Source: Nepal Telecommunications Authority Compared to the mobile broadband industry, Nepal's fixed-line sector is considerably underdeveloped. Fixed broadband services are largely confined to larger cities with some ISPs beginning to offer fiber connections to homes. The Government of Nepal is initiating steps to expand Internet connectivity as part of its vision of a digital society that connects 90% of the population to broadband services by 2020.12 In May 2018, Nepal Telecommunications Authority selected Subisu, a privately-owned Nepali company focusing on cable TV and cable Internet, to build Fiber-To-The-Home (FTTH) network in eight districts in Province 2 of Nepal. Social Media The growing popularity of social media is the key driver for Internet adoption in Nepal, making the country second only to Bhutan in South Asia in social media penetration. Source: Hootsuite, 2017 As at January 2018, Nepal has nearly 9.3 million Facebook users. 13 Entertainment and video sharing are other popular use cases with more than 6.4 million registered users on YouTube. 14 Expanding social media use is catalyzing the growth of digital marketing in Nepal. Website development, social media marketing, content management, web design, and e-mail marketing have become one of the fastest modes of disseminating information. E-commerce Set to Flourish As at May 2017, there are more than 56,286 registered websites in Nepal, including 40,000 commercial websites.15 Many businesses and organizations leverage digital marketing to enhance their online presence and promote their business globally. The growth of e-commerce in Nepal is inhibited due to the lack of a supporting ecosystem such as limited digital payment options. However, this is changing with the emergence of fintech start-ups such as eSewa and Khalti which are expected to disrupt the payments landscape. Digital to Unlock Potential for Nepal Digital adoption in Nepal is higher than ever with near-universal mobile adoption and almost 60% Internet penetration. While Nepalese are adopting Internet-based services at a rapid pace, case studies for adoption in the public sector and enterprises are scarce. Nepal lacks a support ecosystem such as digital 12 Nepal’s ICT Development and Broadband Policy, 2015 Hootsuite 14 Social Blade 15 Nepal Country Commercial Guide, Export.gov 13 16

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