Telecoms and IT
From The Report: Mongolia 2012
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The communications sector in Mongolia has grown rapidly, with wireless telephony saturating the market within a decade of its introduction. The challenge now for providers is figuring out how to further monetise their customers, who generally have low incomes. Some companies are focusing on bundling, offering internet access and television along with phone subscriptions. On the IT side, the penetration of computers is low, although it nearly doubled between 2007 and 2008. The government has earned commendation for connecting with its citizens through technology, rising from 82nd position to 53rd rank on a UN E-government survey.
This chapter includes interviews with J. Bat-Erdene, Chairman, Information, Communication Technology and Post Authority (ICTPA); O. Batchuluun, President and CEO, Telecom Mongolia; and D. Bolor, CEO, Mobicom.

Articles from this Chapter

Overview

Answering the call: The government is helping the sector develop, with take-up rates high
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The Mongolian information communications technology (ICT) sector marked its 90th year in 2011 – it was in 1921 that the new state installed its first telegraph machine. The same year the Mongolian Telegraphic Agency and the General Committee of Postal and Telegraphic Information were created, providing the beginnings of a telecoms sector. SLOW START: The country spent most of the 20th century in a process of slow uptake. There were 200 telephone lines by 1939, and the first television broadcast…

Interview

OBG talks to J. Bat-Erdene, Chairman, Information, Communication Technology and Post Authority (ICTPA)
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Interview:J. Bat-Erdene What is the next steps for advancing the telecommunications network and services? BAT-ERDENE: During the last decade, we linked up around 160 soums (districts) to the fibre optic network in order to improve information and communications technology (ICT) networks, our aim was to connect not only populated areas but also the distant rural soums. The project to connect the remaining 150 soums was launched in 2011 and will be completed by 2012. The 2011 ICT National…

Interview

OBG talks to O. Batchuluun, President and CEO, Telecom Mongolia
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Interview:O. Batchuluun What opportunities exist for the Mongolian fixed-line telephony industry in the future? BATCHULUUN: Mongolia’s fixed-line telephony market has followed the global trend of decreasing revenues and relevance in the face of mobile phone expansion. However, the fixed-line telecoms market, at least in Mongolia, still has room to grow. The nomadic culture of our people makes them hard to reach and many have no access to telephone services. However, once urbanisation gathers…

Analysis

Network news: Boosting mobile penetration looks like a challenge
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So many opportunities in Mongolia are just that – potential yet to be fully explored. That is what makes the mobile market so unique – it is one of just a handful of mature segments. Mobile telephony in 2010 attracted approximately 73% of all telecoms investment. There were 91.3 mobile subscribers per 100 people according to the Communications Regulatory Commission (CRC), the regulator for mobile carriers. Compare that with the rate of 9.2 per 100 in 2002 and it is clear to see how rapidly…

Overview

Make the connection: A small population spread over a huge area creates a number of hurdles
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Like most sectors, the technology industry in Mongolia is just getting started. Broadband networks are still in development, and internet and computer penetration rates are low. Getting everyone plugged in and computer-literate is going to be a challenge due to the country’s geography – Mongolia is the least densely populated nation in the world, and a large chunk of the population remains nomadic. For this reason it is probably unreasonable to expect a future in which everyone is connected…

Interview

OBG talks to D. Bolor, CEO, Mobicom
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Interview:D. Bolor How competitive is the mobile market in Mongolia and how will this affect the sector’s growth? BOLOR: The Mongolian mobile telephony industry consists of four operators, with a total market population of 2.7m people. Compared with China, which has a population of 1.3bn, and only three mobile operators, we find ourselves in a very tough competitive environment. To some extent I would say that competition has become quite dangerous for the industry, because the sector is…

Analysis

Research party: Content development is among the priorities in the coming years
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Along with public sector support for its technology sector, Mongolia has a population with an increasing level of disposable income and a mind to try new technologies, if the rapid take-up in the mobile telephony market is any indication. One of the biggest limiting factors for the sector in the future is the national broadband network, which is insufficient. The Information Communications Technology and Post Authority ( ICTPA), one of two main government bodies responsible for the sector, is…