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Mongolia - Telecoms, Mobile and Internet

Mongolia - Telecoms, Mobile and Internet

Table of Contents

Market Briefing
Published: June 2011
Pages: 41
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 247.00  Buy Now!
Research from: Paul Budde Communication Pty Ltd.
Sector: Mobile Markets

Since the Mongolian Government’s telecommunications reform program in the mid-1990s, there has been effective liberalisation of all market segments, partial privatisation of the fixed-line incumbent operator, Mongolia Telecom, and establishment of an independent regulator. Mongolia acceded to the WTO in 1997.

Competition is in place for both fixed and mobile telephony including local, long-distance and international, internet, VoIP and VSATs. The internet market is a small but growing sector. Government initiatives such as the e-Mongolia National Program are helping to spread internet awareness and usage throughout the country.

The fixed-line network is declining rapidly while the mobile phone market has undergone a remarkable boom. The national policy has been to have a competitive telecommunications segment with two CDMA and two GSM mobile telephone service operators. Accordingly, two additional mobile licences were awarded in 2005/06 to Unitel (GSM) and rural mobile operator G-Mobile (CDMA).

As part of the transition to a market-based economy, Mongolia committed itself to modernising its telecommunications network and steadily introducing advanced communications services. The government considers national infrastructure development as a high priority and, in particular, it has focused on the development of the telecoms sector, seeing it as central to the overall development of the country, the improvement of living standards, increasing foreign investment, boosting tourism and private sector development, and implementation of innovative changes.

Market highlights:

  • Not all areas of Mongolia are connected to the internet. However, good progress has been made, with most universities and research institutes, government organisations, agencies, banks, and companies in Ulaanbaatar being online. Market penetration continues to remain strong in the urban centres, although the rural sector is catching up.
  • The number of e-commerce services such as e-banking, online shopping, and e-services has risen in Mongolia. This is partly attributed to a government initiative established in 2005 called the One Home One PC program providing low-cost computers for around US$250.
  • Broadband subscriptions are increasing and account for nearly 50% of internet subscriptions. Fibre to the Building deployments have also connected major buildings, hotels, schools, and government houses.
  • Since the launch of the two new mobile operators, subscribers have increased with uptake in rural areas. This has impacted on fixed-line subscriptions and put the national operator Telecom Mongolia under pressure.
  • MobiCom launched the country’s first 3G WCDMA mobile network in the country.

Mongolia – key telecom parameters – 2006; 2009, 2011 (e)

Sector
 2006
 2009
 2011 (e)
Internet users
 310,000
 350,000
 390,000
Broadband subscribers
 3,500
 47,000
 81,000
Fixed-line subscribers
 195,000
 188,880
 135,000
Mobile phone subscribers
 721,000
 2,249,020
 2,750,000
Mobile penetration rate
 30%
 84%
 98%

(Source: BuddeComm based on industry data)

For those needing high level strategic analysis and objective analysis on Mongolia, this report is essential reading and gives further information on:

  • The jointly implemented project by the World Bank and the Mongolian Government called ‘Improvement of Information Telecommunication Infrastructure’. The fund was set up for the purpose of bringing telecommunications to rural and remote areas, at the same time expanding services and improving service quality. The project is due to be completed by the end of 2011.
  • Renewed efforts in 2009 to complete the privatisation of Mongolia Telecom. The operator continued to provide services throughout the country by leasing network assets from the Posts and Telecommunications Authority, which owned the infrastructure. Although Mongolia Telecom had been a very profitable company throughout most of the 1990s, the advent of mobile competition, international IP telephony providers and later on the substitution of international SMS for voice, all had a negative impact on its profit margins. By 2008 the major portion of its revenue was being gained through international telephone calls where the regulations meant it faced no competition.

Mongolia is a small country with predominantly basic telecommunications services. The report covers trends and developments in telecommunications, mobile, internet and broadband. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, subscribers;
  • Internet;
  • Mobile voice and data markets;
  • Broadband (FttH, DSL, cable TV).

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