ICT Country Report Mongolia -8th-Nov-2012

Country Report:
Mongolia.
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ICT Country
Report: Mongolia
Prepared by Tumennast.E, Badamsuren.B,
Ganbat.T, at the Information and
Telecommunication Technologies Program
in KAIST
The report provides a description of the country´s ICT standing point in terms of
background, implementation, usage and impact. The report targets to provide an objective
understanding of the national ICT reality.
October 2012, Daejeon Korea

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Mongolia.
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Contents
1. Country´s Background............................................................................................................4
1.1 Economy.................................................................................................................................5
1.2 Social – Political.....................................................................................................................7
1.3 ICT Indicators.........................................................................................................................9
2. National Development Strategy............................................................................................11
2.1 Description............................................................................................................................11
2.2 Priorities................................................................................................................................12
3. ICT Strategy..........................................................................................................................13
3.1 Mission and Vision...............................................................................................................13
3.2 Principles ..............................................................................................................................14
3.3 Goals.....................................................................................................................................15
3.4 Priorities and Projects...........................................................................................................15
4 ICT Sector.............................................................................................................................17
4.1 ICT Policy.............................................................................................................................17
4.2 ICT Laws and Regulation.....................................................................................................20
4.3 ICT Institutions and Role......................................................................................................20
4.4 ICT Funds.............................................................................................................................22
4.5 ICT Education.......................................................................................................................24
5 ICT/e-Government Projects..................................................................................................25
5.1 Project List............................................................................................................................25
5.2 Comments on Projects ..........................................................................................................26
6 Country´s ICT Cooperation Activities..................................................................................26
6.1 Cooperation Experience and Results ....................................................................................26
6.2 Current Activities..................................................................................................................27
7 Country´s ICT Market and Industry .....................................................................................29
8 ICT SWOT Analysis.............................................................................................................33
8.1 Strength.................................................................................................................................33

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8.2 Weakness..............................................................................................................................34
8.3 Opportunities ........................................................................................................................34
8.4 Threats ..................................................................................................................................35
9 Recommendations.................................................................................................................35
9.1 General Recommendations...................................................................................................35
9.2 Sector Recommendations .....................................................................................................36
9.2.1 Government ..........................................................................................................................36
9.2.2 Industry.................................................................................................................................36
9.2.3 Academy...............................................................................................................................37
10 Identifying Korean Partnership.............................................................................................38
11 Final Conclusions .................................................................................................................40
12 References.............................................................................................................................41
13 Appendix...............................................................................................................................42

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1. Country´s Background
The second largest
landlocked country in the world,
Mongolia is sandwiched between
Russia and China.
Mongolia contains very
little arable land, and animal
husbandry remains a primary
source of income for a large
portion of the population.
Approximately thirty
percent of the population is
nomadic, and these herders follow
seasonal migratory routes in search
of pasture for their livestock.
The Gobi desert spans the
south of the country, forests and
mountains are found in the north,
and vast steppes stretch across the central regions of Mongolia.
The country is rich in natural resources including gold, coal and copper, and the
extractive industries are poised to usher in a new phase of economic development.
The majority of Mongolians speak Khalkh Mongolian, the official language of the
country. A minority of about seven percent, concentrated in the west of the country, has
Kazakh as a mother tongue, and there are a number of additional ethnic groups spread
throughout Mongolia.
Mongolia is divided into 21 aimag (provinces), which are in turn divided into
329 sums (districts). According to the 2010 National Census, among Mongolians aged 15
and above, 53% were Buddhists, while 39% were non-religious.
Mongolia maintains positive relations and has diplomatic missions in many
countries such as Russia, the People's Republic of China, India, North and South
Mongolia

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Korea, Japan, and the United States. The government has focused a great deal on
encouraging foreign investments and trade.
1.1 Economy
• GDP: 8.5 billion US$.
(The Global Competitiveness Report 2012–2013 of 2012 World Economic Forum.)
• GNI per capital: 3,042 US$.
(The Global Competitiveness Report 2012–2013 of 2012 World Economic Forum.)
– Income: ~3.2 Billion USD (State
budget of Mongolia, 2011, http://www.infomongolia.com/ct/ci/3354/144/)
– Spending: ~3.47 Billion USD (State
budget of Mongolia, 2011, http://www.infomongolia.com/ct/ci/3354/144/)
• National Debt
– US$: 1.86 billion US$
(2009 source and year)
– GDP Percentage: ~13.7% (source and year)
• Grant
– US$: 2,074.9 million US$
(Mongolian Audit Authority’s year 2011 auditing report. Total of Grant of year 1991-2010.
http://202.70.41.150/welcome_mnao/export/sites/default/inter/mn/dwnloads/2012/grant.pdf
)
• Soft Loan
– US$: 300 million US$ from
Economic Development Cooperation Fund (EDCF) of Republic of Korea,
which will support industrialization and economic development of
Mongolia. Before EDCF has provided over 60 million USD soft loans for

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developing the seven projects in the health, energy, road, transportation
and information technology sector of Mongolia between years 1993-2007.
(Government of Mongolia and Government of Republic of Korea agreement 2011-2015,
http://www.infomongolia.com/ct/ci/2594/)
– US$: 500 million US$ from
Export Import Bank (EXIM bank) of People’s Republic of China, which will
support education, health, agriculture and infrastructure development
sector of Mongolia. Before EXIM has provided 300 million USD soft loans
for developing the seven projects in the agriculture, construction and
information technology sector of Mongolia, year 2008.
(Government of Mongolia and Government of People’s Republic of China agreement 2011,
http://politics.news.mn/content/71257.shtml)
• Industry Percentage
– Mining and quarrying Industry: 22% (2010)
Economic activity in Mongolia has traditionally been based on herding and
agriculture, although development of extensive mineral deposits of copper,
coal, molybdenum, tin, tungsten, and gold have emerged as a driver of
industrial production.
(“Booming Mongolia: Mine, all mine”. The economist journal. 21 Jan of 2012.
http://www.economist.com/node/21543113/)
– Agriculture Industry: 16%(2010)
Agriculture constitutes about 12.5% of Mongolia's annual Gross domestic
product and employs 33.5% of the labor force in year 2010. However, the
high altitude, extreme fluctuation in temperature, long winters, and low
precipitation provides limited potential for agricultural development. The
growing season is only 95 – 110 days. Because of Mongolia's harsh climate,
it is unsuited to most cultivation..
(Ministry of Food and Agriculture official news of 2010.
http://www.mofa.gov.mn/mn/index.php?option=com_content&view=article&id=35&Itemi
d=29)

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• IT Industry Percentage: 3% of GDP.(2010)
(“Year book 2010” Communications Regulation Committee. 2010. http://www.crc.gov.mn)
1.2 Social – Political
• Territory
– Square Km: 1,566,600 sq. km
(World Bank source:
http://siteresources.worldbank.org/INTEAPHALFYEARLYUPDATE/Resources/550192-
1270538603148/eap_april2010_mongolia.pdf year)
– Comparison to South Korea: 15.6 times bigger
• Population: 2.8 million (2010)
(World Bank source: http://www.worldbank.org/en/country/mongolia)
• Language: Mongolian
• Capital City: Ulaanbaatar
• Percentage of Urbanization: 67.9% (2010)
(Mongolian Census Report 2010, Mongolian http://www.toollogo2010.mn/ )
• Political Power Organization: Parliament
• Ruling Party: (Single, Coalition) Coalition
(Democratic Party, Civil Will-Green Party and Mongolian People’s Revolution Party.)
• University Entrance Rate: 60.1% (2010)
• Literacy Percentage: 98.3% (2010)

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1.3 ICT Indicators
Component Total
Per 100
Habitants
Region %
Average(Asia-
Pacific)
World %
Average
Telecommunications (ITU, 2011)
http://www.itu.int/ITU-D/ict/statistics/explorer/index.html
http://www.itu.int/ITU-D/ict/statistics/at_glance/keytelecom.html
Fixed Telephone Subscriptions 187,561 6.7 13.8 17.3
Fixed Broadband Subscription 79,320 2.83 6.4 8.5
Percentage of Individuals Using
Internet
-- 20.0 25.5 32.5
Mobile Cellular Subscriptions 2,942,300 105.08 76.7 85.7
Component
Country´s
Rank
Country´s
Index/Score
Region Index
Average(Asia-
Pacific)
World Index
Average
The Global Information Technology Report (WEF, 2012)
http://www.weforum.org/issues/global-information-technology/gitr-2012-data-platform
Network Readiness
63th
3.95 N/A
N/A
Environment Sub-Index 95th
3.59 N/A N/A
Readiness Sub-Index 40th
5.22 N/A N/A
Usage Sub-Index 75th
3.40 N/A N/A
Impact Sub-Index 62th
3.56 N/A N/A
Information Society Measurement 2012 (ITU, 2011)
http://www.itu.int/ITU-D/ict/publications/idi/material/2012/IDI-
ranking.pdf
Developing *
ICT Development 84st
3.63 4.02 4.15

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IDI Access Sub-Index 92th
3.76 N/A 4.66
IDI Use Sub-Index 96th
1.25 N/A 2.47
IDI Skills Sub-Index 44st
8.11 N/A 6.51
ICT Price Basket (as % of GNI per
capita)
-- N/A 14.2 * 10.3
Fixed Telephone Sub-Basket ( %
GNI pc)
-- N/A 6.8 * 5.1
Mobile Cellular Sub-Basket ( %
GNI pc)
-- N/A 8.9 * 6.8
Fixed Broadband Sub-Basket ( %
GNI pc)
-- N/A 40.3 * 28.5
Mobile Broadband Sub-Basket -
Prepaid handset-based ( % GNI pc)
-- 6.9 -- --
Mobile Broadband Sub-Basket -
Postpaid computer-based ( % GNI
pc)
-- 5.9 -- --
United Nations E-Government Survey 2012 (UN, 2012)
http://www2.unpan.org/egovkb/global_reports/12report.htm
E-Government Development Index 76th
0.5443 0.4992 0.4882
Online Service Component -- 0.5882 0.4880 0.4328
Telecomm Infrastructure
Component
-- 0.1758 0.2818 0.3245
Human Capital Component -- 0.8688 0.7278 0.7173
E-Participation Index 10th
0.6053 0.2738 0.2225
Environment Index -- 0.8224 0.4914 0.4633

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2. National Development Strategy
2.1 Description
Mission of strategy
Supporting the Mongolian human development in a humane, civil, and democratic
society by promoting economic growth, as well as actively developing the country's
society, economy, sciences, and technology in strict conformity with global and regional
development.
Principle
Based on Millennium Development Goals(MDG).
Strategic Goals & Activities
• Medium term objectives (2007-2015)
– Achieving MDGs and actively developing the country's economy
• Long term objectives (2016–2021)
–Making a transition to knowledge-based economy
• Vision (2021 - further)
– Contribute creatively to the global economy through technological advancement.
Create a society based on its human capacity.

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2.2 Priorities
Action Plan of Reform’s Government of Mongolia, 2012-2016.
Action plan is approved by Parliament, September 8th of 2012 and period of 2012-
2016. The Plan consists of five Acts themed "Employed and Payable Mongolian Citizen",
"Healthy and Strong Mongolian", "Educated Mongolian", "Safety Environmentally
Secured Mongolian", and "Free Mongolian".
Action plan is based on the Democratic Party's "Mongol Khun-2020” action plan, some
clauses were reflected from Civil Will-Green Party’s the “Life” Plan and the "Five
Revolutions to Save Mongolia" Action Plan of the "Justice" Coalition (Mongolian People’s
Revolution Party-Mongolian National Development Party) accordingly.
The Five Action Plans by the Restructuring Government of Mongolia
• “Employed and Payable Mongolian Citizen”
The Government aimed to supply the population’s basic demands sustainably;
to implement policies on building competitive self assistant economy at the
international market directed on budget, finance and monetary. Also, supply its
citizens with work places and well sufficient wages, moreover to discharge the
uncontrolled social welfare policy and support only children, elders and disabilities,
who need such social welfare.
• “Healthy and Strong Mongolian”

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Each citizen of Mongolia would receive the most quality health diagnostics,
treatments and services in the home, based upon the fair competitiveness and
choices.
• “Educated Mongolian”
Mongolian characteristics that are meeting international standards would be
allocated to all citizens of Mongolia and professions obtained inboard will be
qualified to be employed in local and foreign countries accordingly.
• “Safety Environmentally Secured Mongolian”
It was reflected the balanced usage of natural resources, making its
rehabilitation regularly, within the environmental protection to coordinate the
economic and development policy under green development, work and live in an
ecologically balanced environment.
• “Free Mongolian”
This directed to implement pure and open Government policy to its citizens, to
implement responsible and controlled state activities, making them the prime goals,
moreover to reform basically the state servants’ services, free of bureaucracy and
corruption. All citizens with equal rights and build a society living well in his home
country.
3. ICT Strategy
Mongolian ICT vision up to 2021 has approved by the government of Mongolia, 2012.
3.1 Mission and Vision
The mission is 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.

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The Information and communication technologies (ICT) is driving force for
knowledge based economy and accelerator for social and economic development.
3.2 Principles
• To use ICT services as an enabler of democracy, justice, equality in human rights
and provider of national integrity;
• To enable the participation and involvement of each citizen in the development of
ICTs, bridge digital divide;
• To be in comply with the national development policy and implementation strategy;
• To maintain dynamic and sustainable ICT development;
• To invest, supervise and openly evaluate the projects and programs with high
priority and demand;
• The policy implementation shall involve partnership of all stakeholders;
• The backbone ICT network shall be flexible in changing environment, reliable,
secure, open, equal and accessible;
• To provide responsibility structure in all levels, be transparent and follow the law;
• The current development status, objectives, implementation period shall be clearly
defined;

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3.3 Goals
Strategic Goals & Activities
 The human resources development in ICT sector;
 The ICT development in education;
 To effective delivery of the public service – promote e-government and
government;
 The promote the private sector development;
 The industry development of export oriented ICT products and services;
 The agricultural advancement and rural business development;
 To support the transformation of Mongolia into a regional ICT center by
developing value added competitive service sector;
 The advocate the ICT in all social spheres;
 To promote the national health system;
 To enable the rapid ICT development in the social and economic development
backbone of knowledge based society;
 To build a high technology research capacity, strengthen industry oriented science;
 The develop proper legal, regulatory and organizational structure;
 To promote the domestic and foreign investment to ICT;
 To progress the technology, network and legislative environment to protect national
security and information security;
3.4 Priorities and Projects
 “National satellite of space communications project” (after feasibility study report)
 E-Government service delivery related with NID. (2013-2015)
 National Datacenter’s Disaster recovery center. (2013-2014)
 E-Payment, clearing and settlement system. (2013-2014)
 Establish IT R&D center project. (2013-2015)
 Establish Government dedicated information network (2013-2014)

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 Government information security project (2013)
 Government database system (2013-2014)
 Military registration system (2013-2014)
 Government officials registration integrated information system (2013-2014)
 E-Postal service delivery (2013-2014)
 Insurance interconnection with NID service delivery. (2013-2015)
 Postal service modernization with digital technology (2013-2015)
 Agriculture industry, product transportation, warehousing information system
(2013-2015)

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4 ICT Sector
4.1 ICT Policy
In the past year, based on the time frame, the policy documents “Mid-term strategy to
develop ICT by year 2010”, “Concept to develop ICT in Mongolia by year 2010” and “E-
Mongolia National Program” were reviewed comparing objectives and achievements of
these documents. The result of this thorough process has specified that “Concept to
develop ICT in Mongolia by year 2010” had 92.7% of achievement, the “Mid-term
strategy to develop ICT by year 2010” has been achieved by 88% and “E-Mongolia
National program” had 85.7% of success. Based on the results of this review process, the
recommendations were made to develop policy documents such as ICT Vision – 2021, e-
government national program, etc.
• E-Mongolia National Program (approved in 2005)
• National program to establish unified information and registration system
(approved in 2008)

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• National program to ensure information security (approved in 2010)
• Broadband National Program (approved in 2010)
• E-Government National Program (approved in 2011)

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In the past year, extensive works have been carried out on developing frameworks for
“Mongolian Silicon Valley”, National Programs on Broadband policy, introduction of
digital TV and radio broadcasting system and enhancement of information security. In
addition, the projects documents were developed and funding secured for launching
Mongolian satellite communications and establishment of outsourcing center.
NATIONAL PROGRAM ON POSTAL SERVICES TO EVERY HOUSEHOLD
The National Program on postal services to every household is a policy documents
outlining long-term strategy of development of postal services of Mongolia (2010-2020),
objectives and steps of implementations. The National Program has been approved by
Government of Mongolia on April 20, 2011 by decree 126.
The main objective of the National program is establish national postal network of
Mongolia, improve transportation capacities, increase a number and types of traditional
services and introduce new kinds of services based on ICT, introduce usage and
accessibility of postal services making it more efficient and reliable. The national program
has major 6 objective and specific 33 activities, the implementation of which will improve
the level of technology of national postal network, increase coverage of postal services,
increase volume of postal deliveries, reduce time of delivery, deliver postal services to
household effectively and timely, introduce ICT-based e-services and establish regional
Mail centers.
“NATIONAL PROGRAM TO SWITCHOVER RADIO AND
TELEVISION BROADCASTING TO DIGITAL TECHNOLOGY”
The National program to switchover radio and TV broadcasting to digital technology
has been approved by Government of Mongolia on October 27, 2010 by decree No. 275.
The same decree has approved the plan of activities to implement National Program. The
National program has specified 4 major objectives: 1) development of favorable legal
environment for switchover radio and TV broadcasting to digital technology; 2)
development of technical and technology solutions for this process; 3) organize switchover
process in phases in geographical areas and 4) organize public awareness activities among
citizens and organize trainings.

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4.2 ICT Laws and Regulation
Sector
ICT Law/ Decree/
Regulation Name
Type (Law/ Decree/
Regulation)
Enacted Year/ Draft
Telecommunications Law on Communications ICT main law.
(approved by 1995 and
revised in 2001 and
amended in 2003, 2005
and 2008)
Broadcasting Law on Radio Wave
TV, Internet, Mobile
telecommunications radio
wave law.
(approved in 1999 and
amended in 2001)
Industry
Law on Licensing
Business Activities
Related with business
organizations licensing.
(approved in 2001)
E-Government Law on e-Signature
Security, e-Signature
related with PKI
(approved in 2011)
Postal Law on Post Postal law
(approved in 2003 and
amended in 2005, 2007)
Fund
Law on Government’s
Special Fund
Special fund it related with
USOF.
(approved in 2006)
Law on Prohibiting Unfair
competition,
Regulation competition
issues
(approved in 2010)
4.3 ICT Institutions and Role
There are two key ICT government organizations for policymaking and regulation in
Mongolia.
 Information Communications Technology and Post Authority.
 Communications Regulatory Commission.

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INFORMATION COMMUNICATIONS TECHNOLOGY AND POST AUTHORITY
(ICTPA) OF MONGOLIA (Website: http://www.ictpa.gov.mn)
Following implementation of the decree No. 64 of 2008 of the Government
of Mongolia and decree No. 05 of January 19, 2009, issued by Prime Minister of
Mongolia, the Information Communications Technology Authority of Mongolia has been
transformed into Information Communications Technology and Post Authority. ICTPA is
mandated to provide primary areas of work related to the development of laws, regulations
and development policies related to information technology, post, broadcasting,
telecommunications and technology development matters within the framework of works
of the Prime Minister, development of unified registration system, organization of
activities to implement policies, programs and plans, coordination, monitoring and
evaluation.
COMMUNICATIONS REGULATORY COMMISSION (CRC)
(Website: http://www.crc.gov.mn)
The Communications Regulatory Commission of Mongolia (CRC) was established
by the Communications Act of 2001, and is charged with regulating and supervising a
wide range of subjects including competition issues, the provision of networks and services
for fixed line and wireless telecommunications, television and radio broadcasting, and
satellite transmission, spectrum management, postal services and the internet to ensure that
the public interest is well served. The CRC’s jurisdiction covers each region of Mongolia.
The main objectives of CRC are the following:
• To facilitate access to safe, reliable and affordable ICT and Telecommunications
networks and services by pursuing, where appropriate, a commercially viable and
competitive environment;
• To support innovation and expansion in ICT and Telecommunication, postal markets,
by the efficient and impartial oversight of network and service providers and the
enforcement of their obligations;
• To protect the interests of users of networks and services in the sector in which we
regulate;

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• To Increase tele-density and access to ICT and Telecommunications in the country at
affordable prices;
• To establish an interconnection regime that allows fair, transparent, prompt and
equitable interconnection;
• To re-balance tariffs so that the objectives of affordability and operator viability are
met in a consistent manner;
• To protect the interest of consumers and to address general consumer concerns
relating to availability, pricing and quality of service and other matters;
• To monitor the quality of service provided by the various operators, including
numbering and radio frequency resources;
• To work on development of sector standards (ibid);
4.4 ICT Funds
The Government of Mongolia is committed to introduce Universal Service Obligation
Fund (USOF) and amended the Law on State funds in 2006 for implementing USOF in
Mongolia under authority of ICTPA. Following this, the obligations of contributing 2 per
cent levy from revenues before taxes of all providers of ICT sector have been imposed and
collected funds were used for providing ICT services to remote and rural areas of
Mongolia. For the last 4 years, a total of 10,6 billon MNT were collected and used to
finance rural ICT development and rural internet access to mobile telephone services and
building optic fiber network in rural areas.
The following projects were implemented by USOF:
• Mongolian Internet Exchange (MIX) – upgrading equipment at MIX to increase
overall capacity of local Internet bandwidth by 1100 times, connecting ISPs with
National data center by 10G connections, which allowed to have effective, reliable
and secure network within Mongolia, independent from international gateway.
• Delivering radio and television programs to rural areas – increasing capacities of
transmission stations to enable viewing more channels by rural population;

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• Connecting rural district households to high-speed Internet connections through
wireless technology – 30 households were provided with 1 year Internet access
free of charge;
• Delivering Internet services to soums – 38 soums had access to Internet.
• Projects to improve mobile service coverage – towers were built in 17 soums, mobile
telecenters were piloted, mobile services were delivered to 6 border areas and
settlements, etc.
Time line of USOF
ICT organizations budget
Type
Responsible
Organization
Purpose
Estimated amount
US$ (Annual)
Period / Cycle
Annual Budget of
ICTPA
Information
Communication
Technology and
Post Authority
ICT development
projects from the
Government of
Mongolia
21.5 million USD Year 2012
Annual Budget of
CRC
Communications
Regulatory
Commission
ICT sector
regulation
ICT Special Fund
ICTPA, Universal
Service Obligation
Fund
Delivering internet
and communication
services to rural and
remote area

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PPP - - - -
International
Information
Communications
Infrastructure
development project
(World Bank and
PHRD Grant - The
Government of
Japan)
Universal access,
Spectrum
monitoring system,
Licensing, PPP
project, PKI
10 million USD Year 2006-2012
GIDC of Mongolia
(KOICA)
5 million USD Year 2007-2009
4.5 ICT Education
In fact there is not any ICT Education related projects and programs implemented yet.
In ICT Policy of Mongolia includes following objectives:
• To support the access to the education, disseminate ICT into education system,
promote its applications from the primary school through informatics, information
technology subjects;
• To provide e-literacy in national level and enhance computer education;

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5 ICT/e-Government Projects
5.1 Project List
Sector Completed On-Going Future
G2C
 E-Procurement system and
patent administration systems
(2010-2011) grant project by
Korean Government through
KOICA, contractor were
Samsung SDS and LG CNS.
 “Shifting national broadcasting
system of Mongolia from analog
to digital”(2011-2013)
 “Information communication
technology center in rural area”
Project(2010-2015)
 Establishing early warning
system on earthquake disaster.
(2012-2013)
 Civil registration and NID.
(2011-2012)
 E-Postal service delivery
(2013-2014)
 Insurance interconnection with
NID service delivery. (2013-
2015)
 E-Government service
delivery related with NID.
(2013-2015)
G2B
 KTNET has set up the
electronic trade system of the
Customs General
Administration of Mongolia.
 Establishing ICT towers for TV
and radio in rural remote areas.
(2012-2013)

 e-Payment, clearing and
settlement system. (2013-
2014)
 Postal service modernization
with digital technology (2013-
2015)
 Establish Government
dedicated information network
(2013-2014)
 Agriculture industry, product
transportation, warehousing
information system (2013-
2015)
G2G
 Developing e-Government
information system and
database. (2012-2014)
 Government information
security project (2013)
 Government database system
(2013-2014)
 Military registration system
(2013-2014)
 Government officials
registration integrated
information system (2013-
2014)
Infrastructure
 Government integrated
Datacenter. (2007-2009) grant
project by Korean
Government. KT chosen by
contractor.
 Establishing broadband access
network in rural area (2012-
2014)
 Extension project on ICT
channeling hole of Ulaanbaatar
city. (2012-2014)
 “National satellite of space
communications project”
 National Datacenter’s Disaster
recovery center. (2013-2014)
ICT Industry
 National Information
Technology Park with
incubator center. (2002) grant
project by Korean
Government.
 Establish IT R&D center
project. (2013-2015)

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5.2 Comments on Projects
All of the projects from the government are implemented successful. But year 2010
there are several test projects in the area of e-archive and online translation. Failure was the
companies with contracted by bidding; they couldn’t achieve their goal unfulfilled.
Because of projects scope was quite big with small budget. For example online translation
system (like a Google translation) budget was 100,000 USD.
6 Country´s ICT Cooperation Activities
6.1 Cooperation Experience and Results
 MoU with ICTPA of Mongolia and NIPA (National IT Industry Promotion Agency) of
Republic of South Korea. Support on Feasibility study reports including new project
proposals in Mongolia, year 2010. The Progress is still ongoing.
 MoU with ICTPA of Mongolia and KOICA (Korean International Cooperation
Agency) of Republic of South Korea. Cooperate in grant project named “National
Datacenter” from Korean Government, year 2007. Project finished in year 2009
successfully and it is used for Government information warehouse.
 ICTPA and Ministry of finance of Mongolia made agreement between with the
Government of China on “Extension and Innovation project of National Backbone
network” project, which is funded by Export Import Bank(EXIM) of China by soft
loan, year 2009.
 MoU with ICTPA of Mongolia and IDA International, which is a subsidiary of the
Infocomm Development Authority of Singapore (IDA) on (ICT) activities and projects
to help transform Mongolia into a knowledge-based society and collaborate in e-
Government over the next three years. These include ICT projects, such as enterprise
architecture, cloud computing and project management, year 2012.

Country Report:
Mongolia.
27
6.2 Current Activities
Projects implementing:
• Extension and Innovation project on National backbone network. Loan by China
Government, started from 2009 and finish 2013.
• PKI and Government portal projects are funded by WB grand project started from
2009 and finish 2014.
• Passport investigation and IT auditing projects are funded by Mongolian
Government, it started 2012 and finish 2014.
Ongoing projects in ICT projects from the government of Mongolia as follows:
Investment Time Total budget
(thousand
USD)
Year 2012
budget
(thousand USD)
Projects of ICTPA, Mongolia. 2011-2015 85,714.0 21,504.0
1 “National satellite of space
communications project”
feasibility study.
2011-2013 1,200.0 500.0
2 “Shifting national broadcasting
system of Mongolia from analog
to digital” project.
2011-2014 17,000.0 1,800.0
3 “Information communication
technology center in rural area”
project /Telecenter/
2010-2015 13,050.0 1,800.0
4 Information communications
technology and postal USOF
projects
2012 3,500.0 3,500.0
5 Establishing broadband access
network in rural area.
2012-2014 10,000.0 1,500.0
6 Extension project on ICT
channeling hole of Ulaanbaatar
city.
2012-2014 6,535.0 1,125.0
7 Establishing ICT towers for TV
and radio in rural remote areas.
2012-2014 15,000.0 750.0
8 Developing e-Government
information system and
database.
2012-2014 2,200.0 200.0
9 Establishing early warning
system on earthquake disaster.
2012-2013 11,400.0 4,500.0
10 Fiber optic establishment project
in /Khentii province/
2012 200.0 200.0
11 Establishing local TV in Tuv
province, Erdenesant soum
center.
2012 7.0 7.0

Country Report:
Mongolia.
28
12 Delivering multi channel TV
service in remote districts of
city.
2012 692.0 692.0
13 Upgrade of radio broadcasting
station in Bayan-Olgii province.
2012 550.0 550.0
14 Delivering mobile phone service
in small soum of remote rural
area in Bulgan province.
2012 260.0 260.0
15 Delivering ICT service in
remote area of Khentii province.
2012 150.0 150.0
16 Improving postal service
delivery in remote rural area.
2012 1,000.0 1,000.0
This budget is approved by Parliament of Mongolia for national budget law of year 2012.

Country Report:
Mongolia.
7 Country´s ICT Market and Industry
Sector Major Product Local Companies International Companies
Hardware PC assembly. Mogul brand. MCS electronics Cooperates with China’s company.
Software
OS, DBMS, Middleware,
CRM, ERP, etc.
Interactive LLC, USI LLC, Singleton
LLC, Bodi-Electronics, etc.
Telecommunications Mobile, etc. Mobicom, Unitel, G-Mobile, Skytel. SK C&C,
Consulting Services
IT and business Consulting,
etc.
SSS LLC, Intec Co,Ltd, Interactive LLC
etc
Systems integration
Services
Application development,
etc.
Interactive LLC, USI LLC, Singleton
LLC, Bodi-Electronics, etc.
Outsourcing Services
Call Center, BPO, SaaS,
Cloud, etc.
Mobinet, Unitel, Mobicom etc
7.1 INTERNET SERVICES
The first Internet Service Provider (ISP) started providing Internet services in Mongolia in 1996 with 64kbps through VSAT technology.
Nowadays, there are over 70 companies, which were granted with for Internet access and service provision by CRC. (CRC, 2011)
The overall bandwidth of Mongolia is downloading 11.2Gbps and uploading 11.2Gbps. The Internet connections are made through fiber
optic cable network going along the railway lines to the north to the Russian Federation, and to the south to the People’s Republic of China.
At present, internet services in Mongolia are distributed via xDSL (ADSL, HDSL, VDSL), Fiber optic, GPRS (including 3G, EVDO and
EDGE), WiMax, WiFi technologies, dial-up and VSAT. The following graph represents different types of technologies used for access to
Internet, and as it can be seen the majority of users access Internet through GPRS, 3G, EVDO and EDGE technologies.

Country Report:
Mongolia.
30
7.2 INTERNET SERVICE PROVIDERS
There are 77 Internet service providers, which received licenses from CRC by the
end of 2010. The following table represents distribution of market share among ISPs.
The following graph represents composition of ICT sector revenues in 2010. It can
be seen that about 73% of total revenues of the ICT sector are generated by mobile services
and the remaining 27% are contributed by fixed telecommunications network, VoIP,
Internet, Cable TV, broadcasting and other.

Country Report:
Mongolia.
31
7.3 HARDWARE SUPPLY
There are over 30 companies in Mongolia, which supply computers and equipment
to the market. There were a total of 187,500 computers in 2010, according to the 2010
Annual Statistical Yearbook of the National Statistical Office (NSO, 2010).
7.4 TELECOMMUNICATION INDUSTRY
Our country has become fully digitalized as far as switching and transmission
equipment is concerned. The following graph represents the overall coverage of fiber optic
and VSAT network of Mongolia. It can be seen that the backbone fiber optic network has
reached all province centers and some soum centers.
The Information Communication Network Company (http://www.icnc.mn) is the
owner of the national backbone and access network of Mongolia including international,
long distance, rural and local transmission networks and local loops. In addition, private
operators such as Mobicom (http://www.mobicom.mn), Gemnet (http://www.gemnet.mn),
Skytel (http://www.skytel.mn) and Mongolian Railway (http://www.railcom.mn) have
installed fiber optic networks in some locations.
There are over 143,138 fixed telephone users in Mongolia constituting a ratio of 5.2
per 100 people. Since the introduction of mobile services, the number of users of fixed
telephone has been decreased.

Country Report:
Mongolia.
32
7.5 SOFTWARE INDUSTRY
The Mongolian software industry currently has over 100 software development
companies, which specialize in the development of different software and applications,
ranging from applications to be used at stand-alone computers to enterprise resource
planning software to be used at network environments.
There are a number of software companies, which specialize in the development of
websites and portal sites, and more software companies have started to shift towards the
development of web-based applications. According to recent study, the main areas of
activities of software companies are on development of websites (20%) and software and
application development (16%). In addition, the software development companies conduct
training, offer web hosting services as well as consulting, media marketing and other
services.

Country Report:
Mongolia.
33
There are a number of software and applications used by organizations is increasing
together with the complexity of those applications. The Enterprise Resource Planning
(ERP) solutions are in greater demand by organizations.
8 ICT SWOT Analysis
8.1 Strength
 The Information and communication technologies infrastructure has been fully
digitized;
 The fiber optic and satellite communication gateway connects the nation to other
nations;
 Communications market has been liberalized and adopted into competitive market
environment;
 The policy, legal and regulation environment for market economy has been
established;
 The legislative environment for universal service obligation fund has been established;
 The national data center has been established to provide national information security;

Country Report:
Mongolia.
34
 As the national economy is scaling up rapidly, it increases the opportunities for
investment and application for ICT.
 The penetration for mobile communication reached 90.3% which is relatively high in
comparison with the average developing country of the world.
8.2 Weakness
 The manufacturing industry for soft and hard infrastructure of ICT’s does not exist;
 There is no research and development center for ICT;
 The lack of highly skilled human resources for ICT;
 The ICT application in forecast and prevention of climate and natural disasters is weak.
The animal husbandry and farming is highly dependent on climate.
 There is a potential complexity in delivering ICT and postal services to remote and
isolated areas with where power supply is insufficient and energy infrastructure
unreliable;
 The legislative environment to conduct e-commerce in international and national
markets is not established;
 the small domestic market and high poverty rate restricts the market for ICT services;
 Application and increase for high speed broadband technology and internet based ICT
services is not sufficient;
 High leasing cost of a state owned backbone network and obsolete transmission
technologies cause for building duplicated networks by service providers; as
consequence, such conditions diminish effectiveness of private and public
telecommunications investments and efficiency of their sharing;
 High cost of for nationwide for TV and radio broadcasting;
8.3 Opportunities
 Literacy rate is higher than world average.
 Expecting e-Government related projects offer new ICT market development.
 ICT awareness among top level politicians is getting higher.

Country Report:
Mongolia.
35
 New parliament and Government are willing to benefit from ICT technologies for
gaining efficiency for their services delivery, reducing bureaucracy, and increasing
their transparency.
 From perspectives of the different industries, demands for ICT-enabled technologies
are increasing.
 Range on-line services such as on-line shop, on-line banking services introduced are
good examples and experiences for adoption of other on-line and ICT based services.
 Dominant percentage of young generation is good source of customer base for ICT
based services.
8.4 Threats
 Bureaucracy issues can have in some governmental organizations.
 Corruption issues can be face.
 Due to some of Parliament member’s lake of ICT knowledge, it reduces IT related
projects budget.
 High tariffs for service usage operation for new business companies.
 Global economic crisis
 Domestic economic sector highly dependent on mining sector which in turn depends
on China.
9 Recommendations
9.1 General Recommendations
 Mongolia needs continuous development and expansion of telecommunications
networks to fully cover every remote areas of the country and to deliver both basic
telecommunications and advanced ICT-based applications.
 The country needs to leverage potentials of mobile communications technologies and
services which are most suitable communications mean as for a scarcely populated
nation.
 Mongolian ICT development needs to increase human capacity in specific ICT fields.

Country Report:
Mongolia.
36
 Increase competitiveness of ICT development in the global market at least one specific
field such as software and content industry.
9.2 Sector Recommendations
9.2.1 Government
Need to increase Political will and strong leadership from the Parliament and Ministries.
 Parliament and Ministry of finance should increase investment for ICT related projects,
especially in field of e-Government.
 Promote CIO council activity.
 Increase preparation of ICT human resource capacity in abroad and locally.
 Build-up center R&D centers and innovation cluster as soon as possible.
 Use PPP on some ICT related projects.
 The Parliament and the Government of Mongolia need to support and promote its
domestic software industry by creating a new public sector market.
 The Parliament and Government need to make policy decisions based on academic and
scientific evidence and foundations.
 Head ITPTA, government ICT agency, should report to both Parliament and
Government.
 The Parliament and Government need ICT-sector specific fund which should serve for
creating internal public ICT-sector market with the purpose of supporting and
strengthening domestic software industry, creating and sustaining ICT-enabled public
services, and establishing foundations of knowledge-based economy.
9.2.2 Industry
 More focus on Software industry than hardware industry due to small market.
 Software industry focuses and tries to do business in global market as an outsourcing
from well developed countries.
 It should base on PPP and collaboration of government and business companies in
ICT.

Country Report:
Mongolia.
37
 Software industries should use international standards for their products and consider
on software quality.
 The industry needs to take initiatives and provide solutions for building ICT-enabled
and connected Mongolia.
 The industry can propose e-government solutions and options to convince and educate
the Parliament and Government.
9.2.3 Academy
Communications Manufacturing and Research Institute has been established in
1969 under the former Ministry of Communications. It has been mandated to promote
innovations and new ideas, pilot test those ideas and implement them in production. It was
operational until 1995, conducting different researches and development works.
The Informatics Institute of Mongolian Academy of Sciences of Mongolia has been
established in 1987. The primary objective of Informatics Institute is to conduct research
and development in the areas, which will facilitate development of policy to improve
government policies. The researches related to Information technology and applications,
establishment of geo-information systems and development of knowledge base related to
land and geography were carried out.
The tertiary education institutions, such as Mongolian University of Science and
Technology (MUST) and National University of Mongolia (NUM) have been conducting a
number of researches and development works on ICT. The School of Information
Technology (SIT) and School of Mathematics and Computer Science (SMCS) of NUM
and Computer Science and Management School (CSMS) and Communications and
Information Technology School (CITS) of MUST are the primary institutions, which carry
out different researches and development.
Currently, there are discussions on establishing ICT research and development
institution in Mongolia.
With recent growth of mining industry it starts to attract most successful high school
graduates instead of ICT sector. Therefore, ICT academic field needs to reassess and
change its education policy towards ICT skills building.

Country Report:
Mongolia.
38
10 Identifying Korean Partnership
Sector Collaboration Item Country´s Korea´s
Government
Grant or Soft loan
Projects, Consultants,
Support on Feasibility
study reports.
ITPTA, CRC
MKE, MoPAS, NIPA,
KISA, NIA etc.
Private
ICT business and
consulting
Interactive, InTek, etc
Korean IT consulting
companies.
Hardware Industry
MCS electronics
company can have
interest in PC assembly
field.
Samsung or LG can be
cooperating.
Software industry
Mongolian Software
Association (MOSA)
have all software
companies contacts
Korean Software
Industry companies can
be cooperating.
Academy
ICT human resource
development and
support
Mongolian University
of Science and
Technology,
Management’s
academy, Mongolian
National University
From the Gov of Korea,
dispatch experts from
Korean ICT academy.
ICT Projects
E-Government service
delivery related with
NID. (2013-2015)
Registration Authority,
the Government of
Mongolia
With Korean
Government, grant or
soft loan project
cooperation
National Datacenter’s
Disaster recovery
center. (2013-2014)
Information
Technology, Post and
Telecommunication
Authority. The
Government of
Mongolia.
With Korean
soft loan project
cooperation
E-Payment, clearing
and settlement system.
(2013-2014)
Information
Telecommunication
Authority. The
Government of
Mongolia.
With Korean
soft loan project
cooperation
Establish IT R&D
center project. (2013-
Information
Telecommunication
With Korean
soft loan project

Country Report:
Mongolia.
39
2015) Authority. The
Government of
Mongolia.
cooperation
Establish Government
dedicated information
network (2013-2014)
Information
Telecommunication
Authority and Cyber
Security Agency. The
Government of
Mongolia.
With Korean
soft loan project
cooperation
Government officials
registration integrated
information system
(2013-2014)
Cabinet of the
Government.
Can be Korean
contractor company.
Government database
system (2013-2014)
Information
Communications
Technology and Post
Authority. The
Government of
Mongolia.
Can be Korean
contractor company.
Postal service
modernization with
digital technology
(2013-2015)
Information
Communications
Technology and Post
Authority. The
Government of
Mongolia.
With Korean
soft loan project
cooperation
Agriculture industry,
product transportation,
warehousing
information system
(2013-2015)
Ministry of Agriculture
and Food of Mongolia.
Can be Korean
contractor company.

Country Report:
Mongolia.
40
11 Final Conclusions
Even though, there is quite good policy and legal framework established, and
implementing many ICT related infrastructure projects in Mongolia, but needs to increase
investment in e-Government projects in all ministries.
Continuous expansion of backbone telecommunications infrastructure presents as
fundamental issue not only for the sector but also for the Parliament and Government.
Projects implemented in ICT sector were rarely evaluated and audited for standard
compliances. Evaluation of industry performance is not done which makes uncertain which
policy direction should be supported.
For gaining efficiency of telecommunications infrastructure development stakeholders
can share common infrastructure for their services which allows investing in more value-
added and competitive services for their customers.
Development of ICT-based services, specially, e-government and m-government
services, can be achieved through active participation of stakeholders for better outcomes.
The Parliament and Government can leverage advantages of ICT technologies for
public services for which Mongolian society is getting more familiar.
Due to recent development of other economic sectors such as mining and construction,
most successful students and workforces tend to move to these industries which raise
issues for ICT human capacity and skills.

Country Report:
Mongolia.
41
12 References
1. State budget of Mongolia,2011. http://www.infomongolia.com/ct/ci/3354/144/
2. http://en.wikipedia.org/wiki/Mongolia#cite_note-imf2-5
3. http://blogs.ubc.ca/mongolia/2011/insights-from-the-2010-mongolia-census/
4. http://www.toollogo2010.mn/doc/Statistic_undsen_ur_dun.pdf
5. The Global Competitiveness Report 2012–2013 of 2012 World Economic Forum.
6. http://education.stateuniversity.com/pages/1003/Mongolia.html
7. http://en.wikipedia.org/wiki/List_of_countries_by_literacy_rate
8. http://www.infomongolia.com/ct/ci/3354/144/
9. http://www.infomongolia.com/ct/ci/3837/
10. http://en.wikipedia.org/wiki/Economy_of_Mongolia
11. http://www.nationmaster.com/country/mg-mongolia/ind-industry
12. http://siteresources.worldbank.org/MONGOLIAEXTN/Resources/A_SEGandDeve
lopment_priorities_eng_final.pdf
13. http://www.un.org/esa/dsd/dsd_aofw_ni/ni_pdfs/NationalReports/mongolia/Full_te
xt.pdf
14. http://www.undp.mn/mdg-ndsa.html

Country Report:
Mongolia.
42
13 Appendix
 White paper 2011- ICTPA.
 CRC Annual book.

ICT Country Report Mongolia -8th-Nov-2012

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