and focuses on creating long-term value for our stakeholders paving the way forward for transition into a New Generation Digital Champion.

Commitment Beyond Short-Term Profi ts

As a committed investor, we take strategic and long term view of all our business decisions. Our decisions on investment, products and services, and building a digital ecosystem are based on long-term value creation for customers, communities and stakeholders. In our endeavor to contribute to digital inclusion, we have launched 4G service in June 2017. Our widest 4G network is available in 21 diff erent cities across the country covering 15.57% of total population of the country. Likewise, we are also continuously expanding our 3G infrastructure beyond high-density areas and cities. Our 3G network covers 54.89% population and ensures availability of high speed mobile data connection in rural and remote areas, contributing to bridging the digital divide and bringing positive changes in the life of the people, economy of those communities and social sectors. As of mid-July 2018, more than 58% of our total base transceiver stations (BTS) are located in rural areas. Our best-in-class network, including more than 3400

sites ensure 92.47 percent of Nepal’s populations have access to mobile communications services.

Our subscriber base witnessed a growth of 5% reaching 16.51 million in FY ending mid-July 2018. The growth was driven by customer-focused campaigns that made products and services more aff ordable and accessible to all, simplifi cation of products and services, expansion of network and introduction of innovative value added services.

With total contribution of NPR 78.96 billion (USD 758 million, Ncell’s contribution to the country’s GDP stood at approx 3% in FY 2017/18. We made capital expenditure of NPR 7.2 billion (USD 65.61 million and contributed NPR 28. 23 billion (USD 256.80 million) in taxes to the government of Nepal that accounted for approx 4.28% of total tax revenue of the government. We take pride for being one of the highest tax payers of the country and thank the Government of Nepal for conferring recognitions for our contribution on numerous occasions.

Commitment to Nurturing People

We at Ncell believe development of our talent within the organization is vital for the long term sustainability of the company. To live this organizational philosophy, we have Ncell Accelerated Development Program (NADP) in implementation through which future leaders are being developed through various trainings, coaching and exposure programs. We have aspiring team of 541 passionate employees off which over 99% of our employees are Nepalese. As the industries across the globe are on the digital breakthrough, we understand development of digital talent is a must for us for ‘digital transformation’ and to be more agile and more relevant in serving our customers and enhancing customer experience.

At Ncell, we stand fi rm on our values Uncompromising Integrity, Exceptional Performance and Customer Loyalty.

Message from the MD

Suren J. AmarasekeraManaging Director


Message from

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Our Business

Planet & SocietyN



& GovernanceN


MESSAGE FROM THE MD

Ncell remains committed to maintain our leadership position with customer intimacy at the core coupled with superior network experience. Moving forward, we will focus on three key strategies, i.e. Growth Initiatives, Transformation and Expanding into New Core Business including Enterprise Solutions, Digital Services and Convergence. Ncell will continue to focus on extending data leadership, whilst maintaining voice and ILD revenue contribution. Cost effi ciencies will remain a priority to ensure sustainability while ensuring highest standard of customer services. Ncell is embarking on digital transformation journey aimed at better serving our customers and expanding our digital services ecosystem. We remain committed to nation building eff orts especially within Technopreneurship development, disaster early warning system and improving rural broadband connectivity. Giving our fullest and bringing out the best by way of complementing each other, we will remain relentlessly focused on the mission we have set for ourselves to achieve; i) converting each and every team member of Ncell to being a cheerleader; ii) converting retailers to being advocates of Ncell; and iii) converting our customers to being fans of Ncell.

Regards,Suren J. Amarasekera

Commitment to Process Execellence & Government

We exercise highest ethical standards in all of our processes; be it in procurement practices or customer centricity or governance or regarding the supplier’s code of conduct. We are committed towards local vendors’ development and partnering with them. In FY 2017/18, more than 50% of our procurement has been sourced from local vendors.

Being a customer centric company, customer intimacy is at the core of our work. We bring best in innovation, connectivity and talent to serve our customers in agile manner and make sure our products and service are relevant to our customers. Our customer experience is enhanced through 30 Ncell centres, 24/7 customer helpline and 10,000+ point of sales across the country. We always walk extra mile to ensure all our services are available to the customers, and we serve them as a shadow round the clock. We remain committed to deliver more to our valued customers, and aim to convert our customers into fans.

As a responsible corporate citizen, Ncell always remains committed to environmentally sustainable business practices through responsible use of resources. We aim to reduce carbon footprints of our operations while growing our business. As of mid-July 2017/18, 13.2% of our sites are solar powered and we have been using energy effi cient tools like LIB and Fuel Cells for increasing effi ciency in energy consumption.

Commitment to Our Planet & Society

Ncell has always been on top when it comes to contributing to the society and people via number of diff erent projects under the Corporate Social Responsibility initiatives (CSR). In FY 2017/18, we defi ned our verticals for CSR initiatives to be carried

out in 2017/18 and moving forward. Under this, we launched a new CSR initiative on Technopreneurship with an aim to nurture technology entrepreneurship among young digital talent. As a part of this initiative, we collaborated with Massachusetts Institute of Technology, world’s leading university based in the USA, and Kathmandu University of Nepal to organize MIT’s fl agship program Global Start-up Labs (GSL) program for the fi rst time in Nepal. The MIT GSL was implemented in a format of boot camp and 35 select students of Kathmandu University learned skills of converting their ideas into viable business start-up through June 15-August 2, 2018. Apart from this, we continued with our fl agship scholarships and excellence awards instituted at Pulchowk Campus, Institute of Engineering (IoE), which benefi tted 16 engineering students of the campus. Adding further to this, we in 2018 entered in the new memorandum of understanding with Department of Hydrology and Meteorology, strengthening our collaboration with the national agency for implementing Flood Early Warning Alerts to the people residing in fl ood risk zones. This project has been acknowledged by all stakeholders as a ‘life saver’ initiative. Keeping up with our promise to our customers, we provided emergency communication support to our customers during the time of natural disaster, which enabled them to stay connected with their loved ones and in case of need, seek rescue relief support. Till date, Ncell has invested more than NPR 600 million through numerous CSR initiatives in diff erent verticals like Education, Health, Disaster Response and Readiness, Humanitarian Support, among others.

Awards and recognitions

In 2017/18, Ncell was awarded with Frost and Sullivan Best Practices Awards 2017 - Nepal Mobile Service Provider of the Year for the third consecutive year. Ncell also received Frost and Sullivan Nepal Business Excellence Awards 2017 Gold Award – Telecom Sector, Mega Large Business during the year.

OUTLOOK FOR 2018/19


Our Business


Message from

the MD

Our Business

Planet & SocietyN



& GovernanceN


OUR BUSINESS

About NcellNcell Private Limited has been in operations in Nepal for more than fourteen years and the fi rst private mobile service provider established, connecting more than 16.51 million customers at present. We are committed to building the best–in-class mobile network, connecting the remotest areas of Nepal with digital communication off erings. Ncell was fi rst incorporated as Mero Mobile in 2004. Four years later it was acquired by TeliaSonera Group of Sweden and rebranded as ‘Ncell’ in 2010. On 12

April 2016, Ncell became part of Axiata Group Berhad, one of Asia’s leading mobile players with operations in 11 countries across South East Asia and South Asia serving approximately 350 million customers. With its vision to be the New Generation Digital Champion by 2021, Axiata Group has transformed itself from a holding entity with a portfolio of pure-play mobile assets into a ‘Triple Core Strategy’ driven business with a focus on Digital Telco, Digital Businesses and Infrastructure.Highlights

Key Corporate Milestones 2004

Established as Mero Mobile

2008

Acquired by TeliaSonera

Rebranded as Ncell

2016

Joined Axiata Group

2017

Launched 4G

2010

Launched 3G

Nature of BusinessMobile Telecom Operator

Total Subscribers

16.51 million

Technology deployed GSM, GPRS, EDGE, HSPA,3G, 4G

Year of Investment/Shareholding, 2016/80%

Tough-minded with performance standard, but with compassion for people

I demand high levels of performance from myself and from everyone I work with, whist I am compassionate with people

I benchmark my performance rigorously with the very brest and strive to improve myself

I challenge the status quo and embrace change to make things better

I am accountable for my performance and make no excuses for myself

I am determined to win, and I take pride in winning together as a team

High ethical standards, low tolerance of unethical conduct

I am honest and people can trust me to be truthful and not misleading

I am fair towards everyone, regardless of their status and personal relationship with me

I always safeguard the interest of the company

I comply with the laws, regulations and policies governing our business

I have zero tolerance towards corruption in any form


I place customer satisfaction at the centre of my work

I demonstrate customer foces by delivering their needs with quality and value

I provide exceptional customer experience with a 'can do' spirit

I always keep the promise to build high level of trust with customer

I take initiatives to identity customer needs and create solutions to match them

Exceptional Performance

Uncomprom

ising Integrity

Customer Loyalty

Values

Roaming in 110+ countries

NPR 7.21billionCAPEXInvestment

3456Total Physical Sites

58%+ BTS sites in Rural Areas

NPR 78.96 billionContribution to GDP(Approx. 3% of national GDP)

541Employees

16.51 millionSubscribers

No 1In Market(Based on RMS)

NPR 28.23

billionContribution in taxes(Approx. 4.28% of government tax revenue)

92.47%TOTAL POPULATIONCOVERAGE

Note: RMS- Revenue Market Share


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OUR BUSINESS

1 MIS Report of NTA (Mid-July 2018)2 MIS Report of NTA (Mid-July 2018)

Telecommunication Operating LandscapeThe telecommunications sector in Nepal is governed by the Ministry of Communication and Information Technology (MoCIT) and regulated by the Nepal Telecommunications Authority (NTA). Nepal’s Information and Communication and Technology (ICT) and National Broadband Policy has aimed to ensure broadband connectivity to 45% households by 2018, and make all the rural municipalities connected by broadband by 2020. The mobile sector provides 96%1 of telecommunications services through six mobile operators. As of mid-July 2018, the mobile penetration rate of the country is 130.89%2.

Telecommunications sector in Nepal was liberalized in mid-1990s. Prior to that, subscription and access to mobile services was diffi cult. Owning a mobile phone was considered luxury, and the registration process for applying for SIM cards and receiving the SIM took months. The entry of Ncell enabled people to easily own SIM cards and reap socio-economic benefi ts of mobile connectivity. Over the years, competition has made mobile telecommunications more aff ordable and accessible for the people regardless of where they live. The telecommunications sector is among the leading contributors to the government revenue.In 2016, the NTA adopted the technology neutrality policy, which was a game changer for the entire industry and the country. The tech neutrality provided fl exibility to operators to choose and adopt the best technology within an allocated spectrum to deliver the best customer experience. This allowed telecommunication companies to rapidly expand their network coverage and launch 4G service.

National and International Awards Ncell has received numerous prestigious national and international awards, along with recognitions for our contribution towards the country and society in the course of our operations.

2017/18Frost and Sullivan Asia Pacifi c Awards 2017- Nepal Mobile Service Provider of the Year.

Frost and Sullivan Nepal Business Excellence Awards 2017 Gold Award – Telecom Sector, Mega Large Business

Dr. Rishi Ram Sharma Disaster Response and Readiness Award, 2017

2016/17Telecom Asia Awards 2017: Most Innovative Telecom Project in Asia Pacifi c.

Frost & Sullivan Awards 2016 - Nepal Mobile Service Provider of the Year.

Frost & Sullivan Nepal Best Practices Awards 2016 - Mobile Service Provider of the Year (November, 2016)

Highest Advertisement Tax Payer: Kathmandu Metropolitan City

2015/16GSMA Global Mobile Awards 2016 - Mobile in Emergency or Humanitarian Situations (February 2016)

2014/15Government of Nepal - Highest Income Taxpayer Award (2015)

Frost and Sullivan Awards 2015 - Nepal Mobile Service Provider of the Year

2013/14Government of Nepal - Highest Income Taxpayer Award (2014)

New Business Age - Best Managed Joint Venture Company of the Year Award 2014

National Excellence Awards 2013 - Service Excellence Award 2013 (Large Enterprise)

National Excellence Awards 2013 - People’s Choice Best Brand (Multinational Nepalese Company) Award 2013

Awards and Recognitions

Market Share of GSM Mobile Operators

1% NSTPL 5% STPL

46% NCELL 46% NDCL

Market Share of Telephone Service

2% Fixed

98% Mobile

Note:NDCL- Nepal Doorsanchar Company LimitedNcell- Ncell Private LimitedNSTPL- Nepal Satellite Telecom Pvt LtdSTPL- Smart Telecom Private Limited


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Broadband Service

Service Subscribers Total

NDCL UTL Ncell STPL ISPs

Fixed Broadband (Wired)

ADSL# 1,006,339 1,006,339

Cable/FTTH# 3,270 2,008,974 2,012,244

Internet Lease Line 552 552

Fixed Broadband (Wireless)

Radio (Wi-fi )# 217,541 217,541

WiMAx# 85,917 85,917

Mobile Broadband

3G 4,702,311 4,986,460 9,688,771

4G 605,791 1,123,348 41,301 1,770,440

EVDO 136,573 63,203 199,776

Total 6,540,753 63,203 6,109,808 41,301 2,226,515 14,981,580

Services Subscription (%)

Fixed Broadband (Wired)# 10.31

Fixed Broadband (Wireless)# 1.04

Mobile Broadband 39.80

Total Broadband (%) 51.15

Telecom Statistics as of Mid-July, 2018

Subscription of Voice Telephony Service:

Services Fixed Mobile Others Total

Operators PSTN WLL VSAT GSM CDMA GMPCS

NDCL 686,762 120,810 581 17,586,214 1,586,153 19,980,520

UTL 50,136 476,738 526,874

Ncell 16,513,859 16,513,859

NSTPL* 2984 325,554 328,538

STPL 1,851,021 1,851,021

Others 1742 1,742

Total686,762 173,930 581 36,276,648 2,062,891

39,202,554861,273 38,339,539 1742

Services Subscription (%)

Fixed 2.94%

Mobile 130.89

Others (GMPCS) 0.01

Total 133.83

Population Projection (2011-2031) 29,291,746(Source: cbs.gov.np)

Current ScenarioTelecommunications sector in Nepal has registered impressive growth over the recent years largely attributed to the policy of sector liberalization adopted by the Government. Competitive intensity of the sector has increased and as a result, telecom

penetration is signifi cantly on rise throughout the country. Mobile sector in particular has registered impressive uptake as evidenced by its sustained growth trajectory over the past few years.

Note:NDCL- Nepal Doorsanchar Company LimitedUTL- United Telecom LimitedNcell- Ncell Private LimitedNSTPL- Nepal Satellite Telecom Pvt LtdSTPL- Smart Telecom Private Limited MIS Report of NTA (Mid-July 2018)


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OUR BUSINESS

Sustainability seats at the heart of Ncell operations. The company remains committed towards fulfi lling our responsibility towards the people, planet, society and has adopted highest standards of governance and process excellence to provide innovative products, services and deliver world class customer experience. In 13 years of operations, Ncell has

implemented numerous community projects in areas of Education, Livelihood, Environment, Health, Promoting Digital Talent, Freedom of Expression, Promoting Ethical Business and Disaster Relief and Support, among others, as listed below, contributing to ease life of the people and advancement of society.

Best Practices Across the Value Chain

Digitising Processes

Strong Governance

Environment Management

Disaster Management & Response

Corporate Responsibility

Digital Ecosystem

GSMA Partnership

Diversity & Inclusivity

Nurturing Future Leaders

Customer Centricity

Digital Inclusion

Culture of Integrity & Performance

Long-Term Investments

Profits

Beyond Short-TermProfits

People

Nurturing People

Process

Process Excellence & Governance

Planet

Planet & Society

Conducive Workplace

Sustainability at Ncell

Our approach to sustainability is aligned with Axiata Group’s Sustainability Framework. This is based on a 4P approach – Beyond Short-term Profi t, Nurturing People, Process Excellence & Governance, and Planet and Society. We have aligned and localized the Group’s Sustainability Framework to our national context.

This is Ncell’s fi rst sustainability report. All information is up to year ending mid July 2018 (FY 2074/75), unless specifi ed.

Sustainability Eff orts of Ncell

Adopt a School (2013-2014)44 rural community schools were equipped with basic educational facilities, including support for construction of schools, to provide education for children otherwise suff ering from lack of proper education environment. This has benefi tted more than 16,000 students get better educationProject Partner Save the Children

Digital Library (2013-2017)15 Digital libraries established in 15 diff erent community schools to promote digital education. This has benefi tted more than 10,000 studentsProject Partner Help Nepal Network

Girls Scholarship (2013-2016)15 district-topper girls of fi nancially weak families of remote Karnali and other rural districts received fi ve-year scholarship to pursue higher education after SLC Project Partner Save the Children

Ncell Scholarship and Excellence Awards (2014-2018)16 topper students of Pulchowk Campus, Institute of Engineering received scholarship and excellence awards every year for 5 yearsProject Partner IoE Pulchowk Campus

Music education (2013, 2015 & 2016)More than 100 disaster-aff ected and displaced orphan students living in various child centers received musical and life skill trainings Project Partner Cheli Sangiiteek Samuha

School-to-School ProjectSupport to encourage donation of educational materials by students of 28 affl uent schools to the students of 28 rural schoolsProject Partner Kutumba Band

Education

Promoting Digital Talent

Ncell App Camp (2014 & 2015)Boot camp for young talent to unleash their digital potential to encourage startup culture


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Support to 2014 fl ood victimSupport to PM Disaster Relief Fund and District Disaster Relief Fund

Support to 2015 earthquake victimSupport to PM Disaster Relief Fund

Rehabilitation support to earthquake victimsDistribution of relief materials, construction of shelters and toilets in aff ected districtsImplementing PartnersHelp Nepal Network, Clean Up Nepal, Kathmandu Living Lab

Flood Early Warning System (Ongoing since 2016)Project in collaboration with Department of Hydrology and Meteorology. Ncell sent 6,344,087 fl ood early warning alerts to people living in the downstream of West Rapti, Narayani, Kankai, Koshi, Bagmati, Karnali, Babai and Kamala River that are risk prone areas

Communications Support to Customers (2017)Free 50 SMS were provided to each customer every day in fl ood aff ected districts during disaster period to support people for emergency communications. Customers exchanged a total of 16,600,000 free SMS in the aff ected districts to communicate during the crisis

Post-earthquake School Rebuilding Support (2017)Support to reconstruct three schools damaged by 2015 earthquakeImplementing AgencyDIREC Nepal

Disaster Response

Kidney Day Care and Dialysis Center at TU Teaching Hospital (2014)Support to TU Teaching Hospital to enhance its service delivery capabilities enabling growing kidney patients to access advanced treatment within the country

ICUs at Manmohan Heart Center, Maharajgunj (2014)Support to set up world-class ICUs at country’s leading heart hospital, to enable people conveniently get advanced heart treatment in the country

Health

Livelihood SupportWater for Agricultural Livelihood (2014)3 hill top communities in Syangja districts received water at their doorsteps for drinking and irrigation purposes, which enabled women to spend time in commercial vegetables farming, raising household incomeProject PartnerRenewable World International

Microfi nance to Vulnerable Girls Women23 vulnerable girls/women living in rehabilitation centers were provided micro-fi nancing and micro-enterprise trainings, enabling them to start their own micro-enterprises Project PartnerSave the Children and Shakti Samuha

Water for Drinking and Farming (2013)Patlegaun organic farm in Kavre and community in Dhading were provided with water tanks that helped them to better manage drinking water and irrigation facilities

Sweeping Change (2013)Cleaning project implemented in Kathmandu on the occasion of World Environment Day

Cleaning Project(2014)Cleaning project implemented in Jhapa on the occasion of International Hand Wash Day

Reforestation Project (2014)50,000 trees planted in 33 Hector in Dhanusha to reforest Dhanushadham Forest Implementing AgencyTalk Nepal

Environmental Awareness and Conservation Project (2014)Contributed to raise environmental awareness and manage forest-community confl ict in Dhanushadham forestProject PartnerMithila Wildlife Trust

Environment

Ncell Nepal Literature Festival(2013 & 2014)4-day event that supported to promote Nepali literatureProject Partner: Bookworm Trust

Heritage Concert(2013)Support to promote Nepali heritageProject Partner Kutumba

Sukarma Musical Yatra (2013)Support to Promote Nepali music

Ncell KalaJatra(2013)Support to promote Nepali Art

Kathmandu Triannale(2017)Support to promote Nepalese arts and culture and provide opportunities to emerging artists to work together with international artists and showcase their creationsProject Partner Siddhartha Art Foundation

Literature, Art & Culture

Promoting Responsible BusinessPromoting Ethical Culture (2014)One year project with Transparency International Nepal for promoting ethical business culture implemented with business chambers

Responsible Business Summit (2017)Project with National Business Initiative (NBI)

SportsSupport to Football (2013)Ncell Cup Tournament, Women National Championship, U-15 football tournament and sponsorship to Nepali national football team in SAF Game and Best Football Player of the Year Award


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Humanitarian SupportSupport to Bal Mandir (2013)Ncell provided fi nancial support to the orphanage to manage food and essential commodities for children when it was in serious fi nancial crisis

Support to Ama ko Ghar (2013)Ncell supported support for food, clothes and other essential items to the old age home

Support to enhance capacity of FNCCINcell supported FNCCI to set up meeting/conference room equipped with advanced chairs

Support to Confi deration of Asia-Pacifi c Chambers of Commerce and Industry (CACCI) Conference(2013)Facilitated high-level policy dialogue between CACCI representatives and Prime Minister’s Offi ce, Nepal Investment Board and Ministry of Industry on improving investment climate in Nepal

Support to Nepal Police and Traffi c Police(2013)20 motorcycles, safety kits, computers and accessories, and traffi c awareness related materials provided to Nepal Police and Traffi c Police to contribute to enhance their response capabilities

Support to FNCCI to mark Industry Commerce Day(2013)Facilitated dialogue between government and private sector to promote business investment

Stakeholders Capacity Building

CSR Verticals

PILLAR IEducation

PILLAR IIConnectivity to Serve the

Underserved

PILLAR IIIDisaster Early Warning

and Humanitarian Support

Social Entrepreneurship Project with MIT and Kathmandu

University

Internet Centres in underserved areas and groups

Flood Early Warning Alerts (EWS)

Scholarship and Excellence Awards to students studying

in Institute of Engineering (IoE) Pulchowk.

Community wi-fi

Emergency Communication facility to customers

Stakeholders How we Engage Focus Area What we do

Customers

Customer Satisfaction via Net Promoter Score (NPS

Customer Experience, Product Aff ordability, Network Availability

Continuously enhance customer experience

Self-care apps

Products and Service simplifi cations

Employees

Employee Engagement Survey (EES),

Town Hall

Career Development, Employee Communication

Talent Development Programs

Government/ Regulators

Compliance with the laws

Proactive Engagements

National Contribution

Employment

Capex and Opex contribution

Gross Value Added contribution

Suppliers

Request for Proposal (RFP), Supplier Code of Conduct

Procurement practice and payment

Compliance to Supplier Code of Conduct

Local Vendor Sourcing

Ncell Supplier Code of Conduct

MediaMeetings, press conference, media releases

Information sharing on corporate developments, products and services launch, fi nancial performance

Products and Service off erings updates

Network updates

Community CSR programs, media

Pre and post disaster initiatives

Sustainable development of the community

Education

Disaster Management and Response Initiatives

Employment creation

Contribution to national economy

Stakeholder Engagement

Since FY 2017/18, Ncell has redefi ned our CSR priorities and will implement various projects remaining the framework of below three major pillars.

CSR Pillars for 2017/18 and Year Ahead

Relief support to disaster victims


Beyond Short Term Profi ts


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BEYOND SHORT TERM PROFITS

We have demonstrated a deep commitment towards long term investment in the country to bring economic and social benefi ts to Nepal over the period of 13 years of our operations. At diff erent stages of our corporate development, we have developed products and services that have supported the industry ecosystem to bring the benefi ts of telecommunication services to many Nepali people. We were drivers in the elimination of tariff s on incoming call and domestic roaming charges, and we are contributing in building inclusive and dynamic Digital Nepal.

We have made substantial investments in the telecommunications infrastructure in Nepal ensuring comprehensive network coverage and bringing the latest digital communications technology in the local market. Over the past years, we have invested signifi cant amount for network expansion, system upgradation and network modernization. In the FY 2017/18, we made a capital investment of NPR 7.21 billion (USD 65.61 million). We have always been a leading contributor to the government’s public

30

25

20

15

10

5

0In

Bill

ion

(NPR

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7.2

22.55

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fi nances through taxes, licensing fees, royalties and statutory contributions. We have been recognized by the government as the largest taxpayer in various instances. Ncell was recognized by the government of Nepal as the highest taxpayer in FY 2014/15 and 2015/16.

In FY 2017/18, Ncell contributed NPR 28.23 billion (USD 256.80 million in taxes which is 4.28% of the nation’s total tax collection. Ncell’s contribution towards tax increased by 5% in comparison to FY 2016/17 when Ncell’s total contribution in tax was NPR 26.86 billion (USD 259.64 million).

These investment and development activities carried out by Ncell represent direct contribution to Gross Domestic Product (GDP) of the country. Its contribution in the GDP in the FY 2017/18 accounted for NPR 78961 (USD 758 million) which is approximately 3% of the national GDP.

NPR 28.23billionContribution in taxes (Approx. 4.28% of govt tax revenue)

NPR 7.21billionCAPEX Investment

NPR22.55 billionOPEX

NPR 78.96 billionContribution to GDP(Approx. 3% of national GDP)

CAPEX, OPEX & Tax Contribution in FY2017/2018

Highlights

Digital Inclusion• Online Recharge • Ifl ix • Ncell App Market • LetzGo • Nazara Games • Midas E-class • Magic Voice

1000+ Villagesgot access to fastInternet for the fi rst time

6.1 millionDataSubscribers

1.12million4G Subscribers

92.47%Total population coverage

54.89%3GPopulation Coverage

3456 TotalPhysical Sites

16.51millionSubscribers

Launched 4GJune 2017

58%+BTS sites inRural Areas

58%Smartphone penetration amongNcell users

Long Term Investments


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Contribution to Digital EconomyAccording to GSMA, which represents the interests of mobile operators worldwide uniting more than 750 operators with over 350 companies in the broader mobile ecosystem, access to mobile broadband gives an immediate impetus to a country’s economic growth. Every 10 percentage point rise in broadband penetration raises economic growth by 1.38 percentage point. It empowers ICT industry, technopreneurs, media and other industries, by contributing towards a higher economic growth trajectory.

Increase in Subscriber Base (In Million)

Digital Inclusion

With over 83%3 of the total population living in rural areas, the company has prioritized on increasing rural connectivity to connect the unconnected and ensure every Nepali has access to mobile internet. As of the review period, approximately 58% of our base stations are installed in rural4 areas.

The adoption of technology neutrality has allowed us to further strengthen 3G network across the country, as a result of which our 3G coverage at the end of FY 2017/18 has reached 54.89% of country's population. In the past one year, we have expanded our 3G service to more than 1000 rural and remote villages including Deuralikot of Bajhang, Shreenagar of Mugu, Jhong in Mustang, Malta of Lalitpur and Tingla of Solukhumbu. By ensuring access to fast mobile internet, we have contributed towards bridging the digital divide and bringing positive change to the lives of the people and economy of the communities.

In June 2017, we also launched much awaited fourth generation (4G)/long term evolution (LTE) service. The 4G /LTE off ers better bandwidth, lower latency and improves spectrum effi ciency enabling customers to use more applications on mobile devices, provides real-time sharing of large fi les and media streaming and immediate delivery of time-sensitive data. With over 900 sites established within six months, we have quickly taken a position of operating the nation’s widest 4G network expanding fastest internet to 21 cities covering approximately 15.47% population across the country.

Connecting the UnconnectedThe government statistics show that close to 40% of the Nepal’s rural population remain disconnected from the national electricity grid. With no major fossil resources, rural communities rely heavily on traditional sources of energy and many use kerosene lamps and candles for lighting. The lack of electricity reduces opportunities for education, quality health care, access to information and lack of potential income generation.

With the approval from the government for technology neutrality under 900 MHz and 1800 MHz band, this has allowed us to evaluate the best technology to adopt, deploy and expand our network. With this, expansion of our mobile network and off ering unrivalled customer experience, we have seen a signifi cant increase in subscriber base. By the end of FY 2017/18, our network coverage reached 92.47% of Nepal’s population, and our total subscriber base increased by 5% to reach 16.51 million.

In our endeavor to connect the unconnected, Ncell in July, 2016 established an innovative partnership with Gham Power Nepal Pvt. Ltd., an off -grid power solutions provider. Through this collaboration, Ncell has agreed to take the anchor load of solar power generated by three micro-grids of Gham Power in Okhaldhunga and Khotang districts to operate two mobile towers in Banpala of Chyasimtar VDC,

BTS in UrbanBTS in Rural

42%

58%

3 National Population Census, 20114 Based on the rural cluster


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Maya Shari Rai is a resident of Chyasmitar, and comes from a poor family. She used to be a housewife until she decided to open a small convenience with a small restaurant attached to it.

“I used to close my shop after 5 pm. Although I relied on individual solar panel for power, it was not enough to light the shop,” she remembers. Access to electricity from the micro-grid has done wonders for her business. She now operates for longer hours and serve customers of her restaurant from 10 am to 9 pm. “Customers have increased, particularly during the evening. As a result, the business has also increased over the past one year,” she says.

Maya also pointed out that they are able to experience quality telecommunication service with stable network and internet connectivity due to power supply from the micro grid. Access to Ncell service has benefi tted the community, especially households whose family members are working abroad.

Like Maya Shari Rai, many people in various communities of Khotang and Udaypur have directly benefi tted from access to telecommunications service and uninterrupted power supply from this collaboration.

Kotang and Ghurmi of Lekhani VDC in Udaypur. This made the off -grid system commercially viable and enabled communities in 31 VDC’s of Khotang and Udaypur districts to access mobile services. Surplus capacity from the micro grids was taken up by communities in the eastern hilly districts of Khotang and Udaypur, creating new economic opportunities and social benefi ts.

A study conducted by the GSMA showed the direct and indirect benefi ts of this collaboration to local communities. There was a 32% increase in mobile internet usage and 44% increase in smartphone ownership. The availability of electricity has made it easier for them to undertake daily household chores, work till late night and during early morning hours. It has helped college and school going children to study without having to strain their eyes.

Local business have also benefi tted from this partnership. Availability of electricity has reduced the cost of doing business as they no longer depend on diesel generators or individual solar panels. Across diff erent industries, manual operations have been replaced by machines, increasing overall effi ciency. Businesses are able to operate longer hours, resulting in higher income. Refrigerator ownership by small restaurants increased by 32% to accommodate for more business. The area has also seen a growth of new businesses such as bakeries, restaurants, herb processing industries.

For this project we also received ‘Telecom Asia Awards 2017’ under the ‘Most Innovative Telecom Project in Asia Pacifi c’. The initiative was also shortlisted in the prestigious GSMA Asia Mobile Awards 2017 for ‘Best Mobile Innovation for Emerging Markets’.


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Online RechargeIn FY 2017/18, we introduced online recharge service for our valued customers, enabling our customers

to top-up their main balance and pay post-paid mobile bills using Debit and Credit cards from VISA, MasterCard and UnionPay.

Games Club

Access to ifl ix

Magic VoiceIn a bid to enrich our customer experience, Ncell also introduced a fun fi lled Value Added Service (VAS) that allows the customers to change their voice or background sounds while speaking to their friends or family members over the mobile phone. Customers as per their choice can choose voice of cartoon characters and women, among others and can even set background sound of traffi c jam, airport, football stadium and birthday tune during call time.

Matchstix

Matchstix, a location based mobile application designed for increasing social networking was also launched by Ncell. This app allows people to connect and chat with each other based on

their location. This app helps to connect people in nearby locations.

Ncell App MarketWith the launch of Ncell App Market in 2017, we have has made access to unlimited downloads of premium apps and games possible for our customers under subscription-based plans in collaboration with Opera. This service ensures access to paid apps in app store for Android users. Ncell App Market features thousands of manually curated apps and games under various categories like education, business and fi nance, entertainment, communication, multimedia and many more. The app market helps Nepali customers overcome prevailing diffi culties in accessing paid apps and games, and enjoy premium apps and games with ease.

Midas e-ClassIn our endeavour to contribute to the vision of Digital Nepal by making digital educational

materials available to our customers, in 2018 we partnered with Midas Education Private Limited and introduced digital learning platform MiDas eClass for our customers. MiDas eClass is a learning application loaded with audio/video tutorials that help the students to take academic courses in an interactive way from mobile, tablet or computer. The video tutorials, animated lessons and text based content provided in this application is approved by the Curriculum Development Centre (CDC), Ministry of Education, Science and Technology. The service provides access to a large pool of video tutorials, educational materials, games and exercises to all students from playgroup to grade 10.

Letzgo

In our attempt to improve public transportation services and make travel hassle free for general public that largely rely on public transportation to commute in the Kathmandu Valley, We in collaboration with RamLaxman Innovations Private Limited, launched an innovative digital solution ‘Letzgo’ for the customers. This public transport app provides the users a real-time information of buses of multiple public transport service providers plying in diff erent routes. The service has empowered our customers to pre-check the location of public buses and conveniently catch a ride on buses they prefer from nearby bus stand as per their convenience, without requiring to wait at the bus stand for long. Currently, this digital solution is available for the public bus services. There are plans to expand the solution for other facilities, such as taxi booking and domestic fl ight schedules.

As a part of our commitment to bring new digital solutions to the customers, we introduced ifl ix in the Nepali market making it accessible to our customer with exclusivity. ifl ix is the world’s leading entertainment service for the emerging markets. With over 220 studio and distributor partnerships worldwide, ifl ix off ers subscribers the most extensive selection of iconic, critically acclaimed TV series and fan-favorite fi lms both internationally and locally available in the region.

In 2017, we also launched Games Club for the customers which enables our customers to play diff erent games as per their choice online based on the subscription plans. With the launch of this entertainment portal, we have enriched the digital content for Nepali customers, making it possible for them to access diff erent paid games on subscription basis.

Digital Ecosystem/Digital Solutions


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5 Axiata Quarterly Report- Q2 (2018)6 Axiata Quarterly Report- Q2 (2018)7 Axiata Quarterly Report- Q2 (2018)8 Axiata Quarterly Report- Q2 (2018)

In 2016, United Nations passed a resolution which affi rms that the internet as a right of every citizen, is to be open, accessible and nurtured by multi stakeholder participation. Likewise, the National Broadband Policy of the government 2017 aims to make broadband internet available at all local levels by 2020. The policy has embraced targets to provide secure, meaningful, aff ordable and reliable broadband services on demand in urban areas and to expand the reach of broadband services in rural, unserved and underserved areas of Nepal under Universal Access/Service (USA) obligations.

In line with this we have a made tangible eff orts to make internet aff ordable and accessible through off ering of innovative products and services that enrich digital experience of customers. We launched a multitude of campaigns to drive internet adoption and make internet more aff ordable and accessible to

all under the umbrella theme ‘Internet for All’. Under this, we introduced more aff ordable data packs and innovative digital solutions so that everyone have access to the internet. Enhanced accessibility and aff ordability have resulted in simultaneous growth in the smartphone ownership that directly/indirectly has been contributing to fi ll the gap of digital divide.

As of June 2018 (Q2), smartphone penetration among Ncell users has reached 58%5, up from 47%6 of 2017 (Q2). Likewise as of FY 2017/18, we hold holds 42% of subscriber’s market share with total subscriber’s base of 16.51 million and 54.4% of internet market share with 6.10 million data subscribers. Data traffi c in our network has more than doubled in June 2018 compared to June 2017 reaching 15.9 million GB7. Likewise, data usage per data subscribers has increased to 698 MB per month.8

20

15

10

5

0

4.8

2017(Q1) 2017(Q2) 2017(Q3) 2017(Q4) 2018(Q1) 2018(Q2)

Date Traffi c in Ncell Network (GB/Million)

6.8 7.7 8.410.3

15.9

2018 (Q2)

2018 (Q1)

2017 (Q4)

2017 (Q3)

2017 (Q2)

2017 (Q1)

0% 20% 40% 60% 80%

Smartphone Penetration Among Ncell Users

58%

56%

52%

49%47%

44%

2018 (Q2)

2018 (Q1)

2017 (Q4)

2017 (Q3)

2017 (Q2)

2017 (Q1)

0 200 400 600 800

689

475

394

361

341

Data Use Per Subscriber/Per Month (MB)

263

Accessibility and Aff ordability


Nurturing People


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NURTURING PEOPLE

Nurturing PeopleAt Ncell, we are passionate about our values, principles and our strategic priorities. This is what makes us a winning team. We are always striving to develop our people according to their potentials. We attract and retain our employees to celebrate success together.

We aspire to be an employer of choice in Nepal, presenting a unique opportunity for local employees to be part of a business that is driving to be a national champion, leveraging on the scale, technology and resources of the Axiata Group.

Talent ManagementWe believe in an enriched work environment where employees are empowered to develop their potential to the maximum. We provide functional skill training to develop and sharpen the technical abilities of employees to be the best in their areas of expertise. All the new job requirements are initially kept open for the fulfi lment of the desired post through the internal pool of talents. In the last fi scal year about 25% of job vacancies were fi lled by internal talent.

Our talent management process ensures that promotions, performance management, learning & development are linked and refl ect the organization's values- to ensure that institutional goals and strategies drive the quality and quantity of the talent needed. Talent management process faciliates the process of giving feedback, communicating

Sustainable Engagement Score - 76

UIEP - 80 %

Ethics - 69 %

Performance - 62 %

82.9% UnionRepresentation

Non Discrimination

Equal pay for Equal Work

Transformation into Modern Digital Agile Organization

Launch of Workplace

Launch of Lynda

Digital Jam100+ Teams

60+ Digital Solutions

PathbuilderProgram

I am Ready Workshop

75% WorkforceAge Group: 30-39

Female: 25%Male: 75%

98.89%locals

100% Employees receiving Performance review97% Employee

Retenation rate

New Recruitment 3%

2% Women inleadership

position

76% Senior Management

hired locally

541TOTAL

EMPLOYEES

LocalNon Local

1%

99%

MaleFemale

25%

75%

9 Increments also depends on the terms and conditions of the Collective Bargaining Agreement (CBA) signed between Ncell Management and Ncell Employee Union (NETU) which takes place every 2 years.

Health and Saftey

25 MembersOHS Committee

5% Joint Management-OHS Committee

InjuryRate 0%ODR 0%FatalIncidentRate 0%

EqualOpportunity

405 Male

135Female

5Nationalities

Highlights

expectations and being transparent, fair and consistent at all times. All increments9, rewards and benefi ts is determined by the annual performance review process.

At Ncell, we have Ncell Talent Council that oversees talent development aligned to the transformational aspirations. Comprising of Ncell Management, future leaders are identifi ed and assessed by the Council and groomed through the Ncell Accelerated Development Programme (NADP) for future managerial and senior management roles to ensure smooth succession planning at all levels of the business. The program targets those employees who are in the position of Section Manager, Unit Head and Expert.


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NURTURING PEOPLE

Corporate ValuesOur corporate values; Uncompromising Integrity, Exceptional Performance and Customer Loyalty is at the centre of how we work every day, and is integral in how we engage with our stakeholders. We carry out our daily business by keeping these values in mind and we as an organization strongly stand for it.

responsible way, based on a fi rm set of values and principles embedded in our Code of Conduct. We are committed to implementing eff ective measures to prevent, monitor and eliminate corruption in any form, in accordance with the Anti-Corruption Policy.

For allowing the employees to speak up and bring to notice any conduct that employees think may violate our Code of Conduct and Ethics, last year Ncell launched Whistle Blowing channel within the organisation. Whistleblowing is the disclosure of misconduct within the workplace, which can take on the form of mismanagement, corruption, illegal, unethical or other wrongdoing. This channel is aimed at establishing a standard system for reporting disclosures of these improper conduct or detrimental action by any Ncell employee.

Ncell Ethics Framework

Whi

stle

Blo

win

g

Code

of C

ondu

ct

Nce

ll Va

lues

& B

ehav

iour

Def

alca

tion

Com

mitt

ee

Empl

oyee

Byl

aws

SupportiveEnvironment

Training& Reinforcement

Communication& Engagement

PerformanceManagement System

Company Vision

Leadership

ImprovedFinancial &Operational

Performances

EnhancedTrust &

Reputation

Think before we act, And we shall act according to what we embrace

Think• Strategic Thinking• Business Acumen

Embrace• Uncompromising Integrity• Exceptional Performance• Customer Loyalty

Act• Results Achievement• Coalition Building• Customer Orientation• People Management & Development

Diversity and InclusivityWe have a workforce of 541 passionate employees. Over 99% of our employees are Nepalese. Close to 75% of employees are male and approximately 75% of our employees are between the age group of 30-39 years. Our senior leadership team is diverse, bringing the best talents from across the region to drive and support the national building agenda.

Ncell is a performance driven organization and we believe that performance comes from belongingness and ownership and we always reward the performers in all aspects. All increments, rewards and benefi ts are determined by the annual performance review process.

Employee EngagementWe aspire to create a sense of belonging and ownership to bring out the best in our employees. We conduct numerous engagement activities throughout including Townhall for internal employees, Ncell Family Funday to celebrate togetherness with employees and their family members.

Employees Engagement Survey (EES)The annual Employees Engagement Survey (EES) conducted across the Axiata Group is a crucial engagement opportunity for employees to give open feedback to the management. Through the EES, management has an understanding of evolving employee sentiments, and to explore ways to respond and improve. In last fi scal year 2017/18, over 96% of our employees responded to the EES and assessed a sustainable engagement score of 7610 . (Photos)


I demand high levels of performance from myself and from everyone I work with, whist I am compassionate with people

I benchmark my performance rigorously with the very brest and strive to improve myself

I challenge the status quo and embrace change to make things better

I am accountable for my performance and make no excuses for myself

I am determined to win, and I take pride in winning together as a team

High ethical standards, low tolerance of unethical conduct

I am honest and people can trust me to be truthful and not misleading

I am fair towards everyone, regardless of their status and personal relationship with me

I always safeguard the interest of the company

I comply with the laws, regulations and policies governing our business

I have zero tolerance towards corruption in any form


I place customer satisfaction at the centre of my work

I demonstrate customer foces by delivering their needs with quality and value

I provide exceptional customer experience with a 'can do' spirit

I always keep the promise to build high level of trust with customer

I take initiatives to identity customer needs and create solutions to match them

Exceptional Performance

Uncomprom

ising Integrity

Customer Loyalty

Values

Code of Conduct and EthicsAs a responsible employer, Ncell is always committed to the highest standards of business conduct. We are committed to provide positive, safe & corruption free work environment for all of our employees, with zero tolerance to any non–compliance and strict adherences to ethics framework. We act in a

Promoting Culture of Integrity & Performance

10 Score based on ESS Survey 2017


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NURTURING PEOPLE

Ensuring Conducive Workplace

Respecting Labour Laws and RegulationWe fully abide by and respect labour laws and regulations and other relevant laws of Nepal government in our operations.

75% WorkforceAge Group: 30-39

Female: 25%Male: 75%

98.89%locals

100% Employees receiving Performance review97% Employee

Retenation rate

New Recruitment 3%

2% Women inleadership

position

76% Senior Management

hired locally

541TOTAL

EMPLOYEES

Freedom of Association and Collective BargainWe respect our employees’ rights to associate and engage in collective bargain through Ncell Employees Trade Union (NETU) in accordance with national laws. Currently, 89.2% of employees are represented by the NETU. Our management and union representatives work together to ensure a working environment that is supportive for all.

Workplace Health, Safety & WellbeingAs a responsible employer the safety and wellness of our employees is a key concern for us. The Organisational Health & Safety (OHS) Committee at Ncell comprises of 25 management and employee representatives from across various departments.

Last year, a number of initiatives and activities were conducted by the OHS Committee to ensure and enhance safe working environment. As a part of preparation to respond in case of emergency situation, the OHS Committee members were trained

in basic fi rst aid to respond to any emergency situation. The committee members were provided with an orientation/briefi ng on Earthquake Risk, Reduction and Preparedness. Similarly, Earthquake Drill was also conducted as a preparation towards the response in any emergency situation.

Last year, an entire week (May 14-18) was marked as OHS Week where diff erent set of health related activities were designed for the employees to enhance health, safety and wellbeing of the employees. The OHS Week comprised of activities like Jumba Sessions, Gym Setup, Fire Fighting Drill, orientations by doctors on ergonomics at workplace, separate stall for Dental Camp, BMI Calculator, Health Insurance, among others.

At Ncell, we strive to create a conducive work environment for expectant mothers. A separate workplace is managed for them on ground fl oor to avoid having to climb stairs. We provide comfortable chair with leg support and resting cushion to ensure their comfort at the workplace.

In addition to these, the OHS committee organized diff erent competitions like inter department indoor cricket, corporate futsal tournaments for enhancing wellbeing of the employees.

Non-discrimination and Equal OpportunityWe in Ncell promote a culture of diversity and non-discrimination and equal opportunity for all, refl ecting the diversity of Nepal. We ensure equal opportunity in compliance with local laws during recruitment, training, development and retention. Around 99% of our employees are locals recruited from diff erent parts of the country regardless of their age, gender, caste, religion. We are strictly against forced and child labour in our direct operations and in our supply chain as well.


Process Excellence and Governance

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Ncell Sustainability Report FY 2074/75 (2017/18) 4544 PROCESS EXCELLENCE & GOVERNANCE

Strong GovernanceAt Ncell, we are highly committed to maintaining the highest standard of governance. We comply with all relevant laws of the country and uphold strong ethics and code of conduct in our operations. All the required compliance to the national legislation is assured by internal and external audits, monitoring and inspections.

As a member of Axiata Group, we comply with the Group’s comprehensive governance framework which is assured by quality inspections followed by internal and external audits. In 2017, we updated our governance on cyber security.

Procurement Practices

Best Practices across the Value Chain Ncell remains strongly committed to maintain the highest ethical standards in all its procurement activities. Managing sustainability along the supply chain represents both a major challenge, and a risk that needs to be mitigated. We evaluate and select our suppliers according to specifi c criteria concerning quality, price, functionality, availability, delivery, reliability, service, and sustainability requirements.

Ncell’s Supplier Code of Conduct establishes the standards and expectations in conducting business with our partners. We expect our business partners to respect internationally recognized procurement ethical standards. The guiding principles of the supplier code includes compliance with local laws and regulations, ensure workers in our supply chain work under safe conditions and are treated with respect and dignity, respect the core International Labour Organisation (ILO) standards, adopts our values of uncompromising integrity and process

excellence, transparency, and environmental responsibility. Our goal is to ensure full compliance with these principles by our suppliers.

We perform all our operations in a transparent and fair manner preventing anti-competitive behavior. Our standards for selecting suppliers and awarding business is through a leveraged competitive bid process. Supplier selections are made on the basis of best overall value to Ncell, and taking into account all relevant factors. All suppliers are treated in a fair, ethical and an impartial manner. All sourcing and procurement activities are performed under the framework of Ncell Limits of Authority (LOA). Commitment of funds to suppliers are made through contracts, statements of work, binding letters of intent or purchase orders (PO) after approval is obtained under the Ncell LOA.

Ncell Procurement Policy governs the acquisition of goods and services from third parties for Ncell and consists of the following principles:

- Compliance to Laws, Including Regulations and Other Legal Requirements

- Avoidance of Forced or Involuntary Labour

- Child labour Avoidance

- Respect and dignity of Employees

- Non- Discrimination

- Freedom of Association

- Health and Safety

- Protection of the Environment

Guiding Principles for Ncell Suppliers

Compliance to Laws, including Regulations and Other Legal RequirementsAvoidance of Forced or Involuntary Labor Child Labor AvoidanceRespect and dignity of EmployeesNon- DiscriminationFreedom of AssociationHealth and SafetyProtection of the Environment

Best Practices Across

the Value Chain

Supplier Code of Conduct

Local Vendor Deployment

100% vendors screened using environmental

criteria

USD 40.95 million spent on local vendor

67% Procurement from

local vendor

CustomerCentricity

24/7Customer Helpline

30Ncell Centers

10,000+Point of Sales

2G/3G/4GServices

49.4 Competitive NPS Score No 1 in Nepal

Highlights

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Customer Centricity & Digitising ProcessesWith over 10,000 points of sales and 24 hours customer care, we want to ensure working towards the goal of connecting everyone with top quality, modern and cost eff ective services thereby providing world class customer experience, creating value for the customers and business partners across the country.

Ncell is a customer centric company, therefore what our customers say and feel about our products and services are important to us. We regularly conduct

Q4. As of the review period (Q2, 2018), the NPS score of Ncell has increased to 49.4% up from 41.7% as of Q4, 2017.

Transactional NPS: This survey is conducted daily to measure customer satisfaction after their interaction at any Ncell’s touch points. An SMS survey is sent to a customer within two hours after they call our call center, and a day after they visit any of our touch points. We also run a survey in social media twice in a year to collect all voices of our customers and make our eff orts to take improvement initiatives.

Improving Customer ExperienceWe have always worked to ensure that all the services are available to the customers, and serve them as a shadow round the clock. We are committed to deliver more to our valued customers, and aim to convert our customers into fans.

In last fi scal year 2017/18, numerous initiatives were taken to improve customer experience, which included simplifi cation of products and services, targeted communications, personalized customer care, and clarity in tariff s among others.

Online RechargeAs an initiation of going digital, we launched online recharge service for our customers making the top up more simple and convenient. Through the online recharge portal, customers have been benefi tted for toping up their prepaid balance or pay their bill of post-paid phone by using debit and credit card of Visa, Master Card and Union pay.

Flood, 2017During the fl ood that created a havoc in eastern Nepal in August last year, we extended emergency communication support to the customers residing in disaster hit areas. Along with the other communication support, we operated emergency call centre number ‘9008’ to help the customers to connect to their family members. Under this emergency initiative, customers could call a call centre agent, share the contact number of family or relatives, and the message they wanted sent. The agent would then call the requested number and pass on the message. This initiative of Ncell was much appreciated by the customers.

Self-care EmpowermentOur call centre receives more than 9,000 calls per day. One of the most cited reasons for their call was for assistance on confi guring internet settings on their handsets. As a solution for this, we launched a self-care portal to enable and empower our customers to confi gure internet on their handsets themselves. This portal has been launched both in Nepali and English allowing users to confi gure their internet settings simply by inserting their mobile number in the portal.

Damage Recharge Card Resolution TimeThe resolution time for addressing damage recharge card issues was more than 24 hours. With process optimization, the resolution time has been decreased to less than an hour. As a result, customers are provided with PIN number of the respective damaged recharge card much faster so that they can top up quickly.

Happy customer experience is a major focus of Ncell, and it is a milestone towards customer centricity. In 2017, massive fl ooding and landslides triggered by heavy rainfall across the country created havoc in the eastern part of Nepal. The disaster created a bottleneck to people in aff ected districts trying to share messages that there safe to families and friends, or to seek help from rescue/relief agencies.

Mr. Lalan Mandal residing in Bhimshengola, Kathmandu was desperately trying to contact his daughter who lived in Tilahi village of Rajbiraj (Saptari district). He was not able to contact his daughter and grew increasingly anxious. He came to know about Ncell’s free emergency call center service. He wasted no time and called to the ‘9008’ hotline that Ncell had activated and asked the Ncell representative to pass his message to his daughter who was in the fl ood aff ected region.

Upon receiving the message, Ncell’s representative immediately started making eff orts to connect with Mr Mandal’s daughter and successfully relayed his message to her. After receiving her father’s message, she called back to her father. Mr. Mandal was relieved and extremely happy to hear her voice, knowing she was safe and also learned about the situation in the village.

After talking with his daughter and knowing she was safe, Mr Mandal called back to Ncell emergency call center. “I called to say thank you to the Ncell team. I had a problem, and you helped to solve it. I have contacted my daughter in the village and I feel extremely happy for the emergency help provided by Ncell Call Center to pass on my message during such a diffi cult time of fl ood,” said Mr. Mandal via phone call to a call center representative.

surveys through Net Promoter Score (NPS) Survey and Social Media Survey. Feedback received from the customers are analysed and appropriate measures are initiated to improve customer experience.

The Net Promoter Score (NPS) is tool to measure customer satisfaction and loyalty based on one single question: How likely are our customers to recommend Ncell to others. We conduct two types of NPS.

Relative/Competitive NPS: This survey is conducted by an independent third party among customers of all telecom operators based on a random sample. This survey is conducted twice every year in Q2 and

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Reduce Waiting Time for SIM Re-verifi cationMany of our customer are using SIM cards which is not registered in their own name. The process facilitating customers to transfer the number that they are using in their own name is SIM re-verifi cation. This process was one among the most time consuming processes. For this, we started using Customer Experience Management Tool which helped us speed up the re-verifi cation process. The average handling time has now reduced by 10-15%.

Clarity of ChargesTo avoid confusion on tariff ad ensure uniformity, we started communicating price of our products and services all inclusive of taxes in all channels. We also started to communicate about data and voice packs through SMS to the customers who reported expensive price perception in survey. In addition to this, we even started to communicate best rates of products and services to customers in social media to help the customers choose the products and services as per their requirements.

Double Saapati Based on NPS survey, Saaptai facility of Ncell has always been one of the much appreciated facilities provided by the company. With the consistent feedback from the customers via diff erent surveys, we increase the Saapati limit under this facility from existing NPR 20 to NPR 40.

SEE ResultSecondary Education Examination (SEE) is a crucial level for students as the students can join for higher studies only after passing this examination which is conducted by the Government of Nepal. SEE result is very important for SEE appeared students and their parents. Earlier, seeking the result of the SEE was quite a time consuming process as the only way to check the result was via newspapers and notice board.

However, with the advent of technology and increasing penetration of mobile and digital services, life of people has been easy in many ways and one of them is getting the SEE results on the handsets of customers. Ncell has been facilitating for publishing the results of SEE from the past 3 years. Last year, we published SEE result in website as well as on our mobile app that customers could access for free. This helped 880K customers to get their results instantly through these channels. Last year, some mismatch was found in the result provided by SEE Board that aff ected 51K customers. Taking this into consideration, we immediately fi ltered the aff ected customers and sent them the corrected result for free as soon as the revised results was received from the SEE Board.

Awareness on Background DataIn order to address the billing issues of customers and raise awareness to the customers regarding the background data charges, we have placed background data awareness video in Ncell website which customers could go through free of charge. Along with this we have also sent a video link to the customers via SMS to those who purchased new Ncell SIM cards.

Data PrivacyIn Ncell we are is strongly committed to protect and safeguard our customer’s privacy. As a telecom operator that connects more than 16.51 million customer across the country, privacy of customer data and information is of fundamental interest to our business.

These trends are such as; virtual networks and software available remotely for access by users (the ‘cloud’), behavioural advertising, examination of a data of a computer’s network enabling for instance, network management, security and data mining (‘deep packet inspection’), location awareness and the risk that seemingly anonymous data can be re-identifi ed. In addition, there are information-requests from authorities based on law.

Much of the business of our sector in general is built upon the collection of data about individuals and their communication. Search engines, social media as well as operators gather a large amount of data about users, subscribers and communications. In this context, there are technological trends that pose challenges to all kinds of players in the fi eld of ICT, including Ncell.

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PLANET & SOCIETY

EnvironmentManagement

Disaster Management & Response

CorporateResponsibility

• Fuel Cells• Lithium Ion Battery (LIB)• Planted 50,000 trees

in 33 hector land in Dhanushadham

• 13.2% of solar powered sites

Direct Energy Consumption

68897.78 Giga Joules

Indirect Energy Consumption

241009.25 Giga Joules

GHG Emissions (Scope 1)

4214.39 Metric Tons

GHG Emissions (Scope 2)

45800 Metric Tonnes

Highlights

HighlightsImpact of Projects Reported by GSMA

44% increase in smartphone ownership

32% increase in mobile internet usage

32% increase in refrigerator ownership by small restaurants, leading to direct and indirect economic benefi ts

Ncell’s partnership with Gham Power Nepal Pvt.Ltd

In 2016, Ncell undertook the anchor load of solar power generated by three microgrids of Gham Power to power two rural villages of Okhaldhunga and Khotang districts. Excess power from the micro-grids has been used to electrifi cation of rural communities, creating new economic opportunites and social benefi ts for the people.

Partnering for Sustainable Development

Business Continuity Management ( BCM )

policy & plan in all OpCos

BCM Policies& Plans

EmergencyResponse

IT & NetworkRecovery

AnnualSimulationexcercise

1. Disaster Response Readiness

2. Early Warning System

3. Disaster Relief Partnership

Ncell broadcasted over 6 million early warning messages

Over 16.6 million free SMS sent by Ncell customers utilizing the facility post disaster

Ncell activated emergency call center number 9008 to support customers to rely their messages to their friends and families

Increased Credit limit under Saapati facility and made free balance transfer service

Ncell partnership with Department of Hydrology and Meteorology (DHM)

Over NPR 650 million investment in CSR

Ncell scholarship and excellence awards

Launched MIT GSL Program in Nepal for the fi rst time

• 35 students formed 9 teams and worked on their respective startup ideas for 7 weeks

• Sajilo Marmat Sewa, Kinder and Opus chosen as the top three startup ideas of the program.

• Awarded with an opportunity to participate in the Micro Master Course (MMC) online course of MIT and also received a seed fund of NPR 500,000, NPR 300,000 and NPR 200,000 respectively from Ncell.

• Also been rewarded with space and mentorship facility at Kathmandu University School of Management (KUSOM) Incubation Center. Members of other participating teams have also been awarded with an opportunity to receive a certifi cate course from MIT EdX.

Ncell scholarship and excellence awards

• 12 Ncell Scholarships and 4 Ncell Excellence Awards to the engineering students of Pulchowk Campus, Institute of Engineering (IoE), Tribhuwan University

• Each year 12 topper engineering students are awarded with the Ncell Scholarships and 4 students graduating with highest scores are honoured with Ncell Excellence Awards.

• Each scholarship and excellence award carries a purse of NPR 100,000.

• So far, Ncell has supported NPR 6.4 million to the students.


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Environment ManagementAs a responsible operator, we are committed to environmentally sustainable business practices through responsible use of resources. We recognize our impacts and we are actively engaged to promote environmental awareness and conservation. Our largest impact on the environment is from carbon emissions. Our base stations are primarily powered by national electricity grid and in places that are not connected to national grid, base stations are either powered by diesel/petrol or solar energy. We aim to reduce our carbon footprints while growing our

Environmental ConservationAs a part of our compliance to the directives of the Ministry of Forest and Environment, we are required to plant 25 trees for every one tree that is cut down for expansion of our network. In line with this provision, our focus of replanting has been in the Dhanushadham Protected Forest (DPF) in Janakpur.

In 2013, the Dhanushadham Forest was declared as a protected forest for its biological and historical importance. However, unregulated fi rewood and mud collection, tree bark piling, illegal logging, and overgrazing, have posed a threat to the protected forest. We identifi ed 33 hectares of barren land

businesses. As of FY 2017/18, 13.2% of our total sites are solar powered.

Last year, Green House Gas (GHG) emissions accounted for 4,214 metric tonnes. Likewise, Scope 2 GHG emissions accounted for 48,500 metric tonnes. We deployed Lithium Ion Battery (LIB) & fuel cells to reduce our carbon footprint and increase our energy effi ciency. Fuel cells and lithium ion battery are more energy effi cient than diesel or gas generators, and are less noisy to operate. As there was an improvement in nationwide power cuts, we could depend more on the national grid. This has allowed us to reduce our Scope 1 GHG emissions by 57.67% compared to 2016.

in the DPF and have planted over 50,000 trees to rehabilitate and regenerate the area since 2014.

In 2014, we collaborated with the Mithila Wildlife Trust (MWT), an environmental conservation NGO to engage the local communities to promote a sustainable livelihood in Dhaunsha. We worked together to engage local communities to promote environmental awareness, and developed options for sustainable livelihood in the DPF area. We organised various activities in schools to engage children such as the formation of eco-club, organised debate competition, conducted painting workshops, and organised Mithila cultural programmes. As a result of this initiative, DPF was declared an ‘Illicit Felling and Open Grazing Free Zone’ in 2016.


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Contribution to the SocietyWe have always been one of the largest contributor to the country through a number of diff erent projects that have been implemented under the Corporate Social Responsibility (CSR) initiatives. We have invested more than NPR 650 million in social projects, ranging from Education, Health, Environment, Disaster Preparedness and Response, Young Talent Development, Sports, Culture, Arts and Literature, and Livelihood Support among others.

Currently, we have defi ned CSR priorities under three major pillars and implementing various projects to contribute to advance the society and ease life of the people.

Pillar I: Nurturing TechnopreneurshipNcell launches MIT GSL in NepalNurturing technology entrepreneurship among digital talent remains one of the key CSR priority for Ncell. Under this initiative, we joined hands with Massachusetts Institute of Technology, world’s leading university based in the USA, and Kathmandu University of Nepal to organize MIT Global Startup Labs (GSL) program for the fi rst time in Nepal. The MIT GSL was implemented in a format of boot camp and 35 students of Kathmandu University participated in the program which was implemented through June 15-August 2. MIT has been conducting MIT GSL for the last 18 years in 25 countries promoting economic development of the country by cultivating young technology entrepreneurs, including India and Sri Lanka in South Asia

During the program, the 35 students formed 9 teams and worked on their respective startup ideas. The teams were taught by 4 MIT instructors based on MIT’s unique approach. The participants learnt detailed technical curriculum, market research, team development, business model execution and idea pitching, among others. They received hands on learning also from guest lectures, and participated in networking events, which enabled them to realize the commercial possibilities of technology and learn what it means to be an entrepreneur.

At the end of the program on August 2, Demo Day was organized to provide the students with an opportunity to showcase their innovations, demonstrate public speaking, and inspire startup culture in Nepal. On the Day, the teams pitched their ideas and business plans, and also showcased their working prototypes to a panel of judges and other attendees, including entrepreneurs, business leaders, academic offi cials, and potential investors. The panel of judges chose Sajilo Marmat Sewa followed by Kinder and Opus as the top three startup ideas of the program. Each of the three teams have been awarded with an opportunity to participate in the Micro Master Course (MMC) online course of MIT

CSR Verticals

PILLAR IEducation

PILLAR IIConnectivity to Serve the

Underserved

PILLAR IIIDisaster Early Warning

and Humanitarian Support

Social Entrepreneurship Project with MIT and Kathmandu

University

Internet Centres in underserved areas and groups

Flood Early Warning Alerts (EWS)

Scholarship and Excellence Awards to students studying

in Institute of Engineering (IoE) Pulchowk.

Community wi-fi

Emergency Communication facility to customers

Relief support to disaster victims

and also received a seed fund of NPR 500,000, NPR 300,000 and NPR 200,000 respectively from Ncell. Likewise, they have also been rewarded with space and mentorship facility at Kathmandu University School of Management (KUSOM) Incubation Center. Members of other participating teams have also been awarded with an opportunity to receive a certifi cate course from MIT EdX.

Ncell Scholarships and Excellence Awards

Aiming to contribute development of skilled technical human resources that are vital for driving innovations and knowledge-based economy, Ncell has been providing scholarships and awards to the students pursuing Bachelor of Engineering (BE) Electrical, Electronics and Communication, and Computer at Pulchowk Campus, Institute of Engineering (IoE), which is a leading engineering campus of the country. As a part of this initiative, Ncell in 2017/18 handed over Ncell Scholarships to 12 students and Ncell Excellence Awards to 4 students graduating with top scores.


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Scholarships were provided based on annual scores of 1st, 2nd and 3rd year and students receive it for studying 2nd, 3rd and 4th year, respectively. The 12 scholarships receivers included 3 toppers, one each from Electrical, Electronics and Communication, and Computer faculty and 1 female topper among all female students of these three faculties from each batch. Ncell Excellence Awards were given to the students graduating with top scores from each of these faculties and also to a female student graduating with top scores among all female students of these three faculties. Each Ncell Scholarship and Ncell Excellence Awards carried a purse of NPR 100,000. (Photos)

Pillar II: Digital LiteracyIn line with the government’s broader vision on Digital Nepal, we have has adopted Digital Literacy as one of the CSR pillars. Under this pillar, we will implement projects that will contribute to bridge digital divide through access to connectivity and learning sessions that will impart knowledge on digital. Ncell has worked out various projects such as ‘Safe Internet and School Outreach Program’ and ‘Internet Centers in’ underserved areas in achieve the desired social goals. These projects will be rolled out in FY 2018/19 in various stages.

Pillar III: Disaster Response and Humanitarian SupportThe Himalayan region is one of the most seismically active parts of the world. The earthquakes of 25 April and 12 May 2015 have been a terrible calamity for Nepal that stroked central and eastern Nepal badly with casualties of approximately 9,000 , more than 22,000 people were injured, more than half a million houses collapsed or are damaged. With the onset of global warming, especially eastern Nepal is facing the increase risk of unprecedented fl ooding as well.

Ncell is at the forefront of providing technological and humanitarian support during national emergencies and disasters. As a part of Axiata Group, we are committed to the GSMA Humanitarian

Connectivity Charter. The Charter aims to strengthen access to communication and information for people aff ected by disasters in order to reduce the loss of life and positively contribute to humanitarian response. We are committed to supporting the three principles of the Charter, which are Disaster Response Readiness, Early Warning System, and Disaster Relief Partnerships.

i. Disaster Response and Readiness In Ncell we have our has its Business Continuity Management (BCM) framework in place to act in case of any crisis situation. Ncell’s Business Continuity Management (BCM) framework is continuously updated to enhance its eff ectiveness. The BCM provides detail measures to be taken to ensure continuity of business in time of disaster.

ii. Flood Early Warning System

We have has partnered with Department of Hydrology and Meteorology (DHM) for the implementation of fl ood early warning system with an aim to contribute to save life and minimize loss of property during incidents of fl oods that hits country every year. The partnership with DHM began in 2016 and continues till date.

As a part of this initiative, we as a operator send early warning messages to the customers residing along downstream river basin of major rivers prone to fl oods whenever disaster looms. The messages are readied by DHM and passed on to us for broadcasting, and upon DHM’s consent, we send messages such as ‘water level is rising, be alert’, ‘water level has crossed danger level, move to safe place’ or ‘water level has receded, you can safely move back to your place’ etc. The initiative has contributed to timely inform the people about the looming disaster and be safe and safeguard their moveable property.

Last year we broadcasted around 6.34 million fl ood early warning messages to the people living

Business Continuity Management ( BCM )

policy & plan in all OpCos

BCM Policies& Plans

EmergencyResponse

IT & NetworkRecovery

AnnualSimulationexcercise

1. Disaster Response Readiness

in diff erent disaster prone areas. The project has been recognized by the government, concerned authorities, humanitarian agencies, media and other stakeholders as a ‘life saver’. This initiative of Ncell was nominated for the GSMA Global Mobile (Glomo) Awards 2017.

This year, we have renewed and strengthened our partnership with DHM for 5 years. Under the renewed agreement, we will continue to disseminate the fl ood early warning SMS to the people living in fl ood prone areas, expand the EW messaging coverage in line with DHM readiness, provide data SIMs to DHM to monitor water level in various rivers and transfer data from its hydro-meteorological stations to main server in the center, and broadcast EW alerts also to important stakeholders, as recommended by DHM. This year onwards, a toll free number ‘1155’ has also been assigned where customers can dial in for free and get the recent updates on disasters.


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Emergency Communication SupportNcell has also been providing emergency communications support to the customers during disaster, so that they are able to communicate with their family/loved ones and rescue/relief agencies and will continue to provide such support to the customers. The extent of support are based on scale of disaster and need of the customer. In big scale disaster, the company also provides communications support to the government/humanitarian agencies; the company also collaborates with authority to contribute to ease life of the people.

In August 2017, massive fl oods and landslides triggered by heavy rainfall across the country created a humanitarian crisis in the southern Terai region. Over 80 percent of the region was fl ooded, aff ecting thousands of families. As a responsible corporate citizen, we provided communication support to customers residing in disaster aff ected areas to send 50 free SMS per day to ensure they were able to stay in touch with their family and

Outlook for 2018/19Broadcast Early Warning alerts as recommended by DHM to people living in disaster prone areas.

250 Ncell SIM cards with an annual balance of NPR 6000 per SIM to DHM for its use in the telemetry data transfer devices installed in hydrology and meteorology stations.

Continue to support DHM for new stations that DHM will establish to strengthen EWS capacity.

A toll free number ‘1155’ has also been assigned where customers can dial in for free and get the recent updates on disasters.

friends, or seek rescue and humanitarian support. During the fi rst four days of the fl ood, over 16.6 million free SMS were sent within the government-defi ned 23 fl ood hit districts for emergency communications.

We had even activated Emergency Contact Number ‘9008’. Customers could call a call centre agent, share the contact number of family or relatives, and the message they wanted sent. The agent would then call the requested number and pass on the message. The Emergency Contact Number served customers from August 13 to 17, during which 230 customers used the service. The call centre was able to connect to 64 customers with their family and friends. Call agents sent SMS to the remaining customers with whom they could not connect over voice. We also allowed free balance transfer facility to all customers in fl ood hit districts. This ensured every customer has suffi cient balance to make calls, send SMS and use data services. Along with this, we also increased the credit limit under Saapati facility to NPR 60.

It was a simple text message that saved Shreejana Pariyar from being washed to oblivion along with all her goods when fl ash fl oods devastated western Nepal in August, 2017. A day after the Babai River fl ooded her home in Taduwa Village - carrying off everything - Pariyar delivered a baby son. Shreejana’s neighbours took her to a nearby school just hours before the fl ood reached her home, having received a text message alerting them to the impending disaster.

“The Babai fl ood water level is constantly rising above the danger level – so please leave the area and fi nd another safe place nearby,” read the text message from the Nepalese government.

“I feel lucky to be alive,” she told the Thomson Reuters Foundation, cradling her new-born on the porch of her home. “The water swept away food, clothes, kitchen utensils and everything I kept inside, apart from the beds,” she added.

Sumitra Budhathoki, a mother of three from Taduwa who also received the alerts, said her family initially hesitated to leave “ because the fl ood did not seem so bad in the beginning”. But after 24 hours, the fl ood swamped all the houses in the village”, she added. “ So if we had stayed, we all would have died.

Mangal Budha Chhetri, a local community leader who coordinated early warning eff orts in Taduwa, said the text alerts saved 450 lives in his village alone. Courtsey: Reuters

Rebuilding of Earthquake Aff ected SchoolsThe earthquakes of 25 April and 12 May, 2015 have been a terrible calamity for Nepal. The earthquake of 7.9 magnitude aff ected almost half of the country, including hard-to-reach isolated mountainous areas. Approximately 9,000 people lost their lives, more than 22,000 people were injured, more than half a million houses collapsed or were damaged. The scale of destruction was immense. This catastrophe tested the nation in many ways.

Taking into consideration loss infl icted in various areas, including education, we took initiative to support rebuilding of schools aff ected by the earthquake. In this

initiative, we partnered with local NGO, Disaster Relief and Care Nepal and supported rebuilding of three schools - one each in Bhaktapur, Makwanpur and Nuwakot district. The support of Ncell for these schools includes construction of total 32 classrooms, furniture, toilets and sports ground.

Emergency Communication Support• 50 free SMS per day to the

customers residing in government defi ned 23 disaster aff ected districts.

• Activated emergency contact Number 9008

• Made balance transfer facility free

• Increased Saapati limit to NPR 60 from NPR 40.

• During the fi rst four days of the fl ood, over 16.6 million free SMS were sent within the government-defi ned 23 fl ood hit districts for emergency communications.


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Livelihood Support for Girls through Music EducationUnder this initiative, we has extended our support to Cheli Sangeetik Samuha (Women Musical Group), a not for profi t organization, in its eff ort to support and help impart life skills to the needy girls through

Yo Maya Gurung (A benefi ciary from Eladi)I used to spent two hours a day carrying water to irrigate a small vegetable plot near my house. With the carried water, I could grow vegetables one season a year only for household consumption. We had never thought, we will have access to a technology that would pump water from river to our fi elds.

We received information from local NGOs about the Hydram technology and agreed to install the system. I was involved during the construction of the tanks and installation of the pump.

Since the system has been installed, I have had an access to irrigation water all year round. I received agriculture training as well as training to use climate smart technology for irrigation. It encouraged me to engage in vegetable farming on a commercial scale. Training has increased my knowledge and skills and I feel confi dent to negotiate price of my vegetables in the market.

I currently grow vegetables in an area of 2 ropani (1018 square meter or 1217 square yards). And most importantly, I can produce vegetables all year round with access to pumped water for irrigation.

“Life is easier and much better for me than before”, most important thing for me is the agricultural skills I have gained from the project, increased ability to earn income and growing confi dence to sell my produce in a good price.

By bringing water directly to the community and by providing agricultural training and tools Yo Maya and other women have opened up new avenues for income for their families and expanded their knowledge of the market.

Water for Agricultural LivelihoodEladi, Dipka and Thuladi villages in the Syanja district are situated on hilltops. All three communities lacked access to reliable water source, resulting in high dependency on subsistence agriculture, poor nutrition and sanitation. The 420 residents, mainly women and girls, would spend up to fi ve hours a day fetching water for household use from the nearest water source. Women had little opportunities and incentives to engage in productive income generating activities, and education of young girls were disrupted.

In 2016, in partnership with an international NGO with expertise in clean energy, Renewable World; technical partners, Center for Rural Technology; and local project implementer, Andhikhola Community Development Center, a Hydraulic Ram Pump (Hydram) at the base of the hill was installed, storage tanks on the hilltops were built and water distribution channels and tap were installed to provide water directly to the whole community of the three village. The Hydram pump is a clean energy technology that uses kinetic energy of water from a stream or river to lift parts of the supply fl ow to a higher area.

The innovation in this partnership was the SIM metering technology and remote monitoring system which measures the distribution of water for domestic and irrigation. The use of SIM card enables communities monitor water use each household and pay accordingly. Payments are collected by the community and used for the operation and maintenance of the system.

Today, all 75 households are using pumped water to grow high-value vegetables and fruit trees using drip irrigation, provide water for livestock, domestic and sanitation use. Time and energy previously spent for fetching water is now used towards commercial farming, thereby contributing to raising household incomes. Health and Hygiene situation of the communities has improved and girls who previously used to support their parents to go downhill and bring water, now spends their saved time for study.

the music education, providing musical skills at Naad Sangeet Pathsala in Kathmandu. This support will enable vulnerable girl children taking shelter in diff erent rehabilitation centres to learn musical skills. Our support helps the musical school to acquire popular musical instruments and providing musical and vocal training with a custom designed course to confl ict victim, and orphan girl children.

Likewise, Ncell’s sustainable CSR initiatives implemented in recent years continued to provide benefi ts to the communities to a greater extent as below:


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NATIONAL CONTRIBUTION REPORT

National Contribution Report

66 PLANET & SOCIETY Ncell Sustainability Report FY 2074/75 (2017/18) 67

Economic and Financial ContributionWith total operating expense of NPR 22.55 billion and capital expenditure of NPR 7.2 billion, Ncell’s total GDP contribution to Nepalese economy was estimated at NPR 78.96 billion). This comprises of contribution from operations, indirect contribution, capital investment, productivity gains among others. Moving further, Ncell will continue to focus on expanding its data leadership as one of the key growth driver whist maintaining voice and international long distance revenue contribution. Ncell will also put greater emphasis on expanding digital services ecosystem.

Investing and Innovating for Long Term Ncell made capital investment of NPR 7.2 billion in FY 2017/18. Capital investment plays a signifi cant role in enhancing the company’s competitiveness and contribution to Nepalese economy.

Contribution to Public FinanceNcell contributed NPR 28.23 billion in taxes to the Nepal government in FY 2017/18 accounting for 4.28% of the country’s total tax revenue. Ncell was recognized by the Government if Nepal as largest tax payer in FY 2012/13 and 2013/14. Ncell also contributes to the government treasury in the form of License fees, Telecommunication Service Charge (TSC), Ownership Tax, Value Added Tax (VAT), Withholding Tax, Royalty fees, Frequency fees, and contribution to Rural Telecommunication Development Fund (RTDF) among others.

Talent Development As of FY 2017/18, 541 employees are directly employed by Ncell of which 99% of them are Nepalese and have 25% of female employees in the company.

Highlights

19% NPR 14.69 billion Operational

indirect and induced GVA

22% NPR 17.21 billion

GVA by productivity

7%NPR 5.72 billion

GVA by capital investment

52%NPR 41.34 billionOperation Direct GVA

Contribution to Economy in FY 2017/18

National Contribution

Capital andOperational Expenditure

NPR 78.96 billion (USD758 million)(3% of nation’s GDP)

OperationalDirect GVANPR 41.34 billion (USD 397 million)

Operational indirectand induced GVA NPR 14.67 billion (USD 141 million)

Productivity GVA

NPR 17.21 billion (USD 165 million)

CAPEXNPR 7.21 billion

OPEXNPR 22.55 billion

10.9

Jobs Supported

541Total Direct Employees

25%Female

99%Nepali Citizens

Contributed NPR 28,233,463,158.89 in taxes in FY 2017/18

CAPEX multiplier (Total GVA/CAPEX)

Contribution to Gross Domestic Product (GDP)


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1. Methodologies and computational formula

1.1 Direct Value Added contributions were estimated based on operational data of Ncell for the FY 2017/18 regarding operational revenue, operating expenses, compensation to employees and indirect taxes and levies.

Total Value Added contributions were estimated using an economic multiplier (Type II) for the Telecom industry were derived from national Input-Output (I-O) tables published by OECD, ADB and national statistical agencies.

Employment is generated through number of direct employees employed by Ncell.

1.2 Capital investment

1. Total Value Added = Capital Expenditure * Proportion spent in Host Country * Average Value Added Multiplier

1.3 Operational

1. Total Value Added = Direct Value Added* Total Value Added Multiplier

Where, Direct Value Added= Operating Revenue- Operating Expenditure + Compensation of employees + Indirect taxes and levies

2. (a) For countries employment multipliers are available,

Total Employment= Total Operational Expenditure* Average Employment Multiplier

(b) For countries employment multipliers are not available,

Total Employment= Total Indirect Value added/Average Value Added per worker+ Direct Employment

1.4 Productivity Analysis Ncell’s contribution to GDP= National contribution

to GDP growth * Market share of Ncell Where, National contribution to GDP growth= National

penetration growth* Growth Factor Penetration= Number of customer/population

1.5 Multiplier Analysis CAPEX multiplier= Total Ncell’s value added

contribution/CAPEX expenditure

Methodology of National Contribution Calculation

Annexure

Ncell Sustainability Report 2017-18

Ncell Private LimitedRegistration Number: 15888/2057/2058

Registered OfficeLalitpur District, Lalitpur Metropolitan City,

Ward No. 4, Ekantakuna, Nepal

Corporate and Contact OfficeLalitpur District, Lalitpur Metropolitan City,

Ward No. 4, Nakkhu, Nepal

Tel: +977 980 555 4444www.ncell.axiata.com

ncell private limited · 2019-09-18 · eff orts especially within technopreneurship development,...

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