Notice (8): Undefined variable: file [APP/View/Elements/side_bar.ctp, line 60]
Code Context
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		'Article' => array(
			'id' => '905',
			'article_category_id' => '34',
			'title' => 'FNCCI To Build Exhibition Centre',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Federation of Nepalese Chamber of Commerce and Industry" height="130" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_fncci.jpg" style="margin:0 10px 0 0;" width="120" />Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu. According to the Office of the Prime Minister, the cabinet meeting held on February 15 has decided to lease 82 ropanis land of the park to FNCCI for the construction of the exhibition centre. Similarly, the office has also directed the UN Park Development Committee to complete the necessary procedures for construction of the centre.</p>
<p style="text-align: justify;">
	Bhaskar Raj Rajkarnikar, Senior Vice President of the FNCCI said that, the construction will begin from the next fiscal year. “Designing of the exhibition centre is underway. The centre will come into operation within two years after the construction begins” he revealed.&nbsp;</p>
<p style="text-align: justify;">
	FNCCI had demanded 150 ropanis of land for the construction of the centre. Rajkarnikar said that, the necessary infrastructures will be developed in the land provided by the government. According to Bhawani Rana, Vice President of FNCCI, the construction of the centre will cost Rs 1 billion. “The investment will solely be made by the FNCCI,” she said. The centre will have exhibition area and convention hall.</p>
<p style="text-align: justify;">
	According to Rana, plan to develop a new exhibition centre was formulated as the one in Bhrikutimandap is felt narrow and additional amenities. The soon to be constructed centre will have special provision for vehicle parking. The FNCCI says that, the centre will also offer a venue for organising international programmes and events.</p>
<p style="text-align: justify;">
	The Ministry of Urban Development expressed hope that the centre will be an appropriate venue to hold large trade expos. Spokesperson of the ministry, Suresh Prakash Acharya said that, the present exhibition hall at Bhrikutimandap will be used to hold small expos. He said that, though the government will not have any direct investment on the centre, it will provide necessary technical support.</p>',
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			'description' => 'Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu.',
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		'Article' => array(
			'id' => '904',
			'article_category_id' => '34',
			'title' => 'Four Financial Institutions Merge To Make Apex Bank',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Apex Bank Ltd" height="115" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_apexbank.jpg" width="504" /></p>
<p style="text-align: justify;">
	After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”. &nbsp;These institutions signed on Memorandum of Understanding (MoU) on Feb. 27, 2013.&nbsp;</p>
<p style="text-align: justify;">
	Rameshwor Thapa, coordinator of the merger has stated that after the merger, the newly formed commercial bank will come to operation after they get the approval from the central bank, Nepal Rastra Bank (NRB). He also added that they have got the approval from NRB to expand branches within a year. &nbsp;</p>
<p style="text-align: justify;">
	After the completion of the merger the new bank will have a total of 43 branches with total of 315 employees. The financial institutions are on discussion for selecting the Chief Executive Officer for the new Bank. Moreover, the trading of the shares of these financial institutions has been suspended for the purposes of merger by Npese.</p>',
			'published' => true,
			'created' => '2013-03-24',
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			'keywords' => '',
			'description' => 'After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”.',
			'sortorder' => '786',
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		'Article' => array(
			'id' => '903',
			'article_category_id' => '34',
			'title' => '79% Remittance Goes For Consumption',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually. According to the Nepal Living Standards Survey 2011, published by Central Bureau of Statistics, 79 per cent of all the remittance is used for consumption purpose.&nbsp;</p>
<p style="text-align: justify;">
	According to the 2011 Census report, there are 1.92 million missing population which means they are living outside the country. The census report of 2001 says that there were only 762,181 missing population, a decade ago.&nbsp;</p>
<p style="text-align: justify;">
	Experts say that those who choose foreign employment basically belong to rural areas and are from a poor family. So, their first requirement is fulfilling their basic needs – food, clothes and shelter. So, majority of the remittance goes for meeting those basic requirements. Suman Pokharel, CEO of International Money Express said it is usual for remittance being used more for consumption. “It is the first preference for those who have difficulty in meeting their basic needs to fulfil their requirements. So, it should not be taken otherwise,” he said.</p>
<p style="text-align: justify;">
	People having thatched roof have upgraded to galvanised sheet, better quality food grains, better clothing and have purchase mobile phones and televisions. Pokharel, however accepts that the remittance has been used for unnecessary expenditures lately.&nbsp;</p>
<p style="text-align: justify;">
	To control the unproductive use of remittance, the central bank had come up with idea of bonds targeting migrant workers but according to Bhaskar Mani Gyawali, Spokesperson of Nepal Rastra Bank, none of the companies have requested the release of the bonds. According to the census report, 55.8 per cent households receive remittance with an average of Rs 80,436 per each household.</p>
<div style="text-align: justify;">
	 </div>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually.',
			'sortorder' => '785',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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	(int) 3 => array(
		'Article' => array(
			'id' => '902',
			'article_category_id' => '62',
			'title' => 'Voices March 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img align="left" alt="Rajan Singh Bhandari" height="213" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_rajan.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><strong>“The liquidity situation must be addressed before the market faces crisis.”</strong></span></p>
<p style="text-align: justify;">
	<em><strong>Rajan Singh Bhandari</strong>, President of Nepal Bankers’ Association asking Nepal Rastra Bank to solve the impending liquidity problem before problems appears.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Seven per cent economic growth is just a daydream unless political impasse can be ended.” </span></strong></p>
<p style="text-align: justify;">
	<em><strong>Deependra Bahadur Kshetry</strong>, Vice Chairman of National Planning Commission explaining that high economic growth cannot be achieved amid ongoing political uncertainty.</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“We should invest 35 per cent of the GDP to achieve seven per cent economic growth.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Ram Sharan Mahat</strong>, recommending a formula to achieve seven per cent economic growth in Nepal.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Yuba Raj Khatiwada" height="218" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_yuba.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Current situation cannot be termed as liquidity crisis.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Yuba Raj Khatiwada</strong>, Governor of Nepal Rastra Bank clarifying the heightened worries over the looming liquidity crisis in the banking system. He said that the liquidity ratio in the banks is 29.5 per cent in average.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Radhesh Pant" height="229" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_radhesh.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Policy stability is what we need for encouraging both national and foreign investors.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Radhesh Pant</strong>, Chief Executive Officer of Nepal Investment Board explaining that political impasse is not only the cause of low investment. &nbsp;</em></p>
<p style="text-align: justify;">
	 </p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-05-22',
			'keywords' => '',
			'description' => 'The liquidity situation must be addressed before the market faces crisis.',
			'sortorder' => '784',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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	),
	(int) 4 => array(
		'Article' => array(
			'id' => '901',
			'article_category_id' => '50',
			'title' => 'Insuring The Nepali Sky',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Insuring the Nepali sky" height="286" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_insuring_the_nepali_sky.jpg" style="margin:0 10px 0 0;" width="200" />Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit. One of the reasons stated is high premium paid to the foreign reinsurer companies. If a domestic reinsurance company can be brought into the scene, the money that is going abroad can be saved.</p>
<p style="text-align: justify;">
	Another probable reason for the aviation insurance to become a loss making business is the high rate of accidents under the Nepali sky. The frequent air crashes lead to higher compensation payment to the insured. This also increases the premium to be paid to the reinsures who have vowed to bear all the risks. It is obvious that whenever there is higher risk, the reinsurers will seek higher premiums. So, ultimately the insurance premium for the aircrafts flying into the high mountain areas becomes high. Unless, the high risks of the aviation industry in Nepal are managed, profitable aviation insurance seems to be a far cry. For that, more safety measures need to be undertaken by the airlines as well as better technology for navigation and other systems must be in place which helps to minimize the air accidents.</p>
<address>
	<strong>Uttammani Dhungana</strong></address>
<address>
	<strong>Sagarmatha College</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-03-24',
			'keywords' => '',
			'description' => 'Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit.',
			'sortorder' => '783',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 5 => array(
		'Article' => array(
			'id' => '900',
			'article_category_id' => '50',
			'title' => 'Petroleum Dilemma',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Petroleum Dilemma, Feedback" height="297" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_petroleum_dilemma.jpg" style="margin:0 10px 0 0;" width="180" />There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal. Meanwhile, some experts have predicted possibilities of finding petroleum in the plains of Nepal. Some studies have been carried out but as of now, it has not been explored. More detailed and extensive studies need to be carried out to be certain about the prospects of finding petroleum in Nepal.</p>
<address>
	<strong>Subash Tandukar</strong></address>
<address>
	<strong>Lagankhel</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal.',
			'sortorder' => '782',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 6 => array(
		'Article' => array(
			'id' => '899',
			'article_category_id' => '50',
			'title' => 'Shakespeare Today',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for. Very few are able to take him out of the world of literature to the real life management world. The article by Sujit Mundul on February 2013 issue of New Business Age has beautifully juxtaposed Shakespeare and his characters with the leadership in the corporate world. The write-up enriched with the narratives and extracts from the work of literature has vividly pictured and exemplified the leadership qualities and sought for the managerial traits in the Shakespearean characters.</p>
<address>
	<strong>Rakshya Sharma</strong></address>
<address>
	<strong>Dhumbarahi, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for.',
			'sortorder' => '781',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 7 => array(
		'Article' => array(
			'id' => '898',
			'article_category_id' => '50',
			'title' => 'Diversified Content',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy. From the February 2013 issue, it seems to be incorporating more issues and richer content. It is a good sign that the magazine is trying to capture the attention of wider and diverse readers. As a regular reader of the magazine, I would be elated to read more stories about the global economic and business issues.</p>
<address>
	<strong>Pradeep Acharya</strong></address>
<address>
	<strong>Lazimpat, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy.',
			'sortorder' => '780',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 8 => array(
		'Article' => array(
			'id' => '897',
			'article_category_id' => '50',
			'title' => 'Realistic Satires',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img align="left" alt="Realistic Satires, Feedback" height="221" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_realistic_satires.jpg" style="margin:0 10px 0 0;" width="280" /></p>
<p style="text-align: justify;">
	The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous. At the same time it is a healthy satire on the business and economic world.</p>
<address>
	<strong>Subash Tandukar, Pravat Shrestha</strong></address>
<address>
	<strong>Tokha</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous.',
			'sortorder' => '779',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 9 => array(
		'Article' => array(
			'id' => '896',
			'article_category_id' => '40',
			'title' => '‘We Need To Develop Our E-commerce First’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<address>
	<strong><img align="right" alt="Sanjay Golchha, Golchha Organization" height="313" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_sanjay.jpg" style="margin:0 0 0 10px;" width="274" /><span style="color:#3ab0c4;"><span style="font-size: 22px;">'We need to develop e-commerce first'</span></span></strong></address>
<address>
	<strong><br />
	</strong></address>
<address>
	<strong>Sanjay Golchha</strong></address>
<address>
	<strong>Director</strong></address>
<address>
	<strong>Golchha Organization</strong></address>
<p>
	<strong style="text-align: justify;">What is an example of media convergence in Nepal due to the advent of new communication technologies?</strong></p>
<p style="text-align: justify;">
	Digital media is the most useful form of media for the advertisers. Online marketing has not been fully explored in Nepal. Although social media sites like Facebook have high usage in Nepal, advertisements on facebook are not very effective. Media convergence has only recently started making some impact. People do not understand the power of the digital media. Only international contents can be found in online ads, not the local content.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the most useful communication technology convergence in the Nepali media?</strong></p>
<p style="text-align: justify;">
	To make use of communication technology in Nepal, e-commerce should develop first. It is not developing due to social and technical inefficiencies in Nepal. Online digital ads will be prominent on the Internet or on the websites only after we have a developed e-commerce business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the impact of media convergence on Nepal’s media industry?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence will come slowly. This requires economic development and political stability in the country. This can provide a platform for the ecommerce businesses to develop more content. People are not using the online media to buy things online. Due to the poor financial situation of the country, people are not in a hurry to buy anything. They want to use their time to choose the products they want to buy. Another thing is, even if the people were interested in buying products online, the online payment system has not yet come into practice. Firstly, they cannot pay and secondly they cannot trust buying products online. Hence, there are many pending issues with regard to media convergence. First, the Nepali commerce and media industry should develop; the ads will follow later.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How long shall it take to make a full impact?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence can be seen soon. But, for this the Internet bandwidths should be cheaper and the Internet should be more accessible to the people. Online payment systems should also be developed and promoted. Due to the conservative financial system, online payment is difficult. Domestic payment systems should be prioritized and the international payment systems will automatically develop. The world is globalized today and lack of an online payment system is a major disadvantage to us. Businessmen should invest in e-commerce development. More pioneers are required. E-commerce websites like Thamel.com and Muncha.com are well established businesses. Airlines have also advanced in this sector. Buddha Air, Yeti Air and others as well have already started providing online reservation service to their customers.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are the changes required in the media industry to adapt to the changes of media convergence?</strong></p>
<p style="text-align: justify;">
	They can also be explored for business development but this has not been done at all.&nbsp;</p>
<p style="text-align: justify;">
	If providing Internet on the phone brought a lot of profit to the mobile phone companies, then development of online payment system will be even more profitable. Nepal is a tourist destination. The tourism industry flourishes throughout the country. But, it is difficult for the tourists to learn more about Nepal before their visit. Tourism related websites are advertised in the international online media to attract tourists. However, when they want to make a hotel reservation to ensure that they already have a place to stay before visiting the country, it is not possible. Similarly, products like coffee and carpets that are exported abroad cannot be advertised properly. The major reason for this is the lack of an online payment system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What can the advertisers do in order to benefit from the changes of media technology convergence?</strong></p>
<p style="text-align: justify;">
	We need to invest in e-commerce. This can help local businesses to reach customers around the world. Lack of an online payment system is a loss for tourism-dependent <strong>businesses like hotels and travel agencies as well as the exporters. The payment taking mechanism is difficult which is why the online advertising is not fully developing.</strong></p>
<div style="background:#fcf88d;padding:5px;">
	<p style="text-align: justify;">
		<strong>The Paradigm Shift</strong></p>
	<p style="text-align: justify;">
		There has also been a shift in terms of media’s target consumers. Traditionally, the primary market was the target of media companies. The primary market included television viewers, radio listeners, website surfers, and newspaper and magazine readers. While the secondary market includes the marketers, the competing companies and other media as well. There has been a convergence in these two groups as now they both are targeted equally by the media companies.&nbsp;</p>
	<p style="text-align: justify;">
		Sanjay Golchha is also involved with Mindshare Nepal, which is a digital marketing company, the first of its kind in Nepal. It is the authorized agent for GOOGLE in Nepal and works in close relation with the businesses companies of Nepal. They are involved in Search Engine Marketing (SEM), which is the biggest source of online advertisements. They are also focusing upon social engineering, advertising the tourism and travel websites as well as promoting export products online. Currently, their major focus is upon providing email-marketing services to the local businesses. &nbsp;Mindshare Nepal Pvt. Ltd. collaborates with two companies who are experts in Software (IT Nepal) and marketing (Linez). Email marketing allows the businesses to reach thousands of people with a single message and see their response instantly.&nbsp;</p>
</div>
<div>
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		'Article' => array(
			'id' => '895',
			'article_category_id' => '40',
			'title' => '‘Companies Should Focus On Building Brands, Not On Selling Units’',
			'sub_title' => '',
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			'content' => '<p>
	<strong><img alt="Abhaya Pandey" height="254" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_abhaya.jpg" width="250" /><br />
	</strong><strong>Abhaya Pandey</strong><strong>Advertising Professional</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>How is media convergence affecting Nepal’s advertising industry?</strong></p>
<p style="text-align: justify;">
	Online Media is an example of the impact of Media Convergence in Nepal but it has not been able to make a significant impact yet. There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement. &nbsp;</p>
<p style="text-align: justify;">
	<strong>How has Social Media Education (SEM) changed over the years?</strong></p>
<p style="text-align: justify;">
	While social media education advertisements were mostly like BCC (Behaviour Change Consumerism) previously, today ad literacy has increased. This also requires more ad communication experts to convey social educational messages in an entertaining manner. The challenge today is not only giving information but also persuading consumers to buy the product or the message. While traditional media required information education, today information has to be conveyed through entertaining ads that can easily grab the people’s attention. Education is possible through entertainment only. Functional value is changing. Humour, fear campaigns, sensationalization etc should be embedded into ads to make them both entertaining and educational. Only educational ads will make people switch between TV channels. The government, NGOs and INGOs should be more responsible towards SME.</p>
<p style="text-align: justify;">
	<strong>How is the “Brand Personality” of a company reflected in its advertisements?&nbsp;</strong></p>
<p style="text-align: justify;">
	Sixty per cent of the total cement consumed in Nepal is produced in Nepal; only the remaining 40 per cent is imported. This clearly suggests a lack of competition in the domestic market. Many companies are trying to establish their brand names in the cement industry but special emphasis has not been placed in making better advertisements for those brands. The richest organizations of Nepal, the banks are limited to the urban areas and are yet to reach the villages. Hence, there is not much competition in the banking sector as well. Brands are classified in terms of the advertisements that they demand. Clients should think long-term. They should focus on building brands and not only on selling units. The market of instant noodles can be called competitive and this is reflected in &nbsp;their advertisements as well. People can easily associate more with the noodle brands than with others.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What is the biggest challenge in the advertisement sector today?</strong></p>
<p style="text-align: justify;">
	The biggest challenge for Nepali business companies is to use advertisements to grab the people’s attention first and then to convey the message of the brands. Some ads are very descriptive which makes them absurd instead of creative. This can lead to a disconnection between the brand message and the advertisement message. It’s only a tool. Ideas combined with technology are necessary to create better advertisements and awesome brand images. The market is changing from supply-oriented to demand-oriented. More competition and professionalism is required in the corporate houses. Only after these basics are met, the companies can focus on creativity and design of their brands. If the brands and production companies start focusing upon brand image today, they will be able to stand out even 25 years from now. Glossy ads are not always creative ads.</p>
<div style="text-align: justify;">
	 </div>',
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			'description' => 'Online Media is an example of the impact of Media Convergence in
Nepal but it has not been able to make a significant impact yet.  There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement.',
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		'Article' => array(
			'id' => '894',
			'article_category_id' => '40',
			'title' => 'Media Convergence: Impact On Business',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="text-align: justify;">Media convergence is a theory, and subsequently a practice, in communications where every mass or niche medium eventually merges with each other to the point that they are indistinguishable from each other, creating a new medium from the synthesis, due to the advent of new communication technologies. With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.&nbsp;</span></p>
<p style="text-align: justify;">
	A prominent example of media convergence in Nepal is the online media. It has had a significant impact upon the conventional print and broadcasting media. Globally, it has proved to be very influential. In the USA and other developed nations of the world, everyone uses advanced technologies such as &nbsp;iPhone, Blackberrys and other gadgets that help them stay updated every second. People do not wait for the next day to read the newspapers. The online news portals get updated every minute with new news flowing in. According to Suresh Prasad Aacharya, Academic Advisor at the Shepherd College of Media Technology, such an example can also be seen in Nepali radios. Radios provide news bulletins every hour. The same news is followed by the televisions and is viewed by the audience in the evening.&nbsp;</p>
<p style="text-align: justify;">
	The online portals also update the news. Next morning, almost the same news is printed in the newspapers. Again, the radios conduct programmes in they which repeat the same news they broadcast a day ago. Hence, a cycle of convergence can also be seen in Nepal as the news reports get reproduced again and again by various forms of media. This is beneficial to the media consumers as they can stay updated through various forms of media. But this process weakens the media houses. Reporters can also benefit from this cycle. Most of the print media located outside the valley use online sources for the news. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Challenges in Convergence</strong></p>
<p style="text-align: justify;">
	While the industry at large is excited about media convergence, it also has its share of concerns. The unanimous one is the lack of adequate bandwidth. The bandwidth cost is too high and needs to be brought down drastically. In Nepal, Internet usage is very low. The fact that 18 per cent of the population uses the Internet is exaggerated. Hence, this makes it difficult for the media companies to use the Internet to communicate with their audience. Only 5-6 per cent Nepalis have been able to make effective use of the Internet. &nbsp;In Korea, there are half-a-million subscribers who receive 11 channels live on their mobiles. Only when there is enough bandwidth, can the business be ramped up.</p>
<p style="text-align: justify;">
	The other challenge is educating consumers to use the various new media. The latest technologies such as HD camera and the latest software are not being utilized to the full extent. &nbsp;Though we capture advertisements in HD (High Definition), it is shown in SD (Standard Definition). This has been making a little difference in quality but the full potential of technology remains unexplored. Consumers here have some access to the latest technological goods but consumer education for their proper usage is not being encouraged. The industry will not grow unless the consumer is educated and aware of the available technologies and their usage.</p>
<p style="text-align: justify;">
	Apart from reaching consumers at various touch-points through convergence of the media, companies are also looking at it as a media to cater to the individual needs of consumers. And for this, the need of the hour is to generate adequate content. The Nepali media lacks the competition to generate adequate content. Producers are not compelled to make better advertisements. Advertisements are reflections of the competition among the brands. The clients want only glossy ads. They have a conservative mentality, as they want to stay 125 per cent secure. They prefer traditional, tried and tested methods that are still selling. Bringing creativity in media and advertisements requires more courage and clients by nature want security. Content availability has not kept pace with the changing consumers. Content generators have to generate enough to cater to individual tastes.&nbsp;</p>
<p style="text-align: justify;">
	Another perspective to the challenges is the industry - one where companies need to be more and more competitive in their marketing and product strategies. For this, they need to constantly innovate new products and therefore, reallocate an increasing amount of resources to research and development. Looking at the TV commercials in Nepal, one can easily see the lack of competition to generate adequate content Most of the commercials are that of FMGC (Fast Moving Consumer Goods). These markets are somewhat competitive and thus they focus on generating enough content to attract their consumers. However, for the products with uncompetitive market, the need to make the extra effort is not felt. This can result in the lack of contents in media. As more companies compete, the gestation period for newer products also decreases with each product life cycle. Companies should not only concentrate on selling units but also on creating a brand image.</p>
<p style="text-align: justify;">
	Finally, the lack of multi-skilled professionals in the newer arenas of business makes it difficult for the company’s old guard to let go of draconian or obsolete practices. This ultimately leads to turf wars over domain control. Convergence along with technological advancements has brought a tough competition in the media market. However, the level of seriousness is still very low. Acharya shares, “There is stiff competition &nbsp;to be the first to give the news to the audience but the accuracy and credibility of the news is lacking.” The skill demanded by Media Convergence is not being provided. He further says, “A computer literate media person is not good enough. We are using computers as typewriters and to get access to news only. Modern forms of technology should be better utilized. More creativity can be presented by using them which is not being done”. Nepali media is not fully aware about media creativeness. “Media are aware but not serious because they use online media for their convenience right now but they are not making long term assessments,” he says. In a period of 10 years, only the fittest will survive. His only request to media editors and directors is that they should stay updated with latest trends in media through training or orientations. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Market and Technology Convergence</strong></p>
<p style="text-align: justify;">
	By plotting time against portability and interactivity and at the same time, selected parameters that might be called the benchmarks of technology progress namely moving image, computing, voice communication and games, we can get a historical perspective as well as deduce where the combined technologies are headed.&nbsp;</p>
<p style="text-align: justify;">
	However, in this case of mapping, the word convergence is never intended to suggest replacement (i.e. not everything is moving to one entity or point). All of the elements on the charts are still in existence and, except for VHS and DVD, will be around for a good while. We also see ‘divergence’ of media forms as it morphs across a sea of devices that continue to grow, layer upon layer.&nbsp;</p>
<p style="text-align: justify;">
	All technology makers and marketers would like to know what the next will be. In the portable domain will we always have separate phone and serious gaming device? We are already seeing the merging of the phone, organiser and media player (4GB phones are already in the market) – given you can dock these portable devices to the larger screen, carry all your content and that they can receive high definition TV, do we need fixed devices at all?&nbsp;</p>
<p style="text-align: justify;">
	<strong>Technology Convergence in Nepal</strong></p>
<p style="text-align: justify;">
	iPhone can be used in Nepal but it cannot be fully utilized. The phone clearly denies the user an access to its online stores by saying that the service is not supported in the region. This is due to the lack of an online payment system. On the contrary, Nokia phones are developing local contents for Nepal. Microsoft also provides Nepali language fonts for usage. However, the customers can use only the free services and not the priced contents. This can result in slow usage of technologies also. The telecom companies should be involved in this business. Both Ncell and NTC are providing mobile Internet service. This helps the users to use more social entertainment sites and random online contents but making full use of the latest technological innovations is difficult. Ncell has come out as the market leader with its gorgeous advertisements and user-friendly services. However, the customers want more.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Understanding, Practicing and Innovating</strong></p>
<p style="text-align: justify;">
	Increasingly, one can observe a definitive trend in the convergence of understanding, practicing and innovating in the competitive marketplace where each participant is eying the largest chunk of the pie. Understanding the needs of the consumer has taken on a new importance with extreme segmentation and fragmentation in the marketplace. Identifying this need and creating a new product or service to fill this gap has gained prime importance, more so akin to a rasion d’être for the companies. From high value-high involvement products like home loans and automobiles to low value-low involvement products like detergent powders and toothpastes to soft drinks, companies are increasingly spending huge amounts of money to understand the patterns and motivations of the consumers for selecting, purchasing and using a certain brand.&nbsp;</p>
<p style="text-align: justify;">
	Even more important, the brand association that the consumers make with a certain brand can make or break the brand equity of a company’s product and the difference between success and failure of the product in the market. A constant drive to innovate and come out with better products is reflected in the ever-increasing amounts of R&amp;D spending of the companies. For example, high technology products like Nokia’s mobile handsets are made based on a constant feedback on usage and understanding of mobile phones by the customers. This has led to the incorporation of higher levels of innovation and user-friendliness in the next handset made by Nokia.</p>
<p style="text-align: justify;">
	A new concept on the horizon is co-creating value. This happens between the consumer and the manufacturer. The manufacturer actively seeks the cooperation of the consumer for creating new products.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Creativity/Design with Technology and Business Sense&nbsp;</strong></p>
<p style="text-align: justify;">
	It wasn’t a long time ago when even the top copysmiths of advertising like Neil French used to write copy for ads and fit them in typesets for printing. Nowadays, even a copywriter in a small agency in a small town will type out the copy quickly on the computer and the graphic designer will fit it into the ad’s layout and send out the soft copy to the newspaper for printing. Technology innovation from typewriters to computers has made this shift possible. A school student with a typical Pentium desktop computer has, at his disposal, more computing power than NASA had when it sent the first man to the moon. The great enabler in this case, technology, is progressing with such rapid pace that the latest, most cutting-edge technology is rendered almost outdated within a few months of its release. Creative visualisers using advanced software like Adobe Photoshop and CorelDraw are daily creating breathtaking graphical masterpieces that would have taken even a Leonardo da Vinci months, if not years, to create.</p>
<p style="text-align: justify;">
	Convergence in technological standards like image formats (jpegs, gifs, etc.), audio-video formats (mpeg, avi, etc.), audio formats (mp3, wma, etc.), and so on, combined with interpolability and compatibility to use, share and transfer this data (USB, flash drives, DVDs and other optical storage) has created a powerful technology-design combo that professionals across the world are using in physical form as well as virtual form (cyberspace – Internet). Add to this, the keen entrepreneurial mind of a businessman and you have technology monoliths like the Times Group and others like AOL-Warner, Sony and Apple amongst many others who dominate the commercial landscape. Convergence is changing the way people live their lives on a daily basis.&nbsp;</p>
<div style="text-align: justify;">
	<div>
		<strong>Convergence of Classroom (Brick &amp; Mortar) with Internet (Click &amp; Portal) and Learning by Doing (Experiential): Experiential Brick and Portal&nbsp;</strong></div>
	<div>
		 </div>
	<div>
		<img alt="Midas EClass" height="86" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_midas_class.jpg" width="217" /></div>
	<div>
		Traditional classroom model has been in an evolutionary phase ever since technology innovations have made networking possible. Satellite communications like VSAT have enabled hundreds of thousands of students across the world to virtually attend lectures. The University Grants Commission (UGC) has empowered students in India because of this education and technology convergence. In professional courses, the emphasis has always been on practical knowledge rather than just theoretical inputs. The value addition to the professional skills development is far more when students are exposed to theories and their practical applications. Added to this is the new dimension of Internet learning. Numerous universities, colleges and institutes, especially in Western Europe and North America, are now offering degree courses through the Internet. This dissolves all cultural, geographical and social barriers for people who cannot afford the time and/or money to attend full time courses in foreign countries. The effective combination of these three models of learning- traditional classrooms, Internet and practical experiences, has become necessary for the students of today to become successful professionals of tomorrow.&nbsp;</div>
	<div>
		 </div>
	<div>
		Nepal is moving towards using technology for education, replacing the traditional “Chalk and Talk” method. Midas Education, a pioneer in the development of ICT (Information Communication Technology) in the education sector, encourages interactive teaching and learning. Students make use of PowerPoint presentations and other IT tools to enhance their skills and be prepared for the modern world. To bring a drastic change in the education sector, growth of ICT is very important. Information flow is unavoidable today due to the Internet and students are using GOOGLE for their education along with textbooks. The next challenge for Midas Education is to take ICT to the villages but as anyone can imagine, it is not an easy task. Use of ICT increases accuracy and quality of education and saves valuable time. Thus, ICT is necessary to modify the existent education pattern and to develop it.&nbsp;</div>
	<div>
		 </div>
	<div>
		Initially, it is difficult to use a new technology and learning it might take some time. But, as soon as we get used to it, there are only benefits to enjoy. Technology makes life comfortable and fast. The real beneficiaries of technology in Nepal are the students. Technology has been making their lives easier. They can easily grasp vague concepts. They do not need to mug up their course books these days; they have a chance to present their creativity. Along with the students, teachers are also benefiting.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Consumption &amp; Media Buying</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		There was a time when you had simple choices to make – like choosing one newspaper from the three or four available, one radio station, one television station that broadcast only in the evenings, a couple of magazines from half a dozen available and so on. As the market kept segmenting and fragmenting, we now have thousands of radio stations to choose from with WorldSpace, Star TV itself telecasting more than half a dozen channels round the clock, there are more than a couple of dozen newspapers to choose from, hundreds of magazines to choose from and the story does not end there. With the advent of newer technologies, we now have newer channels of communications like mobile, Internet and direct-to-home television along with exponential storage capabilities on optical media like CDs and DVDs. Today, a typical consumer is bombarded with more than 1,000 messages per day. Marketers are finding newer ways and means to target the consumers.&nbsp;</div>
	<div>
		 </div>
	<div>
		One limitation for media consumption and media buying for Nepali consumers comes from the frequent load-shedding. This problem also makes an impact on the convergence cycle. The current trend is that the media houses are using all forms of media from print to radio to TV to online portals. One form of media is subsidizing the other. During the winter season, when the load-shedding is at its peak, advertisements in the TV decrease significantly to only 25 per cent as compared to the summer season. However, while the TVs are suffering from losses, the ads in the radio increase. Thus, radio subsidizes TV. Image Channel initially owned two TV stations: Image Channel and Image Metro. Now, it has replaced Image Metro with a new radio station, Image News, while the already existent Image FM still exists. This is an example of merging different types of media in one window, which is possible due to media convergence.&nbsp;</div>
	<div>
		 </div>
	<div>
		Another example of convergence in media consumption is the way in which consumers actively hunt for information. 3G mobile handsets are designed for high speed Internet connections and the user opts to use them in a variety of ways; like checking the online navigation to watch out for traffic jams, weather forecasts, locating the nearest fuel station, hospital or even a restaurant; everything is possible with the mobile handset. It also backs up as a personal information manager (PIM), a music player, a camera and a portable gaming device. Internet usage on the phone is aiding to media consumption but many people cannot afford it.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Ownership</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		A massive diversification of media, thanks to the Internet, materialized by millions of websites, fora, blogs and wikis is taking place. That evolution, often labelled citizen journalism or citizen media, makes it possible for practically everybody to be a media creator, owner and actor, instead of a passive user.&nbsp;</div>
	<div>
		 </div>
	<div>
		With the technological advancements, convergence is expected to take various new forms. One form of media subsidizes the other and this poses a risk of developing a media tycoon. Currently, the Kantipur Media Group can give a run to the state media monopoly. It has an online news portal, a TV channel and radio broadcasting stations along with print media of daily and weekly newspapers, and monthly magazines. It is also considered the fastest and most reliable source of news. This has all been possible due to the proper utilization of technology.&nbsp;</div>
	<div>
		 </div>
	<div>
		Some of the largest media conglomerates in the world include American Media Inc., Bell Globemedia, Bertelsmann, Canwest Global, NBC Universal, Hearst Corporation, Lagardère Media, Liberty Media, News Corporation, Grupo PRISA, Rogers Communications, Sony, Time Warner, The Times Group (distinct from Times Newspapers of News Corportation), Viacom (owned by National Amusements), CBS Corp (also owned by National Amusements), and The Walt Disney Company.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in the Interests of Dual Markets&nbsp;</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		As more and more companies across industries look at multiple media platforms, especially the digital media, it is also emerging as a revenue-earning model for most of them. Also, e-commerce is growing rapidly and a host of companies are setting up online shops across portals.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Two sides of Media Convergence</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		With freedom, come the responsibilities. Media convergence has made a positive impact upon the advertisers. They only need to buy a small space in the websites and their ads get displayed 24 hours a day for as long as they want. The ads on the TV and newspapers last for a shorter period and are comparatively more expensive than the online ads. The design of the advertisements can also be changed from time to time. Also, the growing trend of media houses trying to use all forms of broadcasting media and print media makes it possible for the advertisers to negotiate rates. Their marketing is now more cost effective than before. They can easily use different tools of media and show their advertisements to their consumers through websites, TV, radio, as well as newspapers.</div>
	<div>
		 </div>
	<div>
		The Interim Constitution provides publication and broadcasting freedom to media but again imposes certain restrictions that allow the media to enjoy only the relative freedom. The online media however does not follow these rules and regulations. Online media has no monitoring system and in today’s world, the flow of information is difficult to stop. Hence, news that can be harmful should be stopped from spreading.&nbsp;</div>
	<div>
		 </div>
	<div>
		The definition of media is not the same as it was a decade ago. Facebook is an example of this. This new social media has influenced us largely. Now, every citizen is a reporter as he or she can constantly update news through Facebook. The news about Paras Shah getting a heart attack was published in the Facebook before any other media houses could print or broadcast it. Technology is responsible for this. While 10 years ago, technology turned the world into a global village, today it has changed the world into a global family. If a person in Nepal gets married today and updates his photos on Facebook, his friend in the US can see the photos. This ignores the geographical boundaries and aids in sharing cultures between people of different nations. Thus, it has been making a positive impact worldwide.&nbsp;</div>
	<div>
		 </div>
	<div>
		When the Royal Palace Massacre took place in 2001, &nbsp;a rumour was spread saying that somebody had mixed a poison in the water coming from the Water Supply Tank in Sundarijal. That was a time when people had no other forms of communication except for the landline phones at their homes. If that was enough to discourage many people from drinking water inside Kathmandu valley, we must think how effective can such rumours be today. We have all the powerful tools of communication from mobile phones to the Internet and it will take only seconds for such rumours to spread. &nbsp;Hence, with media convergence, self-regulation is required. People are required to be more responsible. Ill-intended propaganda and rumours should not be published.</div>
	<div>
		 </div>
	<div>
		<strong>Future Impacts</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		It is certain that over the next five years, technology will not remain the same. Newer versions will be available that will bring about more revolutionary changes. Hence, impact is a vague word in future terms. With changes in technology, the working processes will change which will provide the necessary opportunities towards beneficial transformations. The use of the latest technology produces beneficial products but education regarding technology is a limiting factor for a country like ours. With around 50 per cent of the graduating population having some form of knowledge regarding Information Technology (IT), it is not an impossible challenge. However, the business owners and leaders have the responsibility of encouraging this population for increased use of IT. &nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Media Education: Need for a Paradigm Shift</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		<img align="left" alt="Media Education" height="139" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_media_education.jpg" style="margin:0 10px 0 0;" width="200" />The world today is in the midst of one of the most dramatic technological revolutions in history. It is effecting changes in everything ranging from the ways we work, communicate commerce and spend our leisure time. The technological revolution which is underway centers on computer, information, communication, and multimedia technologies and may be seen to be the beginnings of a knowledge or information society. In such a society, education has a central role in every aspect of life. The proliferation of communication-information technologies poses tremendous challenges. It compels educators to rethink their basic tenets and to deploy the media in creative and productive ways. It forces them to restructure ways of learning-teaching to respond constructively and progressively to the technological and social changes that we are now experiencing.&nbsp;</div>
	<div>
		 </div>
	<div>
		Midas Education has been contributing to the development of ICT for education for about 12 years now. This continuous growth of Midas comes from continuous positive responses and moral support they got from their customers. Just like the processors developed in recent years from Pentium IV to i7, adding more layers in their newer versions, Midas has also been adding layers in their work to promote the use of ICT in the education sector. &nbsp;Raju Baniya, Business Manager of Midas Education, says, “This has improved our results year on year. We started with making self learning CDs and now we are trying to transform the class rooms.</div>
	<div>
		 </div>
	<div>
		As a consequence of information super highway and communication technologies, media and communication education have undergone almost unbelievable changes. The old lines between disciplines are becoming obsolete. The work of professional communicators is undergoing a dramatic change. Resultantly, there are likely to be very few belonging to one discipline which might be conversant with all forms of media in the days to come. With such metamorphosis of the professions underway, it is a real challenge to prepare students for successful professional careers in the era of convergence and connectivity of the variety of media.&nbsp;</div>
	<div>
		 </div>
	<div>
		In an era characterized by convergence of technologies the need for skilled media professionals who understand the foundation, both ethical and practical, from which they need to work, becomes even more critical. But without adequate training in new media skills, the goal will remain unachievable. This crisis in media requires to be addressed in the class room where young professionals are molded and sculpted. But to meet the needs of the fast growing media industry, an ongoing training is vital to ensure that those working in the field have to grow and develop. This entails broadening, updating and upgrading the core component of the media education at various levels.&nbsp;</div>
	<div>
		 </div>
	<div>
		What media students today need is nothing short of a leading-edge education suited to the needs of networked globalised industry. This would involve greater accent on fundamental concepts, values and skills needed to prepare them for communication careers commensurate with unprecedented changes. They need be fully equipped to understand the whole of communication scenario, be able to solve problems and imbibe the ethical and legal implication of media and communication which will let them be comfortable with innovation and working in concert with their peers. The object of the new media education is to prepare students for leadership roles in their professions and in their communities.&nbsp;</div>
	<div>
		 </div>
	<div>
		With a view to achieving the object of quality media education, the institute of Mass Communications are in dire need of reconfiguring and updating their curriculum to produce graduates who are prepared for future leadership roles in the media and communication industries and who are able to communicate across disciplines and in multiple media formats. This for providing students with strong core content in critical thinking, research and analysis, information gathering, writing, graphics and design, and law and ethics and the latest media technology and skills. It is not always possible for teachers to take students to lab to conduct required educational activities. Similarly, the task of taking students for field visit for practical knowledge is also not possible every time. In this context, the MiDas eCLASS offers audio-visual contents that complement the lab activities and field visit to enable the students to gain real-life experience.&nbsp;</div>
	<div>
		 </div>
	<div>
		The media education departments must offer to their students fully computerized reporting and editing classes, and create totally digital classroom and laboratory systems. They must orient themselves to revise their journalism curriculum and always be ready to undergo continual adjustments in response to changes in the profession. Far from print and broadcast sequences running separate, as is the case today, students in the two sequences need to plan news coverage together and work together in the labs. Tomorrow, it is quite likely that the sequences might disappear and students will be required to work seamlessly on stories for print, electronic media and the Internet – or whatever systems will exist in the future.&nbsp;</div>
	<div>
		Same is the case for students of marketing communications who need to integrate the different tools of branding and marketing: advertising, public relations, event management, digital marketing, direct marketing, etc, before specializing in one functional area.</div>
	<div>
		 </div>
	<div>
		For entertainment media students, it is significant to integrate skills for the entire entertainment industry: from television to cinema, from radio to digital entertainment, from events to musicals, etc.</div>
	<div>
		 </div>
</div>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.',
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		'Article' => array(
			'id' => '893',
			'article_category_id' => '37',
			'title' => 'Debate Of The Month: Is The Reality Sector Really Picking Up?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="background:#f9f5a1;padding:3px;">
	<p>
		<strong>Nepali Real Estate at a Glance</strong></p>
	<ul>
		<li>
			Over 400 institutional real estate entrepreneurs across the country; 147 of them registered at Nepal Land and Housing Development Association&nbsp;</li>
		<li>
			From laymen to professionals like doctors and engineers are in this business</li>
		<li>
			The door for organised housing in Nepal opened after the 1995 Collective Housing Act allowed private ownership of apartment units</li>
		<li>
			The investment of banking and financial institutions (BFIs) in real estate and housing stands at around Rs 150 billion; Private sector promoters and builders have invested another Rs 250 billion</li>
		<li>
			The real estate market in Nepal grew significantly after the 1990 political change. It registered impressive growth even during the Maoist insurgency until the late 2008 when it started to slow down.</li>
		<li>
			According to the latest data, commercial banks have given about Rs 68 billion in real estate loans, which is 10.4 percent of the total loans issued by them. Commercial banks’ total lending to the realty sector reached its peak in Jan 2011 to almost Rs 99 billion or 20 per cent of their total lending.</li>
		<li>
			Now, most of the commercial banks which were overtly exposed to the real estate sector have brought down their exposure to below 25 percent level. At the same time, outflow of home loans of up to Rs 10 million has been picking up, with the total amount expanding from Rs 30.83 billion in October 2011 to almost Rs 40 billion by the end of 2012. Several development banks and finance companies are yet to overcome their real estate loan problem.&nbsp;</li>
		<li>
			It is, however, said that a fairly large portion of loans extended to the real estate sector is in the guise of overdraft and term loans, indicating that the problems of the real estate sector in Nepal could be far from over.</li>
	</ul>
</div>
<p style="text-align: justify;">
	We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010. NRB not only put a ceiling on real estate loans but also made it mandatory for real estate buyers to declare their income source for purchase of property worth more than Rs 5 million.&nbsp;</p>
<p style="text-align: justify;">
	Many bankers and real estate players compared this NRB move with a driver’s attempt to stop at once a car speeding along at 80 miles an hour. “When you press on the brakes to stop such a car at once, it is almost always doomed to crash. This is what happened to Nepal’s real estate and housing sector,” complain many bankers. According to them, maybe what happened to the country’s real estate industry over the past three years cannot be called a crash, but the industry was hit really, really hard.</p>
<p style="text-align: justify;">
	But it seems things have started to change now, for the better. After a three-year long slump, Nepal’s real estate and housing sector has shown some signs of improvement of late. Many analysts and industry insiders are still hesitant to call it the beginning of a recovery but even they admit that cautious optimism has replaced the general mood of doom and gloom prevalent in the industry as early as even a few months ago.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the market at present, it is apparent that the genuine, long-term developers have survived the slump, while those who joined the fray just for fast cash have, perhaps, been combed out. Meanwhile, the NRB, too, has adopted a bit flexible approach to the sector in this period which the private sector stakeholders deem as inadequate. Similarly, there have been reports that real estate and housing borrowers who had the banks’ doors shut for them until recently have started getting scrutinized entries into the banks.&nbsp;</p>
<p style="text-align: justify;">
	There are some other signs as well that indicate that the realty sector might have started to climb up. According to real estate entrepreneurs and housing developers, this business has growth by 33 per cent in the first half of the current fiscal year, compared to the same period the previous year.&nbsp;</p>
<p style="text-align: justify;">
	Government revenue from this sector, too, has increased by nearly Rs 370 million in the first six months of this FY, compared to the same period the previous FY. Given these developments, Nubiz asked some of the major players of Nepal’s realty sector, bankers and regulators whether the sector has really started to witness a revival? Here is what they had to say: &nbsp;&nbsp;</p>
<p style="text-align: center;">
	<strong><span style="font-size: 14px;">‘There are positive signs’</span></strong></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img align="left" alt="Ichchha Raj Tamang" height="283" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_ichchha.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Ichchha Raj Tamang</strong></address>
	<address>
		<strong>President</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">This sector was doing very well. We all know that. But then some banks started speculative lending which was followed by others. This provoked the NRB to take stringent measures in the real estate and housing. The NRB, too, should not have implemented that decision at once. Anyway, the combined effect was that the realty sector faced a long slump.&nbsp;</span></p>
<p style="text-align: justify;">
	However, we have seen some positive signs for the realty sector in the first half of the current fiscal year. Statistics show that this sector has grown by 33 per cent in the first six months of the current fiscal year than the same period of the previous fiscal year. We hear that government revenue from the sale of land and houses has gone up in the first six months of this fiscal year. That is another indicator that the sector might have started picking up. Banks, too, have started new home loans at lower interest rates. Though they appear hesitant to invest in the housing apartments, their lending to individuals for land and houses, and loans to multi-storied commercial business complexes being built around Kathmandu have increased in recent months.&nbsp;</p>
<p style="text-align: justify;">
	These are good signs for the realty sector. The other important thing is this market has already witnessed almost the rock-bottom situation. This situation could not continue forever; it had to show the signs of revival. That is what has perhaps started to happen.&nbsp;</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div style="text-align: center;">
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;">‘Market activity has increased’</b></span></div>
<div>
	 </div>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Bhesh Raj Lohani" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhesh.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Bhesh Raj Lohani</strong></address>
	<address>
		<strong>Secretary</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">In the first six months of the current fiscal year, the government has collected Rs 2.27 billion in revenue from the sale of land and houses. The figure was only Rs 1.9 billion in the first six months of the previous fiscal year. It is true that the increased tax rates have contributed to this growth but the number of land and house transactions has also increased this year. The sales of low-priced land and houses have particularly gone up.</span></p>
<p style="text-align: justify;">
	Banks have lowered their interest rates for loans from as high as 17 per cent last year to around 10 per cent recently. Remittance inflow has grown; this too has helped the real estate business. The NRB, too, has adopted somewhat liberal policies for the real estate sector, especially after the sector fell into a deep crisis from which it is struggling to come out now. There are scores of middle-class families who need houses and apartments as their permanent residences. Stand-alone houses are still bigger attractions for Nepalis than the apartments. Recent experiences, too, have shown that.</p>
<p style="text-align: justify;">
	If the current growth rate continues, then we can expect more investment in this sector by the end of this fiscal year. The realty business was stagnant for almost three years. Many buyers were waiting for the prices to come down. And the prices have indeed come down significantly, compared to three years ago. So, market activities have surely increased.</p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘Real estate is gradually improving’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<p style="text-align: justify;">
		<img alt="Bhaskar Mani Gyawali" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhaskar.jpg" style="margin:0 10px 0 0;" width="202" /></p>
	<address>
		<address style="text-align: justify;">
			<b>Bhaskar Mani Gyawali</b></address>
		<address style="text-align: justify;">
			<b>Spokesperson</b></address>
		<address style="text-align: justify;">
			<b>Nepal Rastra Bank</b></address>
		<div style="text-align: justify;">
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	We have observed that Nepal’s realty sector has shown a gradual improvement over the past few months. The improvement has not been as expected. But what I can say is the country’s real estate sector has seen its worst; things will only improve from here. Actually this process has already started. As the regulator, NRB has done all it could, to help banks recover their loans to this sector. NRB’s directives issued from time to time have helped the real estate sector to overcome the crisis it has been in for more than the past three years.</p>
<p style="text-align: justify;">
	Speculative pricing by some real estate players and speculative lending by some banks is mainly to blame for the realty slump in Nepal. The only solution to the problems in the real estate and housing sector is that real estate owners and housing developers should be ready to sell their property at minimal profits, sometimes without any profit and in some cases even at certain amount of loss. Otherwise, the interest of the bank will keep rising and they will be sinking deeper and deeper in the problem. If this is done, 75 per cent problems of the real estate and housing sector will be automatically resolved.&nbsp;</p>
<p style="text-align: justify;">
	In recent months, banks have started issuing new home and land loans at lower interest rates. This is good sign. Government revenue from the sale of land and houses, too, has witnessed almost one-third growth in the first half of this fiscal year compared to the same period the last fiscal year. This also shows that the real estate business might have started to pick up. I am sure that the situation will improve further in the days to come. &nbsp; &nbsp; &nbsp; &nbsp;</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b><br />
	</b></span></p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘We can’t really say that the revival has started’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Anil Shah, Mega Bank" height="299" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_anil(1).jpg" style="margin:0 10px 0 0;" width="202" />
	<address>
		<address>
			<address>
				<b>Anil Shah</b></address>
			<address>
				<b>CEO</b></address>
			<address>
				<b>Mega Bank</b></address>
			<div>
				 </div>
		</address>
		<div>
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	 </p>
<p>
	Given the current situation, we can’t really say that the realty sector has shown improvements. However, the good thing is the downward spiral has stopped. Some big apartment companies are still in problems. In fact, it is these companies that are responsible for delaying the recovery. So, the reality is the improvement in this sector is definitely not as expected. The banks, too, are not very willing to invest in this sector, especially in the apartments.</p>
<p>
	The buyers, too, are not interested in the apartments. However, now the banks are not compelled to put home loans up to Rs 10 million under real estate loans; the NRB has shown this much flexibility. This relaxation has surely helped the banks, which have invested nearly Rs 150 billion in the real estate sector, and also the real estate promoters.</p>
<p>
	We can’t really say that a revival has started in the realty sector. We’d better wait for some more time and see how things unfold. Meanwhile, the NRB did not say a word about the real estate sector in the mid-term review of the Monetary Policy for the current fiscal year. It must have disappointed the entire sector as well as the banks which have a sizeable investment in this sector.</p>
<div>
	 </div>',
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			'created' => '2013-03-24',
			'modified' => '2013-05-23',
			'keywords' => 'Debate Of The Month: Is The Reality Sector Really Picking Up?',
			'description' => 'We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010.',
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			'id' => '891',
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			'title' => 'Utter Discouragement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="From the editor, March 2013" height="362" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_from_the_editor(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi. The company is planning to construct a 2.9 km tunnel connecting Kulekhani and Bhimphedi stretch of Kathmandu-Hetauda road. The proposed tunnel will reduce the Kathmandu-Hetauda road distance to 58 km and travel duration to 45 minutes. It now takes at least four hours to drive between the two cities.</p>
<p style="text-align: justify;">
	But the Company’s plan to lay a foundation stone for the tunnel on February 8 was dampened by the government inaction and the prescheduled ceremony was just limited to a ritual pooja than the real act of marking the formal beginning of construction. Contrary to the expectation, the government didn’t sign a go-ahead agreement with the NPBCL so as to allow the Company to formally inaugurate the construction of the tunnel on the very day.</p>
<p style="text-align: justify;">
	The government reservation that the Company didn’t have convincing plans to repay the investors was a mere excuse given the credibility of the people involved as promoters, shareholders and partners of the company.</p>
<p style="text-align: justify;">
	Firstly, it is promoted by wider participation of local beneficiaries. Though their investment may be small in amount, it would automatically provide a social audit framework for such a large project. As the number of promoters is going to be 264,000, the company is unlikely to be case of one large single obligor insolvency, even if the company, by any chance, met an unexpected fate.</p>
<p style="text-align: justify;">
	Second, the promoters themselves, including Joshi, are renowned business leaders and the government must have an iota of trust on them. If not, whom will it trust upon to invest in?</p>
<p style="text-align: justify;">
	Third, there are organizations like Non-resident Nepali Association (NRNA) that have signed agreement to invest and help complete the project in stipulated four-year period. Despite these all, if the officials in the Ministry of Physical Planning and Transport Management had any reservation on any issue, that had to be resolved through negotiation with the company, before setting the date of official inaugural.&nbsp;</p>
<p style="text-align: justify;">
	The modalities for sharing benefits between promoters and public investors, collection of the toll and plans of financial closure are undoubtedly important for a Rs 20 billion project. But they had to be sorted out well ahead setting the date of formal commencement of the construction. The Company’s approach to take the government’s likely obstruction for granted and the government intention to obstruct in any pretext have given all the wrong messages to the public about the very future of the project.</p>
<p style="text-align: justify;">
	The government contention that the estimated cost of the project was too low and funding sources were not clearly demonstrated, are not a well-founded. To say the least, it is not the business of the government to tell a private company whether any amount it set aside for the project was enough or not. And, the funding sources the Company has enlisted are of course the most credible ones available in Nepal.</p>
<p style="text-align: justify;">
	This episode is the combination of government’s unfriendly attitude towards the private sector and ad-hoc working style of Nepali corporate sector. The government must acknowledge the fact that it is the first large-scale private sector initiative to invest in country’s key infrastructure like road project. For this reason, the government should leave no stone unturned to facilitate the execution of the project. And, on the part of the company, there should be more transparent and convincing flow of information, so that the mala fide government intentions could easily be defeated by the strength of public confidence on it.</p>
<p style="text-align: justify;">
	There are questions whether the entire road from Balkhu of Kathmandu to Hetauda will be developed by the Company or is it constructing the tunnel alone and expects the government to make the rest of 55 km road widened to four-lanes with the tax-payers’ money. In such a case, how will the tolled amount be distributed?</p>
<p style="text-align: justify;">
	Obviously, the Company must have discussed these things with the relevant government agencies in detail. But the same details have not come to the public notice. Therefore, it is important that both parties, the government and the Company, played a transparent game so that this project can set a benchmark for future such projects.&nbsp;</p>',
			'published' => true,
			'created' => '2013-03-24',
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			'description' => 'The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi.',
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			'id' => '890',
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			'title' => 'Product Is More Important Than Profit',
			'sub_title' => '',
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			'content' => '<p style="text-align: justify;">
	<img align="right" alt="S.P. Sharma, Godrej Security Solutions India" height="347" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_visitng_business_people_sp_sharma.jpg" style="margin:0 0 0 10px;" width="280" /></p>
<p style="text-align: justify;">
	S.P. Sarma is the Senior General Manager of the Global Operation for Godrej Security Solutions India. Graduated in Engineering and MBA, Sarma has been working with Godrej for the last 23 years. He served the company with different roles from service, sales and marketing and became the head of the global operation. In an interview with New Business Age when he was in Kathmandu recently, Sarma explained the necessity of the security products in business organizations.</p>
<p style="text-align: justify;">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the purpose of your current trip to Nepal?</strong></p>
<p style="text-align: justify;">
	My trip is to meet the customers and our partners in Nepal. We organize such kinds of trips time to time because we value our customers very much. We feel that whatever success has been there, It is because we are able to meet the demand of customers. And the expectation of the customers can be fulfilled if we come and listen to them.</p>
<p style="text-align: justify;">
	<strong>Could you please tell us about Godrej Security Solutions?</strong></p>
<p style="text-align: justify;">
	Godrej Security Solutions is a 100 years old division of Godrej Company. Our company is providing security products to financial institutions, jewelry companies, private organizations and households. We started producing these products in 1992 and now we have developed many advanced products according to the demand of customer. We believe that the product is more important than profit. With Godrej security solutions customers can get peace of mind. The other benefit they get is trust. We have been able to live up because of the trust of our customers. Majority of Financial Institutions functioning today are offered our prompt and efficient services.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your business strategies for your security products in the international market?</strong></p>
<p style="text-align: justify;">
	Our security products are of latest technologies. We are present in Europe, Africa, South East Asia and every year we have valuable partners. Security is running battle . It is essential to keep pace with the latest technology to meet growing needs. This is the reason why we have graduated from simple lever and tumbler locks several years ago to modern, intelligent technologies. We are also doing research and developing in new ways to update our products. So far, as I said, we have been able to win trust of the customers. Our business is also going good and we are planning to put up a new plant in Maharashtra, Mumbai.</p>
<p style="text-align: justify;">
	We have moved from being simply a seller of security products to a company selling comprehensive security solution. We offer diverse security product solutions including technologically advanced sphere such as cameras with analytics, substance detectors (bomb, bullets, and narcotics), X-ray baggage scanners, biometrics and access control systems, burglary and fire resistant safes, road blockers and marine solutions. Our products are tested stringently at leading testing laboratories i.e. SP Test in Sweden, VDS Test in Germany and the underwriter’s laboratory in the United States. Our plant in Mumbai is rated as one of the finest and largest factories in India. Our passion to offer international quality product with prompt supply, delivery, installation and most importantly after-sales servicing have been commended by many reputed companies.</p>
<p style="text-align: justify;">
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p style="text-align: justify;">
	I think it is very good. We see Nepal being very vibrant and I personally see that Nepal is on the way to development. And I feel that the banks and financial institutes are going to be the lubricants which will further enhance the development. We may offer our service to these banks and financial institutes as our commitment is to win the trust of our customers. Our supply of Godrej products to Nepal Rastra Bank and Nepal Bank Ltd made in the 1960’s still stands strong to this day, same as our sincerity and services towards our customers. We can proudly state that we have been able to come up to our customers’ expectations.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can Nepali customers get your service in Nepal?</strong></p>
<p style="text-align: justify;">
	Our commitment to the services to our customers is delivered almost by our trusted partner; - Nepal Commercial Enterprises Pvt. Ltd. It provides Godrej security equipment, home and office furniture, storage equipment and locks along with numerous retail outlets to our customers in Nepal. They also retail home safes and locks at Bhat-Bhateni and other outlets, making security a convenient purchase around their vicinity. &nbsp;The corporate showroom at Pulchowk offers a wide range of products from locking systems, security solutions, and home and office furniture.</p>
<p style="text-align: justify;">
	 </p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'S.P. Sarma is the Senior General Manager of the Global Operation for Godrej Security Solutions India. Graduated in Engineering and MBA, Sarma has been working with Godrej for the last 23 years.',
			'sortorder' => '773',
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View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::_renderElement() - CORE/Cake/View/View.php, line 1224
View::element() - CORE/Cake/View/View.php, line 418
include - APP/View/Articles/index.ctp, line 157
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117

Warning (2): simplexml_load_file() [<a href='http://php.net/function.simplexml-load-file'>function.simplexml-load-file</a>]: I/O warning : failed to load external entity &quot;&quot; [APP/View/Elements/side_bar.ctp, line 60]
Code Context
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$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '905',
			'article_category_id' => '34',
			'title' => 'FNCCI To Build Exhibition Centre',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Federation of Nepalese Chamber of Commerce and Industry" height="130" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_fncci.jpg" style="margin:0 10px 0 0;" width="120" />Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu. According to the Office of the Prime Minister, the cabinet meeting held on February 15 has decided to lease 82 ropanis land of the park to FNCCI for the construction of the exhibition centre. Similarly, the office has also directed the UN Park Development Committee to complete the necessary procedures for construction of the centre.</p>
<p style="text-align: justify;">
	Bhaskar Raj Rajkarnikar, Senior Vice President of the FNCCI said that, the construction will begin from the next fiscal year. “Designing of the exhibition centre is underway. The centre will come into operation within two years after the construction begins” he revealed.&nbsp;</p>
<p style="text-align: justify;">
	FNCCI had demanded 150 ropanis of land for the construction of the centre. Rajkarnikar said that, the necessary infrastructures will be developed in the land provided by the government. According to Bhawani Rana, Vice President of FNCCI, the construction of the centre will cost Rs 1 billion. “The investment will solely be made by the FNCCI,” she said. The centre will have exhibition area and convention hall.</p>
<p style="text-align: justify;">
	According to Rana, plan to develop a new exhibition centre was formulated as the one in Bhrikutimandap is felt narrow and additional amenities. The soon to be constructed centre will have special provision for vehicle parking. The FNCCI says that, the centre will also offer a venue for organising international programmes and events.</p>
<p style="text-align: justify;">
	The Ministry of Urban Development expressed hope that the centre will be an appropriate venue to hold large trade expos. Spokesperson of the ministry, Suresh Prakash Acharya said that, the present exhibition hall at Bhrikutimandap will be used to hold small expos. He said that, though the government will not have any direct investment on the centre, it will provide necessary technical support.</p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu.',
			'sortorder' => '787',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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	(int) 1 => array(
		'Article' => array(
			'id' => '904',
			'article_category_id' => '34',
			'title' => 'Four Financial Institutions Merge To Make Apex Bank',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Apex Bank Ltd" height="115" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_apexbank.jpg" width="504" /></p>
<p style="text-align: justify;">
	After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”. &nbsp;These institutions signed on Memorandum of Understanding (MoU) on Feb. 27, 2013.&nbsp;</p>
<p style="text-align: justify;">
	Rameshwor Thapa, coordinator of the merger has stated that after the merger, the newly formed commercial bank will come to operation after they get the approval from the central bank, Nepal Rastra Bank (NRB). He also added that they have got the approval from NRB to expand branches within a year. &nbsp;</p>
<p style="text-align: justify;">
	After the completion of the merger the new bank will have a total of 43 branches with total of 315 employees. The financial institutions are on discussion for selecting the Chief Executive Officer for the new Bank. Moreover, the trading of the shares of these financial institutions has been suspended for the purposes of merger by Npese.</p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”.',
			'sortorder' => '786',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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		)
	),
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		'Article' => array(
			'id' => '903',
			'article_category_id' => '34',
			'title' => '79% Remittance Goes For Consumption',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually. According to the Nepal Living Standards Survey 2011, published by Central Bureau of Statistics, 79 per cent of all the remittance is used for consumption purpose.&nbsp;</p>
<p style="text-align: justify;">
	According to the 2011 Census report, there are 1.92 million missing population which means they are living outside the country. The census report of 2001 says that there were only 762,181 missing population, a decade ago.&nbsp;</p>
<p style="text-align: justify;">
	Experts say that those who choose foreign employment basically belong to rural areas and are from a poor family. So, their first requirement is fulfilling their basic needs – food, clothes and shelter. So, majority of the remittance goes for meeting those basic requirements. Suman Pokharel, CEO of International Money Express said it is usual for remittance being used more for consumption. “It is the first preference for those who have difficulty in meeting their basic needs to fulfil their requirements. So, it should not be taken otherwise,” he said.</p>
<p style="text-align: justify;">
	People having thatched roof have upgraded to galvanised sheet, better quality food grains, better clothing and have purchase mobile phones and televisions. Pokharel, however accepts that the remittance has been used for unnecessary expenditures lately.&nbsp;</p>
<p style="text-align: justify;">
	To control the unproductive use of remittance, the central bank had come up with idea of bonds targeting migrant workers but according to Bhaskar Mani Gyawali, Spokesperson of Nepal Rastra Bank, none of the companies have requested the release of the bonds. According to the census report, 55.8 per cent households receive remittance with an average of Rs 80,436 per each household.</p>
<div style="text-align: justify;">
	 </div>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually.',
			'sortorder' => '785',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
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	(int) 3 => array(
		'Article' => array(
			'id' => '902',
			'article_category_id' => '62',
			'title' => 'Voices March 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img align="left" alt="Rajan Singh Bhandari" height="213" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_rajan.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><strong>“The liquidity situation must be addressed before the market faces crisis.”</strong></span></p>
<p style="text-align: justify;">
	<em><strong>Rajan Singh Bhandari</strong>, President of Nepal Bankers’ Association asking Nepal Rastra Bank to solve the impending liquidity problem before problems appears.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Seven per cent economic growth is just a daydream unless political impasse can be ended.” </span></strong></p>
<p style="text-align: justify;">
	<em><strong>Deependra Bahadur Kshetry</strong>, Vice Chairman of National Planning Commission explaining that high economic growth cannot be achieved amid ongoing political uncertainty.</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“We should invest 35 per cent of the GDP to achieve seven per cent economic growth.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Ram Sharan Mahat</strong>, recommending a formula to achieve seven per cent economic growth in Nepal.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Yuba Raj Khatiwada" height="218" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_yuba.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Current situation cannot be termed as liquidity crisis.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Yuba Raj Khatiwada</strong>, Governor of Nepal Rastra Bank clarifying the heightened worries over the looming liquidity crisis in the banking system. He said that the liquidity ratio in the banks is 29.5 per cent in average.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Radhesh Pant" height="229" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_radhesh.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Policy stability is what we need for encouraging both national and foreign investors.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Radhesh Pant</strong>, Chief Executive Officer of Nepal Investment Board explaining that political impasse is not only the cause of low investment. &nbsp;</em></p>
<p style="text-align: justify;">
	 </p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-05-22',
			'keywords' => '',
			'description' => 'The liquidity situation must be addressed before the market faces crisis.',
			'sortorder' => '784',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 4 => array(
		'Article' => array(
			'id' => '901',
			'article_category_id' => '50',
			'title' => 'Insuring The Nepali Sky',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Insuring the Nepali sky" height="286" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_insuring_the_nepali_sky.jpg" style="margin:0 10px 0 0;" width="200" />Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit. One of the reasons stated is high premium paid to the foreign reinsurer companies. If a domestic reinsurance company can be brought into the scene, the money that is going abroad can be saved.</p>
<p style="text-align: justify;">
	Another probable reason for the aviation insurance to become a loss making business is the high rate of accidents under the Nepali sky. The frequent air crashes lead to higher compensation payment to the insured. This also increases the premium to be paid to the reinsures who have vowed to bear all the risks. It is obvious that whenever there is higher risk, the reinsurers will seek higher premiums. So, ultimately the insurance premium for the aircrafts flying into the high mountain areas becomes high. Unless, the high risks of the aviation industry in Nepal are managed, profitable aviation insurance seems to be a far cry. For that, more safety measures need to be undertaken by the airlines as well as better technology for navigation and other systems must be in place which helps to minimize the air accidents.</p>
<address>
	<strong>Uttammani Dhungana</strong></address>
<address>
	<strong>Sagarmatha College</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-03-24',
			'keywords' => '',
			'description' => 'Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit.',
			'sortorder' => '783',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 5 => array(
		'Article' => array(
			'id' => '900',
			'article_category_id' => '50',
			'title' => 'Petroleum Dilemma',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Petroleum Dilemma, Feedback" height="297" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_petroleum_dilemma.jpg" style="margin:0 10px 0 0;" width="180" />There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal. Meanwhile, some experts have predicted possibilities of finding petroleum in the plains of Nepal. Some studies have been carried out but as of now, it has not been explored. More detailed and extensive studies need to be carried out to be certain about the prospects of finding petroleum in Nepal.</p>
<address>
	<strong>Subash Tandukar</strong></address>
<address>
	<strong>Lagankhel</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal.',
			'sortorder' => '782',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 6 => array(
		'Article' => array(
			'id' => '899',
			'article_category_id' => '50',
			'title' => 'Shakespeare Today',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for. Very few are able to take him out of the world of literature to the real life management world. The article by Sujit Mundul on February 2013 issue of New Business Age has beautifully juxtaposed Shakespeare and his characters with the leadership in the corporate world. The write-up enriched with the narratives and extracts from the work of literature has vividly pictured and exemplified the leadership qualities and sought for the managerial traits in the Shakespearean characters.</p>
<address>
	<strong>Rakshya Sharma</strong></address>
<address>
	<strong>Dhumbarahi, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for.',
			'sortorder' => '781',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 7 => array(
		'Article' => array(
			'id' => '898',
			'article_category_id' => '50',
			'title' => 'Diversified Content',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy. From the February 2013 issue, it seems to be incorporating more issues and richer content. It is a good sign that the magazine is trying to capture the attention of wider and diverse readers. As a regular reader of the magazine, I would be elated to read more stories about the global economic and business issues.</p>
<address>
	<strong>Pradeep Acharya</strong></address>
<address>
	<strong>Lazimpat, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy.',
			'sortorder' => '780',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 8 => array(
		'Article' => array(
			'id' => '897',
			'article_category_id' => '50',
			'title' => 'Realistic Satires',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img align="left" alt="Realistic Satires, Feedback" height="221" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_realistic_satires.jpg" style="margin:0 10px 0 0;" width="280" /></p>
<p style="text-align: justify;">
	The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous. At the same time it is a healthy satire on the business and economic world.</p>
<address>
	<strong>Subash Tandukar, Pravat Shrestha</strong></address>
<address>
	<strong>Tokha</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous.',
			'sortorder' => '779',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 9 => array(
		'Article' => array(
			'id' => '896',
			'article_category_id' => '40',
			'title' => '‘We Need To Develop Our E-commerce First’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<address>
	<strong><img align="right" alt="Sanjay Golchha, Golchha Organization" height="313" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_sanjay.jpg" style="margin:0 0 0 10px;" width="274" /><span style="color:#3ab0c4;"><span style="font-size: 22px;">'We need to develop e-commerce first'</span></span></strong></address>
<address>
	<strong><br />
	</strong></address>
<address>
	<strong>Sanjay Golchha</strong></address>
<address>
	<strong>Director</strong></address>
<address>
	<strong>Golchha Organization</strong></address>
<p>
	<strong style="text-align: justify;">What is an example of media convergence in Nepal due to the advent of new communication technologies?</strong></p>
<p style="text-align: justify;">
	Digital media is the most useful form of media for the advertisers. Online marketing has not been fully explored in Nepal. Although social media sites like Facebook have high usage in Nepal, advertisements on facebook are not very effective. Media convergence has only recently started making some impact. People do not understand the power of the digital media. Only international contents can be found in online ads, not the local content.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the most useful communication technology convergence in the Nepali media?</strong></p>
<p style="text-align: justify;">
	To make use of communication technology in Nepal, e-commerce should develop first. It is not developing due to social and technical inefficiencies in Nepal. Online digital ads will be prominent on the Internet or on the websites only after we have a developed e-commerce business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the impact of media convergence on Nepal’s media industry?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence will come slowly. This requires economic development and political stability in the country. This can provide a platform for the ecommerce businesses to develop more content. People are not using the online media to buy things online. Due to the poor financial situation of the country, people are not in a hurry to buy anything. They want to use their time to choose the products they want to buy. Another thing is, even if the people were interested in buying products online, the online payment system has not yet come into practice. Firstly, they cannot pay and secondly they cannot trust buying products online. Hence, there are many pending issues with regard to media convergence. First, the Nepali commerce and media industry should develop; the ads will follow later.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How long shall it take to make a full impact?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence can be seen soon. But, for this the Internet bandwidths should be cheaper and the Internet should be more accessible to the people. Online payment systems should also be developed and promoted. Due to the conservative financial system, online payment is difficult. Domestic payment systems should be prioritized and the international payment systems will automatically develop. The world is globalized today and lack of an online payment system is a major disadvantage to us. Businessmen should invest in e-commerce development. More pioneers are required. E-commerce websites like Thamel.com and Muncha.com are well established businesses. Airlines have also advanced in this sector. Buddha Air, Yeti Air and others as well have already started providing online reservation service to their customers.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are the changes required in the media industry to adapt to the changes of media convergence?</strong></p>
<p style="text-align: justify;">
	They can also be explored for business development but this has not been done at all.&nbsp;</p>
<p style="text-align: justify;">
	If providing Internet on the phone brought a lot of profit to the mobile phone companies, then development of online payment system will be even more profitable. Nepal is a tourist destination. The tourism industry flourishes throughout the country. But, it is difficult for the tourists to learn more about Nepal before their visit. Tourism related websites are advertised in the international online media to attract tourists. However, when they want to make a hotel reservation to ensure that they already have a place to stay before visiting the country, it is not possible. Similarly, products like coffee and carpets that are exported abroad cannot be advertised properly. The major reason for this is the lack of an online payment system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What can the advertisers do in order to benefit from the changes of media technology convergence?</strong></p>
<p style="text-align: justify;">
	We need to invest in e-commerce. This can help local businesses to reach customers around the world. Lack of an online payment system is a loss for tourism-dependent <strong>businesses like hotels and travel agencies as well as the exporters. The payment taking mechanism is difficult which is why the online advertising is not fully developing.</strong></p>
<div style="background:#fcf88d;padding:5px;">
	<p style="text-align: justify;">
		<strong>The Paradigm Shift</strong></p>
	<p style="text-align: justify;">
		There has also been a shift in terms of media’s target consumers. Traditionally, the primary market was the target of media companies. The primary market included television viewers, radio listeners, website surfers, and newspaper and magazine readers. While the secondary market includes the marketers, the competing companies and other media as well. There has been a convergence in these two groups as now they both are targeted equally by the media companies.&nbsp;</p>
	<p style="text-align: justify;">
		Sanjay Golchha is also involved with Mindshare Nepal, which is a digital marketing company, the first of its kind in Nepal. It is the authorized agent for GOOGLE in Nepal and works in close relation with the businesses companies of Nepal. They are involved in Search Engine Marketing (SEM), which is the biggest source of online advertisements. They are also focusing upon social engineering, advertising the tourism and travel websites as well as promoting export products online. Currently, their major focus is upon providing email-marketing services to the local businesses. &nbsp;Mindshare Nepal Pvt. Ltd. collaborates with two companies who are experts in Software (IT Nepal) and marketing (Linez). Email marketing allows the businesses to reach thousands of people with a single message and see their response instantly.&nbsp;</p>
</div>
<div>
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			'id' => '895',
			'article_category_id' => '40',
			'title' => '‘Companies Should Focus On Building Brands, Not On Selling Units’',
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			'content' => '<p>
	<strong><img alt="Abhaya Pandey" height="254" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_abhaya.jpg" width="250" /><br />
	</strong><strong>Abhaya Pandey</strong><strong>Advertising Professional</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>How is media convergence affecting Nepal’s advertising industry?</strong></p>
<p style="text-align: justify;">
	Online Media is an example of the impact of Media Convergence in Nepal but it has not been able to make a significant impact yet. There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement. &nbsp;</p>
<p style="text-align: justify;">
	<strong>How has Social Media Education (SEM) changed over the years?</strong></p>
<p style="text-align: justify;">
	While social media education advertisements were mostly like BCC (Behaviour Change Consumerism) previously, today ad literacy has increased. This also requires more ad communication experts to convey social educational messages in an entertaining manner. The challenge today is not only giving information but also persuading consumers to buy the product or the message. While traditional media required information education, today information has to be conveyed through entertaining ads that can easily grab the people’s attention. Education is possible through entertainment only. Functional value is changing. Humour, fear campaigns, sensationalization etc should be embedded into ads to make them both entertaining and educational. Only educational ads will make people switch between TV channels. The government, NGOs and INGOs should be more responsible towards SME.</p>
<p style="text-align: justify;">
	<strong>How is the “Brand Personality” of a company reflected in its advertisements?&nbsp;</strong></p>
<p style="text-align: justify;">
	Sixty per cent of the total cement consumed in Nepal is produced in Nepal; only the remaining 40 per cent is imported. This clearly suggests a lack of competition in the domestic market. Many companies are trying to establish their brand names in the cement industry but special emphasis has not been placed in making better advertisements for those brands. The richest organizations of Nepal, the banks are limited to the urban areas and are yet to reach the villages. Hence, there is not much competition in the banking sector as well. Brands are classified in terms of the advertisements that they demand. Clients should think long-term. They should focus on building brands and not only on selling units. The market of instant noodles can be called competitive and this is reflected in &nbsp;their advertisements as well. People can easily associate more with the noodle brands than with others.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What is the biggest challenge in the advertisement sector today?</strong></p>
<p style="text-align: justify;">
	The biggest challenge for Nepali business companies is to use advertisements to grab the people’s attention first and then to convey the message of the brands. Some ads are very descriptive which makes them absurd instead of creative. This can lead to a disconnection between the brand message and the advertisement message. It’s only a tool. Ideas combined with technology are necessary to create better advertisements and awesome brand images. The market is changing from supply-oriented to demand-oriented. More competition and professionalism is required in the corporate houses. Only after these basics are met, the companies can focus on creativity and design of their brands. If the brands and production companies start focusing upon brand image today, they will be able to stand out even 25 years from now. Glossy ads are not always creative ads.</p>
<div style="text-align: justify;">
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Nepal but it has not been able to make a significant impact yet.  There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement.',
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		'Article' => array(
			'id' => '894',
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			'title' => 'Media Convergence: Impact On Business',
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			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="text-align: justify;">Media convergence is a theory, and subsequently a practice, in communications where every mass or niche medium eventually merges with each other to the point that they are indistinguishable from each other, creating a new medium from the synthesis, due to the advent of new communication technologies. With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.&nbsp;</span></p>
<p style="text-align: justify;">
	A prominent example of media convergence in Nepal is the online media. It has had a significant impact upon the conventional print and broadcasting media. Globally, it has proved to be very influential. In the USA and other developed nations of the world, everyone uses advanced technologies such as &nbsp;iPhone, Blackberrys and other gadgets that help them stay updated every second. People do not wait for the next day to read the newspapers. The online news portals get updated every minute with new news flowing in. According to Suresh Prasad Aacharya, Academic Advisor at the Shepherd College of Media Technology, such an example can also be seen in Nepali radios. Radios provide news bulletins every hour. The same news is followed by the televisions and is viewed by the audience in the evening.&nbsp;</p>
<p style="text-align: justify;">
	The online portals also update the news. Next morning, almost the same news is printed in the newspapers. Again, the radios conduct programmes in they which repeat the same news they broadcast a day ago. Hence, a cycle of convergence can also be seen in Nepal as the news reports get reproduced again and again by various forms of media. This is beneficial to the media consumers as they can stay updated through various forms of media. But this process weakens the media houses. Reporters can also benefit from this cycle. Most of the print media located outside the valley use online sources for the news. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Challenges in Convergence</strong></p>
<p style="text-align: justify;">
	While the industry at large is excited about media convergence, it also has its share of concerns. The unanimous one is the lack of adequate bandwidth. The bandwidth cost is too high and needs to be brought down drastically. In Nepal, Internet usage is very low. The fact that 18 per cent of the population uses the Internet is exaggerated. Hence, this makes it difficult for the media companies to use the Internet to communicate with their audience. Only 5-6 per cent Nepalis have been able to make effective use of the Internet. &nbsp;In Korea, there are half-a-million subscribers who receive 11 channels live on their mobiles. Only when there is enough bandwidth, can the business be ramped up.</p>
<p style="text-align: justify;">
	The other challenge is educating consumers to use the various new media. The latest technologies such as HD camera and the latest software are not being utilized to the full extent. &nbsp;Though we capture advertisements in HD (High Definition), it is shown in SD (Standard Definition). This has been making a little difference in quality but the full potential of technology remains unexplored. Consumers here have some access to the latest technological goods but consumer education for their proper usage is not being encouraged. The industry will not grow unless the consumer is educated and aware of the available technologies and their usage.</p>
<p style="text-align: justify;">
	Apart from reaching consumers at various touch-points through convergence of the media, companies are also looking at it as a media to cater to the individual needs of consumers. And for this, the need of the hour is to generate adequate content. The Nepali media lacks the competition to generate adequate content. Producers are not compelled to make better advertisements. Advertisements are reflections of the competition among the brands. The clients want only glossy ads. They have a conservative mentality, as they want to stay 125 per cent secure. They prefer traditional, tried and tested methods that are still selling. Bringing creativity in media and advertisements requires more courage and clients by nature want security. Content availability has not kept pace with the changing consumers. Content generators have to generate enough to cater to individual tastes.&nbsp;</p>
<p style="text-align: justify;">
	Another perspective to the challenges is the industry - one where companies need to be more and more competitive in their marketing and product strategies. For this, they need to constantly innovate new products and therefore, reallocate an increasing amount of resources to research and development. Looking at the TV commercials in Nepal, one can easily see the lack of competition to generate adequate content Most of the commercials are that of FMGC (Fast Moving Consumer Goods). These markets are somewhat competitive and thus they focus on generating enough content to attract their consumers. However, for the products with uncompetitive market, the need to make the extra effort is not felt. This can result in the lack of contents in media. As more companies compete, the gestation period for newer products also decreases with each product life cycle. Companies should not only concentrate on selling units but also on creating a brand image.</p>
<p style="text-align: justify;">
	Finally, the lack of multi-skilled professionals in the newer arenas of business makes it difficult for the company’s old guard to let go of draconian or obsolete practices. This ultimately leads to turf wars over domain control. Convergence along with technological advancements has brought a tough competition in the media market. However, the level of seriousness is still very low. Acharya shares, “There is stiff competition &nbsp;to be the first to give the news to the audience but the accuracy and credibility of the news is lacking.” The skill demanded by Media Convergence is not being provided. He further says, “A computer literate media person is not good enough. We are using computers as typewriters and to get access to news only. Modern forms of technology should be better utilized. More creativity can be presented by using them which is not being done”. Nepali media is not fully aware about media creativeness. “Media are aware but not serious because they use online media for their convenience right now but they are not making long term assessments,” he says. In a period of 10 years, only the fittest will survive. His only request to media editors and directors is that they should stay updated with latest trends in media through training or orientations. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Market and Technology Convergence</strong></p>
<p style="text-align: justify;">
	By plotting time against portability and interactivity and at the same time, selected parameters that might be called the benchmarks of technology progress namely moving image, computing, voice communication and games, we can get a historical perspective as well as deduce where the combined technologies are headed.&nbsp;</p>
<p style="text-align: justify;">
	However, in this case of mapping, the word convergence is never intended to suggest replacement (i.e. not everything is moving to one entity or point). All of the elements on the charts are still in existence and, except for VHS and DVD, will be around for a good while. We also see ‘divergence’ of media forms as it morphs across a sea of devices that continue to grow, layer upon layer.&nbsp;</p>
<p style="text-align: justify;">
	All technology makers and marketers would like to know what the next will be. In the portable domain will we always have separate phone and serious gaming device? We are already seeing the merging of the phone, organiser and media player (4GB phones are already in the market) – given you can dock these portable devices to the larger screen, carry all your content and that they can receive high definition TV, do we need fixed devices at all?&nbsp;</p>
<p style="text-align: justify;">
	<strong>Technology Convergence in Nepal</strong></p>
<p style="text-align: justify;">
	iPhone can be used in Nepal but it cannot be fully utilized. The phone clearly denies the user an access to its online stores by saying that the service is not supported in the region. This is due to the lack of an online payment system. On the contrary, Nokia phones are developing local contents for Nepal. Microsoft also provides Nepali language fonts for usage. However, the customers can use only the free services and not the priced contents. This can result in slow usage of technologies also. The telecom companies should be involved in this business. Both Ncell and NTC are providing mobile Internet service. This helps the users to use more social entertainment sites and random online contents but making full use of the latest technological innovations is difficult. Ncell has come out as the market leader with its gorgeous advertisements and user-friendly services. However, the customers want more.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Understanding, Practicing and Innovating</strong></p>
<p style="text-align: justify;">
	Increasingly, one can observe a definitive trend in the convergence of understanding, practicing and innovating in the competitive marketplace where each participant is eying the largest chunk of the pie. Understanding the needs of the consumer has taken on a new importance with extreme segmentation and fragmentation in the marketplace. Identifying this need and creating a new product or service to fill this gap has gained prime importance, more so akin to a rasion d’être for the companies. From high value-high involvement products like home loans and automobiles to low value-low involvement products like detergent powders and toothpastes to soft drinks, companies are increasingly spending huge amounts of money to understand the patterns and motivations of the consumers for selecting, purchasing and using a certain brand.&nbsp;</p>
<p style="text-align: justify;">
	Even more important, the brand association that the consumers make with a certain brand can make or break the brand equity of a company’s product and the difference between success and failure of the product in the market. A constant drive to innovate and come out with better products is reflected in the ever-increasing amounts of R&amp;D spending of the companies. For example, high technology products like Nokia’s mobile handsets are made based on a constant feedback on usage and understanding of mobile phones by the customers. This has led to the incorporation of higher levels of innovation and user-friendliness in the next handset made by Nokia.</p>
<p style="text-align: justify;">
	A new concept on the horizon is co-creating value. This happens between the consumer and the manufacturer. The manufacturer actively seeks the cooperation of the consumer for creating new products.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Creativity/Design with Technology and Business Sense&nbsp;</strong></p>
<p style="text-align: justify;">
	It wasn’t a long time ago when even the top copysmiths of advertising like Neil French used to write copy for ads and fit them in typesets for printing. Nowadays, even a copywriter in a small agency in a small town will type out the copy quickly on the computer and the graphic designer will fit it into the ad’s layout and send out the soft copy to the newspaper for printing. Technology innovation from typewriters to computers has made this shift possible. A school student with a typical Pentium desktop computer has, at his disposal, more computing power than NASA had when it sent the first man to the moon. The great enabler in this case, technology, is progressing with such rapid pace that the latest, most cutting-edge technology is rendered almost outdated within a few months of its release. Creative visualisers using advanced software like Adobe Photoshop and CorelDraw are daily creating breathtaking graphical masterpieces that would have taken even a Leonardo da Vinci months, if not years, to create.</p>
<p style="text-align: justify;">
	Convergence in technological standards like image formats (jpegs, gifs, etc.), audio-video formats (mpeg, avi, etc.), audio formats (mp3, wma, etc.), and so on, combined with interpolability and compatibility to use, share and transfer this data (USB, flash drives, DVDs and other optical storage) has created a powerful technology-design combo that professionals across the world are using in physical form as well as virtual form (cyberspace – Internet). Add to this, the keen entrepreneurial mind of a businessman and you have technology monoliths like the Times Group and others like AOL-Warner, Sony and Apple amongst many others who dominate the commercial landscape. Convergence is changing the way people live their lives on a daily basis.&nbsp;</p>
<div style="text-align: justify;">
	<div>
		<strong>Convergence of Classroom (Brick &amp; Mortar) with Internet (Click &amp; Portal) and Learning by Doing (Experiential): Experiential Brick and Portal&nbsp;</strong></div>
	<div>
		 </div>
	<div>
		<img alt="Midas EClass" height="86" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_midas_class.jpg" width="217" /></div>
	<div>
		Traditional classroom model has been in an evolutionary phase ever since technology innovations have made networking possible. Satellite communications like VSAT have enabled hundreds of thousands of students across the world to virtually attend lectures. The University Grants Commission (UGC) has empowered students in India because of this education and technology convergence. In professional courses, the emphasis has always been on practical knowledge rather than just theoretical inputs. The value addition to the professional skills development is far more when students are exposed to theories and their practical applications. Added to this is the new dimension of Internet learning. Numerous universities, colleges and institutes, especially in Western Europe and North America, are now offering degree courses through the Internet. This dissolves all cultural, geographical and social barriers for people who cannot afford the time and/or money to attend full time courses in foreign countries. The effective combination of these three models of learning- traditional classrooms, Internet and practical experiences, has become necessary for the students of today to become successful professionals of tomorrow.&nbsp;</div>
	<div>
		 </div>
	<div>
		Nepal is moving towards using technology for education, replacing the traditional “Chalk and Talk” method. Midas Education, a pioneer in the development of ICT (Information Communication Technology) in the education sector, encourages interactive teaching and learning. Students make use of PowerPoint presentations and other IT tools to enhance their skills and be prepared for the modern world. To bring a drastic change in the education sector, growth of ICT is very important. Information flow is unavoidable today due to the Internet and students are using GOOGLE for their education along with textbooks. The next challenge for Midas Education is to take ICT to the villages but as anyone can imagine, it is not an easy task. Use of ICT increases accuracy and quality of education and saves valuable time. Thus, ICT is necessary to modify the existent education pattern and to develop it.&nbsp;</div>
	<div>
		 </div>
	<div>
		Initially, it is difficult to use a new technology and learning it might take some time. But, as soon as we get used to it, there are only benefits to enjoy. Technology makes life comfortable and fast. The real beneficiaries of technology in Nepal are the students. Technology has been making their lives easier. They can easily grasp vague concepts. They do not need to mug up their course books these days; they have a chance to present their creativity. Along with the students, teachers are also benefiting.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Consumption &amp; Media Buying</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		There was a time when you had simple choices to make – like choosing one newspaper from the three or four available, one radio station, one television station that broadcast only in the evenings, a couple of magazines from half a dozen available and so on. As the market kept segmenting and fragmenting, we now have thousands of radio stations to choose from with WorldSpace, Star TV itself telecasting more than half a dozen channels round the clock, there are more than a couple of dozen newspapers to choose from, hundreds of magazines to choose from and the story does not end there. With the advent of newer technologies, we now have newer channels of communications like mobile, Internet and direct-to-home television along with exponential storage capabilities on optical media like CDs and DVDs. Today, a typical consumer is bombarded with more than 1,000 messages per day. Marketers are finding newer ways and means to target the consumers.&nbsp;</div>
	<div>
		 </div>
	<div>
		One limitation for media consumption and media buying for Nepali consumers comes from the frequent load-shedding. This problem also makes an impact on the convergence cycle. The current trend is that the media houses are using all forms of media from print to radio to TV to online portals. One form of media is subsidizing the other. During the winter season, when the load-shedding is at its peak, advertisements in the TV decrease significantly to only 25 per cent as compared to the summer season. However, while the TVs are suffering from losses, the ads in the radio increase. Thus, radio subsidizes TV. Image Channel initially owned two TV stations: Image Channel and Image Metro. Now, it has replaced Image Metro with a new radio station, Image News, while the already existent Image FM still exists. This is an example of merging different types of media in one window, which is possible due to media convergence.&nbsp;</div>
	<div>
		 </div>
	<div>
		Another example of convergence in media consumption is the way in which consumers actively hunt for information. 3G mobile handsets are designed for high speed Internet connections and the user opts to use them in a variety of ways; like checking the online navigation to watch out for traffic jams, weather forecasts, locating the nearest fuel station, hospital or even a restaurant; everything is possible with the mobile handset. It also backs up as a personal information manager (PIM), a music player, a camera and a portable gaming device. Internet usage on the phone is aiding to media consumption but many people cannot afford it.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Ownership</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		A massive diversification of media, thanks to the Internet, materialized by millions of websites, fora, blogs and wikis is taking place. That evolution, often labelled citizen journalism or citizen media, makes it possible for practically everybody to be a media creator, owner and actor, instead of a passive user.&nbsp;</div>
	<div>
		 </div>
	<div>
		With the technological advancements, convergence is expected to take various new forms. One form of media subsidizes the other and this poses a risk of developing a media tycoon. Currently, the Kantipur Media Group can give a run to the state media monopoly. It has an online news portal, a TV channel and radio broadcasting stations along with print media of daily and weekly newspapers, and monthly magazines. It is also considered the fastest and most reliable source of news. This has all been possible due to the proper utilization of technology.&nbsp;</div>
	<div>
		 </div>
	<div>
		Some of the largest media conglomerates in the world include American Media Inc., Bell Globemedia, Bertelsmann, Canwest Global, NBC Universal, Hearst Corporation, Lagardère Media, Liberty Media, News Corporation, Grupo PRISA, Rogers Communications, Sony, Time Warner, The Times Group (distinct from Times Newspapers of News Corportation), Viacom (owned by National Amusements), CBS Corp (also owned by National Amusements), and The Walt Disney Company.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in the Interests of Dual Markets&nbsp;</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		As more and more companies across industries look at multiple media platforms, especially the digital media, it is also emerging as a revenue-earning model for most of them. Also, e-commerce is growing rapidly and a host of companies are setting up online shops across portals.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Two sides of Media Convergence</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		With freedom, come the responsibilities. Media convergence has made a positive impact upon the advertisers. They only need to buy a small space in the websites and their ads get displayed 24 hours a day for as long as they want. The ads on the TV and newspapers last for a shorter period and are comparatively more expensive than the online ads. The design of the advertisements can also be changed from time to time. Also, the growing trend of media houses trying to use all forms of broadcasting media and print media makes it possible for the advertisers to negotiate rates. Their marketing is now more cost effective than before. They can easily use different tools of media and show their advertisements to their consumers through websites, TV, radio, as well as newspapers.</div>
	<div>
		 </div>
	<div>
		The Interim Constitution provides publication and broadcasting freedom to media but again imposes certain restrictions that allow the media to enjoy only the relative freedom. The online media however does not follow these rules and regulations. Online media has no monitoring system and in today’s world, the flow of information is difficult to stop. Hence, news that can be harmful should be stopped from spreading.&nbsp;</div>
	<div>
		 </div>
	<div>
		The definition of media is not the same as it was a decade ago. Facebook is an example of this. This new social media has influenced us largely. Now, every citizen is a reporter as he or she can constantly update news through Facebook. The news about Paras Shah getting a heart attack was published in the Facebook before any other media houses could print or broadcast it. Technology is responsible for this. While 10 years ago, technology turned the world into a global village, today it has changed the world into a global family. If a person in Nepal gets married today and updates his photos on Facebook, his friend in the US can see the photos. This ignores the geographical boundaries and aids in sharing cultures between people of different nations. Thus, it has been making a positive impact worldwide.&nbsp;</div>
	<div>
		 </div>
	<div>
		When the Royal Palace Massacre took place in 2001, &nbsp;a rumour was spread saying that somebody had mixed a poison in the water coming from the Water Supply Tank in Sundarijal. That was a time when people had no other forms of communication except for the landline phones at their homes. If that was enough to discourage many people from drinking water inside Kathmandu valley, we must think how effective can such rumours be today. We have all the powerful tools of communication from mobile phones to the Internet and it will take only seconds for such rumours to spread. &nbsp;Hence, with media convergence, self-regulation is required. People are required to be more responsible. Ill-intended propaganda and rumours should not be published.</div>
	<div>
		 </div>
	<div>
		<strong>Future Impacts</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		It is certain that over the next five years, technology will not remain the same. Newer versions will be available that will bring about more revolutionary changes. Hence, impact is a vague word in future terms. With changes in technology, the working processes will change which will provide the necessary opportunities towards beneficial transformations. The use of the latest technology produces beneficial products but education regarding technology is a limiting factor for a country like ours. With around 50 per cent of the graduating population having some form of knowledge regarding Information Technology (IT), it is not an impossible challenge. However, the business owners and leaders have the responsibility of encouraging this population for increased use of IT. &nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Media Education: Need for a Paradigm Shift</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		<img align="left" alt="Media Education" height="139" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_media_education.jpg" style="margin:0 10px 0 0;" width="200" />The world today is in the midst of one of the most dramatic technological revolutions in history. It is effecting changes in everything ranging from the ways we work, communicate commerce and spend our leisure time. The technological revolution which is underway centers on computer, information, communication, and multimedia technologies and may be seen to be the beginnings of a knowledge or information society. In such a society, education has a central role in every aspect of life. The proliferation of communication-information technologies poses tremendous challenges. It compels educators to rethink their basic tenets and to deploy the media in creative and productive ways. It forces them to restructure ways of learning-teaching to respond constructively and progressively to the technological and social changes that we are now experiencing.&nbsp;</div>
	<div>
		 </div>
	<div>
		Midas Education has been contributing to the development of ICT for education for about 12 years now. This continuous growth of Midas comes from continuous positive responses and moral support they got from their customers. Just like the processors developed in recent years from Pentium IV to i7, adding more layers in their newer versions, Midas has also been adding layers in their work to promote the use of ICT in the education sector. &nbsp;Raju Baniya, Business Manager of Midas Education, says, “This has improved our results year on year. We started with making self learning CDs and now we are trying to transform the class rooms.</div>
	<div>
		 </div>
	<div>
		As a consequence of information super highway and communication technologies, media and communication education have undergone almost unbelievable changes. The old lines between disciplines are becoming obsolete. The work of professional communicators is undergoing a dramatic change. Resultantly, there are likely to be very few belonging to one discipline which might be conversant with all forms of media in the days to come. With such metamorphosis of the professions underway, it is a real challenge to prepare students for successful professional careers in the era of convergence and connectivity of the variety of media.&nbsp;</div>
	<div>
		 </div>
	<div>
		In an era characterized by convergence of technologies the need for skilled media professionals who understand the foundation, both ethical and practical, from which they need to work, becomes even more critical. But without adequate training in new media skills, the goal will remain unachievable. This crisis in media requires to be addressed in the class room where young professionals are molded and sculpted. But to meet the needs of the fast growing media industry, an ongoing training is vital to ensure that those working in the field have to grow and develop. This entails broadening, updating and upgrading the core component of the media education at various levels.&nbsp;</div>
	<div>
		 </div>
	<div>
		What media students today need is nothing short of a leading-edge education suited to the needs of networked globalised industry. This would involve greater accent on fundamental concepts, values and skills needed to prepare them for communication careers commensurate with unprecedented changes. They need be fully equipped to understand the whole of communication scenario, be able to solve problems and imbibe the ethical and legal implication of media and communication which will let them be comfortable with innovation and working in concert with their peers. The object of the new media education is to prepare students for leadership roles in their professions and in their communities.&nbsp;</div>
	<div>
		 </div>
	<div>
		With a view to achieving the object of quality media education, the institute of Mass Communications are in dire need of reconfiguring and updating their curriculum to produce graduates who are prepared for future leadership roles in the media and communication industries and who are able to communicate across disciplines and in multiple media formats. This for providing students with strong core content in critical thinking, research and analysis, information gathering, writing, graphics and design, and law and ethics and the latest media technology and skills. It is not always possible for teachers to take students to lab to conduct required educational activities. Similarly, the task of taking students for field visit for practical knowledge is also not possible every time. In this context, the MiDas eCLASS offers audio-visual contents that complement the lab activities and field visit to enable the students to gain real-life experience.&nbsp;</div>
	<div>
		 </div>
	<div>
		The media education departments must offer to their students fully computerized reporting and editing classes, and create totally digital classroom and laboratory systems. They must orient themselves to revise their journalism curriculum and always be ready to undergo continual adjustments in response to changes in the profession. Far from print and broadcast sequences running separate, as is the case today, students in the two sequences need to plan news coverage together and work together in the labs. Tomorrow, it is quite likely that the sequences might disappear and students will be required to work seamlessly on stories for print, electronic media and the Internet – or whatever systems will exist in the future.&nbsp;</div>
	<div>
		Same is the case for students of marketing communications who need to integrate the different tools of branding and marketing: advertising, public relations, event management, digital marketing, direct marketing, etc, before specializing in one functional area.</div>
	<div>
		 </div>
	<div>
		For entertainment media students, it is significant to integrate skills for the entire entertainment industry: from television to cinema, from radio to digital entertainment, from events to musicals, etc.</div>
	<div>
		 </div>
</div>',
			'published' => true,
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			'description' => 'With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.',
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			'id' => '893',
			'article_category_id' => '37',
			'title' => 'Debate Of The Month: Is The Reality Sector Really Picking Up?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="background:#f9f5a1;padding:3px;">
	<p>
		<strong>Nepali Real Estate at a Glance</strong></p>
	<ul>
		<li>
			Over 400 institutional real estate entrepreneurs across the country; 147 of them registered at Nepal Land and Housing Development Association&nbsp;</li>
		<li>
			From laymen to professionals like doctors and engineers are in this business</li>
		<li>
			The door for organised housing in Nepal opened after the 1995 Collective Housing Act allowed private ownership of apartment units</li>
		<li>
			The investment of banking and financial institutions (BFIs) in real estate and housing stands at around Rs 150 billion; Private sector promoters and builders have invested another Rs 250 billion</li>
		<li>
			The real estate market in Nepal grew significantly after the 1990 political change. It registered impressive growth even during the Maoist insurgency until the late 2008 when it started to slow down.</li>
		<li>
			According to the latest data, commercial banks have given about Rs 68 billion in real estate loans, which is 10.4 percent of the total loans issued by them. Commercial banks’ total lending to the realty sector reached its peak in Jan 2011 to almost Rs 99 billion or 20 per cent of their total lending.</li>
		<li>
			Now, most of the commercial banks which were overtly exposed to the real estate sector have brought down their exposure to below 25 percent level. At the same time, outflow of home loans of up to Rs 10 million has been picking up, with the total amount expanding from Rs 30.83 billion in October 2011 to almost Rs 40 billion by the end of 2012. Several development banks and finance companies are yet to overcome their real estate loan problem.&nbsp;</li>
		<li>
			It is, however, said that a fairly large portion of loans extended to the real estate sector is in the guise of overdraft and term loans, indicating that the problems of the real estate sector in Nepal could be far from over.</li>
	</ul>
</div>
<p style="text-align: justify;">
	We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010. NRB not only put a ceiling on real estate loans but also made it mandatory for real estate buyers to declare their income source for purchase of property worth more than Rs 5 million.&nbsp;</p>
<p style="text-align: justify;">
	Many bankers and real estate players compared this NRB move with a driver’s attempt to stop at once a car speeding along at 80 miles an hour. “When you press on the brakes to stop such a car at once, it is almost always doomed to crash. This is what happened to Nepal’s real estate and housing sector,” complain many bankers. According to them, maybe what happened to the country’s real estate industry over the past three years cannot be called a crash, but the industry was hit really, really hard.</p>
<p style="text-align: justify;">
	But it seems things have started to change now, for the better. After a three-year long slump, Nepal’s real estate and housing sector has shown some signs of improvement of late. Many analysts and industry insiders are still hesitant to call it the beginning of a recovery but even they admit that cautious optimism has replaced the general mood of doom and gloom prevalent in the industry as early as even a few months ago.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the market at present, it is apparent that the genuine, long-term developers have survived the slump, while those who joined the fray just for fast cash have, perhaps, been combed out. Meanwhile, the NRB, too, has adopted a bit flexible approach to the sector in this period which the private sector stakeholders deem as inadequate. Similarly, there have been reports that real estate and housing borrowers who had the banks’ doors shut for them until recently have started getting scrutinized entries into the banks.&nbsp;</p>
<p style="text-align: justify;">
	There are some other signs as well that indicate that the realty sector might have started to climb up. According to real estate entrepreneurs and housing developers, this business has growth by 33 per cent in the first half of the current fiscal year, compared to the same period the previous year.&nbsp;</p>
<p style="text-align: justify;">
	Government revenue from this sector, too, has increased by nearly Rs 370 million in the first six months of this FY, compared to the same period the previous FY. Given these developments, Nubiz asked some of the major players of Nepal’s realty sector, bankers and regulators whether the sector has really started to witness a revival? Here is what they had to say: &nbsp;&nbsp;</p>
<p style="text-align: center;">
	<strong><span style="font-size: 14px;">‘There are positive signs’</span></strong></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img align="left" alt="Ichchha Raj Tamang" height="283" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_ichchha.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Ichchha Raj Tamang</strong></address>
	<address>
		<strong>President</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">This sector was doing very well. We all know that. But then some banks started speculative lending which was followed by others. This provoked the NRB to take stringent measures in the real estate and housing. The NRB, too, should not have implemented that decision at once. Anyway, the combined effect was that the realty sector faced a long slump.&nbsp;</span></p>
<p style="text-align: justify;">
	However, we have seen some positive signs for the realty sector in the first half of the current fiscal year. Statistics show that this sector has grown by 33 per cent in the first six months of the current fiscal year than the same period of the previous fiscal year. We hear that government revenue from the sale of land and houses has gone up in the first six months of this fiscal year. That is another indicator that the sector might have started picking up. Banks, too, have started new home loans at lower interest rates. Though they appear hesitant to invest in the housing apartments, their lending to individuals for land and houses, and loans to multi-storied commercial business complexes being built around Kathmandu have increased in recent months.&nbsp;</p>
<p style="text-align: justify;">
	These are good signs for the realty sector. The other important thing is this market has already witnessed almost the rock-bottom situation. This situation could not continue forever; it had to show the signs of revival. That is what has perhaps started to happen.&nbsp;</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div style="text-align: center;">
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;">‘Market activity has increased’</b></span></div>
<div>
	 </div>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Bhesh Raj Lohani" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhesh.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Bhesh Raj Lohani</strong></address>
	<address>
		<strong>Secretary</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">In the first six months of the current fiscal year, the government has collected Rs 2.27 billion in revenue from the sale of land and houses. The figure was only Rs 1.9 billion in the first six months of the previous fiscal year. It is true that the increased tax rates have contributed to this growth but the number of land and house transactions has also increased this year. The sales of low-priced land and houses have particularly gone up.</span></p>
<p style="text-align: justify;">
	Banks have lowered their interest rates for loans from as high as 17 per cent last year to around 10 per cent recently. Remittance inflow has grown; this too has helped the real estate business. The NRB, too, has adopted somewhat liberal policies for the real estate sector, especially after the sector fell into a deep crisis from which it is struggling to come out now. There are scores of middle-class families who need houses and apartments as their permanent residences. Stand-alone houses are still bigger attractions for Nepalis than the apartments. Recent experiences, too, have shown that.</p>
<p style="text-align: justify;">
	If the current growth rate continues, then we can expect more investment in this sector by the end of this fiscal year. The realty business was stagnant for almost three years. Many buyers were waiting for the prices to come down. And the prices have indeed come down significantly, compared to three years ago. So, market activities have surely increased.</p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘Real estate is gradually improving’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<p style="text-align: justify;">
		<img alt="Bhaskar Mani Gyawali" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhaskar.jpg" style="margin:0 10px 0 0;" width="202" /></p>
	<address>
		<address style="text-align: justify;">
			<b>Bhaskar Mani Gyawali</b></address>
		<address style="text-align: justify;">
			<b>Spokesperson</b></address>
		<address style="text-align: justify;">
			<b>Nepal Rastra Bank</b></address>
		<div style="text-align: justify;">
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	We have observed that Nepal’s realty sector has shown a gradual improvement over the past few months. The improvement has not been as expected. But what I can say is the country’s real estate sector has seen its worst; things will only improve from here. Actually this process has already started. As the regulator, NRB has done all it could, to help banks recover their loans to this sector. NRB’s directives issued from time to time have helped the real estate sector to overcome the crisis it has been in for more than the past three years.</p>
<p style="text-align: justify;">
	Speculative pricing by some real estate players and speculative lending by some banks is mainly to blame for the realty slump in Nepal. The only solution to the problems in the real estate and housing sector is that real estate owners and housing developers should be ready to sell their property at minimal profits, sometimes without any profit and in some cases even at certain amount of loss. Otherwise, the interest of the bank will keep rising and they will be sinking deeper and deeper in the problem. If this is done, 75 per cent problems of the real estate and housing sector will be automatically resolved.&nbsp;</p>
<p style="text-align: justify;">
	In recent months, banks have started issuing new home and land loans at lower interest rates. This is good sign. Government revenue from the sale of land and houses, too, has witnessed almost one-third growth in the first half of this fiscal year compared to the same period the last fiscal year. This also shows that the real estate business might have started to pick up. I am sure that the situation will improve further in the days to come. &nbsp; &nbsp; &nbsp; &nbsp;</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b><br />
	</b></span></p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘We can’t really say that the revival has started’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Anil Shah, Mega Bank" height="299" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_anil(1).jpg" style="margin:0 10px 0 0;" width="202" />
	<address>
		<address>
			<address>
				<b>Anil Shah</b></address>
			<address>
				<b>CEO</b></address>
			<address>
				<b>Mega Bank</b></address>
			<div>
				 </div>
		</address>
		<div>
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	 </p>
<p>
	Given the current situation, we can’t really say that the realty sector has shown improvements. However, the good thing is the downward spiral has stopped. Some big apartment companies are still in problems. In fact, it is these companies that are responsible for delaying the recovery. So, the reality is the improvement in this sector is definitely not as expected. The banks, too, are not very willing to invest in this sector, especially in the apartments.</p>
<p>
	The buyers, too, are not interested in the apartments. However, now the banks are not compelled to put home loans up to Rs 10 million under real estate loans; the NRB has shown this much flexibility. This relaxation has surely helped the banks, which have invested nearly Rs 150 billion in the real estate sector, and also the real estate promoters.</p>
<p>
	We can’t really say that a revival has started in the realty sector. We’d better wait for some more time and see how things unfold. Meanwhile, the NRB did not say a word about the real estate sector in the mid-term review of the Monetary Policy for the current fiscal year. It must have disappointed the entire sector as well as the banks which have a sizeable investment in this sector.</p>
<div>
	 </div>',
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			'modified' => '2013-05-23',
			'keywords' => 'Debate Of The Month: Is The Reality Sector Really Picking Up?',
			'description' => 'We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010.',
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			'title' => 'Utter Discouragement',
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			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="From the editor, March 2013" height="362" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_from_the_editor(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi. The company is planning to construct a 2.9 km tunnel connecting Kulekhani and Bhimphedi stretch of Kathmandu-Hetauda road. The proposed tunnel will reduce the Kathmandu-Hetauda road distance to 58 km and travel duration to 45 minutes. It now takes at least four hours to drive between the two cities.</p>
<p style="text-align: justify;">
	But the Company’s plan to lay a foundation stone for the tunnel on February 8 was dampened by the government inaction and the prescheduled ceremony was just limited to a ritual pooja than the real act of marking the formal beginning of construction. Contrary to the expectation, the government didn’t sign a go-ahead agreement with the NPBCL so as to allow the Company to formally inaugurate the construction of the tunnel on the very day.</p>
<p style="text-align: justify;">
	The government reservation that the Company didn’t have convincing plans to repay the investors was a mere excuse given the credibility of the people involved as promoters, shareholders and partners of the company.</p>
<p style="text-align: justify;">
	Firstly, it is promoted by wider participation of local beneficiaries. Though their investment may be small in amount, it would automatically provide a social audit framework for such a large project. As the number of promoters is going to be 264,000, the company is unlikely to be case of one large single obligor insolvency, even if the company, by any chance, met an unexpected fate.</p>
<p style="text-align: justify;">
	Second, the promoters themselves, including Joshi, are renowned business leaders and the government must have an iota of trust on them. If not, whom will it trust upon to invest in?</p>
<p style="text-align: justify;">
	Third, there are organizations like Non-resident Nepali Association (NRNA) that have signed agreement to invest and help complete the project in stipulated four-year period. Despite these all, if the officials in the Ministry of Physical Planning and Transport Management had any reservation on any issue, that had to be resolved through negotiation with the company, before setting the date of official inaugural.&nbsp;</p>
<p style="text-align: justify;">
	The modalities for sharing benefits between promoters and public investors, collection of the toll and plans of financial closure are undoubtedly important for a Rs 20 billion project. But they had to be sorted out well ahead setting the date of formal commencement of the construction. The Company’s approach to take the government’s likely obstruction for granted and the government intention to obstruct in any pretext have given all the wrong messages to the public about the very future of the project.</p>
<p style="text-align: justify;">
	The government contention that the estimated cost of the project was too low and funding sources were not clearly demonstrated, are not a well-founded. To say the least, it is not the business of the government to tell a private company whether any amount it set aside for the project was enough or not. And, the funding sources the Company has enlisted are of course the most credible ones available in Nepal.</p>
<p style="text-align: justify;">
	This episode is the combination of government’s unfriendly attitude towards the private sector and ad-hoc working style of Nepali corporate sector. The government must acknowledge the fact that it is the first large-scale private sector initiative to invest in country’s key infrastructure like road project. For this reason, the government should leave no stone unturned to facilitate the execution of the project. And, on the part of the company, there should be more transparent and convincing flow of information, so that the mala fide government intentions could easily be defeated by the strength of public confidence on it.</p>
<p style="text-align: justify;">
	There are questions whether the entire road from Balkhu of Kathmandu to Hetauda will be developed by the Company or is it constructing the tunnel alone and expects the government to make the rest of 55 km road widened to four-lanes with the tax-payers’ money. In such a case, how will the tolled amount be distributed?</p>
<p style="text-align: justify;">
	Obviously, the Company must have discussed these things with the relevant government agencies in detail. But the same details have not come to the public notice. Therefore, it is important that both parties, the government and the Company, played a transparent game so that this project can set a benchmark for future such projects.&nbsp;</p>',
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			'keywords' => '',
			'description' => 'The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi.',
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			'title' => 'Product Is More Important Than Profit',
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			'content' => '<p style="text-align: justify;">
	<img align="right" alt="S.P. Sharma, Godrej Security Solutions India" height="347" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_visitng_business_people_sp_sharma.jpg" style="margin:0 0 0 10px;" width="280" /></p>
<p style="text-align: justify;">
	S.P. Sarma is the Senior General Manager of the Global Operation for Godrej Security Solutions India. Graduated in Engineering and MBA, Sarma has been working with Godrej for the last 23 years. He served the company with different roles from service, sales and marketing and became the head of the global operation. In an interview with New Business Age when he was in Kathmandu recently, Sarma explained the necessity of the security products in business organizations.</p>
<p style="text-align: justify;">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the purpose of your current trip to Nepal?</strong></p>
<p style="text-align: justify;">
	My trip is to meet the customers and our partners in Nepal. We organize such kinds of trips time to time because we value our customers very much. We feel that whatever success has been there, It is because we are able to meet the demand of customers. And the expectation of the customers can be fulfilled if we come and listen to them.</p>
<p style="text-align: justify;">
	<strong>Could you please tell us about Godrej Security Solutions?</strong></p>
<p style="text-align: justify;">
	Godrej Security Solutions is a 100 years old division of Godrej Company. Our company is providing security products to financial institutions, jewelry companies, private organizations and households. We started producing these products in 1992 and now we have developed many advanced products according to the demand of customer. We believe that the product is more important than profit. With Godrej security solutions customers can get peace of mind. The other benefit they get is trust. We have been able to live up because of the trust of our customers. Majority of Financial Institutions functioning today are offered our prompt and efficient services.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your business strategies for your security products in the international market?</strong></p>
<p style="text-align: justify;">
	Our security products are of latest technologies. We are present in Europe, Africa, South East Asia and every year we have valuable partners. Security is running battle . It is essential to keep pace with the latest technology to meet growing needs. This is the reason why we have graduated from simple lever and tumbler locks several years ago to modern, intelligent technologies. We are also doing research and developing in new ways to update our products. So far, as I said, we have been able to win trust of the customers. Our business is also going good and we are planning to put up a new plant in Maharashtra, Mumbai.</p>
<p style="text-align: justify;">
	We have moved from being simply a seller of security products to a company selling comprehensive security solution. We offer diverse security product solutions including technologically advanced sphere such as cameras with analytics, substance detectors (bomb, bullets, and narcotics), X-ray baggage scanners, biometrics and access control systems, burglary and fire resistant safes, road blockers and marine solutions. Our products are tested stringently at leading testing laboratories i.e. SP Test in Sweden, VDS Test in Germany and the underwriter’s laboratory in the United States. Our plant in Mumbai is rated as one of the finest and largest factories in India. Our passion to offer international quality product with prompt supply, delivery, installation and most importantly after-sales servicing have been commended by many reputed companies.</p>
<p style="text-align: justify;">
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p style="text-align: justify;">
	I think it is very good. We see Nepal being very vibrant and I personally see that Nepal is on the way to development. And I feel that the banks and financial institutes are going to be the lubricants which will further enhance the development. We may offer our service to these banks and financial institutes as our commitment is to win the trust of our customers. Our supply of Godrej products to Nepal Rastra Bank and Nepal Bank Ltd made in the 1960’s still stands strong to this day, same as our sincerity and services towards our customers. We can proudly state that we have been able to come up to our customers’ expectations.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can Nepali customers get your service in Nepal?</strong></p>
<p style="text-align: justify;">
	Our commitment to the services to our customers is delivered almost by our trusted partner; - Nepal Commercial Enterprises Pvt. Ltd. It provides Godrej security equipment, home and office furniture, storage equipment and locks along with numerous retail outlets to our customers in Nepal. They also retail home safes and locks at Bhat-Bhateni and other outlets, making security a convenient purchase around their vicinity. &nbsp;The corporate showroom at Pulchowk offers a wide range of products from locking systems, security solutions, and home and office furniture.</p>
<p style="text-align: justify;">
	 </p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'S.P. Sarma is the Senior General Manager of the Global Operation for Godrej Security Solutions India. Graduated in Engineering and MBA, Sarma has been working with Godrej for the last 23 years.',
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$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '905',
			'article_category_id' => '34',
			'title' => 'FNCCI To Build Exhibition Centre',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Federation of Nepalese Chamber of Commerce and Industry" height="130" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_fncci.jpg" style="margin:0 10px 0 0;" width="120" />Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu. According to the Office of the Prime Minister, the cabinet meeting held on February 15 has decided to lease 82 ropanis land of the park to FNCCI for the construction of the exhibition centre. Similarly, the office has also directed the UN Park Development Committee to complete the necessary procedures for construction of the centre.</p>
<p style="text-align: justify;">
	Bhaskar Raj Rajkarnikar, Senior Vice President of the FNCCI said that, the construction will begin from the next fiscal year. “Designing of the exhibition centre is underway. The centre will come into operation within two years after the construction begins” he revealed.&nbsp;</p>
<p style="text-align: justify;">
	FNCCI had demanded 150 ropanis of land for the construction of the centre. Rajkarnikar said that, the necessary infrastructures will be developed in the land provided by the government. According to Bhawani Rana, Vice President of FNCCI, the construction of the centre will cost Rs 1 billion. “The investment will solely be made by the FNCCI,” she said. The centre will have exhibition area and convention hall.</p>
<p style="text-align: justify;">
	According to Rana, plan to develop a new exhibition centre was formulated as the one in Bhrikutimandap is felt narrow and additional amenities. The soon to be constructed centre will have special provision for vehicle parking. The FNCCI says that, the centre will also offer a venue for organising international programmes and events.</p>
<p style="text-align: justify;">
	The Ministry of Urban Development expressed hope that the centre will be an appropriate venue to hold large trade expos. Spokesperson of the ministry, Suresh Prakash Acharya said that, the present exhibition hall at Bhrikutimandap will be used to hold small expos. He said that, though the government will not have any direct investment on the centre, it will provide necessary technical support.</p>',
			'published' => true,
			'created' => '2013-03-24',
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			'keywords' => '',
			'description' => 'Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu.',
			'sortorder' => '787',
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		'Article' => array(
			'id' => '904',
			'article_category_id' => '34',
			'title' => 'Four Financial Institutions Merge To Make Apex Bank',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Apex Bank Ltd" height="115" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_apexbank.jpg" width="504" /></p>
<p style="text-align: justify;">
	After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”. &nbsp;These institutions signed on Memorandum of Understanding (MoU) on Feb. 27, 2013.&nbsp;</p>
<p style="text-align: justify;">
	Rameshwor Thapa, coordinator of the merger has stated that after the merger, the newly formed commercial bank will come to operation after they get the approval from the central bank, Nepal Rastra Bank (NRB). He also added that they have got the approval from NRB to expand branches within a year. &nbsp;</p>
<p style="text-align: justify;">
	After the completion of the merger the new bank will have a total of 43 branches with total of 315 employees. The financial institutions are on discussion for selecting the Chief Executive Officer for the new Bank. Moreover, the trading of the shares of these financial institutions has been suspended for the purposes of merger by Npese.</p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”.',
			'sortorder' => '786',
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			'breaking_news' => false,
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		'Article' => array(
			'id' => '903',
			'article_category_id' => '34',
			'title' => '79% Remittance Goes For Consumption',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually. According to the Nepal Living Standards Survey 2011, published by Central Bureau of Statistics, 79 per cent of all the remittance is used for consumption purpose.&nbsp;</p>
<p style="text-align: justify;">
	According to the 2011 Census report, there are 1.92 million missing population which means they are living outside the country. The census report of 2001 says that there were only 762,181 missing population, a decade ago.&nbsp;</p>
<p style="text-align: justify;">
	Experts say that those who choose foreign employment basically belong to rural areas and are from a poor family. So, their first requirement is fulfilling their basic needs – food, clothes and shelter. So, majority of the remittance goes for meeting those basic requirements. Suman Pokharel, CEO of International Money Express said it is usual for remittance being used more for consumption. “It is the first preference for those who have difficulty in meeting their basic needs to fulfil their requirements. So, it should not be taken otherwise,” he said.</p>
<p style="text-align: justify;">
	People having thatched roof have upgraded to galvanised sheet, better quality food grains, better clothing and have purchase mobile phones and televisions. Pokharel, however accepts that the remittance has been used for unnecessary expenditures lately.&nbsp;</p>
<p style="text-align: justify;">
	To control the unproductive use of remittance, the central bank had come up with idea of bonds targeting migrant workers but according to Bhaskar Mani Gyawali, Spokesperson of Nepal Rastra Bank, none of the companies have requested the release of the bonds. According to the census report, 55.8 per cent households receive remittance with an average of Rs 80,436 per each household.</p>
<div style="text-align: justify;">
	 </div>',
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			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually.',
			'sortorder' => '785',
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	(int) 3 => array(
		'Article' => array(
			'id' => '902',
			'article_category_id' => '62',
			'title' => 'Voices March 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img align="left" alt="Rajan Singh Bhandari" height="213" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_rajan.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><strong>“The liquidity situation must be addressed before the market faces crisis.”</strong></span></p>
<p style="text-align: justify;">
	<em><strong>Rajan Singh Bhandari</strong>, President of Nepal Bankers’ Association asking Nepal Rastra Bank to solve the impending liquidity problem before problems appears.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Seven per cent economic growth is just a daydream unless political impasse can be ended.” </span></strong></p>
<p style="text-align: justify;">
	<em><strong>Deependra Bahadur Kshetry</strong>, Vice Chairman of National Planning Commission explaining that high economic growth cannot be achieved amid ongoing political uncertainty.</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“We should invest 35 per cent of the GDP to achieve seven per cent economic growth.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Ram Sharan Mahat</strong>, recommending a formula to achieve seven per cent economic growth in Nepal.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Yuba Raj Khatiwada" height="218" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_yuba.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Current situation cannot be termed as liquidity crisis.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Yuba Raj Khatiwada</strong>, Governor of Nepal Rastra Bank clarifying the heightened worries over the looming liquidity crisis in the banking system. He said that the liquidity ratio in the banks is 29.5 per cent in average.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Radhesh Pant" height="229" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_radhesh.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Policy stability is what we need for encouraging both national and foreign investors.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Radhesh Pant</strong>, Chief Executive Officer of Nepal Investment Board explaining that political impasse is not only the cause of low investment. &nbsp;</em></p>
<p style="text-align: justify;">
	 </p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-05-22',
			'keywords' => '',
			'description' => 'The liquidity situation must be addressed before the market faces crisis.',
			'sortorder' => '784',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
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	(int) 4 => array(
		'Article' => array(
			'id' => '901',
			'article_category_id' => '50',
			'title' => 'Insuring The Nepali Sky',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Insuring the Nepali sky" height="286" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_insuring_the_nepali_sky.jpg" style="margin:0 10px 0 0;" width="200" />Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit. One of the reasons stated is high premium paid to the foreign reinsurer companies. If a domestic reinsurance company can be brought into the scene, the money that is going abroad can be saved.</p>
<p style="text-align: justify;">
	Another probable reason for the aviation insurance to become a loss making business is the high rate of accidents under the Nepali sky. The frequent air crashes lead to higher compensation payment to the insured. This also increases the premium to be paid to the reinsures who have vowed to bear all the risks. It is obvious that whenever there is higher risk, the reinsurers will seek higher premiums. So, ultimately the insurance premium for the aircrafts flying into the high mountain areas becomes high. Unless, the high risks of the aviation industry in Nepal are managed, profitable aviation insurance seems to be a far cry. For that, more safety measures need to be undertaken by the airlines as well as better technology for navigation and other systems must be in place which helps to minimize the air accidents.</p>
<address>
	<strong>Uttammani Dhungana</strong></address>
<address>
	<strong>Sagarmatha College</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-03-24',
			'keywords' => '',
			'description' => 'Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit.',
			'sortorder' => '783',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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	(int) 5 => array(
		'Article' => array(
			'id' => '900',
			'article_category_id' => '50',
			'title' => 'Petroleum Dilemma',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Petroleum Dilemma, Feedback" height="297" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_petroleum_dilemma.jpg" style="margin:0 10px 0 0;" width="180" />There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal. Meanwhile, some experts have predicted possibilities of finding petroleum in the plains of Nepal. Some studies have been carried out but as of now, it has not been explored. More detailed and extensive studies need to be carried out to be certain about the prospects of finding petroleum in Nepal.</p>
<address>
	<strong>Subash Tandukar</strong></address>
<address>
	<strong>Lagankhel</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal.',
			'sortorder' => '782',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
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	),
	(int) 6 => array(
		'Article' => array(
			'id' => '899',
			'article_category_id' => '50',
			'title' => 'Shakespeare Today',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for. Very few are able to take him out of the world of literature to the real life management world. The article by Sujit Mundul on February 2013 issue of New Business Age has beautifully juxtaposed Shakespeare and his characters with the leadership in the corporate world. The write-up enriched with the narratives and extracts from the work of literature has vividly pictured and exemplified the leadership qualities and sought for the managerial traits in the Shakespearean characters.</p>
<address>
	<strong>Rakshya Sharma</strong></address>
<address>
	<strong>Dhumbarahi, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for.',
			'sortorder' => '781',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
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	(int) 7 => array(
		'Article' => array(
			'id' => '898',
			'article_category_id' => '50',
			'title' => 'Diversified Content',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy. From the February 2013 issue, it seems to be incorporating more issues and richer content. It is a good sign that the magazine is trying to capture the attention of wider and diverse readers. As a regular reader of the magazine, I would be elated to read more stories about the global economic and business issues.</p>
<address>
	<strong>Pradeep Acharya</strong></address>
<address>
	<strong>Lazimpat, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy.',
			'sortorder' => '780',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
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		'Article' => array(
			'id' => '897',
			'article_category_id' => '50',
			'title' => 'Realistic Satires',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img align="left" alt="Realistic Satires, Feedback" height="221" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_realistic_satires.jpg" style="margin:0 10px 0 0;" width="280" /></p>
<p style="text-align: justify;">
	The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous. At the same time it is a healthy satire on the business and economic world.</p>
<address>
	<strong>Subash Tandukar, Pravat Shrestha</strong></address>
<address>
	<strong>Tokha</strong></address>',
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			'description' => 'The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous.',
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		'Article' => array(
			'id' => '896',
			'article_category_id' => '40',
			'title' => '‘We Need To Develop Our E-commerce First’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<address>
	<strong><img align="right" alt="Sanjay Golchha, Golchha Organization" height="313" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_sanjay.jpg" style="margin:0 0 0 10px;" width="274" /><span style="color:#3ab0c4;"><span style="font-size: 22px;">'We need to develop e-commerce first'</span></span></strong></address>
<address>
	<strong><br />
	</strong></address>
<address>
	<strong>Sanjay Golchha</strong></address>
<address>
	<strong>Director</strong></address>
<address>
	<strong>Golchha Organization</strong></address>
<p>
	<strong style="text-align: justify;">What is an example of media convergence in Nepal due to the advent of new communication technologies?</strong></p>
<p style="text-align: justify;">
	Digital media is the most useful form of media for the advertisers. Online marketing has not been fully explored in Nepal. Although social media sites like Facebook have high usage in Nepal, advertisements on facebook are not very effective. Media convergence has only recently started making some impact. People do not understand the power of the digital media. Only international contents can be found in online ads, not the local content.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the most useful communication technology convergence in the Nepali media?</strong></p>
<p style="text-align: justify;">
	To make use of communication technology in Nepal, e-commerce should develop first. It is not developing due to social and technical inefficiencies in Nepal. Online digital ads will be prominent on the Internet or on the websites only after we have a developed e-commerce business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the impact of media convergence on Nepal’s media industry?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence will come slowly. This requires economic development and political stability in the country. This can provide a platform for the ecommerce businesses to develop more content. People are not using the online media to buy things online. Due to the poor financial situation of the country, people are not in a hurry to buy anything. They want to use their time to choose the products they want to buy. Another thing is, even if the people were interested in buying products online, the online payment system has not yet come into practice. Firstly, they cannot pay and secondly they cannot trust buying products online. Hence, there are many pending issues with regard to media convergence. First, the Nepali commerce and media industry should develop; the ads will follow later.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How long shall it take to make a full impact?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence can be seen soon. But, for this the Internet bandwidths should be cheaper and the Internet should be more accessible to the people. Online payment systems should also be developed and promoted. Due to the conservative financial system, online payment is difficult. Domestic payment systems should be prioritized and the international payment systems will automatically develop. The world is globalized today and lack of an online payment system is a major disadvantage to us. Businessmen should invest in e-commerce development. More pioneers are required. E-commerce websites like Thamel.com and Muncha.com are well established businesses. Airlines have also advanced in this sector. Buddha Air, Yeti Air and others as well have already started providing online reservation service to their customers.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are the changes required in the media industry to adapt to the changes of media convergence?</strong></p>
<p style="text-align: justify;">
	They can also be explored for business development but this has not been done at all.&nbsp;</p>
<p style="text-align: justify;">
	If providing Internet on the phone brought a lot of profit to the mobile phone companies, then development of online payment system will be even more profitable. Nepal is a tourist destination. The tourism industry flourishes throughout the country. But, it is difficult for the tourists to learn more about Nepal before their visit. Tourism related websites are advertised in the international online media to attract tourists. However, when they want to make a hotel reservation to ensure that they already have a place to stay before visiting the country, it is not possible. Similarly, products like coffee and carpets that are exported abroad cannot be advertised properly. The major reason for this is the lack of an online payment system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What can the advertisers do in order to benefit from the changes of media technology convergence?</strong></p>
<p style="text-align: justify;">
	We need to invest in e-commerce. This can help local businesses to reach customers around the world. Lack of an online payment system is a loss for tourism-dependent <strong>businesses like hotels and travel agencies as well as the exporters. The payment taking mechanism is difficult which is why the online advertising is not fully developing.</strong></p>
<div style="background:#fcf88d;padding:5px;">
	<p style="text-align: justify;">
		<strong>The Paradigm Shift</strong></p>
	<p style="text-align: justify;">
		There has also been a shift in terms of media’s target consumers. Traditionally, the primary market was the target of media companies. The primary market included television viewers, radio listeners, website surfers, and newspaper and magazine readers. While the secondary market includes the marketers, the competing companies and other media as well. There has been a convergence in these two groups as now they both are targeted equally by the media companies.&nbsp;</p>
	<p style="text-align: justify;">
		Sanjay Golchha is also involved with Mindshare Nepal, which is a digital marketing company, the first of its kind in Nepal. It is the authorized agent for GOOGLE in Nepal and works in close relation with the businesses companies of Nepal. They are involved in Search Engine Marketing (SEM), which is the biggest source of online advertisements. They are also focusing upon social engineering, advertising the tourism and travel websites as well as promoting export products online. Currently, their major focus is upon providing email-marketing services to the local businesses. &nbsp;Mindshare Nepal Pvt. Ltd. collaborates with two companies who are experts in Software (IT Nepal) and marketing (Linez). Email marketing allows the businesses to reach thousands of people with a single message and see their response instantly.&nbsp;</p>
</div>
<div>
	 </div>',
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			'description' => 'The impact of media convergence can be seen soon. But, for this the Internet bandwidths should be cheaper and the Internet should be more accessible to the people.',
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		'Article' => array(
			'id' => '895',
			'article_category_id' => '40',
			'title' => '‘Companies Should Focus On Building Brands, Not On Selling Units’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="Abhaya Pandey" height="254" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_abhaya.jpg" width="250" /><br />
	</strong><strong>Abhaya Pandey</strong><strong>Advertising Professional</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>How is media convergence affecting Nepal’s advertising industry?</strong></p>
<p style="text-align: justify;">
	Online Media is an example of the impact of Media Convergence in Nepal but it has not been able to make a significant impact yet. There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement. &nbsp;</p>
<p style="text-align: justify;">
	<strong>How has Social Media Education (SEM) changed over the years?</strong></p>
<p style="text-align: justify;">
	While social media education advertisements were mostly like BCC (Behaviour Change Consumerism) previously, today ad literacy has increased. This also requires more ad communication experts to convey social educational messages in an entertaining manner. The challenge today is not only giving information but also persuading consumers to buy the product or the message. While traditional media required information education, today information has to be conveyed through entertaining ads that can easily grab the people’s attention. Education is possible through entertainment only. Functional value is changing. Humour, fear campaigns, sensationalization etc should be embedded into ads to make them both entertaining and educational. Only educational ads will make people switch between TV channels. The government, NGOs and INGOs should be more responsible towards SME.</p>
<p style="text-align: justify;">
	<strong>How is the “Brand Personality” of a company reflected in its advertisements?&nbsp;</strong></p>
<p style="text-align: justify;">
	Sixty per cent of the total cement consumed in Nepal is produced in Nepal; only the remaining 40 per cent is imported. This clearly suggests a lack of competition in the domestic market. Many companies are trying to establish their brand names in the cement industry but special emphasis has not been placed in making better advertisements for those brands. The richest organizations of Nepal, the banks are limited to the urban areas and are yet to reach the villages. Hence, there is not much competition in the banking sector as well. Brands are classified in terms of the advertisements that they demand. Clients should think long-term. They should focus on building brands and not only on selling units. The market of instant noodles can be called competitive and this is reflected in &nbsp;their advertisements as well. People can easily associate more with the noodle brands than with others.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What is the biggest challenge in the advertisement sector today?</strong></p>
<p style="text-align: justify;">
	The biggest challenge for Nepali business companies is to use advertisements to grab the people’s attention first and then to convey the message of the brands. Some ads are very descriptive which makes them absurd instead of creative. This can lead to a disconnection between the brand message and the advertisement message. It’s only a tool. Ideas combined with technology are necessary to create better advertisements and awesome brand images. The market is changing from supply-oriented to demand-oriented. More competition and professionalism is required in the corporate houses. Only after these basics are met, the companies can focus on creativity and design of their brands. If the brands and production companies start focusing upon brand image today, they will be able to stand out even 25 years from now. Glossy ads are not always creative ads.</p>
<div style="text-align: justify;">
	 </div>',
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			'description' => 'Online Media is an example of the impact of Media Convergence in
Nepal but it has not been able to make a significant impact yet.  There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '894',
			'article_category_id' => '40',
			'title' => 'Media Convergence: Impact On Business',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="text-align: justify;">Media convergence is a theory, and subsequently a practice, in communications where every mass or niche medium eventually merges with each other to the point that they are indistinguishable from each other, creating a new medium from the synthesis, due to the advent of new communication technologies. With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.&nbsp;</span></p>
<p style="text-align: justify;">
	A prominent example of media convergence in Nepal is the online media. It has had a significant impact upon the conventional print and broadcasting media. Globally, it has proved to be very influential. In the USA and other developed nations of the world, everyone uses advanced technologies such as &nbsp;iPhone, Blackberrys and other gadgets that help them stay updated every second. People do not wait for the next day to read the newspapers. The online news portals get updated every minute with new news flowing in. According to Suresh Prasad Aacharya, Academic Advisor at the Shepherd College of Media Technology, such an example can also be seen in Nepali radios. Radios provide news bulletins every hour. The same news is followed by the televisions and is viewed by the audience in the evening.&nbsp;</p>
<p style="text-align: justify;">
	The online portals also update the news. Next morning, almost the same news is printed in the newspapers. Again, the radios conduct programmes in they which repeat the same news they broadcast a day ago. Hence, a cycle of convergence can also be seen in Nepal as the news reports get reproduced again and again by various forms of media. This is beneficial to the media consumers as they can stay updated through various forms of media. But this process weakens the media houses. Reporters can also benefit from this cycle. Most of the print media located outside the valley use online sources for the news. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Challenges in Convergence</strong></p>
<p style="text-align: justify;">
	While the industry at large is excited about media convergence, it also has its share of concerns. The unanimous one is the lack of adequate bandwidth. The bandwidth cost is too high and needs to be brought down drastically. In Nepal, Internet usage is very low. The fact that 18 per cent of the population uses the Internet is exaggerated. Hence, this makes it difficult for the media companies to use the Internet to communicate with their audience. Only 5-6 per cent Nepalis have been able to make effective use of the Internet. &nbsp;In Korea, there are half-a-million subscribers who receive 11 channels live on their mobiles. Only when there is enough bandwidth, can the business be ramped up.</p>
<p style="text-align: justify;">
	The other challenge is educating consumers to use the various new media. The latest technologies such as HD camera and the latest software are not being utilized to the full extent. &nbsp;Though we capture advertisements in HD (High Definition), it is shown in SD (Standard Definition). This has been making a little difference in quality but the full potential of technology remains unexplored. Consumers here have some access to the latest technological goods but consumer education for their proper usage is not being encouraged. The industry will not grow unless the consumer is educated and aware of the available technologies and their usage.</p>
<p style="text-align: justify;">
	Apart from reaching consumers at various touch-points through convergence of the media, companies are also looking at it as a media to cater to the individual needs of consumers. And for this, the need of the hour is to generate adequate content. The Nepali media lacks the competition to generate adequate content. Producers are not compelled to make better advertisements. Advertisements are reflections of the competition among the brands. The clients want only glossy ads. They have a conservative mentality, as they want to stay 125 per cent secure. They prefer traditional, tried and tested methods that are still selling. Bringing creativity in media and advertisements requires more courage and clients by nature want security. Content availability has not kept pace with the changing consumers. Content generators have to generate enough to cater to individual tastes.&nbsp;</p>
<p style="text-align: justify;">
	Another perspective to the challenges is the industry - one where companies need to be more and more competitive in their marketing and product strategies. For this, they need to constantly innovate new products and therefore, reallocate an increasing amount of resources to research and development. Looking at the TV commercials in Nepal, one can easily see the lack of competition to generate adequate content Most of the commercials are that of FMGC (Fast Moving Consumer Goods). These markets are somewhat competitive and thus they focus on generating enough content to attract their consumers. However, for the products with uncompetitive market, the need to make the extra effort is not felt. This can result in the lack of contents in media. As more companies compete, the gestation period for newer products also decreases with each product life cycle. Companies should not only concentrate on selling units but also on creating a brand image.</p>
<p style="text-align: justify;">
	Finally, the lack of multi-skilled professionals in the newer arenas of business makes it difficult for the company’s old guard to let go of draconian or obsolete practices. This ultimately leads to turf wars over domain control. Convergence along with technological advancements has brought a tough competition in the media market. However, the level of seriousness is still very low. Acharya shares, “There is stiff competition &nbsp;to be the first to give the news to the audience but the accuracy and credibility of the news is lacking.” The skill demanded by Media Convergence is not being provided. He further says, “A computer literate media person is not good enough. We are using computers as typewriters and to get access to news only. Modern forms of technology should be better utilized. More creativity can be presented by using them which is not being done”. Nepali media is not fully aware about media creativeness. “Media are aware but not serious because they use online media for their convenience right now but they are not making long term assessments,” he says. In a period of 10 years, only the fittest will survive. His only request to media editors and directors is that they should stay updated with latest trends in media through training or orientations. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Market and Technology Convergence</strong></p>
<p style="text-align: justify;">
	By plotting time against portability and interactivity and at the same time, selected parameters that might be called the benchmarks of technology progress namely moving image, computing, voice communication and games, we can get a historical perspective as well as deduce where the combined technologies are headed.&nbsp;</p>
<p style="text-align: justify;">
	However, in this case of mapping, the word convergence is never intended to suggest replacement (i.e. not everything is moving to one entity or point). All of the elements on the charts are still in existence and, except for VHS and DVD, will be around for a good while. We also see ‘divergence’ of media forms as it morphs across a sea of devices that continue to grow, layer upon layer.&nbsp;</p>
<p style="text-align: justify;">
	All technology makers and marketers would like to know what the next will be. In the portable domain will we always have separate phone and serious gaming device? We are already seeing the merging of the phone, organiser and media player (4GB phones are already in the market) – given you can dock these portable devices to the larger screen, carry all your content and that they can receive high definition TV, do we need fixed devices at all?&nbsp;</p>
<p style="text-align: justify;">
	<strong>Technology Convergence in Nepal</strong></p>
<p style="text-align: justify;">
	iPhone can be used in Nepal but it cannot be fully utilized. The phone clearly denies the user an access to its online stores by saying that the service is not supported in the region. This is due to the lack of an online payment system. On the contrary, Nokia phones are developing local contents for Nepal. Microsoft also provides Nepali language fonts for usage. However, the customers can use only the free services and not the priced contents. This can result in slow usage of technologies also. The telecom companies should be involved in this business. Both Ncell and NTC are providing mobile Internet service. This helps the users to use more social entertainment sites and random online contents but making full use of the latest technological innovations is difficult. Ncell has come out as the market leader with its gorgeous advertisements and user-friendly services. However, the customers want more.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Understanding, Practicing and Innovating</strong></p>
<p style="text-align: justify;">
	Increasingly, one can observe a definitive trend in the convergence of understanding, practicing and innovating in the competitive marketplace where each participant is eying the largest chunk of the pie. Understanding the needs of the consumer has taken on a new importance with extreme segmentation and fragmentation in the marketplace. Identifying this need and creating a new product or service to fill this gap has gained prime importance, more so akin to a rasion d’être for the companies. From high value-high involvement products like home loans and automobiles to low value-low involvement products like detergent powders and toothpastes to soft drinks, companies are increasingly spending huge amounts of money to understand the patterns and motivations of the consumers for selecting, purchasing and using a certain brand.&nbsp;</p>
<p style="text-align: justify;">
	Even more important, the brand association that the consumers make with a certain brand can make or break the brand equity of a company’s product and the difference between success and failure of the product in the market. A constant drive to innovate and come out with better products is reflected in the ever-increasing amounts of R&amp;D spending of the companies. For example, high technology products like Nokia’s mobile handsets are made based on a constant feedback on usage and understanding of mobile phones by the customers. This has led to the incorporation of higher levels of innovation and user-friendliness in the next handset made by Nokia.</p>
<p style="text-align: justify;">
	A new concept on the horizon is co-creating value. This happens between the consumer and the manufacturer. The manufacturer actively seeks the cooperation of the consumer for creating new products.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Creativity/Design with Technology and Business Sense&nbsp;</strong></p>
<p style="text-align: justify;">
	It wasn’t a long time ago when even the top copysmiths of advertising like Neil French used to write copy for ads and fit them in typesets for printing. Nowadays, even a copywriter in a small agency in a small town will type out the copy quickly on the computer and the graphic designer will fit it into the ad’s layout and send out the soft copy to the newspaper for printing. Technology innovation from typewriters to computers has made this shift possible. A school student with a typical Pentium desktop computer has, at his disposal, more computing power than NASA had when it sent the first man to the moon. The great enabler in this case, technology, is progressing with such rapid pace that the latest, most cutting-edge technology is rendered almost outdated within a few months of its release. Creative visualisers using advanced software like Adobe Photoshop and CorelDraw are daily creating breathtaking graphical masterpieces that would have taken even a Leonardo da Vinci months, if not years, to create.</p>
<p style="text-align: justify;">
	Convergence in technological standards like image formats (jpegs, gifs, etc.), audio-video formats (mpeg, avi, etc.), audio formats (mp3, wma, etc.), and so on, combined with interpolability and compatibility to use, share and transfer this data (USB, flash drives, DVDs and other optical storage) has created a powerful technology-design combo that professionals across the world are using in physical form as well as virtual form (cyberspace – Internet). Add to this, the keen entrepreneurial mind of a businessman and you have technology monoliths like the Times Group and others like AOL-Warner, Sony and Apple amongst many others who dominate the commercial landscape. Convergence is changing the way people live their lives on a daily basis.&nbsp;</p>
<div style="text-align: justify;">
	<div>
		<strong>Convergence of Classroom (Brick &amp; Mortar) with Internet (Click &amp; Portal) and Learning by Doing (Experiential): Experiential Brick and Portal&nbsp;</strong></div>
	<div>
		 </div>
	<div>
		<img alt="Midas EClass" height="86" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_midas_class.jpg" width="217" /></div>
	<div>
		Traditional classroom model has been in an evolutionary phase ever since technology innovations have made networking possible. Satellite communications like VSAT have enabled hundreds of thousands of students across the world to virtually attend lectures. The University Grants Commission (UGC) has empowered students in India because of this education and technology convergence. In professional courses, the emphasis has always been on practical knowledge rather than just theoretical inputs. The value addition to the professional skills development is far more when students are exposed to theories and their practical applications. Added to this is the new dimension of Internet learning. Numerous universities, colleges and institutes, especially in Western Europe and North America, are now offering degree courses through the Internet. This dissolves all cultural, geographical and social barriers for people who cannot afford the time and/or money to attend full time courses in foreign countries. The effective combination of these three models of learning- traditional classrooms, Internet and practical experiences, has become necessary for the students of today to become successful professionals of tomorrow.&nbsp;</div>
	<div>
		 </div>
	<div>
		Nepal is moving towards using technology for education, replacing the traditional “Chalk and Talk” method. Midas Education, a pioneer in the development of ICT (Information Communication Technology) in the education sector, encourages interactive teaching and learning. Students make use of PowerPoint presentations and other IT tools to enhance their skills and be prepared for the modern world. To bring a drastic change in the education sector, growth of ICT is very important. Information flow is unavoidable today due to the Internet and students are using GOOGLE for their education along with textbooks. The next challenge for Midas Education is to take ICT to the villages but as anyone can imagine, it is not an easy task. Use of ICT increases accuracy and quality of education and saves valuable time. Thus, ICT is necessary to modify the existent education pattern and to develop it.&nbsp;</div>
	<div>
		 </div>
	<div>
		Initially, it is difficult to use a new technology and learning it might take some time. But, as soon as we get used to it, there are only benefits to enjoy. Technology makes life comfortable and fast. The real beneficiaries of technology in Nepal are the students. Technology has been making their lives easier. They can easily grasp vague concepts. They do not need to mug up their course books these days; they have a chance to present their creativity. Along with the students, teachers are also benefiting.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Consumption &amp; Media Buying</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		There was a time when you had simple choices to make – like choosing one newspaper from the three or four available, one radio station, one television station that broadcast only in the evenings, a couple of magazines from half a dozen available and so on. As the market kept segmenting and fragmenting, we now have thousands of radio stations to choose from with WorldSpace, Star TV itself telecasting more than half a dozen channels round the clock, there are more than a couple of dozen newspapers to choose from, hundreds of magazines to choose from and the story does not end there. With the advent of newer technologies, we now have newer channels of communications like mobile, Internet and direct-to-home television along with exponential storage capabilities on optical media like CDs and DVDs. Today, a typical consumer is bombarded with more than 1,000 messages per day. Marketers are finding newer ways and means to target the consumers.&nbsp;</div>
	<div>
		 </div>
	<div>
		One limitation for media consumption and media buying for Nepali consumers comes from the frequent load-shedding. This problem also makes an impact on the convergence cycle. The current trend is that the media houses are using all forms of media from print to radio to TV to online portals. One form of media is subsidizing the other. During the winter season, when the load-shedding is at its peak, advertisements in the TV decrease significantly to only 25 per cent as compared to the summer season. However, while the TVs are suffering from losses, the ads in the radio increase. Thus, radio subsidizes TV. Image Channel initially owned two TV stations: Image Channel and Image Metro. Now, it has replaced Image Metro with a new radio station, Image News, while the already existent Image FM still exists. This is an example of merging different types of media in one window, which is possible due to media convergence.&nbsp;</div>
	<div>
		 </div>
	<div>
		Another example of convergence in media consumption is the way in which consumers actively hunt for information. 3G mobile handsets are designed for high speed Internet connections and the user opts to use them in a variety of ways; like checking the online navigation to watch out for traffic jams, weather forecasts, locating the nearest fuel station, hospital or even a restaurant; everything is possible with the mobile handset. It also backs up as a personal information manager (PIM), a music player, a camera and a portable gaming device. Internet usage on the phone is aiding to media consumption but many people cannot afford it.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Ownership</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		A massive diversification of media, thanks to the Internet, materialized by millions of websites, fora, blogs and wikis is taking place. That evolution, often labelled citizen journalism or citizen media, makes it possible for practically everybody to be a media creator, owner and actor, instead of a passive user.&nbsp;</div>
	<div>
		 </div>
	<div>
		With the technological advancements, convergence is expected to take various new forms. One form of media subsidizes the other and this poses a risk of developing a media tycoon. Currently, the Kantipur Media Group can give a run to the state media monopoly. It has an online news portal, a TV channel and radio broadcasting stations along with print media of daily and weekly newspapers, and monthly magazines. It is also considered the fastest and most reliable source of news. This has all been possible due to the proper utilization of technology.&nbsp;</div>
	<div>
		 </div>
	<div>
		Some of the largest media conglomerates in the world include American Media Inc., Bell Globemedia, Bertelsmann, Canwest Global, NBC Universal, Hearst Corporation, Lagardère Media, Liberty Media, News Corporation, Grupo PRISA, Rogers Communications, Sony, Time Warner, The Times Group (distinct from Times Newspapers of News Corportation), Viacom (owned by National Amusements), CBS Corp (also owned by National Amusements), and The Walt Disney Company.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in the Interests of Dual Markets&nbsp;</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		As more and more companies across industries look at multiple media platforms, especially the digital media, it is also emerging as a revenue-earning model for most of them. Also, e-commerce is growing rapidly and a host of companies are setting up online shops across portals.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Two sides of Media Convergence</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		With freedom, come the responsibilities. Media convergence has made a positive impact upon the advertisers. They only need to buy a small space in the websites and their ads get displayed 24 hours a day for as long as they want. The ads on the TV and newspapers last for a shorter period and are comparatively more expensive than the online ads. The design of the advertisements can also be changed from time to time. Also, the growing trend of media houses trying to use all forms of broadcasting media and print media makes it possible for the advertisers to negotiate rates. Their marketing is now more cost effective than before. They can easily use different tools of media and show their advertisements to their consumers through websites, TV, radio, as well as newspapers.</div>
	<div>
		 </div>
	<div>
		The Interim Constitution provides publication and broadcasting freedom to media but again imposes certain restrictions that allow the media to enjoy only the relative freedom. The online media however does not follow these rules and regulations. Online media has no monitoring system and in today’s world, the flow of information is difficult to stop. Hence, news that can be harmful should be stopped from spreading.&nbsp;</div>
	<div>
		 </div>
	<div>
		The definition of media is not the same as it was a decade ago. Facebook is an example of this. This new social media has influenced us largely. Now, every citizen is a reporter as he or she can constantly update news through Facebook. The news about Paras Shah getting a heart attack was published in the Facebook before any other media houses could print or broadcast it. Technology is responsible for this. While 10 years ago, technology turned the world into a global village, today it has changed the world into a global family. If a person in Nepal gets married today and updates his photos on Facebook, his friend in the US can see the photos. This ignores the geographical boundaries and aids in sharing cultures between people of different nations. Thus, it has been making a positive impact worldwide.&nbsp;</div>
	<div>
		 </div>
	<div>
		When the Royal Palace Massacre took place in 2001, &nbsp;a rumour was spread saying that somebody had mixed a poison in the water coming from the Water Supply Tank in Sundarijal. That was a time when people had no other forms of communication except for the landline phones at their homes. If that was enough to discourage many people from drinking water inside Kathmandu valley, we must think how effective can such rumours be today. We have all the powerful tools of communication from mobile phones to the Internet and it will take only seconds for such rumours to spread. &nbsp;Hence, with media convergence, self-regulation is required. People are required to be more responsible. Ill-intended propaganda and rumours should not be published.</div>
	<div>
		 </div>
	<div>
		<strong>Future Impacts</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		It is certain that over the next five years, technology will not remain the same. Newer versions will be available that will bring about more revolutionary changes. Hence, impact is a vague word in future terms. With changes in technology, the working processes will change which will provide the necessary opportunities towards beneficial transformations. The use of the latest technology produces beneficial products but education regarding technology is a limiting factor for a country like ours. With around 50 per cent of the graduating population having some form of knowledge regarding Information Technology (IT), it is not an impossible challenge. However, the business owners and leaders have the responsibility of encouraging this population for increased use of IT. &nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Media Education: Need for a Paradigm Shift</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		<img align="left" alt="Media Education" height="139" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_media_education.jpg" style="margin:0 10px 0 0;" width="200" />The world today is in the midst of one of the most dramatic technological revolutions in history. It is effecting changes in everything ranging from the ways we work, communicate commerce and spend our leisure time. The technological revolution which is underway centers on computer, information, communication, and multimedia technologies and may be seen to be the beginnings of a knowledge or information society. In such a society, education has a central role in every aspect of life. The proliferation of communication-information technologies poses tremendous challenges. It compels educators to rethink their basic tenets and to deploy the media in creative and productive ways. It forces them to restructure ways of learning-teaching to respond constructively and progressively to the technological and social changes that we are now experiencing.&nbsp;</div>
	<div>
		 </div>
	<div>
		Midas Education has been contributing to the development of ICT for education for about 12 years now. This continuous growth of Midas comes from continuous positive responses and moral support they got from their customers. Just like the processors developed in recent years from Pentium IV to i7, adding more layers in their newer versions, Midas has also been adding layers in their work to promote the use of ICT in the education sector. &nbsp;Raju Baniya, Business Manager of Midas Education, says, “This has improved our results year on year. We started with making self learning CDs and now we are trying to transform the class rooms.</div>
	<div>
		 </div>
	<div>
		As a consequence of information super highway and communication technologies, media and communication education have undergone almost unbelievable changes. The old lines between disciplines are becoming obsolete. The work of professional communicators is undergoing a dramatic change. Resultantly, there are likely to be very few belonging to one discipline which might be conversant with all forms of media in the days to come. With such metamorphosis of the professions underway, it is a real challenge to prepare students for successful professional careers in the era of convergence and connectivity of the variety of media.&nbsp;</div>
	<div>
		 </div>
	<div>
		In an era characterized by convergence of technologies the need for skilled media professionals who understand the foundation, both ethical and practical, from which they need to work, becomes even more critical. But without adequate training in new media skills, the goal will remain unachievable. This crisis in media requires to be addressed in the class room where young professionals are molded and sculpted. But to meet the needs of the fast growing media industry, an ongoing training is vital to ensure that those working in the field have to grow and develop. This entails broadening, updating and upgrading the core component of the media education at various levels.&nbsp;</div>
	<div>
		 </div>
	<div>
		What media students today need is nothing short of a leading-edge education suited to the needs of networked globalised industry. This would involve greater accent on fundamental concepts, values and skills needed to prepare them for communication careers commensurate with unprecedented changes. They need be fully equipped to understand the whole of communication scenario, be able to solve problems and imbibe the ethical and legal implication of media and communication which will let them be comfortable with innovation and working in concert with their peers. The object of the new media education is to prepare students for leadership roles in their professions and in their communities.&nbsp;</div>
	<div>
		 </div>
	<div>
		With a view to achieving the object of quality media education, the institute of Mass Communications are in dire need of reconfiguring and updating their curriculum to produce graduates who are prepared for future leadership roles in the media and communication industries and who are able to communicate across disciplines and in multiple media formats. This for providing students with strong core content in critical thinking, research and analysis, information gathering, writing, graphics and design, and law and ethics and the latest media technology and skills. It is not always possible for teachers to take students to lab to conduct required educational activities. Similarly, the task of taking students for field visit for practical knowledge is also not possible every time. In this context, the MiDas eCLASS offers audio-visual contents that complement the lab activities and field visit to enable the students to gain real-life experience.&nbsp;</div>
	<div>
		 </div>
	<div>
		The media education departments must offer to their students fully computerized reporting and editing classes, and create totally digital classroom and laboratory systems. They must orient themselves to revise their journalism curriculum and always be ready to undergo continual adjustments in response to changes in the profession. Far from print and broadcast sequences running separate, as is the case today, students in the two sequences need to plan news coverage together and work together in the labs. Tomorrow, it is quite likely that the sequences might disappear and students will be required to work seamlessly on stories for print, electronic media and the Internet – or whatever systems will exist in the future.&nbsp;</div>
	<div>
		Same is the case for students of marketing communications who need to integrate the different tools of branding and marketing: advertising, public relations, event management, digital marketing, direct marketing, etc, before specializing in one functional area.</div>
	<div>
		 </div>
	<div>
		For entertainment media students, it is significant to integrate skills for the entire entertainment industry: from television to cinema, from radio to digital entertainment, from events to musicals, etc.</div>
	<div>
		 </div>
</div>',
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			'description' => 'With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.',
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			'id' => '893',
			'article_category_id' => '37',
			'title' => 'Debate Of The Month: Is The Reality Sector Really Picking Up?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="background:#f9f5a1;padding:3px;">
	<p>
		<strong>Nepali Real Estate at a Glance</strong></p>
	<ul>
		<li>
			Over 400 institutional real estate entrepreneurs across the country; 147 of them registered at Nepal Land and Housing Development Association&nbsp;</li>
		<li>
			From laymen to professionals like doctors and engineers are in this business</li>
		<li>
			The door for organised housing in Nepal opened after the 1995 Collective Housing Act allowed private ownership of apartment units</li>
		<li>
			The investment of banking and financial institutions (BFIs) in real estate and housing stands at around Rs 150 billion; Private sector promoters and builders have invested another Rs 250 billion</li>
		<li>
			The real estate market in Nepal grew significantly after the 1990 political change. It registered impressive growth even during the Maoist insurgency until the late 2008 when it started to slow down.</li>
		<li>
			According to the latest data, commercial banks have given about Rs 68 billion in real estate loans, which is 10.4 percent of the total loans issued by them. Commercial banks’ total lending to the realty sector reached its peak in Jan 2011 to almost Rs 99 billion or 20 per cent of their total lending.</li>
		<li>
			Now, most of the commercial banks which were overtly exposed to the real estate sector have brought down their exposure to below 25 percent level. At the same time, outflow of home loans of up to Rs 10 million has been picking up, with the total amount expanding from Rs 30.83 billion in October 2011 to almost Rs 40 billion by the end of 2012. Several development banks and finance companies are yet to overcome their real estate loan problem.&nbsp;</li>
		<li>
			It is, however, said that a fairly large portion of loans extended to the real estate sector is in the guise of overdraft and term loans, indicating that the problems of the real estate sector in Nepal could be far from over.</li>
	</ul>
</div>
<p style="text-align: justify;">
	We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010. NRB not only put a ceiling on real estate loans but also made it mandatory for real estate buyers to declare their income source for purchase of property worth more than Rs 5 million.&nbsp;</p>
<p style="text-align: justify;">
	Many bankers and real estate players compared this NRB move with a driver’s attempt to stop at once a car speeding along at 80 miles an hour. “When you press on the brakes to stop such a car at once, it is almost always doomed to crash. This is what happened to Nepal’s real estate and housing sector,” complain many bankers. According to them, maybe what happened to the country’s real estate industry over the past three years cannot be called a crash, but the industry was hit really, really hard.</p>
<p style="text-align: justify;">
	But it seems things have started to change now, for the better. After a three-year long slump, Nepal’s real estate and housing sector has shown some signs of improvement of late. Many analysts and industry insiders are still hesitant to call it the beginning of a recovery but even they admit that cautious optimism has replaced the general mood of doom and gloom prevalent in the industry as early as even a few months ago.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the market at present, it is apparent that the genuine, long-term developers have survived the slump, while those who joined the fray just for fast cash have, perhaps, been combed out. Meanwhile, the NRB, too, has adopted a bit flexible approach to the sector in this period which the private sector stakeholders deem as inadequate. Similarly, there have been reports that real estate and housing borrowers who had the banks’ doors shut for them until recently have started getting scrutinized entries into the banks.&nbsp;</p>
<p style="text-align: justify;">
	There are some other signs as well that indicate that the realty sector might have started to climb up. According to real estate entrepreneurs and housing developers, this business has growth by 33 per cent in the first half of the current fiscal year, compared to the same period the previous year.&nbsp;</p>
<p style="text-align: justify;">
	Government revenue from this sector, too, has increased by nearly Rs 370 million in the first six months of this FY, compared to the same period the previous FY. Given these developments, Nubiz asked some of the major players of Nepal’s realty sector, bankers and regulators whether the sector has really started to witness a revival? Here is what they had to say: &nbsp;&nbsp;</p>
<p style="text-align: center;">
	<strong><span style="font-size: 14px;">‘There are positive signs’</span></strong></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img align="left" alt="Ichchha Raj Tamang" height="283" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_ichchha.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Ichchha Raj Tamang</strong></address>
	<address>
		<strong>President</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">This sector was doing very well. We all know that. But then some banks started speculative lending which was followed by others. This provoked the NRB to take stringent measures in the real estate and housing. The NRB, too, should not have implemented that decision at once. Anyway, the combined effect was that the realty sector faced a long slump.&nbsp;</span></p>
<p style="text-align: justify;">
	However, we have seen some positive signs for the realty sector in the first half of the current fiscal year. Statistics show that this sector has grown by 33 per cent in the first six months of the current fiscal year than the same period of the previous fiscal year. We hear that government revenue from the sale of land and houses has gone up in the first six months of this fiscal year. That is another indicator that the sector might have started picking up. Banks, too, have started new home loans at lower interest rates. Though they appear hesitant to invest in the housing apartments, their lending to individuals for land and houses, and loans to multi-storied commercial business complexes being built around Kathmandu have increased in recent months.&nbsp;</p>
<p style="text-align: justify;">
	These are good signs for the realty sector. The other important thing is this market has already witnessed almost the rock-bottom situation. This situation could not continue forever; it had to show the signs of revival. That is what has perhaps started to happen.&nbsp;</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div style="text-align: center;">
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;">‘Market activity has increased’</b></span></div>
<div>
	 </div>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Bhesh Raj Lohani" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhesh.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Bhesh Raj Lohani</strong></address>
	<address>
		<strong>Secretary</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">In the first six months of the current fiscal year, the government has collected Rs 2.27 billion in revenue from the sale of land and houses. The figure was only Rs 1.9 billion in the first six months of the previous fiscal year. It is true that the increased tax rates have contributed to this growth but the number of land and house transactions has also increased this year. The sales of low-priced land and houses have particularly gone up.</span></p>
<p style="text-align: justify;">
	Banks have lowered their interest rates for loans from as high as 17 per cent last year to around 10 per cent recently. Remittance inflow has grown; this too has helped the real estate business. The NRB, too, has adopted somewhat liberal policies for the real estate sector, especially after the sector fell into a deep crisis from which it is struggling to come out now. There are scores of middle-class families who need houses and apartments as their permanent residences. Stand-alone houses are still bigger attractions for Nepalis than the apartments. Recent experiences, too, have shown that.</p>
<p style="text-align: justify;">
	If the current growth rate continues, then we can expect more investment in this sector by the end of this fiscal year. The realty business was stagnant for almost three years. Many buyers were waiting for the prices to come down. And the prices have indeed come down significantly, compared to three years ago. So, market activities have surely increased.</p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘Real estate is gradually improving’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<p style="text-align: justify;">
		<img alt="Bhaskar Mani Gyawali" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhaskar.jpg" style="margin:0 10px 0 0;" width="202" /></p>
	<address>
		<address style="text-align: justify;">
			<b>Bhaskar Mani Gyawali</b></address>
		<address style="text-align: justify;">
			<b>Spokesperson</b></address>
		<address style="text-align: justify;">
			<b>Nepal Rastra Bank</b></address>
		<div style="text-align: justify;">
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	We have observed that Nepal’s realty sector has shown a gradual improvement over the past few months. The improvement has not been as expected. But what I can say is the country’s real estate sector has seen its worst; things will only improve from here. Actually this process has already started. As the regulator, NRB has done all it could, to help banks recover their loans to this sector. NRB’s directives issued from time to time have helped the real estate sector to overcome the crisis it has been in for more than the past three years.</p>
<p style="text-align: justify;">
	Speculative pricing by some real estate players and speculative lending by some banks is mainly to blame for the realty slump in Nepal. The only solution to the problems in the real estate and housing sector is that real estate owners and housing developers should be ready to sell their property at minimal profits, sometimes without any profit and in some cases even at certain amount of loss. Otherwise, the interest of the bank will keep rising and they will be sinking deeper and deeper in the problem. If this is done, 75 per cent problems of the real estate and housing sector will be automatically resolved.&nbsp;</p>
<p style="text-align: justify;">
	In recent months, banks have started issuing new home and land loans at lower interest rates. This is good sign. Government revenue from the sale of land and houses, too, has witnessed almost one-third growth in the first half of this fiscal year compared to the same period the last fiscal year. This also shows that the real estate business might have started to pick up. I am sure that the situation will improve further in the days to come. &nbsp; &nbsp; &nbsp; &nbsp;</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b><br />
	</b></span></p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘We can’t really say that the revival has started’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Anil Shah, Mega Bank" height="299" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_anil(1).jpg" style="margin:0 10px 0 0;" width="202" />
	<address>
		<address>
			<address>
				<b>Anil Shah</b></address>
			<address>
				<b>CEO</b></address>
			<address>
				<b>Mega Bank</b></address>
			<div>
				 </div>
		</address>
		<div>
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	 </p>
<p>
	Given the current situation, we can’t really say that the realty sector has shown improvements. However, the good thing is the downward spiral has stopped. Some big apartment companies are still in problems. In fact, it is these companies that are responsible for delaying the recovery. So, the reality is the improvement in this sector is definitely not as expected. The banks, too, are not very willing to invest in this sector, especially in the apartments.</p>
<p>
	The buyers, too, are not interested in the apartments. However, now the banks are not compelled to put home loans up to Rs 10 million under real estate loans; the NRB has shown this much flexibility. This relaxation has surely helped the banks, which have invested nearly Rs 150 billion in the real estate sector, and also the real estate promoters.</p>
<p>
	We can’t really say that a revival has started in the realty sector. We’d better wait for some more time and see how things unfold. Meanwhile, the NRB did not say a word about the real estate sector in the mid-term review of the Monetary Policy for the current fiscal year. It must have disappointed the entire sector as well as the banks which have a sizeable investment in this sector.</p>
<div>
	 </div>',
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			'description' => 'We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010.',
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			'title' => 'Utter Discouragement',
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			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="From the editor, March 2013" height="362" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_from_the_editor(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi. The company is planning to construct a 2.9 km tunnel connecting Kulekhani and Bhimphedi stretch of Kathmandu-Hetauda road. The proposed tunnel will reduce the Kathmandu-Hetauda road distance to 58 km and travel duration to 45 minutes. It now takes at least four hours to drive between the two cities.</p>
<p style="text-align: justify;">
	But the Company’s plan to lay a foundation stone for the tunnel on February 8 was dampened by the government inaction and the prescheduled ceremony was just limited to a ritual pooja than the real act of marking the formal beginning of construction. Contrary to the expectation, the government didn’t sign a go-ahead agreement with the NPBCL so as to allow the Company to formally inaugurate the construction of the tunnel on the very day.</p>
<p style="text-align: justify;">
	The government reservation that the Company didn’t have convincing plans to repay the investors was a mere excuse given the credibility of the people involved as promoters, shareholders and partners of the company.</p>
<p style="text-align: justify;">
	Firstly, it is promoted by wider participation of local beneficiaries. Though their investment may be small in amount, it would automatically provide a social audit framework for such a large project. As the number of promoters is going to be 264,000, the company is unlikely to be case of one large single obligor insolvency, even if the company, by any chance, met an unexpected fate.</p>
<p style="text-align: justify;">
	Second, the promoters themselves, including Joshi, are renowned business leaders and the government must have an iota of trust on them. If not, whom will it trust upon to invest in?</p>
<p style="text-align: justify;">
	Third, there are organizations like Non-resident Nepali Association (NRNA) that have signed agreement to invest and help complete the project in stipulated four-year period. Despite these all, if the officials in the Ministry of Physical Planning and Transport Management had any reservation on any issue, that had to be resolved through negotiation with the company, before setting the date of official inaugural.&nbsp;</p>
<p style="text-align: justify;">
	The modalities for sharing benefits between promoters and public investors, collection of the toll and plans of financial closure are undoubtedly important for a Rs 20 billion project. But they had to be sorted out well ahead setting the date of formal commencement of the construction. The Company’s approach to take the government’s likely obstruction for granted and the government intention to obstruct in any pretext have given all the wrong messages to the public about the very future of the project.</p>
<p style="text-align: justify;">
	The government contention that the estimated cost of the project was too low and funding sources were not clearly demonstrated, are not a well-founded. To say the least, it is not the business of the government to tell a private company whether any amount it set aside for the project was enough or not. And, the funding sources the Company has enlisted are of course the most credible ones available in Nepal.</p>
<p style="text-align: justify;">
	This episode is the combination of government’s unfriendly attitude towards the private sector and ad-hoc working style of Nepali corporate sector. The government must acknowledge the fact that it is the first large-scale private sector initiative to invest in country’s key infrastructure like road project. For this reason, the government should leave no stone unturned to facilitate the execution of the project. And, on the part of the company, there should be more transparent and convincing flow of information, so that the mala fide government intentions could easily be defeated by the strength of public confidence on it.</p>
<p style="text-align: justify;">
	There are questions whether the entire road from Balkhu of Kathmandu to Hetauda will be developed by the Company or is it constructing the tunnel alone and expects the government to make the rest of 55 km road widened to four-lanes with the tax-payers’ money. In such a case, how will the tolled amount be distributed?</p>
<p style="text-align: justify;">
	Obviously, the Company must have discussed these things with the relevant government agencies in detail. But the same details have not come to the public notice. Therefore, it is important that both parties, the government and the Company, played a transparent game so that this project can set a benchmark for future such projects.&nbsp;</p>',
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			'modified' => '2013-04-17',
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			'description' => 'The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi.',
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		'Article' => array(
			'id' => '890',
			'article_category_id' => '31',
			'title' => 'Product Is More Important Than Profit',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<img align="right" alt="S.P. Sharma, Godrej Security Solutions India" height="347" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_visitng_business_people_sp_sharma.jpg" style="margin:0 0 0 10px;" width="280" /></p>
<p style="text-align: justify;">
	S.P. Sarma is the Senior General Manager of the Global Operation for Godrej Security Solutions India. Graduated in Engineering and MBA, Sarma has been working with Godrej for the last 23 years. He served the company with different roles from service, sales and marketing and became the head of the global operation. In an interview with New Business Age when he was in Kathmandu recently, Sarma explained the necessity of the security products in business organizations.</p>
<p style="text-align: justify;">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the purpose of your current trip to Nepal?</strong></p>
<p style="text-align: justify;">
	My trip is to meet the customers and our partners in Nepal. We organize such kinds of trips time to time because we value our customers very much. We feel that whatever success has been there, It is because we are able to meet the demand of customers. And the expectation of the customers can be fulfilled if we come and listen to them.</p>
<p style="text-align: justify;">
	<strong>Could you please tell us about Godrej Security Solutions?</strong></p>
<p style="text-align: justify;">
	Godrej Security Solutions is a 100 years old division of Godrej Company. Our company is providing security products to financial institutions, jewelry companies, private organizations and households. We started producing these products in 1992 and now we have developed many advanced products according to the demand of customer. We believe that the product is more important than profit. With Godrej security solutions customers can get peace of mind. The other benefit they get is trust. We have been able to live up because of the trust of our customers. Majority of Financial Institutions functioning today are offered our prompt and efficient services.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your business strategies for your security products in the international market?</strong></p>
<p style="text-align: justify;">
	Our security products are of latest technologies. We are present in Europe, Africa, South East Asia and every year we have valuable partners. Security is running battle . It is essential to keep pace with the latest technology to meet growing needs. This is the reason why we have graduated from simple lever and tumbler locks several years ago to modern, intelligent technologies. We are also doing research and developing in new ways to update our products. So far, as I said, we have been able to win trust of the customers. Our business is also going good and we are planning to put up a new plant in Maharashtra, Mumbai.</p>
<p style="text-align: justify;">
	We have moved from being simply a seller of security products to a company selling comprehensive security solution. We offer diverse security product solutions including technologically advanced sphere such as cameras with analytics, substance detectors (bomb, bullets, and narcotics), X-ray baggage scanners, biometrics and access control systems, burglary and fire resistant safes, road blockers and marine solutions. Our products are tested stringently at leading testing laboratories i.e. SP Test in Sweden, VDS Test in Germany and the underwriter’s laboratory in the United States. Our plant in Mumbai is rated as one of the finest and largest factories in India. Our passion to offer international quality product with prompt supply, delivery, installation and most importantly after-sales servicing have been commended by many reputed companies.</p>
<p style="text-align: justify;">
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p style="text-align: justify;">
	I think it is very good. We see Nepal being very vibrant and I personally see that Nepal is on the way to development. And I feel that the banks and financial institutes are going to be the lubricants which will further enhance the development. We may offer our service to these banks and financial institutes as our commitment is to win the trust of our customers. Our supply of Godrej products to Nepal Rastra Bank and Nepal Bank Ltd made in the 1960’s still stands strong to this day, same as our sincerity and services towards our customers. We can proudly state that we have been able to come up to our customers’ expectations.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can Nepali customers get your service in Nepal?</strong></p>
<p style="text-align: justify;">
	Our commitment to the services to our customers is delivered almost by our trusted partner; - Nepal Commercial Enterprises Pvt. Ltd. It provides Godrej security equipment, home and office furniture, storage equipment and locks along with numerous retail outlets to our customers in Nepal. They also retail home safes and locks at Bhat-Bhateni and other outlets, making security a convenient purchase around their vicinity. &nbsp;The corporate showroom at Pulchowk offers a wide range of products from locking systems, security solutions, and home and office furniture.</p>
<p style="text-align: justify;">
	 </p>',
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			'created' => '2013-03-24',
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			'keywords' => '',
			'description' => 'S.P. Sarma is the Senior General Manager of the Global Operation for Godrej Security Solutions India. Graduated in Engineering and MBA, Sarma has been working with Godrej for the last 23 years.',
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Code Context
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$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '905',
			'article_category_id' => '34',
			'title' => 'FNCCI To Build Exhibition Centre',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Federation of Nepalese Chamber of Commerce and Industry" height="130" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_fncci.jpg" style="margin:0 10px 0 0;" width="120" />Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu. According to the Office of the Prime Minister, the cabinet meeting held on February 15 has decided to lease 82 ropanis land of the park to FNCCI for the construction of the exhibition centre. Similarly, the office has also directed the UN Park Development Committee to complete the necessary procedures for construction of the centre.</p>
<p style="text-align: justify;">
	Bhaskar Raj Rajkarnikar, Senior Vice President of the FNCCI said that, the construction will begin from the next fiscal year. “Designing of the exhibition centre is underway. The centre will come into operation within two years after the construction begins” he revealed.&nbsp;</p>
<p style="text-align: justify;">
	FNCCI had demanded 150 ropanis of land for the construction of the centre. Rajkarnikar said that, the necessary infrastructures will be developed in the land provided by the government. According to Bhawani Rana, Vice President of FNCCI, the construction of the centre will cost Rs 1 billion. “The investment will solely be made by the FNCCI,” she said. The centre will have exhibition area and convention hall.</p>
<p style="text-align: justify;">
	According to Rana, plan to develop a new exhibition centre was formulated as the one in Bhrikutimandap is felt narrow and additional amenities. The soon to be constructed centre will have special provision for vehicle parking. The FNCCI says that, the centre will also offer a venue for organising international programmes and events.</p>
<p style="text-align: justify;">
	The Ministry of Urban Development expressed hope that the centre will be an appropriate venue to hold large trade expos. Spokesperson of the ministry, Suresh Prakash Acharya said that, the present exhibition hall at Bhrikutimandap will be used to hold small expos. He said that, though the government will not have any direct investment on the centre, it will provide necessary technical support.</p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of Nepali business sector has taken up responsibility to build an international exhibition centre at UN Park in Kathmandu.',
			'sortorder' => '787',
			'image' => null,
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	(int) 1 => array(
		'Article' => array(
			'id' => '904',
			'article_category_id' => '34',
			'title' => 'Four Financial Institutions Merge To Make Apex Bank',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="Apex Bank Ltd" height="115" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_biznews_apexbank.jpg" width="504" /></p>
<p style="text-align: justify;">
	After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”. &nbsp;These institutions signed on Memorandum of Understanding (MoU) on Feb. 27, 2013.&nbsp;</p>
<p style="text-align: justify;">
	Rameshwor Thapa, coordinator of the merger has stated that after the merger, the newly formed commercial bank will come to operation after they get the approval from the central bank, Nepal Rastra Bank (NRB). He also added that they have got the approval from NRB to expand branches within a year. &nbsp;</p>
<p style="text-align: justify;">
	After the completion of the merger the new bank will have a total of 43 branches with total of 315 employees. The financial institutions are on discussion for selecting the Chief Executive Officer for the new Bank. Moreover, the trading of the shares of these financial institutions has been suspended for the purposes of merger by Npese.</p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'After the merger of two development banks and two finance companies a new ‘A’ class bank is going to established. Manakamana Development Bank Ltd., Infrastructure Development bank Ltd., Valley Finance Ltd. and Yeti Finance Ltd. are going to merge to form “Apex Bank Ltd”.',
			'sortorder' => '786',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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	(int) 2 => array(
		'Article' => array(
			'id' => '903',
			'article_category_id' => '34',
			'title' => '79% Remittance Goes For Consumption',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually. According to the Nepal Living Standards Survey 2011, published by Central Bureau of Statistics, 79 per cent of all the remittance is used for consumption purpose.&nbsp;</p>
<p style="text-align: justify;">
	According to the 2011 Census report, there are 1.92 million missing population which means they are living outside the country. The census report of 2001 says that there were only 762,181 missing population, a decade ago.&nbsp;</p>
<p style="text-align: justify;">
	Experts say that those who choose foreign employment basically belong to rural areas and are from a poor family. So, their first requirement is fulfilling their basic needs – food, clothes and shelter. So, majority of the remittance goes for meeting those basic requirements. Suman Pokharel, CEO of International Money Express said it is usual for remittance being used more for consumption. “It is the first preference for those who have difficulty in meeting their basic needs to fulfil their requirements. So, it should not be taken otherwise,” he said.</p>
<p style="text-align: justify;">
	People having thatched roof have upgraded to galvanised sheet, better quality food grains, better clothing and have purchase mobile phones and televisions. Pokharel, however accepts that the remittance has been used for unnecessary expenditures lately.&nbsp;</p>
<p style="text-align: justify;">
	To control the unproductive use of remittance, the central bank had come up with idea of bonds targeting migrant workers but according to Bhaskar Mani Gyawali, Spokesperson of Nepal Rastra Bank, none of the companies have requested the release of the bonds. According to the census report, 55.8 per cent households receive remittance with an average of Rs 80,436 per each household.</p>
<div style="text-align: justify;">
	 </div>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Out of the total remittance Nepal receives, 79 per cent goes for consumption. Nepal has been receiving Rs 259.9 billion remittance annually.',
			'sortorder' => '785',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
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	(int) 3 => array(
		'Article' => array(
			'id' => '902',
			'article_category_id' => '62',
			'title' => 'Voices March 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img align="left" alt="Rajan Singh Bhandari" height="213" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_rajan.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><strong>“The liquidity situation must be addressed before the market faces crisis.”</strong></span></p>
<p style="text-align: justify;">
	<em><strong>Rajan Singh Bhandari</strong>, President of Nepal Bankers’ Association asking Nepal Rastra Bank to solve the impending liquidity problem before problems appears.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Seven per cent economic growth is just a daydream unless political impasse can be ended.” </span></strong></p>
<p style="text-align: justify;">
	<em><strong>Deependra Bahadur Kshetry</strong>, Vice Chairman of National Planning Commission explaining that high economic growth cannot be achieved amid ongoing political uncertainty.</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<em><br />
	</em></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“We should invest 35 per cent of the GDP to achieve seven per cent economic growth.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Ram Sharan Mahat</strong>, recommending a formula to achieve seven per cent economic growth in Nepal.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Yuba Raj Khatiwada" height="218" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_yuba.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Current situation cannot be termed as liquidity crisis.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Dr Yuba Raj Khatiwada</strong>, Governor of Nepal Rastra Bank clarifying the heightened worries over the looming liquidity crisis in the banking system. He said that the liquidity ratio in the banks is 29.5 per cent in average.</em></p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Radhesh Pant" height="229" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_voices_radhesh.jpg" style="margin: 0px 10px 0px 0px; padding: 5px;" width="180" /></p>
<p style="text-align: justify;">
	<strong><span style="font-size: 16px;">“Policy stability is what we need for encouraging both national and foreign investors.”</span></strong></p>
<p style="text-align: justify;">
	<em><strong>Radhesh Pant</strong>, Chief Executive Officer of Nepal Investment Board explaining that political impasse is not only the cause of low investment. &nbsp;</em></p>
<p style="text-align: justify;">
	 </p>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-05-22',
			'keywords' => '',
			'description' => 'The liquidity situation must be addressed before the market faces crisis.',
			'sortorder' => '784',
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	(int) 4 => array(
		'Article' => array(
			'id' => '901',
			'article_category_id' => '50',
			'title' => 'Insuring The Nepali Sky',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Insuring the Nepali sky" height="286" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_insuring_the_nepali_sky.jpg" style="margin:0 10px 0 0;" width="200" />Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit. One of the reasons stated is high premium paid to the foreign reinsurer companies. If a domestic reinsurance company can be brought into the scene, the money that is going abroad can be saved.</p>
<p style="text-align: justify;">
	Another probable reason for the aviation insurance to become a loss making business is the high rate of accidents under the Nepali sky. The frequent air crashes lead to higher compensation payment to the insured. This also increases the premium to be paid to the reinsures who have vowed to bear all the risks. It is obvious that whenever there is higher risk, the reinsurers will seek higher premiums. So, ultimately the insurance premium for the aircrafts flying into the high mountain areas becomes high. Unless, the high risks of the aviation industry in Nepal are managed, profitable aviation insurance seems to be a far cry. For that, more safety measures need to be undertaken by the airlines as well as better technology for navigation and other systems must be in place which helps to minimize the air accidents.</p>
<address>
	<strong>Uttammani Dhungana</strong></address>
<address>
	<strong>Sagarmatha College</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '2013-03-24',
			'keywords' => '',
			'description' => 'Insurance, anywhere is considered a profitable business. However it is not the case of Nepal. According to the cover story of February 2013 issue of New Business Age, the aviation insurance in Nepal is collecting impressive premiums but failing to register similar profit.',
			'sortorder' => '783',
			'image' => null,
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			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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			'user_id' => '0'
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	(int) 5 => array(
		'Article' => array(
			'id' => '900',
			'article_category_id' => '50',
			'title' => 'Petroleum Dilemma',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img align="left" alt="Petroleum Dilemma, Feedback" height="297" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_petroleum_dilemma.jpg" style="margin:0 10px 0 0;" width="180" />There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal. Meanwhile, some experts have predicted possibilities of finding petroleum in the plains of Nepal. Some studies have been carried out but as of now, it has not been explored. More detailed and extensive studies need to be carried out to be certain about the prospects of finding petroleum in Nepal.</p>
<address>
	<strong>Subash Tandukar</strong></address>
<address>
	<strong>Lagankhel</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'There are various projections about availability of petroleum under the Nepali soil. Nepal is said to be the young geography. So, some experts brush the aside possibility of finding petroleum in Nepal.',
			'sortorder' => '782',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
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	(int) 6 => array(
		'Article' => array(
			'id' => '899',
			'article_category_id' => '50',
			'title' => 'Shakespeare Today',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for. Very few are able to take him out of the world of literature to the real life management world. The article by Sujit Mundul on February 2013 issue of New Business Age has beautifully juxtaposed Shakespeare and his characters with the leadership in the corporate world. The write-up enriched with the narratives and extracts from the work of literature has vividly pictured and exemplified the leadership qualities and sought for the managerial traits in the Shakespearean characters.</p>
<address>
	<strong>Rakshya Sharma</strong></address>
<address>
	<strong>Dhumbarahi, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'William Shakespeare, the literary persona has been understood by many, only on the spheres of literature and the genre of dramas on which he is popular for.',
			'sortorder' => '781',
			'image' => null,
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	(int) 7 => array(
		'Article' => array(
			'id' => '898',
			'article_category_id' => '50',
			'title' => 'Diversified Content',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy. From the February 2013 issue, it seems to be incorporating more issues and richer content. It is a good sign that the magazine is trying to capture the attention of wider and diverse readers. As a regular reader of the magazine, I would be elated to read more stories about the global economic and business issues.</p>
<address>
	<strong>Pradeep Acharya</strong></address>
<address>
	<strong>Lazimpat, Kathmandu</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The New Business Age, probably the best business magazine of Nepal gives in-depth analysis and stories on the Nepali business sector and the economy.',
			'sortorder' => '780',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
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	),
	(int) 8 => array(
		'Article' => array(
			'id' => '897',
			'article_category_id' => '50',
			'title' => 'Realistic Satires',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img align="left" alt="Realistic Satires, Feedback" height="221" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_feedback_realistic_satires.jpg" style="margin:0 10px 0 0;" width="280" /></p>
<p style="text-align: justify;">
	The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous. At the same time it is a healthy satire on the business and economic world.</p>
<address>
	<strong>Subash Tandukar, Pravat Shrestha</strong></address>
<address>
	<strong>Tokha</strong></address>',
			'published' => true,
			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The No Laughing Matter column of New Business Age is humorous and satirical at the same time. Most of the time, the writer comes up with brilliant ideas to make the business world’s events to be humorous.',
			'sortorder' => '779',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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			'breaking_news' => false,
			'main_news' => false,
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	(int) 9 => array(
		'Article' => array(
			'id' => '896',
			'article_category_id' => '40',
			'title' => '‘We Need To Develop Our E-commerce First’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<address>
	<strong><img align="right" alt="Sanjay Golchha, Golchha Organization" height="313" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_sanjay.jpg" style="margin:0 0 0 10px;" width="274" /><span style="color:#3ab0c4;"><span style="font-size: 22px;">'We need to develop e-commerce first'</span></span></strong></address>
<address>
	<strong><br />
	</strong></address>
<address>
	<strong>Sanjay Golchha</strong></address>
<address>
	<strong>Director</strong></address>
<address>
	<strong>Golchha Organization</strong></address>
<p>
	<strong style="text-align: justify;">What is an example of media convergence in Nepal due to the advent of new communication technologies?</strong></p>
<p style="text-align: justify;">
	Digital media is the most useful form of media for the advertisers. Online marketing has not been fully explored in Nepal. Although social media sites like Facebook have high usage in Nepal, advertisements on facebook are not very effective. Media convergence has only recently started making some impact. People do not understand the power of the digital media. Only international contents can be found in online ads, not the local content.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the most useful communication technology convergence in the Nepali media?</strong></p>
<p style="text-align: justify;">
	To make use of communication technology in Nepal, e-commerce should develop first. It is not developing due to social and technical inefficiencies in Nepal. Online digital ads will be prominent on the Internet or on the websites only after we have a developed e-commerce business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What has been the impact of media convergence on Nepal’s media industry?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence will come slowly. This requires economic development and political stability in the country. This can provide a platform for the ecommerce businesses to develop more content. People are not using the online media to buy things online. Due to the poor financial situation of the country, people are not in a hurry to buy anything. They want to use their time to choose the products they want to buy. Another thing is, even if the people were interested in buying products online, the online payment system has not yet come into practice. Firstly, they cannot pay and secondly they cannot trust buying products online. Hence, there are many pending issues with regard to media convergence. First, the Nepali commerce and media industry should develop; the ads will follow later.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How long shall it take to make a full impact?</strong></p>
<p style="text-align: justify;">
	The impact of media convergence can be seen soon. But, for this the Internet bandwidths should be cheaper and the Internet should be more accessible to the people. Online payment systems should also be developed and promoted. Due to the conservative financial system, online payment is difficult. Domestic payment systems should be prioritized and the international payment systems will automatically develop. The world is globalized today and lack of an online payment system is a major disadvantage to us. Businessmen should invest in e-commerce development. More pioneers are required. E-commerce websites like Thamel.com and Muncha.com are well established businesses. Airlines have also advanced in this sector. Buddha Air, Yeti Air and others as well have already started providing online reservation service to their customers.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are the changes required in the media industry to adapt to the changes of media convergence?</strong></p>
<p style="text-align: justify;">
	They can also be explored for business development but this has not been done at all.&nbsp;</p>
<p style="text-align: justify;">
	If providing Internet on the phone brought a lot of profit to the mobile phone companies, then development of online payment system will be even more profitable. Nepal is a tourist destination. The tourism industry flourishes throughout the country. But, it is difficult for the tourists to learn more about Nepal before their visit. Tourism related websites are advertised in the international online media to attract tourists. However, when they want to make a hotel reservation to ensure that they already have a place to stay before visiting the country, it is not possible. Similarly, products like coffee and carpets that are exported abroad cannot be advertised properly. The major reason for this is the lack of an online payment system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What can the advertisers do in order to benefit from the changes of media technology convergence?</strong></p>
<p style="text-align: justify;">
	We need to invest in e-commerce. This can help local businesses to reach customers around the world. Lack of an online payment system is a loss for tourism-dependent <strong>businesses like hotels and travel agencies as well as the exporters. The payment taking mechanism is difficult which is why the online advertising is not fully developing.</strong></p>
<div style="background:#fcf88d;padding:5px;">
	<p style="text-align: justify;">
		<strong>The Paradigm Shift</strong></p>
	<p style="text-align: justify;">
		There has also been a shift in terms of media’s target consumers. Traditionally, the primary market was the target of media companies. The primary market included television viewers, radio listeners, website surfers, and newspaper and magazine readers. While the secondary market includes the marketers, the competing companies and other media as well. There has been a convergence in these two groups as now they both are targeted equally by the media companies.&nbsp;</p>
	<p style="text-align: justify;">
		Sanjay Golchha is also involved with Mindshare Nepal, which is a digital marketing company, the first of its kind in Nepal. It is the authorized agent for GOOGLE in Nepal and works in close relation with the businesses companies of Nepal. They are involved in Search Engine Marketing (SEM), which is the biggest source of online advertisements. They are also focusing upon social engineering, advertising the tourism and travel websites as well as promoting export products online. Currently, their major focus is upon providing email-marketing services to the local businesses. &nbsp;Mindshare Nepal Pvt. Ltd. collaborates with two companies who are experts in Software (IT Nepal) and marketing (Linez). Email marketing allows the businesses to reach thousands of people with a single message and see their response instantly.&nbsp;</p>
</div>
<div>
	 </div>',
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			'created' => '2013-03-24',
			'modified' => '2013-03-24',
			'keywords' => '',
			'description' => 'The impact of media convergence can be seen soon. But, for this the Internet bandwidths should be cheaper and the Internet should be more accessible to the people.',
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	(int) 10 => array(
		'Article' => array(
			'id' => '895',
			'article_category_id' => '40',
			'title' => '‘Companies Should Focus On Building Brands, Not On Selling Units’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="Abhaya Pandey" height="254" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_abhaya.jpg" width="250" /><br />
	</strong><strong>Abhaya Pandey</strong><strong>Advertising Professional</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>How is media convergence affecting Nepal’s advertising industry?</strong></p>
<p style="text-align: justify;">
	Online Media is an example of the impact of Media Convergence in Nepal but it has not been able to make a significant impact yet. There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement. &nbsp;</p>
<p style="text-align: justify;">
	<strong>How has Social Media Education (SEM) changed over the years?</strong></p>
<p style="text-align: justify;">
	While social media education advertisements were mostly like BCC (Behaviour Change Consumerism) previously, today ad literacy has increased. This also requires more ad communication experts to convey social educational messages in an entertaining manner. The challenge today is not only giving information but also persuading consumers to buy the product or the message. While traditional media required information education, today information has to be conveyed through entertaining ads that can easily grab the people’s attention. Education is possible through entertainment only. Functional value is changing. Humour, fear campaigns, sensationalization etc should be embedded into ads to make them both entertaining and educational. Only educational ads will make people switch between TV channels. The government, NGOs and INGOs should be more responsible towards SME.</p>
<p style="text-align: justify;">
	<strong>How is the “Brand Personality” of a company reflected in its advertisements?&nbsp;</strong></p>
<p style="text-align: justify;">
	Sixty per cent of the total cement consumed in Nepal is produced in Nepal; only the remaining 40 per cent is imported. This clearly suggests a lack of competition in the domestic market. Many companies are trying to establish their brand names in the cement industry but special emphasis has not been placed in making better advertisements for those brands. The richest organizations of Nepal, the banks are limited to the urban areas and are yet to reach the villages. Hence, there is not much competition in the banking sector as well. Brands are classified in terms of the advertisements that they demand. Clients should think long-term. They should focus on building brands and not only on selling units. The market of instant noodles can be called competitive and this is reflected in &nbsp;their advertisements as well. People can easily associate more with the noodle brands than with others.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What is the biggest challenge in the advertisement sector today?</strong></p>
<p style="text-align: justify;">
	The biggest challenge for Nepali business companies is to use advertisements to grab the people’s attention first and then to convey the message of the brands. Some ads are very descriptive which makes them absurd instead of creative. This can lead to a disconnection between the brand message and the advertisement message. It’s only a tool. Ideas combined with technology are necessary to create better advertisements and awesome brand images. The market is changing from supply-oriented to demand-oriented. More competition and professionalism is required in the corporate houses. Only after these basics are met, the companies can focus on creativity and design of their brands. If the brands and production companies start focusing upon brand image today, they will be able to stand out even 25 years from now. Glossy ads are not always creative ads.</p>
<div style="text-align: justify;">
	 </div>',
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			'created' => '2013-03-24',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Online Media is an example of the impact of Media Convergence in
Nepal but it has not been able to make a significant impact yet.  There are very few Internet users. We are still relying on the digital media as the prominent source of advertisement.',
			'sortorder' => '777',
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	(int) 11 => array(
		'Article' => array(
			'id' => '894',
			'article_category_id' => '40',
			'title' => 'Media Convergence: Impact On Business',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="text-align: justify;">Media convergence is a theory, and subsequently a practice, in communications where every mass or niche medium eventually merges with each other to the point that they are indistinguishable from each other, creating a new medium from the synthesis, due to the advent of new communication technologies. With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.&nbsp;</span></p>
<p style="text-align: justify;">
	A prominent example of media convergence in Nepal is the online media. It has had a significant impact upon the conventional print and broadcasting media. Globally, it has proved to be very influential. In the USA and other developed nations of the world, everyone uses advanced technologies such as &nbsp;iPhone, Blackberrys and other gadgets that help them stay updated every second. People do not wait for the next day to read the newspapers. The online news portals get updated every minute with new news flowing in. According to Suresh Prasad Aacharya, Academic Advisor at the Shepherd College of Media Technology, such an example can also be seen in Nepali radios. Radios provide news bulletins every hour. The same news is followed by the televisions and is viewed by the audience in the evening.&nbsp;</p>
<p style="text-align: justify;">
	The online portals also update the news. Next morning, almost the same news is printed in the newspapers. Again, the radios conduct programmes in they which repeat the same news they broadcast a day ago. Hence, a cycle of convergence can also be seen in Nepal as the news reports get reproduced again and again by various forms of media. This is beneficial to the media consumers as they can stay updated through various forms of media. But this process weakens the media houses. Reporters can also benefit from this cycle. Most of the print media located outside the valley use online sources for the news. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Challenges in Convergence</strong></p>
<p style="text-align: justify;">
	While the industry at large is excited about media convergence, it also has its share of concerns. The unanimous one is the lack of adequate bandwidth. The bandwidth cost is too high and needs to be brought down drastically. In Nepal, Internet usage is very low. The fact that 18 per cent of the population uses the Internet is exaggerated. Hence, this makes it difficult for the media companies to use the Internet to communicate with their audience. Only 5-6 per cent Nepalis have been able to make effective use of the Internet. &nbsp;In Korea, there are half-a-million subscribers who receive 11 channels live on their mobiles. Only when there is enough bandwidth, can the business be ramped up.</p>
<p style="text-align: justify;">
	The other challenge is educating consumers to use the various new media. The latest technologies such as HD camera and the latest software are not being utilized to the full extent. &nbsp;Though we capture advertisements in HD (High Definition), it is shown in SD (Standard Definition). This has been making a little difference in quality but the full potential of technology remains unexplored. Consumers here have some access to the latest technological goods but consumer education for their proper usage is not being encouraged. The industry will not grow unless the consumer is educated and aware of the available technologies and their usage.</p>
<p style="text-align: justify;">
	Apart from reaching consumers at various touch-points through convergence of the media, companies are also looking at it as a media to cater to the individual needs of consumers. And for this, the need of the hour is to generate adequate content. The Nepali media lacks the competition to generate adequate content. Producers are not compelled to make better advertisements. Advertisements are reflections of the competition among the brands. The clients want only glossy ads. They have a conservative mentality, as they want to stay 125 per cent secure. They prefer traditional, tried and tested methods that are still selling. Bringing creativity in media and advertisements requires more courage and clients by nature want security. Content availability has not kept pace with the changing consumers. Content generators have to generate enough to cater to individual tastes.&nbsp;</p>
<p style="text-align: justify;">
	Another perspective to the challenges is the industry - one where companies need to be more and more competitive in their marketing and product strategies. For this, they need to constantly innovate new products and therefore, reallocate an increasing amount of resources to research and development. Looking at the TV commercials in Nepal, one can easily see the lack of competition to generate adequate content Most of the commercials are that of FMGC (Fast Moving Consumer Goods). These markets are somewhat competitive and thus they focus on generating enough content to attract their consumers. However, for the products with uncompetitive market, the need to make the extra effort is not felt. This can result in the lack of contents in media. As more companies compete, the gestation period for newer products also decreases with each product life cycle. Companies should not only concentrate on selling units but also on creating a brand image.</p>
<p style="text-align: justify;">
	Finally, the lack of multi-skilled professionals in the newer arenas of business makes it difficult for the company’s old guard to let go of draconian or obsolete practices. This ultimately leads to turf wars over domain control. Convergence along with technological advancements has brought a tough competition in the media market. However, the level of seriousness is still very low. Acharya shares, “There is stiff competition &nbsp;to be the first to give the news to the audience but the accuracy and credibility of the news is lacking.” The skill demanded by Media Convergence is not being provided. He further says, “A computer literate media person is not good enough. We are using computers as typewriters and to get access to news only. Modern forms of technology should be better utilized. More creativity can be presented by using them which is not being done”. Nepali media is not fully aware about media creativeness. “Media are aware but not serious because they use online media for their convenience right now but they are not making long term assessments,” he says. In a period of 10 years, only the fittest will survive. His only request to media editors and directors is that they should stay updated with latest trends in media through training or orientations. &nbsp;</p>
<p style="text-align: justify;">
	<strong>Market and Technology Convergence</strong></p>
<p style="text-align: justify;">
	By plotting time against portability and interactivity and at the same time, selected parameters that might be called the benchmarks of technology progress namely moving image, computing, voice communication and games, we can get a historical perspective as well as deduce where the combined technologies are headed.&nbsp;</p>
<p style="text-align: justify;">
	However, in this case of mapping, the word convergence is never intended to suggest replacement (i.e. not everything is moving to one entity or point). All of the elements on the charts are still in existence and, except for VHS and DVD, will be around for a good while. We also see ‘divergence’ of media forms as it morphs across a sea of devices that continue to grow, layer upon layer.&nbsp;</p>
<p style="text-align: justify;">
	All technology makers and marketers would like to know what the next will be. In the portable domain will we always have separate phone and serious gaming device? We are already seeing the merging of the phone, organiser and media player (4GB phones are already in the market) – given you can dock these portable devices to the larger screen, carry all your content and that they can receive high definition TV, do we need fixed devices at all?&nbsp;</p>
<p style="text-align: justify;">
	<strong>Technology Convergence in Nepal</strong></p>
<p style="text-align: justify;">
	iPhone can be used in Nepal but it cannot be fully utilized. The phone clearly denies the user an access to its online stores by saying that the service is not supported in the region. This is due to the lack of an online payment system. On the contrary, Nokia phones are developing local contents for Nepal. Microsoft also provides Nepali language fonts for usage. However, the customers can use only the free services and not the priced contents. This can result in slow usage of technologies also. The telecom companies should be involved in this business. Both Ncell and NTC are providing mobile Internet service. This helps the users to use more social entertainment sites and random online contents but making full use of the latest technological innovations is difficult. Ncell has come out as the market leader with its gorgeous advertisements and user-friendly services. However, the customers want more.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Understanding, Practicing and Innovating</strong></p>
<p style="text-align: justify;">
	Increasingly, one can observe a definitive trend in the convergence of understanding, practicing and innovating in the competitive marketplace where each participant is eying the largest chunk of the pie. Understanding the needs of the consumer has taken on a new importance with extreme segmentation and fragmentation in the marketplace. Identifying this need and creating a new product or service to fill this gap has gained prime importance, more so akin to a rasion d’être for the companies. From high value-high involvement products like home loans and automobiles to low value-low involvement products like detergent powders and toothpastes to soft drinks, companies are increasingly spending huge amounts of money to understand the patterns and motivations of the consumers for selecting, purchasing and using a certain brand.&nbsp;</p>
<p style="text-align: justify;">
	Even more important, the brand association that the consumers make with a certain brand can make or break the brand equity of a company’s product and the difference between success and failure of the product in the market. A constant drive to innovate and come out with better products is reflected in the ever-increasing amounts of R&amp;D spending of the companies. For example, high technology products like Nokia’s mobile handsets are made based on a constant feedback on usage and understanding of mobile phones by the customers. This has led to the incorporation of higher levels of innovation and user-friendliness in the next handset made by Nokia.</p>
<p style="text-align: justify;">
	A new concept on the horizon is co-creating value. This happens between the consumer and the manufacturer. The manufacturer actively seeks the cooperation of the consumer for creating new products.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Convergence of Creativity/Design with Technology and Business Sense&nbsp;</strong></p>
<p style="text-align: justify;">
	It wasn’t a long time ago when even the top copysmiths of advertising like Neil French used to write copy for ads and fit them in typesets for printing. Nowadays, even a copywriter in a small agency in a small town will type out the copy quickly on the computer and the graphic designer will fit it into the ad’s layout and send out the soft copy to the newspaper for printing. Technology innovation from typewriters to computers has made this shift possible. A school student with a typical Pentium desktop computer has, at his disposal, more computing power than NASA had when it sent the first man to the moon. The great enabler in this case, technology, is progressing with such rapid pace that the latest, most cutting-edge technology is rendered almost outdated within a few months of its release. Creative visualisers using advanced software like Adobe Photoshop and CorelDraw are daily creating breathtaking graphical masterpieces that would have taken even a Leonardo da Vinci months, if not years, to create.</p>
<p style="text-align: justify;">
	Convergence in technological standards like image formats (jpegs, gifs, etc.), audio-video formats (mpeg, avi, etc.), audio formats (mp3, wma, etc.), and so on, combined with interpolability and compatibility to use, share and transfer this data (USB, flash drives, DVDs and other optical storage) has created a powerful technology-design combo that professionals across the world are using in physical form as well as virtual form (cyberspace – Internet). Add to this, the keen entrepreneurial mind of a businessman and you have technology monoliths like the Times Group and others like AOL-Warner, Sony and Apple amongst many others who dominate the commercial landscape. Convergence is changing the way people live their lives on a daily basis.&nbsp;</p>
<div style="text-align: justify;">
	<div>
		<strong>Convergence of Classroom (Brick &amp; Mortar) with Internet (Click &amp; Portal) and Learning by Doing (Experiential): Experiential Brick and Portal&nbsp;</strong></div>
	<div>
		 </div>
	<div>
		<img alt="Midas EClass" height="86" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_midas_class.jpg" width="217" /></div>
	<div>
		Traditional classroom model has been in an evolutionary phase ever since technology innovations have made networking possible. Satellite communications like VSAT have enabled hundreds of thousands of students across the world to virtually attend lectures. The University Grants Commission (UGC) has empowered students in India because of this education and technology convergence. In professional courses, the emphasis has always been on practical knowledge rather than just theoretical inputs. The value addition to the professional skills development is far more when students are exposed to theories and their practical applications. Added to this is the new dimension of Internet learning. Numerous universities, colleges and institutes, especially in Western Europe and North America, are now offering degree courses through the Internet. This dissolves all cultural, geographical and social barriers for people who cannot afford the time and/or money to attend full time courses in foreign countries. The effective combination of these three models of learning- traditional classrooms, Internet and practical experiences, has become necessary for the students of today to become successful professionals of tomorrow.&nbsp;</div>
	<div>
		 </div>
	<div>
		Nepal is moving towards using technology for education, replacing the traditional “Chalk and Talk” method. Midas Education, a pioneer in the development of ICT (Information Communication Technology) in the education sector, encourages interactive teaching and learning. Students make use of PowerPoint presentations and other IT tools to enhance their skills and be prepared for the modern world. To bring a drastic change in the education sector, growth of ICT is very important. Information flow is unavoidable today due to the Internet and students are using GOOGLE for their education along with textbooks. The next challenge for Midas Education is to take ICT to the villages but as anyone can imagine, it is not an easy task. Use of ICT increases accuracy and quality of education and saves valuable time. Thus, ICT is necessary to modify the existent education pattern and to develop it.&nbsp;</div>
	<div>
		 </div>
	<div>
		Initially, it is difficult to use a new technology and learning it might take some time. But, as soon as we get used to it, there are only benefits to enjoy. Technology makes life comfortable and fast. The real beneficiaries of technology in Nepal are the students. Technology has been making their lives easier. They can easily grasp vague concepts. They do not need to mug up their course books these days; they have a chance to present their creativity. Along with the students, teachers are also benefiting.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Consumption &amp; Media Buying</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		There was a time when you had simple choices to make – like choosing one newspaper from the three or four available, one radio station, one television station that broadcast only in the evenings, a couple of magazines from half a dozen available and so on. As the market kept segmenting and fragmenting, we now have thousands of radio stations to choose from with WorldSpace, Star TV itself telecasting more than half a dozen channels round the clock, there are more than a couple of dozen newspapers to choose from, hundreds of magazines to choose from and the story does not end there. With the advent of newer technologies, we now have newer channels of communications like mobile, Internet and direct-to-home television along with exponential storage capabilities on optical media like CDs and DVDs. Today, a typical consumer is bombarded with more than 1,000 messages per day. Marketers are finding newer ways and means to target the consumers.&nbsp;</div>
	<div>
		 </div>
	<div>
		One limitation for media consumption and media buying for Nepali consumers comes from the frequent load-shedding. This problem also makes an impact on the convergence cycle. The current trend is that the media houses are using all forms of media from print to radio to TV to online portals. One form of media is subsidizing the other. During the winter season, when the load-shedding is at its peak, advertisements in the TV decrease significantly to only 25 per cent as compared to the summer season. However, while the TVs are suffering from losses, the ads in the radio increase. Thus, radio subsidizes TV. Image Channel initially owned two TV stations: Image Channel and Image Metro. Now, it has replaced Image Metro with a new radio station, Image News, while the already existent Image FM still exists. This is an example of merging different types of media in one window, which is possible due to media convergence.&nbsp;</div>
	<div>
		 </div>
	<div>
		Another example of convergence in media consumption is the way in which consumers actively hunt for information. 3G mobile handsets are designed for high speed Internet connections and the user opts to use them in a variety of ways; like checking the online navigation to watch out for traffic jams, weather forecasts, locating the nearest fuel station, hospital or even a restaurant; everything is possible with the mobile handset. It also backs up as a personal information manager (PIM), a music player, a camera and a portable gaming device. Internet usage on the phone is aiding to media consumption but many people cannot afford it.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in Media Ownership</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		A massive diversification of media, thanks to the Internet, materialized by millions of websites, fora, blogs and wikis is taking place. That evolution, often labelled citizen journalism or citizen media, makes it possible for practically everybody to be a media creator, owner and actor, instead of a passive user.&nbsp;</div>
	<div>
		 </div>
	<div>
		With the technological advancements, convergence is expected to take various new forms. One form of media subsidizes the other and this poses a risk of developing a media tycoon. Currently, the Kantipur Media Group can give a run to the state media monopoly. It has an online news portal, a TV channel and radio broadcasting stations along with print media of daily and weekly newspapers, and monthly magazines. It is also considered the fastest and most reliable source of news. This has all been possible due to the proper utilization of technology.&nbsp;</div>
	<div>
		 </div>
	<div>
		Some of the largest media conglomerates in the world include American Media Inc., Bell Globemedia, Bertelsmann, Canwest Global, NBC Universal, Hearst Corporation, Lagardère Media, Liberty Media, News Corporation, Grupo PRISA, Rogers Communications, Sony, Time Warner, The Times Group (distinct from Times Newspapers of News Corportation), Viacom (owned by National Amusements), CBS Corp (also owned by National Amusements), and The Walt Disney Company.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Convergence in the Interests of Dual Markets&nbsp;</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		As more and more companies across industries look at multiple media platforms, especially the digital media, it is also emerging as a revenue-earning model for most of them. Also, e-commerce is growing rapidly and a host of companies are setting up online shops across portals.&nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Two sides of Media Convergence</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		With freedom, come the responsibilities. Media convergence has made a positive impact upon the advertisers. They only need to buy a small space in the websites and their ads get displayed 24 hours a day for as long as they want. The ads on the TV and newspapers last for a shorter period and are comparatively more expensive than the online ads. The design of the advertisements can also be changed from time to time. Also, the growing trend of media houses trying to use all forms of broadcasting media and print media makes it possible for the advertisers to negotiate rates. Their marketing is now more cost effective than before. They can easily use different tools of media and show their advertisements to their consumers through websites, TV, radio, as well as newspapers.</div>
	<div>
		 </div>
	<div>
		The Interim Constitution provides publication and broadcasting freedom to media but again imposes certain restrictions that allow the media to enjoy only the relative freedom. The online media however does not follow these rules and regulations. Online media has no monitoring system and in today’s world, the flow of information is difficult to stop. Hence, news that can be harmful should be stopped from spreading.&nbsp;</div>
	<div>
		 </div>
	<div>
		The definition of media is not the same as it was a decade ago. Facebook is an example of this. This new social media has influenced us largely. Now, every citizen is a reporter as he or she can constantly update news through Facebook. The news about Paras Shah getting a heart attack was published in the Facebook before any other media houses could print or broadcast it. Technology is responsible for this. While 10 years ago, technology turned the world into a global village, today it has changed the world into a global family. If a person in Nepal gets married today and updates his photos on Facebook, his friend in the US can see the photos. This ignores the geographical boundaries and aids in sharing cultures between people of different nations. Thus, it has been making a positive impact worldwide.&nbsp;</div>
	<div>
		 </div>
	<div>
		When the Royal Palace Massacre took place in 2001, &nbsp;a rumour was spread saying that somebody had mixed a poison in the water coming from the Water Supply Tank in Sundarijal. That was a time when people had no other forms of communication except for the landline phones at their homes. If that was enough to discourage many people from drinking water inside Kathmandu valley, we must think how effective can such rumours be today. We have all the powerful tools of communication from mobile phones to the Internet and it will take only seconds for such rumours to spread. &nbsp;Hence, with media convergence, self-regulation is required. People are required to be more responsible. Ill-intended propaganda and rumours should not be published.</div>
	<div>
		 </div>
	<div>
		<strong>Future Impacts</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		It is certain that over the next five years, technology will not remain the same. Newer versions will be available that will bring about more revolutionary changes. Hence, impact is a vague word in future terms. With changes in technology, the working processes will change which will provide the necessary opportunities towards beneficial transformations. The use of the latest technology produces beneficial products but education regarding technology is a limiting factor for a country like ours. With around 50 per cent of the graduating population having some form of knowledge regarding Information Technology (IT), it is not an impossible challenge. However, the business owners and leaders have the responsibility of encouraging this population for increased use of IT. &nbsp;</div>
	<div>
		 </div>
	<div>
		<strong>Media Education: Need for a Paradigm Shift</strong></div>
	<div>
		<strong><br />
		</strong></div>
	<div>
		<img align="left" alt="Media Education" height="139" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_cover_story_media_education.jpg" style="margin:0 10px 0 0;" width="200" />The world today is in the midst of one of the most dramatic technological revolutions in history. It is effecting changes in everything ranging from the ways we work, communicate commerce and spend our leisure time. The technological revolution which is underway centers on computer, information, communication, and multimedia technologies and may be seen to be the beginnings of a knowledge or information society. In such a society, education has a central role in every aspect of life. The proliferation of communication-information technologies poses tremendous challenges. It compels educators to rethink their basic tenets and to deploy the media in creative and productive ways. It forces them to restructure ways of learning-teaching to respond constructively and progressively to the technological and social changes that we are now experiencing.&nbsp;</div>
	<div>
		 </div>
	<div>
		Midas Education has been contributing to the development of ICT for education for about 12 years now. This continuous growth of Midas comes from continuous positive responses and moral support they got from their customers. Just like the processors developed in recent years from Pentium IV to i7, adding more layers in their newer versions, Midas has also been adding layers in their work to promote the use of ICT in the education sector. &nbsp;Raju Baniya, Business Manager of Midas Education, says, “This has improved our results year on year. We started with making self learning CDs and now we are trying to transform the class rooms.</div>
	<div>
		 </div>
	<div>
		As a consequence of information super highway and communication technologies, media and communication education have undergone almost unbelievable changes. The old lines between disciplines are becoming obsolete. The work of professional communicators is undergoing a dramatic change. Resultantly, there are likely to be very few belonging to one discipline which might be conversant with all forms of media in the days to come. With such metamorphosis of the professions underway, it is a real challenge to prepare students for successful professional careers in the era of convergence and connectivity of the variety of media.&nbsp;</div>
	<div>
		 </div>
	<div>
		In an era characterized by convergence of technologies the need for skilled media professionals who understand the foundation, both ethical and practical, from which they need to work, becomes even more critical. But without adequate training in new media skills, the goal will remain unachievable. This crisis in media requires to be addressed in the class room where young professionals are molded and sculpted. But to meet the needs of the fast growing media industry, an ongoing training is vital to ensure that those working in the field have to grow and develop. This entails broadening, updating and upgrading the core component of the media education at various levels.&nbsp;</div>
	<div>
		 </div>
	<div>
		What media students today need is nothing short of a leading-edge education suited to the needs of networked globalised industry. This would involve greater accent on fundamental concepts, values and skills needed to prepare them for communication careers commensurate with unprecedented changes. They need be fully equipped to understand the whole of communication scenario, be able to solve problems and imbibe the ethical and legal implication of media and communication which will let them be comfortable with innovation and working in concert with their peers. The object of the new media education is to prepare students for leadership roles in their professions and in their communities.&nbsp;</div>
	<div>
		 </div>
	<div>
		With a view to achieving the object of quality media education, the institute of Mass Communications are in dire need of reconfiguring and updating their curriculum to produce graduates who are prepared for future leadership roles in the media and communication industries and who are able to communicate across disciplines and in multiple media formats. This for providing students with strong core content in critical thinking, research and analysis, information gathering, writing, graphics and design, and law and ethics and the latest media technology and skills. It is not always possible for teachers to take students to lab to conduct required educational activities. Similarly, the task of taking students for field visit for practical knowledge is also not possible every time. In this context, the MiDas eCLASS offers audio-visual contents that complement the lab activities and field visit to enable the students to gain real-life experience.&nbsp;</div>
	<div>
		 </div>
	<div>
		The media education departments must offer to their students fully computerized reporting and editing classes, and create totally digital classroom and laboratory systems. They must orient themselves to revise their journalism curriculum and always be ready to undergo continual adjustments in response to changes in the profession. Far from print and broadcast sequences running separate, as is the case today, students in the two sequences need to plan news coverage together and work together in the labs. Tomorrow, it is quite likely that the sequences might disappear and students will be required to work seamlessly on stories for print, electronic media and the Internet – or whatever systems will exist in the future.&nbsp;</div>
	<div>
		Same is the case for students of marketing communications who need to integrate the different tools of branding and marketing: advertising, public relations, event management, digital marketing, direct marketing, etc, before specializing in one functional area.</div>
	<div>
		 </div>
	<div>
		For entertainment media students, it is significant to integrate skills for the entire entertainment industry: from television to cinema, from radio to digital entertainment, from events to musicals, etc.</div>
	<div>
		 </div>
</div>',
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			'created' => '2013-03-24',
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			'description' => 'With the advent of new medium over the Internet and the mobile, media convergence is now an increasing reality in the Nepali media and entertainment industry.',
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			'id' => '893',
			'article_category_id' => '37',
			'title' => 'Debate Of The Month: Is The Reality Sector Really Picking Up?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="background:#f9f5a1;padding:3px;">
	<p>
		<strong>Nepali Real Estate at a Glance</strong></p>
	<ul>
		<li>
			Over 400 institutional real estate entrepreneurs across the country; 147 of them registered at Nepal Land and Housing Development Association&nbsp;</li>
		<li>
			From laymen to professionals like doctors and engineers are in this business</li>
		<li>
			The door for organised housing in Nepal opened after the 1995 Collective Housing Act allowed private ownership of apartment units</li>
		<li>
			The investment of banking and financial institutions (BFIs) in real estate and housing stands at around Rs 150 billion; Private sector promoters and builders have invested another Rs 250 billion</li>
		<li>
			The real estate market in Nepal grew significantly after the 1990 political change. It registered impressive growth even during the Maoist insurgency until the late 2008 when it started to slow down.</li>
		<li>
			According to the latest data, commercial banks have given about Rs 68 billion in real estate loans, which is 10.4 percent of the total loans issued by them. Commercial banks’ total lending to the realty sector reached its peak in Jan 2011 to almost Rs 99 billion or 20 per cent of their total lending.</li>
		<li>
			Now, most of the commercial banks which were overtly exposed to the real estate sector have brought down their exposure to below 25 percent level. At the same time, outflow of home loans of up to Rs 10 million has been picking up, with the total amount expanding from Rs 30.83 billion in October 2011 to almost Rs 40 billion by the end of 2012. Several development banks and finance companies are yet to overcome their real estate loan problem.&nbsp;</li>
		<li>
			It is, however, said that a fairly large portion of loans extended to the real estate sector is in the guise of overdraft and term loans, indicating that the problems of the real estate sector in Nepal could be far from over.</li>
	</ul>
</div>
<p style="text-align: justify;">
	We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010. NRB not only put a ceiling on real estate loans but also made it mandatory for real estate buyers to declare their income source for purchase of property worth more than Rs 5 million.&nbsp;</p>
<p style="text-align: justify;">
	Many bankers and real estate players compared this NRB move with a driver’s attempt to stop at once a car speeding along at 80 miles an hour. “When you press on the brakes to stop such a car at once, it is almost always doomed to crash. This is what happened to Nepal’s real estate and housing sector,” complain many bankers. According to them, maybe what happened to the country’s real estate industry over the past three years cannot be called a crash, but the industry was hit really, really hard.</p>
<p style="text-align: justify;">
	But it seems things have started to change now, for the better. After a three-year long slump, Nepal’s real estate and housing sector has shown some signs of improvement of late. Many analysts and industry insiders are still hesitant to call it the beginning of a recovery but even they admit that cautious optimism has replaced the general mood of doom and gloom prevalent in the industry as early as even a few months ago.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the market at present, it is apparent that the genuine, long-term developers have survived the slump, while those who joined the fray just for fast cash have, perhaps, been combed out. Meanwhile, the NRB, too, has adopted a bit flexible approach to the sector in this period which the private sector stakeholders deem as inadequate. Similarly, there have been reports that real estate and housing borrowers who had the banks’ doors shut for them until recently have started getting scrutinized entries into the banks.&nbsp;</p>
<p style="text-align: justify;">
	There are some other signs as well that indicate that the realty sector might have started to climb up. According to real estate entrepreneurs and housing developers, this business has growth by 33 per cent in the first half of the current fiscal year, compared to the same period the previous year.&nbsp;</p>
<p style="text-align: justify;">
	Government revenue from this sector, too, has increased by nearly Rs 370 million in the first six months of this FY, compared to the same period the previous FY. Given these developments, Nubiz asked some of the major players of Nepal’s realty sector, bankers and regulators whether the sector has really started to witness a revival? Here is what they had to say: &nbsp;&nbsp;</p>
<p style="text-align: center;">
	<strong><span style="font-size: 14px;">‘There are positive signs’</span></strong></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img align="left" alt="Ichchha Raj Tamang" height="283" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_ichchha.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Ichchha Raj Tamang</strong></address>
	<address>
		<strong>President</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">This sector was doing very well. We all know that. But then some banks started speculative lending which was followed by others. This provoked the NRB to take stringent measures in the real estate and housing. The NRB, too, should not have implemented that decision at once. Anyway, the combined effect was that the realty sector faced a long slump.&nbsp;</span></p>
<p style="text-align: justify;">
	However, we have seen some positive signs for the realty sector in the first half of the current fiscal year. Statistics show that this sector has grown by 33 per cent in the first six months of the current fiscal year than the same period of the previous fiscal year. We hear that government revenue from the sale of land and houses has gone up in the first six months of this fiscal year. That is another indicator that the sector might have started picking up. Banks, too, have started new home loans at lower interest rates. Though they appear hesitant to invest in the housing apartments, their lending to individuals for land and houses, and loans to multi-storied commercial business complexes being built around Kathmandu have increased in recent months.&nbsp;</p>
<p style="text-align: justify;">
	These are good signs for the realty sector. The other important thing is this market has already witnessed almost the rock-bottom situation. This situation could not continue forever; it had to show the signs of revival. That is what has perhaps started to happen.&nbsp;</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div>
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;"><br />
	</b></span></div>
<div style="text-align: center;">
	<span style="font-size:16px;"><b style="font-size: small; text-align: justify;">‘Market activity has increased’</b></span></div>
<div>
	 </div>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Bhesh Raj Lohani" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhesh.jpg" style="margin:0 10px 0 0;" width="208" />
	<address>
		<strong>Bhesh Raj Lohani</strong></address>
	<address>
		<strong>Secretary</strong></address>
	<address>
		<strong>Nepal Land and Housing Developers’ Association (NLHDA)</strong></address>
</div>
<p style="text-align: justify;">
	<span style="font-size: 12px;">In the first six months of the current fiscal year, the government has collected Rs 2.27 billion in revenue from the sale of land and houses. The figure was only Rs 1.9 billion in the first six months of the previous fiscal year. It is true that the increased tax rates have contributed to this growth but the number of land and house transactions has also increased this year. The sales of low-priced land and houses have particularly gone up.</span></p>
<p style="text-align: justify;">
	Banks have lowered their interest rates for loans from as high as 17 per cent last year to around 10 per cent recently. Remittance inflow has grown; this too has helped the real estate business. The NRB, too, has adopted somewhat liberal policies for the real estate sector, especially after the sector fell into a deep crisis from which it is struggling to come out now. There are scores of middle-class families who need houses and apartments as their permanent residences. Stand-alone houses are still bigger attractions for Nepalis than the apartments. Recent experiences, too, have shown that.</p>
<p style="text-align: justify;">
	If the current growth rate continues, then we can expect more investment in this sector by the end of this fiscal year. The realty business was stagnant for almost three years. Many buyers were waiting for the prices to come down. And the prices have indeed come down significantly, compared to three years ago. So, market activities have surely increased.</p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘Real estate is gradually improving’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<p style="text-align: justify;">
		<img alt="Bhaskar Mani Gyawali" height="291" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_bhaskar.jpg" style="margin:0 10px 0 0;" width="202" /></p>
	<address>
		<address style="text-align: justify;">
			<b>Bhaskar Mani Gyawali</b></address>
		<address style="text-align: justify;">
			<b>Spokesperson</b></address>
		<address style="text-align: justify;">
			<b>Nepal Rastra Bank</b></address>
		<div style="text-align: justify;">
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	We have observed that Nepal’s realty sector has shown a gradual improvement over the past few months. The improvement has not been as expected. But what I can say is the country’s real estate sector has seen its worst; things will only improve from here. Actually this process has already started. As the regulator, NRB has done all it could, to help banks recover their loans to this sector. NRB’s directives issued from time to time have helped the real estate sector to overcome the crisis it has been in for more than the past three years.</p>
<p style="text-align: justify;">
	Speculative pricing by some real estate players and speculative lending by some banks is mainly to blame for the realty slump in Nepal. The only solution to the problems in the real estate and housing sector is that real estate owners and housing developers should be ready to sell their property at minimal profits, sometimes without any profit and in some cases even at certain amount of loss. Otherwise, the interest of the bank will keep rising and they will be sinking deeper and deeper in the problem. If this is done, 75 per cent problems of the real estate and housing sector will be automatically resolved.&nbsp;</p>
<p style="text-align: justify;">
	In recent months, banks have started issuing new home and land loans at lower interest rates. This is good sign. Government revenue from the sale of land and houses, too, has witnessed almost one-third growth in the first half of this fiscal year compared to the same period the last fiscal year. This also shows that the real estate business might have started to pick up. I am sure that the situation will improve further in the days to come. &nbsp; &nbsp; &nbsp; &nbsp;</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b><br />
	</b></span></p>
<p style="text-align: center;">
	<span style="font-size: 14px;"><b>‘We can’t really say that the revival has started’</b></span></p>
<div style="float:left; width: 210px;margin-left:10px;">
	<img alt="Anil Shah, Mega Bank" height="299" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_debate_of_the_month_anil(1).jpg" style="margin:0 10px 0 0;" width="202" />
	<address>
		<address>
			<address>
				<b>Anil Shah</b></address>
			<address>
				<b>CEO</b></address>
			<address>
				<b>Mega Bank</b></address>
			<div>
				 </div>
		</address>
		<div>
			 </div>
	</address>
</div>
<p style="text-align: justify;">
	 </p>
<p>
	Given the current situation, we can’t really say that the realty sector has shown improvements. However, the good thing is the downward spiral has stopped. Some big apartment companies are still in problems. In fact, it is these companies that are responsible for delaying the recovery. So, the reality is the improvement in this sector is definitely not as expected. The banks, too, are not very willing to invest in this sector, especially in the apartments.</p>
<p>
	The buyers, too, are not interested in the apartments. However, now the banks are not compelled to put home loans up to Rs 10 million under real estate loans; the NRB has shown this much flexibility. This relaxation has surely helped the banks, which have invested nearly Rs 150 billion in the real estate sector, and also the real estate promoters.</p>
<p>
	We can’t really say that a revival has started in the realty sector. We’d better wait for some more time and see how things unfold. Meanwhile, the NRB did not say a word about the real estate sector in the mid-term review of the Monetary Policy for the current fiscal year. It must have disappointed the entire sector as well as the banks which have a sizeable investment in this sector.</p>
<div>
	 </div>',
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			'keywords' => 'Debate Of The Month: Is The Reality Sector Really Picking Up?',
			'description' => 'We all know that Nepal’s real estate sector has been in an ailing state for more than the past three years. The real estate and housing industry witnessed a speedy growth (which many say was an unnatural growth), until the Nepal Rastra Bank (NRB), regulator of the country’s financial market, suddenly restricted banks’ lending to the sector in September 2010.',
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			'title' => 'Utter Discouragement',
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			'content' => '<p>
	 </p>
<p style="text-align: justify;">
	<img alt="From the editor, March 2013" height="362" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_from_the_editor(1).jpg" width="580" /></p>
<p style="text-align: justify;">
	The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi. The company is planning to construct a 2.9 km tunnel connecting Kulekhani and Bhimphedi stretch of Kathmandu-Hetauda road. The proposed tunnel will reduce the Kathmandu-Hetauda road distance to 58 km and travel duration to 45 minutes. It now takes at least four hours to drive between the two cities.</p>
<p style="text-align: justify;">
	But the Company’s plan to lay a foundation stone for the tunnel on February 8 was dampened by the government inaction and the prescheduled ceremony was just limited to a ritual pooja than the real act of marking the formal beginning of construction. Contrary to the expectation, the government didn’t sign a go-ahead agreement with the NPBCL so as to allow the Company to formally inaugurate the construction of the tunnel on the very day.</p>
<p style="text-align: justify;">
	The government reservation that the Company didn’t have convincing plans to repay the investors was a mere excuse given the credibility of the people involved as promoters, shareholders and partners of the company.</p>
<p style="text-align: justify;">
	Firstly, it is promoted by wider participation of local beneficiaries. Though their investment may be small in amount, it would automatically provide a social audit framework for such a large project. As the number of promoters is going to be 264,000, the company is unlikely to be case of one large single obligor insolvency, even if the company, by any chance, met an unexpected fate.</p>
<p style="text-align: justify;">
	Second, the promoters themselves, including Joshi, are renowned business leaders and the government must have an iota of trust on them. If not, whom will it trust upon to invest in?</p>
<p style="text-align: justify;">
	Third, there are organizations like Non-resident Nepali Association (NRNA) that have signed agreement to invest and help complete the project in stipulated four-year period. Despite these all, if the officials in the Ministry of Physical Planning and Transport Management had any reservation on any issue, that had to be resolved through negotiation with the company, before setting the date of official inaugural.&nbsp;</p>
<p style="text-align: justify;">
	The modalities for sharing benefits between promoters and public investors, collection of the toll and plans of financial closure are undoubtedly important for a Rs 20 billion project. But they had to be sorted out well ahead setting the date of formal commencement of the construction. The Company’s approach to take the government’s likely obstruction for granted and the government intention to obstruct in any pretext have given all the wrong messages to the public about the very future of the project.</p>
<p style="text-align: justify;">
	The government contention that the estimated cost of the project was too low and funding sources were not clearly demonstrated, are not a well-founded. To say the least, it is not the business of the government to tell a private company whether any amount it set aside for the project was enough or not. And, the funding sources the Company has enlisted are of course the most credible ones available in Nepal.</p>
<p style="text-align: justify;">
	This episode is the combination of government’s unfriendly attitude towards the private sector and ad-hoc working style of Nepali corporate sector. The government must acknowledge the fact that it is the first large-scale private sector initiative to invest in country’s key infrastructure like road project. For this reason, the government should leave no stone unturned to facilitate the execution of the project. And, on the part of the company, there should be more transparent and convincing flow of information, so that the mala fide government intentions could easily be defeated by the strength of public confidence on it.</p>
<p style="text-align: justify;">
	There are questions whether the entire road from Balkhu of Kathmandu to Hetauda will be developed by the Company or is it constructing the tunnel alone and expects the government to make the rest of 55 km road widened to four-lanes with the tax-payers’ money. In such a case, how will the tolled amount be distributed?</p>
<p style="text-align: justify;">
	Obviously, the Company must have discussed these things with the relevant government agencies in detail. But the same details have not come to the public notice. Therefore, it is important that both parties, the government and the Company, played a transparent game so that this project can set a benchmark for future such projects.&nbsp;</p>',
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			'created' => '2013-03-24',
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			'description' => 'The private sector of Nepal has been a constant victim of government inaction, for decades now. The latest in the row is Nepal Purwadhar Bikas Company Limited (NPBCL), headed by outgoing President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi.',
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		'Article' => array(
			'id' => '890',
			'article_category_id' => '31',
			'title' => 'Product Is More Important Than Profit',
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			'content' => '<p style="text-align: justify;">
	<img align="right" alt="S.P. Sharma, Godrej Security Solutions India" height="347" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_visitng_business_people_sp_sharma.jpg" style="margin:0 0 0 10px;" width="280" /></p>
<p style="text-align: justify;">
	S.P. Sarma is the Senior General Manager of the Global Operation for Godrej Security Solutions India. Graduated in Engineering and MBA, Sarma has been working with Godrej for the last 23 years. He served the company with different roles from service, sales and marketing and became the head of the global operation. In an interview with New Business Age when he was in Kathmandu recently, Sarma explained the necessity of the security products in business organizations.</p>
<p style="text-align: justify;">
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the purpose of your current trip to Nepal?</strong></p>
<p style="text-align: justify;">
	My trip is to meet the customers and our partners in Nepal. We organize such kinds of trips time to time because we value our customers very much. We feel that whatever success has been there, It is because we are able to meet the demand of customers. And the expectation of the customers can be fulfilled if we come and listen to them.</p>
<p style="text-align: justify;">
	<strong>Could you please tell us about Godrej Security Solutions?</strong></p>
<p style="text-align: justify;">
	Godrej Security Solutions is a 100 years old division of Godrej Company. Our company is providing security products to financial institutions, jewelry companies, private organizations and households. We started producing these products in 1992 and now we have developed many advanced products according to the demand of customer. We believe that the product is more important than profit. With Godrej security solutions customers can get peace of mind. The other benefit they get is trust. We have been able to live up because of the trust of our customers. Majority of Financial Institutions functioning today are offered our prompt and efficient services.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your business strategies for your security products in the international market?</strong></p>
<p style="text-align: justify;">
	Our security products are of latest technologies. We are present in Europe, Africa, South East Asia and every year we have valuable partners. Security is running battle . It is essential to keep pace with the latest technology to meet growing needs. This is the reason why we have graduated from simple lever and tumbler locks several years ago to modern, intelligent technologies. We are also doing research and developing in new ways to update our products. So far, as I said, we have been able to win trust of the customers. Our business is also going good and we are planning to put up a new plant in Maharashtra, Mumbai.</p>
<p style="text-align: justify;">
	We have moved from being simply a seller of security products to a company selling comprehensive security solution. We offer diverse security product solutions including technologically advanced sphere such as cameras with analytics, substance detectors (bomb, bullets, and narcotics), X-ray baggage scanners, biometrics and access control systems, burglary and fire resistant safes, road blockers and marine solutions. Our products are tested stringently at leading testing laboratories i.e. SP Test in Sweden, VDS Test in Germany and the underwriter’s laboratory in the United States. Our plant in Mumbai is rated as one of the finest and largest factories in India. Our passion to offer international quality product with prompt supply, delivery, installation and most importantly after-sales servicing have been commended by many reputed companies.</p>
<p style="text-align: justify;">
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p style="text-align: justify;">
	I think it is very good. We see Nepal being very vibrant and I personally see that Nepal is on the way to development. And I feel that the banks and financial institutes are going to be the lubricants which will further enhance the development. We may offer our service to these banks and financial institutes as our commitment is to win the trust of our customers. Our supply of Godrej products to Nepal Rastra Bank and Nepal Bank Ltd made in the 1960’s still stands strong to this day, same as our sincerity and services towards our customers. We can proudly state that we have been able to come up to our customers’ expectations.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can Nepali customers get your service in Nepal?</strong></p>
<p style="text-align: justify;">
	Our commitment to the services to our customers is delivered almost by our trusted partner; - Nepal Commercial Enterprises Pvt. Ltd. It provides Godrej security equipment, home and office furniture, storage equipment and locks along with numerous retail outlets to our customers in Nepal. They also retail home safes and locks at Bhat-Bhateni and other outlets, making security a convenient purchase around their vicinity. &nbsp;The corporate showroom at Pulchowk offers a wide range of products from locking systems, security solutions, and home and office furniture.</p>
<p style="text-align: justify;">
	 </p>',
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