Around two-thirds of the telephones are in the Kathmandu valley which accounts for less than 3 per cent of the population. Twelve of the 75 districts have no direct service, and only 1,535 of the 3,996 Village Development Councils have telephone access. The Nepalese phone company is state-owned, though there are privatization plans. The Nepalese Internet got off to a later start than most developing nations, with initial UUCP connectivity in 1994, the licensing of ISPs in 1997, and VSAT licenses in 1999. Today there are nine operating ISPs with around 9,000 accounts.
Activity is concentrated in Kathmandu.
Nepal's late start with the Internet has left it with relatively little business activity. Looking at the Web sites that do exist, one sees further evidence of Nepal's late start on the Internet. Our Charge Our study was conducted by the International Telecommunication Union in cooperation with the Nepalese National Planning Commission. One of the Planning Commission charges was to identify projects to facilitate electronic commerce. While the government of a developing nation should investigate and invest in ecommerce, it must do so in the context of its own goals and situation.