Telecommunication Infrastructure and Regulation

 

Overview: 5

The information communications technology is the fundamental accelerator of Mongolia's development in the 21st century and based on the "Information Communications Technology Development Concept for the Period up to 2010", Mongolia have defined the medium-term development strategy in this sector in order to establish a state policy and regulatory system and create a favorable environment for human and social, economic and business, political and legal developments.

Television sets: 7 per 100
Newspapers: 7.5 per capita, pcs
Number of telephones: 112,200

Telecommunications: 19

The national integrated telecommunication network of the country consists of 4000 km analogue microwave and 30.000 kin open wire lines connecting aimag centers and somons. There are 325 switching systems with a capacity of 100.600 telephone lines in the network.

The establishment in 1990 of the ground station of the "Asiasat" and "Intelsat" system in Ulaanbaatar has enabled Mongolia to be connected automatically with a telex and fax network of over 190 countries. The international telecommunication services are handled through 74 channels of satellite systems including Intelsat, Intersputnik and Asiasat. In 1992-1993 a new Ulaanbaatar city digital technology telephone exchange with capacity of 40.000 lines was installed and is now in full use. The postal service is rather inexpensive. In most cases, letters and parcels can be sent from post offices at a low cost. However, for reliable airfreight service, it is recommended that DHL be used.

The private sector has introduced telecommunications services such as e-mail and pager service. Cellular net mobile telephone system is in place in Ulaanbaatar. Mongolia is committed to renew the whole communication system nation-wide.

The Mongolian Telecommunication Company (MTC) was established on the basis of the operational units of the former Ministry of Communication in 1992. MTC is a state owned and dominated shareholding company which provides the following basic telecommunication services throughout the country by leasing the basic telecommunication network assets from the Posts and Telecommunications Authority which owns all the basic network assets.

  • International telephone service (IDD and operator assisted calls)
  • Domestic long distance and local telephone service (local and trunk calls)
  • Facsimile service
  • Telex service (international)
  • Leased circuits
  • TV and radio broadcasting service (Cable TV Household: 25,000)
The MTC has the monopoly over the services including domestic telephone service since January 1999. The main profits of the MTC is gained for the international telephone calls, however, the competition is not open for the international services.  

The overall telecommunications network of the country consists of 3,200 km analogue and about 800 km digital microwave lines, connecting Ulaanbaatar and other province centers.  

There are 30,000 km of open wire lines connecting province centers with various populated areas, as well as 332 switching facilities with the total capacity of 128 thousand subscribers.  

Mongolia has over 128,000 telephone exchange lines, from which 104,100 main lines are in service. The number of exchange lines has increased by 45% since 1990, but the number in service has increased at a slower rate due to a lack of outside plant.   

The telephone density per 100 populations is 4.5 in Mongolia, which comprises 10.5 in Ulaanbaatar at the end of 1998, which is average for developing countries with a similar level of per capita GDP ($406.6 USD as of 1998).

Domestic:

The overall telephone network consists of 3,200 km of analogue and 1,000 km digital microwave lines, and 30,000 km of open-wire lines, each carrying 3 to12 channels connecting province centers with various populated areas, as well as 332 switching facilities with the total capacity of 128 thousand subscribers.   

International:

The MTC provides IDD to over 140 destinations by using Japan (KDD), Russia, Hong-Kong, UK and Singapore transit facilities. There are three satellite earth stations. Intelsat is used for multi-destinations and Intersputnik for Russia. China is connected through open wire system. There is also an Intelsat earth station which uplinks domestic TV for broadcasting to remote TV receiver, and receiving variety of regional satellite TV channels for programming in Ulaanbaatar.   

As of April of 1998, the service tariff is relatively high for international calls. One minute call to Russia and China costs $1 to $2 (USD), to others $3.50 to $4.50 (USD). Domestic long distance call tariff is ranging $0.12 to $0.20 (USD) and local call $0.006 to $0.07 (USD) per minute.   

Communication:

Mongolian Telecommunication Company

Distance

Photo or other relevant documents /per page/

Ordinary documents

Service charge

To pass & keep a received fax

First page rate

Following pages rates

Till 300 km

500.00

250.00

100.00

200.00

200.00

301-700 km

625.00

300.00

130.00

Up to 701 km

700.00

350.00

165.00

Domestic telephone service (Tugrugs)

Distance

Photo or other relevant documents /per page/

Ordinary documents

Service charge

To pass & keep a received fax

First page rate

Following pages rates

Till 300 km

500.00

250.00

100.00

200.00

200.00

301-700 km

625.00

300.00

130.00

Up to 701 km

700.00

350.00

165.00

International telecommunication in marsat Mimi-M terminal (US $)

Dialing

Per 6 seconds

First 3 minutes

The following per minute

1. Direct

0.46

-

-

2. Operator assisted

-

13.8

4.6

Cellular Mobile Phone Systems: MobiCom Co., LTD /GSM system/, Skytel Co., Ltd (CDMA system) Internet Service Providers: Magicnet Co., Ltd, Micom Co., Ltd, Mobinet.mn

Cellular network:

In Mongolia, there are approximately 110,000 cellular subscribers and 3,300 paging subscribers as of year 2001. KDD, Sumitomo Corp. of Japan in Joint Venture with Mongolian Newcom Co., Ltd. deployed a cellular telephone service in Ulaanbaatar commencing from March 1996. Skytel Co., Ltd. company selected through international competitive bidding for deployment of cellular telephony system which will be commenced from 7 July 1999. The JVC "Skytel" Co., Ltd. Was established by Univcom Co., Ltd. (Mongolia), SK Telecom Co., Ltd. (Republic of Korea) and Taihan Electric Wire Co., Ltd. (Republic of Korea) in April 1999. Currently, operators are being shifted to code division multiple access (CDMA) system.   

Infrastructure:

Recognizing that physical and financial infrastructure is important for investors, the Government allocates about 70% of the public investment program for infrastructure development.

Fuel and Energy:

More than 90% of electricity and thermal energy is generated from coal. Energy demand is increasing by 2-3% annually and coal consumption is increasing as well. Although we are making renovations on existing power plants using foreign technical assistance, we need to consider the possibility of using renewable energy, hydro and thermal power, which are also open for foreign investment.

Transportation:

Specific conditions of the country predetermine the development of its transportation network, dominated by the auto-transportation regarding the inland territory and by railroad. Air-transportation is vital for the remote aimags. A small fleet of cargo boats operates on the lake of Khovsgol and Selenge river.

The Trans-Mongolian Railroad connecting Russian and Chinese railroad network runs through Central Mongolia from north to south. This 1,400 km stretch of railway today provides the major link for Mongolia with Russia and China and the rest of the world.

The main industrial and commercial centers such as Ulaanbaatar, Darkhan, Erdenet, Sainshand and Sukhbaatar are located along this railroad. The Mongolian rail system was established driven largely by an emphasis on expanding the mining industry.

Taking into account the favorable geographical position of Mongolia located on the cross-roads linking the European continent and Pacific region it might be economically justified to develop air transport system.

The national air-transportation company (state enterprise) MIAT is the major domestic carrier. MIAT serves the regular links with Irkutsk, Moscow, Beijing, Hukhe-hot, Berlin and Seoul. The company also operates charter flights to Osaka, Singapore and other cities.

 

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