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KATHMANDU: Malaysian telecommunications giant Axiata Group has decided to conclude its investment journey in the Nepali private sector telecommunications company, Ncell, citing a downturn in revenue as the primary reason.
Axiata initially entered the Nepali market in 2072 BS by acquiring shares from Telia Sonera, enjoying robust profits in the early years.
However, faced with a sustained decline in profitability over recent months, Axiata officially announced its decision to divest from Ncell in a statement issued on Wednesday.
The Nepal Telecommunication Authority’s (NTA) report for the third quarter of the last financial year indicated a noticeable reduction in Ncell’s customer base.
In 2079, the company boasted 3.4 million customers, but by June 2080, this figure had plummeted to 132 million, reflecting a loss of 2 lakh customers in just three months.
Axiata’s foray into the Nepali telecommunications landscape began in 2072 when it acquired shares from Telia Sonera.
Operating across six different countries globally, Axiata has a significant presence with brands such as XL Axiata in Indonesia, Dialog in Sri Lanka, Robi in Bangladesh, Smart in Cambodia, and Cellcom Digi in Malaysia.