Expanding Digital Economy and Culture

Information, Communications Technology and Post Authority of Mongolia

Amgalanbat Batsuren Director General of Policy and Planning Department

y Current situation of ICT Sector of Mongolia y Policy and Regulation y Initiative for ICT Cluster Development in Mongolia

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 2 Country overview Area: 1.5 M km2 between Russia and China Population: 2.7 M (2010) in Ulaanbaatar 1.0 M Geography: mountains, forest, steppe, desert Political system: Great Hural (Parliament), President Administration: Ulaanbaatar and 21 provinces Literacy rate: 97.30% Membership: UN, ESCAP, WTO, ITU, APT, etc

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 3 Bangkok, Thailand Information, Communications Technology and Post Authority of Mongolia

CurrentCurrent situationsituation ofof ICTICT SectorSector ofof MongoliaMongolia

Number of ICT providers Optical fiber network Broadcasting industry Mobile coverage ICT statistics indicators

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 4 Bangkok, Thailand Number of ICT providers /2010/

IPTV 2 Mobile TV and its service 2 Leased line, its service 2 Fixed phone 3 Mobile 4 Domestic post service 6 Wireless fixed phone 6 Space mobile communication service 6 International IP phone 24 International post service 43 Cable TV operators 77 Broadcasting TV 115 FM radio broadcasters 124 Cable installation service 152

0 20406080100120140160

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 5 Bangkok, Thailand Optical fiber network

Sagil

Turgen Ulaangom 35 Ereentsav Sukhbaatar 102 Malchin Hyargas Hovd 105 Baruunturuun61 104 60 Bayantes Tunel Dashbalbar Altantsugts55 45 99 72 35 45 Ul g ii Umnugobi 45 Mur un Tarialan 45 Naranbulag Asgat 60 Ulgii 35 116 Zuunkhangai Darkhan Tsagaankhairkhan 28 Hutag-Undur 72 Bayannuur 28 Bayanhangai 61Tosontsengel 62 Salkhit 30 40 49 123 112 Ikh-Uul Ulaantolgoi 52 Songino 59 Tudevtei 71 Shine-Ider 48 53 60 82 Tumurbulag Unit 30 100 Hutul30 43 Tolbo 97 Numrug Erdenet Orkhontuul zurlug Baruunkharaa Choibalsan 91 51 30 44 Tosontsengel Zuunkharaa Мянгад Telmen Ikh-Uul 24 49 87 58 93 51 73 Jargalant Bulgan 90 60 Hovd 60 60 45 Orkhontuul 44 Khairkhan Saikhan 47 Erdenemandal Tseel 83 Ider 57 63 Yaruu 55 90 Hishig-Undur 30 Bayanchandmani Mandal Kherlen 90 Ugtaaltsaidam 62 Ulziit 50 Манхан 60 67 Bayankhangai 70 86 124 66 Ul ai s tai UB 45 Nalaikh Dashinchilen Bayantsogt Baganuur Tsenkhermandal Battsengel 45 Bayannuur 64 Lun 5 38 45 49 45 38 47 215 station 103 Ugiinuur Gurvanbulag45 88 109 55 73 Jargalantkhaan Murun Zereg 66 Tsetserleg 61 50 Undurshireet 1K 98 Erdene Undurkhaan 85 90 Zuun Mod Tsagaanchuluut 50 50 74 29 Munkhkhaan Darvi Rashaant Bagakhangai 77 Har horin 124 42 Erdenesant 70 95 91 65 103 Burd 56 Naranelgen 124 Elsentasarhai 60 Hujirt52 Darvi 35 Uulbayan Baruun-Urt 95 Altai 85 Galuut Esunzuil 75 80 Khureemaral 20 60 Шарга Guulin Bayan-Ovoo 60 145 70 65 Arvaikheer86 Ulziit Bayan-Undur Choir 60 Tuvshinshiree 60 Bumbugur 26 Erdenetsogt Tsagaandelger65 Buutsagaan 84 28 Sant 50 Deren 80 103 79 78 Erdenedalai Airag Delgerekh Hairhandulaan 71 Bayankhongor 77 80 100 23 Nariinteel 46 45 Altanshiree 63 Bayangol 114 Mandal g obi 70 85 60 50 127 Jinst 28 50 Tugrug Saihan-Ovoo Guchin-Us 77 47 88 Bogd Baruunbayan-Ulaan Sainshand

110 Saikhandulaan 93 109 Ulaan-Uul Mandal-Ovoo Mandakh 73 126 80 Manlai 122 Zamiin-Uud Bulgan

100 106

Oyutolgoi Dalanzadgad 70 45 105 Khanbogd

Bayan-Ovoo Nomgon 100 Growth of Optical Fiber Network in Mongolia

15000

10000

Existing STM-1 optic network (Ulaanbaatar Railway )

In this y ear, STM-16 optic network will be built by Mobicom

In MCC’s ICT project scope, optic network will be built by ICTA Existing STM-1, STM-4 optic network (ICTA) 5000

2004 2005 2006 2007 2008 2009 2010

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 6 Bangkok, Thailand Broadcasting TV broadcasting TV broadcasting in Mongolia started in 1967. Nationwide public TV broadcasting started transmission in 1992 by C‐Band. Since May 2010, Mongolia has shifted to Ku‐band, which allows broadcasting public and commercial TV channels nationwide.

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 7 Bangkok, Thailand Radio broadcasting The two programs of the National Public Radio Broadcaster are transmitted throughout the territory of Mongolia, covering all aimags and soum centers.

Major coverage areas of NPRB

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 8 Bangkok, Thailand Mobile coverage Mobicom, G‐Mobile , Skytel and Unitel

• Approximately 331 soums have mobile coverage United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 9 Bangkok, Thailand Universal Access Program ‐ Brief

y ICIDP project: 2006‐2012 y UA projects are one of the main component of ICIDP y Soum center wireless network/ started in 2007 y Herder public access network/started in 2008 y Soum center internet service /started in 2010

Inadequate access to A study of Pilot project High cost of service provision telecom and IT services confirmed that and challenges of attracting significant demand of inrural Mongolia private investments in rural telecom and IT services Mongolia in rural Mongolia • 90% of subscribers in • Country’s vast and challenging UB, aimag centers and • at least 8 calls per geography; larger soums; month if facilities were • Control of long‐distance • Less than 30% soum available closer; backbone services; centers had an adequate • 5% of household • Private operators are not access; income on telecom mandated to provide rural • Most of soums have no services Internet; • Unwillingness of private • Travel of 30‐40 kms to operators to enter unviabl make a call rural areas

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 11 y Public access VSAT network for herders in Arkhangai & Bayankhongor y Competitive soum wireless network in Tariat soum center, Arkhangai and Chuluut soum center: y Voice service to customers in soum centre and surrounding areas y High speed Internet service to school & public cyber cafe

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities 22 November 2010 for Enhancing Cooperation for Regional Connectivity 12 Bangkok, Thailand Number of soum centers provided by Number of Internet subscribers broadband internet services /2005‐2010.06.30/ /2005.01.01‐2010.10.01/

Number of Internet users /2005‐2009/

E‐government World e‐government Country development index value development ranking 2010 2008 2010 2008 Mongolia 0.5243 0.4735 53 82

y Top 20 countries of online service development Rank Country Online services Index value 20 Mongolia 0.5556

y Human capital index /183 countries attended in this survey/ Rank Country Index Adult Combined gross enrolment value literacy rate ratio primary, secondary and (%) tertiary schools (%)

56 Mongoli 0.9127 97.30 79.21 a

Average monthly salary in ICT /by thousand/

About 74% of total revenues of ICT sector are generated by mobile services The remaining 26% are contributed by fixed telecommunications network, VoIP, Internet, Cable TV, broadcasting and others.

PolicyPolicy && RegulatoryRegulatory

Governmental Structure for ICT Policy and regulation Legal environment Policy environment

President Parliament Prime Minister

Cabinet members of Government (17) Information, Communications Technology and Post Other Ministries Authority Communication Regulatory Government Agencies/Operations Commission and Welfare Social Social Services Planning Housing Revenues Transport Education & Benefits & Benefits Registrations Other services Health Government Agencies/Operations CITIZENS, BUSINESSES, OTHER PUBLIC, AND PRIVATE ENTITIES

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 20 Legal environment Existing laws y Law on Communications, 1995, 2001,2008, 2010 y Law of Radio wave, 1999, 2005 y Postal Law, 2004, 2007 y Other laws: License Law, Civil code, Anti‐Monopoly Law, Customer Protection Law, Company and Entity Law, Fair competition Law, and etc Draft package law on IT y Digital signature Law y Information Security Law y e‐Transaction amendment on the Civil code law y Data protection law y e‐Commerce Law and others y Broadcasting Law

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 21 Policy environment Existing policy documents: y ICT Vision up to 2010, Parliament of Mongolia, 2000 y e‐Government Master Plan Study (2005‐2010), ICTA and KIPA,Korea 2005 y E‐Mongolia National Program 2005‐2012 y e‐Education, e‐Health, e‐Taxation etc national strategy y Policy Directions on GSM, WLL, CDMA450, 3G, outsourcing, IPTV, spectrum Drafting documents y ICT vision up to 2020 y Broadband development program y Digital broadcasting program y Policy directions on digital & mobile content y Mobile Number Portability and National Roaming

Baselaine for ICT cluster development Image of e‐Government High tech industry ICT Literacy and ICT Service National Broadband Master plan of Mongolia

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 23 Baseline for ICT cluster development ICT Vision 2010 ‐ Set up knowledge and education‐based high‐tech centers in Ulaanbaatar and the centers of the socio‐economic development regions E‐Mongolia National Program ‐ accelerate and promote ICT investment and application in the economic sectors, foster and expand ICT application in enterprises and Small and Medium Enterprises (SME), develop domestic markets, position local ICT Companies in External Markets The directives on developing Information technology outsourcing to be adhered until the year of 2015 ‐ highly skilled professional human resources to work in outsourcing will be developed, and competitiveness of information technology companies to compete in international markets will be increased The list of twenty‐six large projects (Government Decree № 320) ‐ “Industrial Training Complex for Information Technology” United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 24 Image of e‐Government

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 25 Vision and mission y Vision: y Building a strong and competitive country by establishing citizen‐centered, transparent and knowledge based government through utilization of advanced ICT y Mission: y E‐Government improves the quality of civil service and provides transparent and efficient administration service based on knowledge with expansion of ICT infrastructure and integration of information system.

y According to the survey, a patient living in most remote area inaverage spend 1000 $ including cost of travel to UB, stay, food and medical treatment. Telemedicine can reduce all this expenditure by 20‐30 times. y Introduction of telemedicine in the health sector has great advantage and beneficial to the population living in remote area to save money and time. y Due to the Telemedicine tertiary level health care service is now affordable and accessible to the people living in remote rural area.

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 27 Achievement

y 2000 patients were treated through telemedicine annually since 2001 y Number of patients referred from remote sum or aimag’s hospitals to the tertiary level hospitals of Ulaanbaatar has been reduced by 20% y Time saving y Medical professionals were trained and given opportunity to continuous in‐service training, continuing professional development, for clinical staff, as well as non‐clinical staff. ‐ 18 doctors were trained abroad /Cardiovascular telemedicine project/ ‐ 241 doctors and medical professionals were trained /Telemedicine support in mother and child health service project/

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 28 Challenges

y Implementation of policy for e‐Health y Legal and regulatory environment to meet security and safety of customer’s e‐information y Infrastructure (speed of internet connection, computer and its devices) y Human resource development

In June, 2010, Government of Mongolia approved the resolution to develop Universities and colleges in a form of a university campand decision related instructions were given to the Ministry of Education, Culture and Science, the Information, Post, Communications and Technology Authority, and the National Development and Innovation Committee.

At first, the campus of the Mongolian University of Science and Technology is to be located in Shiveet Valley (1000sq.km), 35 km far from Ulaanbaatar.

ICT cluster to be similar format with Silicon Valley shall be developed in line with this University campus

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 31 Human capacity development Human resource • 5,000‐6,000 engineers and technical staff are working in the domestic market • The number of students majoring in information communications technologies has reached approximately 10,000, and around 600‐700 students graduate on annual basis

IT & Outsourcing center • We have entered to an agreement to cooperate with the Government of India to establish “IT education & Outsourcing training center” with the purpose to • Educate high‐skilled ICT professionals and researchers • Train human resources capable of working in information technology outsourcing markets

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 32 Conclution

ICT sector regarded as the driving force of the socio‐economic development Government policy made clear that ICT cluster should be developed based on the education culture, the University campus In initial stage, we had initiated project to establish IT education and outsourcing center Further, we will face challenging questions:

• How to effectively utilize limited number of human resource? • In which field we should focus on? • How to facilitate cooperation between industry and academia?

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 33 ICT literacy and ICT service y Mongolia’s future developments and success greatly depend on ICT applications by citizens y Universal service+Universal access=ICT Literacy+ICT Services y Start ICT Literacy with young generation y Start ICT Services with young generation y Start ICT Services with simple, cheaper, compact, one‐ stop… • Population of Mongolia 2,776,485 as 27 October, 2010 • 40% of the population live in Ulaanbaatar • 30%‐‐‐ 0‐15 years old • 60%‐‐‐under age 35 • 6% is above 60 • Young generation: ~1.7mln United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 34 National Broadband Master plan of Mongolia Acts The Government of Mongolia was approved “E‐Mongolia National Program”, in Oct 2005. In October 2009, the ICTPA has reviewed “E‐Mongolia National Program” and redefined priorities of ICT sector. The priorities of E‐Mongolia National Program are defined in relationship with other sectors in 18 major objectives to be achieved by year 2012 as follows: From 3G technology to 4G, Development of mobile content, Information technology in Postal Services, National Radio and Television Multi Channel Broadcasting, E‐document exchange, Digital Archiving ,Outsourcing, E‐ government, Unified registration and information system, PC to every household, Internet to everyone, mobile phone to every herder, post to every household, Free and Open Source Software for government and business, E‐ security, E‐health, E‐school, E‐knowledge, Robot industry, Fiber optical network to all soums, Silicon valley The National Program on “Establishment of unified registration system” was approved by the Government of Mongolia in 2008. Most of them based on high capacity infrastructure like as Broadband network.

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 35 Main goal The main goal of National Broadband Master plan of Mongolia are: y to improve a quality of life to all citizen y by increasing wide range always on applications such as e‐government, e‐commerce, e‐learning, e‐health etc., y by using and establishing high speed and low cost broadband network which covers all over the territory of Mongolia; y by enhancing the productivity of other industries using ICT, and thus upgrading the national competitiveness y to provide universal data service which is quite enough for public and private organizations and households;

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 36 Recpected outcomes Legal and regulatory environment shall be created. By 2012, y at least more than 30% of households in Ulaanbaatar and other larger cities shall have access to 24 Mb/Sec or higher broadband speed connection. y at least than 20% of households in rural areas and remote settlement areas shall have access to 16 Mb/Sec or higher broadband speed connection. By 2014, y at least more than 60% shall have access to 54 Mb/Sec or higher broadband speed connection. y at least more than 40% of households shall have access to 24 Mb/Sec or higher broadband speed connection. By 2015, y Key requirements (speed, price and population consumption) for identifying Mongolia’s broadband development shall be reached higher level than the word average. y All public administration, education and health agencies shall be connected to broadband network 100%. y Above 50% of all population shall have access to triple play service. y Above 50% of households living in remote districts and settlement areas, where there is no fiber optic cable is available, shall have access to wireless broadband service.

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 37 Some of the key projects and initiatives y Establish Mongolian Silicon valley y Enhance activity of ICT ambassador y Launch national communication satellite y Develop digital content and library y Enhance access network y Academy of ICT essentials for government leaders y Online Mongolian translation system – change of behavior, use of Cyrillic in sending sms, develop internet content in Mongolian

THANKTHANK YOUYOU FORFOR YOURYOUR ATTENTIONATTENTION Email: [email protected]

United Nations ESCAP Expert Group Meeting on Emerging ICT Developments and Opportunities for Enhancing Cooperation for Regional Connectivity 22 November 2010 Bangkok, Thailand 39