1. Internet based Commerce - Nepal's Perspective Gaurab Raj Upadhaya gaurab@lahai.com

2. Background 250,000 telephone lines 100,000 computers 30,000 Internet / E-mail customers 1 computer used by 8 people in average 1 internet/e-mail account used by 5 people in average. 13 ISPs licensed, 11 operating. 14 cities

3. Internet in Nepal – First Phase First effort in 1992 – by RONAST Commercial e-mail connection in 1994 (UUCP), dialup to Australia Internet access in late 1995, leased line to Singapore Most users used only e-mail Very few websites-most of them by univiersity students in the USA Access limited to Kathmandu

4. Internet … - Second Phase Licensing of ISPs in 1997 VSAT liberation in 1999 – 7 network operator license granted so far. More than 20 user licenses Low price results in increased Usage At least 14 cities outside Kathmandu have service providers In 2000, free internet telephony contributed largely to the growth.

5. E-commerce Using Internet technology for monetary / commercial transactions inside Nepal Outline of presentation Potentials Problems Next Steps

6. E-commerce Potentials In information industry Business to Government (B2G) Banking Industry Tourism Industry Export / Trading Industry Domestic B2C, and B2B (?..) In all other areas ….

7. E-commerce Problems Monetary transaction/ foreign currency act. No law governing e-transactions. Traditional business weary of the concept. Insurance system not mature enough to insure e- transaction. Low penetration of technology. Technology in Local language. HR for system development & maintenance.

8. E-commerce- some examples Nepalshop.com – payment on delivery pasal.com, munchahouse.com – targeted towards foreign markets Handicrafts sale through world2market.com Software exports by Yomari Inc. Personal expertise export

9. E-commerce – Next steps Laws to be enacted Active government participation – ’Either lead the way OR get out of the way’ Infrastructure development keeping data services in mind Telecenter for rural markets

10. Conclusion At present, without government support, there is not much that can be done. The government needs support from private as well as foreign parties Necessary regulations and acts to be promulgated

11. Questions Thank You gaurab@lahai.com