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Television takes Nepal to new heights
By Dhruba Adhikary

KATHMANDU - Nepal's unimpressive literacy rate, of about 58 percent , does not depict this country of 23 million inhabitants as a place where newspapers could become a lucrative industry. Radio and television, therefore, have a clear edge over the print medium.

Besides, Nepal's inaccessible mountain terrain makes it a territory more suitable for electronic mediums - radio in particular. And incredibly cheap, pocket-size Chinese transistor sets, imported through Tibetan markets, have visibly helped popularize radio listening, even in the remotest parts of the kingdom. Almost anyone can possess a radio set with multiple bands which can catch even the audio parts of television signals.

Concomitant developments of recent years include an end of the monopoly since the mid-1990s of state-owned Radio Nepal, which now has to compete with over two dozen newly-launched Frequency Modulated (FM) stations scattered in various parts of the country. In addition, there are pirate radio centers run by Maoist insurgents to spread revolutionary messages. Such changes in the media have been possible because of the democratic restoration of the early 1990s.

In the bowl-shaped valley of Kathmandu, which houses the capital and two other districts, it has lately become a fashion among well-to-do residents to carry a radio set while going out for an early morning stroll. The latest news updates, extracts from newspaper reports and editorials and Hindu devotional songs are among the appetizers for the men and women on the street.

Most of the existing FM broadcast centers survive on shoestring budgets, often supported by non-governmental organizations of one kind or another. How many of these stations would eventually be able to transform themselves as a commercially viable and sustainable enterprises is a matter of conjecture.

Television, however, is a different proposition. It is not something that can be started without substantial initial investments. And the prospects of profits are not promising. That perhaps has been the main reason why potential investors maintained a prolonged silence, hesitating to come forward despite the introduction of liberal laws and policies aimed at encouraging the private sector. A new scenario surfaced only three years ago when someone with a sizable purse made a successful bid to end the government monopoly in the audio-visual media.

"It is the viewers who stand to gain whenever a new channel is launched," says Durga Nath Sharma, head of state-owned Nepal Television (NTV). "They don't need to be overwhelmed any more by news reports based on ministerial filibusters," Sharma adds, obliquely conceding the flaws of the network with which he has been associated since its birth in January 1985.

Space Time Network (STN), the cable operator controlling 60 percent of the cable viewership, launched its Channel Nepal, the first channel in the private sector, with the aim to reach audiences at home and abroad. Like NTV, it also broadcasts through satellite facilities. While NTV claims to have its footprint on 26 countries of the Asia-Pacific region, Channel Nepal takes pride to announce that the audio-visual material it airs has viewers in 52 countries. Both of these channels broadcast 18 hours of programs beamed for a large segment of the Nepali diaspora. STN also owns a daily newspaper printed in Nepali language.

Shortly before its launch, Channel Nepal's owner had to face some bureaucratic problems in his own country which surfaced in the context of officially-inspired Indian media reports alleging that the owner, Jamim Shah, a Nepali Muslim, was an accomplice of a criminal wanted by Indian security agencies. Shah denied allegations that the money, 450 million Nepali rupees (approximately US$8.8 million), he invested in the new project was earned through illegal businesses.

Two more channels were added to the skyline of the Kathmandu valley last July. Image Metro's was a modest attempt with an investment of 100 million rupees for a nine-hours-a-day show. Inauguration of another channel, Kantipur, was a well-publicized event. The bulk of the investments for this 500 million rupee project came from three Nepali expatriates in Russia. The channel earned a distinct identity even before it was formally launched. The reason: Kantipur being the name of an established publication house which owned two newspapers, one each in English and in Nepali, and a 24-hour FM radio center.

Permission given to one particular organization to own newspapers, a radio station and a TV channel (all three mediums) initially drew some flak from potential competitors, but the protest was not strong enough to rescind the original decision. "Kantipur's news segment is already ahead of other private channels," said journalist Binod Bhattarai, who heads the channel's news and current affairs department. To substantiate his statement, Bhattarai cites the results of a viewership survey conducted a couple of months ago. If the investors continue to pump additional resources into it, Kantipur, too, may be able to broadcast through satellite by July this year. This could make the channel a national network. Currently, it is telecasting 13 hours of programming every day to viewers in the valley.

The fifth channel to reach the drawing rooms of Kathmanduites is NTV's baby, Metro. This channel was launched to coincide with Nepal's biggest festival of the year, Dashain, last October. And it is being developed as a medium of entertainment for the rapidly urbanizing population in the valley. Nearly half of the about 1.2 billion rupees invested in NTV thus far has gone for setting up this metro channel, although the entire project has come as a gift from the government of China to the government of Nepal.

The package contains a well-equipped, spacious studio building within the secure compound of central government secretariat and a van fitted with high-tech gadgets. Induction of the Metro edition is considered a solid accomplishment of NTV, which is accessible to about 62 percent of the population. Officials consider this viewership a feat in a country where only 16 percent of the population is linked to electricity facilities. (An irony as Nepal's hydro-power potential can be matched by very few regions of the world. )

Despite these achievements, NTV officials have ambivalent feelings regarding sustainability of the new channel. Admitting that Nepal's television market is limited, NTV head Sharma predicts a bleak future for public sector broadcasters because of emerging trends to patronize private sector initiatives. "The government now needs to take a firm decision either to place NTV and Radio Nepal under one of its departments," says Sharma, "or to give these agencies full functional autonomy so that they can run in a professional manner."
Two other license-holders, for Shangri-la and Avenues channels, say they prefer to wait and see the market responses to the networks already on the air. But one Indian company, TV Live, found it expedient to enter the field immediately, disregarding Nepal's laws governing the electronic media.

Its channel, Nepal 1, went on the air from January 1, 2003; from studios located in New Delhi. It is a 24-hour channel with claims of having viewers in 47 countries. Nalini Singh, the woman behind this Nepali language channel, has yet to make disclosures about the costs of her project. She, according to Himal newsmagazine, is a sister of an incumbent Indian minister, Arun Shourie, and has made full use of her clout to gain access to official facilities in New Delhi. Her activities have made Nepal's indigenous channels suspicious about Nepal 1 because not all of its dealings are transparent. Although most of its production works are done in a hotel in Kathmandu through two dozen-odd employees, it is still not a registered entity in Nepal. Nobody knows how the operators of Nepal 1 will respond once the channel's legality is questioned.

"The question has to begin from the title of the channel itself," says a journalist who briefly worked for this controversial channel. "Where did they get permission to use the word Nepal for the channel to be run by Indians?" he wonders. Nobody would have bothered, says the journalist who does not want to be named, if the lady had named the channel Sikkim 1 or Darjeeling 1 or Dehradun 1, identifying the places with large concentrations of Nepali-speaking people.

The Ministry of Information and Communications, the government agency responsible for regulating and monitoring media activities, has maintained a mysterious silence over press reports on ongoing irregularities. Incredible yet true, Nepal 1 continues to be an illegally-run business. It is also costing the government of Nepal in lost revenue (taxes).

There is a growing sense of anxiety among indigenous entrepreneurs over the entry of aliens in the country's media market. In fact, these concerns first surfaced two years ago on the eve of publication of an English language daily, The Himalayan Times. The Times and its sister title in Nepali language, Annapurna Post, are financed by a major Indian newspaper publishing group, The Times of India, through a conduit handling money distributed by undisclosed sources. The group that runs the papers also owns a FM radio station in Kathmandu.

Nepal 1's entry into the media spectrum has understandably increased concerns in the kingdom. "Media is too sensitive an area to be entrusted to foreigners," says Pushkar Lal Shrestha, editor-in-chief of the Kamana group of publications, which include a major broadsheet Nepali daily and an afternoon tabloid. Constitutional rights of freedom of expression as well as publications, Shrestha argues, are expressly accorded to Nepali citizens, not to Indians or to other foreigners.

Agrees Hem Raj Gyawali, Shrestha's rival in the newspaper business. "Firms with foreign investments may excel their presentations, but they would be least bothered when the question of Nepali nationalism arises," Gyawali observes.

Very few among enthusiastic financiers appear to have bothered to read the country's not-so-encouraging macro economic indicators. Fewer seem to have conducted any kind of in-depth feasibility studies before embarking on such costly projects. They do not seem, for example, to have realized the fact that a large section of people cannot afford television sets. Nepal's per capita annual income is only about $240, and about 40 percent of the people live under the poverty line. The economy is based on subsistence farming.

Presently, all eyes are focused on the advertising pie at hand. With the increase in the number of media organizations vying for a share from that pie, the competition is getting fiercer every day. Nonetheless, some of the investors are hopeful that the size of pie will get bigger in days to come. Currently, nearly one quarter of 2.5 billion rupees worth of advertisement money goes to assist the television networks. And despite its disadvantageous position of being identified as the government-controlled channel, NTV is poised to overtake others in its attempt to get the largest share, of about 220 million rupees, in the current financial year which ends in mid-July.

"But it would be preposterous to assume that the situation would always remain favorable for NTV," concedes Sharma. The government has to urgently devise alternative plans for NTV, he contends.

This is easier said than done, especially at a time when the government lacks both legitimacy as well as stability. Political turmoil of the past few years has led to frequent changes in the government, affecting its capability to formulate plans and set priorities. And the media sector is no exception. Mukunda Acharya , spokesman in the Ministry of Information and Communication, assures that the government is contemplating to set up a broadcasting council to regulate the electronic media, including cable operators. But he is understandably unable to say that the assurance will be fulfilled any time soon. One more relevant point here is related to the continued absence of specific laws to regulate and standardize advertisements churned out by both the print and electronic media.

"This is ridiculous," says lawyer Badri Bahadur Karki, "and should be read as a clear indicator of the height of irresponsibility on matters of serious public interest." If the government had recognized the right priorities at the right time, says Karki, it would have established the regulatory agency long before issuing licenses for radio and television broadcasters. The alternative to inaction could be further action from outsiders.

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Jan 7, 2004