Stimulating broadband through

Telecom Regulatory Authority of India
Stimulating Broadband through
Universal Service
Convergence of Era Broadband training program
2-4 April , 2012
Hyderabad, India
SOLONGO MALTAR
(solongo@ictpa.gov.mn)
Information, Communications Technology and Post Authority
Mongolia

Content
 Country overview
 ICT sector
 Universal service legal framework
 Universal service implementation
2

Content
 ICT sector
3

Country overview
4
Location: Northeast Asia, between China
and Russia (landlocked)
Population: 2.7mln
Capital: Ulaanbaatar
Territory: 1,566,500 sq.km
Government: Parliamentary
Natural resources: Coal, copper, gold, molybdenum,
tungsten, phosphates, tin,
nickel, zinc, wolfram, fluorspar,
silver, iron, phosphate
GDP (USD bn): 4.2
GDP per capita
(USD)
1,560
GDP by sectors
agriculture: 21.2%, industry:
29.5%, services: 49.3%
• Separate Business from Policy
(1992)
• Sector Reform (1993-1994)
• Restructuring & Privatization
(1995)
• Law on Communication (1995)
• From Analogue to Digital (1995)
• Competition in a telecom market
(1996)
• liberalization (2001 - 2006)
• Renewed Law on Communication
(2001)
• Establishment of CRC (2002)
• Establishment of ICTPA (2004)
• Sharpening of the Mobile Market
competition (2006)
• Universal service/Universal
access policy
(from 2007)

Content
 ICT sector
 ICT sector indicators
 Government structure of ICT sector
 Policy and Regulatory framework
5

ICT sector indicators
6
0
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010 2011
140.4
181.7
283.5
365.2
449.2 471.0
539
mil.tug
Total revenue of ICT sector
Composition of ICT sector
revenues
Mobile2
71
74,29%
FIxed
34,9;
9,56%
VoIP20,1,
5.49%
Post 6,8;
1,85%
Internet
17,3;
4,74%
TV
broadcast
ing 6,0,
1.65%
CaTV
3,10,
1.09%
Other
4,9;
1,34%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2006 2007 2008 2009
ICT in GDP
21.5
29.9
45.3
65.7
82.2
90.3
6.8 7.4 6.5 6.8 6.8
7.0
0.3 0.4 0.6 1.5 3.9 7.2
0
10
20
30
40
50
60
70
80
90
100
2005 2006 2007 2008 2009 2010
Mobile
Fixed
Internet

ICT Sector players
 Fixed line operator – 3
 Mobile network operator – 4
(3G license issued in 2009)
 ITSP - 4
 ISPs – 75
 International VoIP service
provider - 28
 IPTV – 2 in 2009
 Mobile TV – 2 in 2009
7
Infrastructure and
Service
 175 soums (village) are
connected by fiber optic out
of 331
 Over 18.700 km fiber optic
network and 8.400 km digital
microwave network (state
and private)
 All of the soums have at least
1 mobile operator’s service
 38 soums of them have
Internet

Government structure ICT policy and regulation
8
President
Communications
Regulatory
Commission
Cabinet members of
the Government
Prime minister
Parliament
Information, Communications
Technology and Post
Authority
Other
Ministries
Citizens, Businesses, Other public and Private entities
Telecoms and IT sectors are overseen by ICTPA, regulatory
function by CRC in telecoms

Policy and Regulatory framework
9
 ICT Vision up to 2021, draft
 (Parliament of Mongolia, 2011)
 Policy Guidelines (GSM 1800,
Broadcasting of Digital TV, 3G, WLL
etc.)
 Policy guideline on tariff (draft, 2011)
 Law on Communication (renewed in
2001)
 Law on Radio Wave (approved 1999)
 Law on Government’s Special Fund
(renewed 2007)
 Law on Licensing Business Activities
(approved 2001)
 Law on e-signature (approved 2011)
Policy papersLegal Framework
Regulatory Frameworks
 Licensing (classifications, conditions,
Issue, prolong and cancel licenses and
radio frequency)
 Numbering
 Regulatory service fees
 Monitoring QoS
 Complains and disputes
 Methodologies for service tariff
 Determining and controlling
dominants
 Access & interconnection
National Programs
 E-Government national program (draft,
2011)
 E-Mongolia National Program for 2005-
2012 (ICTA, 2005)
 National Broadband program (ICTPA,
2011)
 To ensure of information security
(2010-2015)
 To switchover Radio and Television
broadcasting to digital technology
(2010-2015)

Content
 ICT sector
 Universal service overview
 Legislation
 Funding mechanism
 ICT sectors players
10

USOF legal framework
11
Legal Framework
Regulatory Frameworks
 Law on Communication (renewed in
2001)
 Law on Government’s Special Fund
(renewed 2007)
 Law on Licensing Business Activities
(approved 2001)
 Procedure of collecting and
expending USOF (Government of
Mongolia, 2006)
 Procedure on USOF
 USOF is Legally created in 2001 / operational in 2007
 Control of USOF transferred from CRC to the ICTPA in 2009
 USOF is composed from 2% levies of taxable revenues of
communications service providers

Funding Mechanism
 95% is generated from mobile sector (by 2010)
 For 2007-2010, USOF disbursed about 85% of collections
($8m)
 USOF was able to fully take advantage of the practical
experience gained working with 2006 WB Pilot projects
 Most of the fund was dedicated to enable access to mobile
services to rural areas. Today as most of the areas are
covered by mobile services, we are using a fund to expand the
internet services to rural areas.
12

ICT sector players
 Fixed line operators – 3
13
 Mobile network operators – 4
 Internet Telephony service provider – 4
 ISPs – 75
 International VoIP service provider – 28
 IPTV – 2
 Mobile TV – 2
 Cable TV - 70
State communication depart.
, Railway
GSM, W-CDMA
CDMA, W-CDMA
GSM, W-CDMA
CDMA 450, WCDMA
684 licenses were granted to the entities

Content
 ICT sector
 Universal service overview
 Rural ICT initaitives
 National program Broadband
 ICT Vision 2021
 Stimulating broadband access
 Challenge
14

Rural ICT initiatives
Situation of Rural ICT
 Fixed and mobile teledensity are four to five times higher in the urban
 Mongolia likely to have 40% of population living in rural areas in mid/long term
– Voice component of universal service is close to being achieved – progree
has been undertaken relatively very quickly (in the last 5 years)
– Next challenge is the wide-spread roll-out and adoption of broadband
World Bank financed UAS Program (ICIDP)
A series of World Bank-funded activities that included pilot projects and culminated
in the UA/US Program provided technical assistance and subsidy financing (US $5
million) over the period 2005-08 for UAS promotion
15
Program Maximum subsidy Number of covered
soums
Herder Public access
network
970.000$ 142 baghs
(administrative unit)
Soum center wireless
network
4.600.000$ 90 soums
Aimag center internet
services
1.160.000$ 34 soums and aimag
centers

Other projects
16
 Mongolian Internet Exchange (MIX) point
 Delivering radio and television programs to rural areas
 Connecting Ger district households to high-speed Internet
connections through wireless technology
 Delivering Internet services to Soums (villages)
 Projects to improve mobile service coverage

National broadband program of Mongolia
17
The goal of National Broadband Program of Mongolia is to
support national economic growth and livelihoods by the
establishment of a high-capacity, high-speed broadband
network to deliver an accessible, low-cost, comprehensive
information service to all government agencies, businesses
and households, especially for rural and remote areas.
 Implementation priod: 2011-2015

National Broadband program of Mongolia /cont/
1. Government support for the establishment of a high-speed broadband
network, with companies providing services, with the development of
broadband being based on a mutually beneficial public-private
partnership.
2. Use of foreign loans and aid, supported by foreign and domestic
investment, with provision of specific discounts and incentives for
service providers to deliver services to isolated rural areas. This will
involve the following:
3. Enhancement of the business environment, so that previous
investment in the main network is improved and investment returns
improved.
4. Government support for increasing use of broadband networks and
development of content, involving training courses, promotional
activity and fund mobilization.
5. Expansion of the existing network to rural areas and Ulaanbaatar's
peri-urban areas, improvement of service quality and coverage,
reduction of network lease costs for delivery of internet to rural
areas, training courses and promotional activity.
18

National broadband program of Mongolia /cont/
19
Objectives
1. Creation of a legal, regulatory and
conducive business environment to develop a
high-speed broadband network
2. Increased capacity and quality of existing
urban networks and diversification of
services.
3. Creation of infrastructure for rural area
and establishment of a broadband
infrastructure and services in currently non-
connected remote areas.
4. Increased content on, and use of, the
broadband network.
5. Research into convergence advanced
technology, with the development and
implementation of a national mid-term
strategic plan under global standards.
Benefit and results
• A favorable legal, regulatory and
conducive business environment for the
establishment and development of a
high-speed broadband network will
exist.
• Indicators for Mongolia’s broadband
development (speed, price and use)
will be above the global average.
• No less than 90% of government
organizations, education and health
agencies will have access to high speed
broadband network.
• At least 50% of all households will have
access to cheap triple-play service
access delivered through broadband.
• Over 40% of households in remote
areas and more isolated populated
areas will have access to a
wireless broadband service.

ICT Vision up to 2021 /basic objectives/
20
 Vision
The Information and communication technologies (ICT) is driving
force for knowledge based economy and accelerator for social and
economic development.
 Mission
To build information and knowledge based economy high income
society with technology supported decision making in Mongolia by
developing, disseminating and using ICT applications for social and
economic development.

ICT vision up to 2021
21
Education
Health
Banking,
Finance
Mining
Herding and Agriculture
Information and Communications Technology
ICT human resource
Information Security
E-Government

ICT vision target
Broadband
22
Household
Big cities
Provinces
Soums
100% - 100Mbps
70% - 50Mbps
60% - 50Mbps
At the present moment, when it is obvious that Mongolia
as well as other countries recognize the importance of the new
wave of broadband development, the Government
agencies have been implementing a series of
concrete actions to ensure successful deployment
of a broadband throughout the country.

 Strong Leadership to Support ICT initiatives
 Policy makers should recognize key benefits of the ICT
 Cabinet-level ministry plays key role in coordinating ICT related initiatives. (Several
funds)
 Most of the countries have strong financial support from the Government on the rural
ICT development. (PPP)
 Sustainability of the project
 Local Governors should play important role in developing rural ICT
 Well trained personnel to manage service, attract others (Champions)
 To assist on further rural development and infrastructure construction
 Ongoing evaluation and review of the effectiveness of the Strategy
 Not only Commercial center, but also Community center to provide E-government
service and training (15-25%)
 Not only basic telephony service, but also Advanced telecom services
 Long Term Policy/Master plan on US/UA program and USOF
 Set very specific, clearly defined target on the UA/US on long term Policy
 Public consultation and transparency of the Policy plays important role
 Conduct economic research and result of the initiatives
 Separate Policies on both connected and unconnected areas (by backbone network)
 Enabling market environment
Success factors of US/UA programs

Challenge
 Nowadays, the main challenges for the deployment of internet
services and broadband are that the accessibility and tariff of
ICT backbone network services limits its broad utilization by
the new internet service providers and businesses. The cost of
connecting to internet services has been kept stable from the
cost of 2009. The internet connection for corporate
organizations is starting from 145 US$ for 1Mbps for
dedicated leased line for monthly basic.
 In the beginning of 2011, the number of internet connection
was 199,849 representing an increase of over 53% compared
to 2009. Even though internet connection is increasing at the
reasonable level, broadband penetration (5.2%) and average
speed (1Mbps in urban area, 128kbps in rural area) is very
low comparing to a world average.
24

Challenge /cont/
25
 Separated Service from Network (1995)
 Government of Mongollia sold a 40% share of Service
Company (MTC)
 Two separated companies “NetCo” offering wholesale network
services on a non-exclusive basis and “ServCo” offering retail
services (2007)

26
Stimulating Broadband Access
In order to facilitate successful development of broadband, Information
communications infrastructure is needed to accelerate the country’s
social and economic development. However, this requires large amounts
of capital for a country like Mongolia, specialy to implement
infrastructure to connect all schools, hospitals and communities.
• Encourage cooperation in building networks and infrastructures to reduce
costs and risks (especially for economically unfeasible areas) - government-
private, private-private, central-regional governments. Once a target area is
chosen for broadband development (green or brown fields), select the lowest
bidder for government subsidies on conditions of meeting public obligations
(in case the works to do are pre-determined)
• Encourage the would-be participants to form a consortium of operators if the
project cannot be done by a single operator within the government’s budget
constraint.
• Let regional governments (in partnerships with operators and using
subsidies from the central government) develop the broadband fit for
their regions on the condition that they meet the standard for
interoperability, QoS, etc.

• Build more backbone and backhaul networks in the above ways of
cooperation. Let the incumbent operator, a consortium of
competitors, or a newly established government-owned company
participate in this project. Find and develop more civil engineering
infrastructure (ducts, poles, manholes, access to in-building wires,
etc.) and let them be shared for broadband development.
• Similar with the ”Connect a school, Connect a community” initiative
of ITU, the “Low cost computer” program will be very helpful in
developing countries to universal access and broadband
development.
• Provision of low-prices PCs to provide benefits to the rural residents
in informatization and the Government alike, in that the rural
residents is provided with an opportunity to purchase a high efficient
PC without a sizable amount of money that is guaranteed by the
Government at an inexpensive price, and the Government can
prepare a base for universal servicing of PCs and Internet
information services, which are part of the Government subjects.
27
Stimulating Broadband Access /cont./

28
Stimulating Broadband Access /cont./
 Increase e-applications for government organizations, and education and
health agencies, and create necessary conditions for a fast and reliable
public service using broadband network.
 Run training courses and public awareness activities for e-applications,
promoting results and outcomes to the public.
 Increase the application of e-governance at local government
administration levels, and create a training system to improve ICT
awareness and skills.
 Support the access to the education, disseminate ICT into education
system, and promote its applications from the primary school through
informatics, information technology subjects and to provide e-literacy in
national level and enhance computer education.
 Improve national content, localize international resources to the national
situation and provide policy support for content business.
 Increase internal internet-based data traffic, support internal cross-
connections, creates a favorable business environment.

ICT Vision up to 2021
 To conduct e-literacy program for all Mongolian citizens and enable
the e-basic education
 To connect health, education and other sectors with high speed
broadband network;
 The 90% of total population will have an access to high speed
broadband network by utilizing the wireless communication
technology;
 The major metropolitan areas will be connected with high speed
broadband network of minimum of 22 Gbps internet speed, soum and
residential centers will be connected with minimum of 2 Gbps internet
speed;
 There will be at least one community service center in aymag and
soum centers to access to the high speed broadband network;
 To develop internal content;
 To provide the technical possibility to gain 100% access to digital
broadcasting without time and location limitations;
29

30

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