Stimulating broadband through

Telecom Regulatory Authority of India

Stimulating Broadband through Universal Service

Convergence of Era Broadband training program2-4 April , 2012

Hyderabad, India

SOLONGO MALTAR([email protected])

Information, Communications Technology and Post AuthorityMongolia


Content

Country overview

ICT sector

Universal service legal framework

Universal service implementation

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Content

Country overview

ICT sector



3


Country overview

4

Location: Northeast Asia, between China and Russia (landlocked)

Population: 2.7mln

Capital: Ulaanbaatar

Territory: 1,566,500 sq.km

Government: Parliamentary

Natural resources: Coal, copper, gold, molybdenum, tungsten, phosphates, tin, nickel, zinc, wolfram, fluorspar, silver, iron, phosphate

GDP (USD bn): 4.2

GDP per capita (USD) 1,560

GDP by sectors agriculture: 21.2%, industry: 29.5%, services: 49.3%

• Separate Business from Policy (1992)

• Sector Reform (1993-1994)• Restructuring & Privatization

(1995)• Law on Communication (1995)• From Analogue to Digital (1995)• Competition in a telecom market

(1996)• liberalization (2001 - 2006)• Renewed Law on Communication

(2001)• Establishment of CRC (2002)• Establishment of ICTPA (2004)• Sharpening of the Mobile Market

competition (2006)• Universal service/Universal

access policy (from 2007)


Content

Country overview

ICT sector

ICT sector indicators

Government structure of ICT sector

Policy and Regulatory framework



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ICT sector indicators

6

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011

140.4181.7

283.5365.2

449.2 471.0 539

mil.

tu

g

Total revenue of ICT sector

Composition of ICT sector revenues

Mobile271

74,29%

FIxed 34,9; 9,56%

VoIP20,1, 5.49%

Post 6,8; 1,85%

Internet17,3; 4,74%

TV broadcasting 6,0, 1.65%

CaTV3,10,

1.09%Other4,9;

1,34%

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%

2006 2007 2008 2009

ICT in GDP

21.529.9

45.3

65.7

82.290.3

6.8 7.4 6.5 6.8 6.8

7.0

0.3 0.4 0.6 1.5 3.9 7.20

102030405060708090

100

2005 2006 2007 2008 2009 2010

Mobile

Fixed

Internet


ICT Sector players

Fixed line operator – 3 Mobile network operator – 4

(3G license issued in 2009) ITSP - 4 ISPs – 75 International VoIP service

provider - 28 IPTV – 2 in 2009 Mobile TV – 2 in 2009

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Infrastructure and Service

175 soums (village) are connected by fiber optic out of 331

Over 18.700 km fiber optic network and 8.400 km digital microwave network (state and private)

All of the soums have at least 1 mobile operator’s service

38 soums of them have Internet


Government structure ICT policy and regulation

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President

Communications Regulatory Commission

Cabinet members of the Government

Prime minister

Parliament

Information, Communications Technology and Post

Authority

Other Ministries

Citizens, Businesses, Other public and Private entities

Telecoms and IT sectors are overseen by ICTPA, regulatory function by CRC in telecoms


Policy and Regulatory framework

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ICT Vision up to 2021, draft (Parliament of Mongolia, 2011) Policy Guidelines (GSM 1800,

Broadcasting of Digital TV, 3G, WLL etc.)

Policy guideline on tariff (draft, 2011)

Law on Communication (renewed in 2001)

Law on Radio Wave (approved 1999) Law on Government’s Special Fund

(renewed 2007) Law on Licensing Business Activities

(approved 2001) Law on e-signature (approved 2011)

Policy papersLegal Framework

Regulatory Frameworks Licensing (classifications, conditions,

Issue, prolong and cancel licenses and radio frequency)

Numbering Regulatory service fees Monitoring QoS Complains and disputes Methodologies for service tariff Determining and controlling

dominants Access & interconnection

National Programs E-Government national program (draft,

2011) E-Mongolia National Program for 2005-

2012 (ICTA, 2005) National Broadband program (ICTPA,

2011) To ensure of information security

(2010-2015) To switchover Radio and Television

broadcasting to digital technology (2010-2015)


Content

Country overview

ICT sector

Universal service overview

Legislation

Funding mechanism

ICT sectors players


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USOF legal framework

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Legal Framework

Regulatory Frameworks

Law on Communication (renewed in 2001)

Law on Government’s Special Fund (renewed 2007)

Law on Licensing Business Activities (approved 2001)

Procedure of collecting and expending USOF (Government of Mongolia, 2006)

Procedure on USOF

USOF is Legally created in 2001 / operational in 2007 Control of USOF transferred from CRC to the ICTPA in 2009 USOF is composed from 2% levies of taxable revenues of

communications service providers


Funding Mechanism

95% is generated from mobile sector (by 2010) For 2007-2010, USOF disbursed about 85% of collections

($8m) USOF was able to fully take advantage of the practical

experience gained working with 2006 WB Pilot projects Most of the fund was dedicated to enable access to mobile

services to rural areas. Today as most of the areas are covered by mobile services, we are using a fund to expand the internet services to rural areas.

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ICT sector players

Fixed line operators – 3

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Mobile network operators – 4

Internet Telephony service provider – 4 ISPs – 75 International VoIP service provider – 28 IPTV – 2 Mobile TV – 2 Cable TV - 70

State communication depart.

, Railway

GSM, W-CDMA

CDMA, W-CDMA

GSM, W-CDMA

CDMA 450, WCDMA

684 licenses were granted to the entities


Content

Country overview

ICT sector

Universal service overview

Universal service implementation Rural ICT initaitives

National program Broadband

ICT Vision 2021

Stimulating broadband access

Challenge14


Rural ICT initiativesSituation of Rural ICT Fixed and mobile teledensity are four to five times higher in the urban Mongolia likely to have 40% of population living in rural areas in mid/long term

– Voice component of universal service is close to being achieved – progreehas been undertaken relatively very quickly (in the last 5 years)

– Next challenge is the wide-spread roll-out and adoption of broadbandWorld Bank financed UAS Program (ICIDP)A series of World Bank-funded activities that included pilot projects and culminated in the UA/US Program provided technical assistance and subsidy financing (US $5 million) over the period 2005-08 for UAS promotion

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Program Maximum subsidy Number of covered soums

Herder Public access network

970.000$ 142 baghs(administrative unit)

Soum center wireless network

4.600.000$ 90 soums

Aimag center internet services

1.160.000$ 34 soums and aimagcenters


Other projects

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Mongolian Internet Exchange (MIX) point

Delivering radio and television programs to rural areas

Connecting Ger district households to high-speed Internet

connections through wireless technology

Delivering Internet services to Soums (villages)

Projects to improve mobile service coverage


National broadband program of Mongolia

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The goal of National Broadband Program of Mongolia is to support national economic growth and livelihoods by the establishment of a high-capacity, high-speed broadband

network to deliver an accessible, low-cost, comprehensive information service to all government agencies, businesses

and households, especially for rural and remote areas.

Implementation priod: 2011-2015


National Broadband program of Mongolia /cont/1. Government support for the establishment of a high-speed broadband

network, with companies providing services, with the development of broadband being based on a mutually beneficial public-private partnership.

2. Use of foreign loans and aid, supported by foreign and domestic investment, with provision of specific discounts and incentives for service providers to deliver services to isolated rural areas. This will involve the following:

3. Enhancement of the business environment, so that previous investment in the main network is improved and investment returns improved.

4. Government support for increasing use of broadband networks and development of content, involving training courses, promotional activity and fund mobilization.

5. Expansion of the existing network to rural areas and Ulaanbaatar's peri-urban areas, improvement of service quality and coverage, reduction of network lease costs for delivery of internet to rural areas, training courses and promotional activity.

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National broadband program of Mongolia /cont/

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Objectives

1. Creation of a legal, regulatory and conducive business environment to develop a high-speed broadband network

2. Increased capacity and quality of existing urban networks and diversification of services.

3. Creation of infrastructure for rural area and establishment of a broadband infrastructure and services in currently non-connected remote areas.

4. Increased content on, and use of, the broadband network.

5. Research into convergence advanced technology, with the development and implementation of a national mid-term strategic plan under global standards.

Benefit and results

• A favorable legal, regulatory and conducive business environment for the establishment and development of a high-speed broadband network will exist.

• Indicators for Mongolia’s broadband development (speed, price and use) will be above the global average.

• No less than 90% of government organizations, education and health agencies will have access to high speed broadband network.

• At least 50% of all households will have access to cheap triple-play service access delivered through broadband.

• Over 40% of households in remote areas and more isolated populated areas will have access to a wireless broadband service.


ICT Vision up to 2021 /basic objectives/

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Vision

The Information and communication technologies (ICT) is driving force for knowledge based economy and accelerator for social and economic development.

Mission

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.


ICT vision up to 2021

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Education

Health

Banking, Finance

Mining

Herding and Agriculture

Information and Communications Technology

ICT human resource

Information Security

E-Government


ICT vision targetBroadband

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Household

Big cities

Provinces

Soums

100% - 100Mbps

70% - 50Mbps

60% - 50Mbps

At the present moment, when it is obvious that Mongolia as well as other countries recognize the importance of the new

wave of broadband development, the Government agencies have been implementing a series of

concrete actions to ensure successful deployment of a broadband throughout the country.


Strong Leadership to Support ICT initiatives Policy makers should recognize key benefits of the ICT

Cabinet-level ministry plays key role in coordinating ICT related initiatives. (Several funds)

Most of the countries have strong financial support from the Government on the rural ICT development. (PPP)

Sustainability of the project Local Governors should play important role in developing rural ICT

Well trained personnel to manage service, attract others (Champions)

To assist on further rural development and infrastructure construction

Ongoing evaluation and review of the effectiveness of the Strategy

Not only Commercial center, but also Community center to provide E-government service and training (15-25%)

Not only basic telephony service, but also Advanced telecom services

Long Term Policy/Master plan on US/UA program and USOF Set very specific, clearly defined target on the UA/US on long term Policy

Public consultation and transparency of the Policy plays important role

Conduct economic research and result of the initiatives

Separate Policies on both connected and unconnected areas (by backbone network)

Enabling market environment

Success factors of US/UA programs


Challenge Nowadays, the main challenges for the deployment of internet

services and broadband are that the accessibility and tariff of ICT backbone network services limits its broad utilization by the new internet service providers and businesses. The cost of connecting to internet services has been kept stable from the cost of 2009. The internet connection for corporate organizations is starting from 145 US$ for 1Mbps for dedicated leased line for monthly basic.

In the beginning of 2011, the number of internet connection was 199,849 representing an increase of over 53% compared to 2009. Even though internet connection is increasing at the reasonable level, broadband penetration (5.2%) and average speed (1Mbps in urban area, 128kbps in rural area) is very low comparing to a world average.

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Challenge /cont/

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Separated Service from Network (1995)

Government of Mongollia sold a 40% share of Service

Company (MTC)

Two separated companies “NetCo” offering wholesale network

services on a non-exclusive basis and “ServCo” offering retail

services (2007)


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Stimulating Broadband AccessIn order to facilitate successful development of broadband, Information communications infrastructure is needed to accelerate the country’s social and economic development. However, this requires large amounts of capital for a country like Mongolia, specialy to implement infrastructure to connect all schools, hospitals and communities.

• Encourage cooperation in building networks and infrastructures to reduce costs and risks (especially for economically unfeasible areas) - government-private, private-private, central-regional governments. Once a target area is chosen for broadband development (green or brown fields), select the lowest bidder for government subsidies on conditions of meeting public obligations (in case the works to do are pre-determined)

• Encourage the would-be participants to form a consortium of operators if the project cannot be done by a single operator within the government’s budget constraint.

• Let regional governments (in partnerships with operators and using subsidies from the central government) develop the broadband fit fortheir regions on the condition that they meet the standard for interoperability, QoS, etc.


• Build more backbone and backhaul networks in the above ways of cooperation. Let the incumbent operator, a consortium of competitors, or a newly established government-owned company participate in this project. Find and develop more civil engineering infrastructure (ducts, poles, manholes, access to in-building wires, etc.) and let them be shared for broadband development.

• Similar with the ”Connect a school, Connect a community” initiative of ITU, the “Low cost computer” program will be very helpful in developing countries to universal access and broadband development.

• Provision of low-prices PCs to provide benefits to the rural residents in informatization and the Government alike, in that the rural residents is provided with an opportunity to purchase a high efficient PC without a sizable amount of money that is guaranteed by the Government at an inexpensive price, and the Government can prepare a base for universal servicing of PCs and Internet information services, which are part of the Government subjects.

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Stimulating Broadband Access /cont./


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Stimulating Broadband Access /cont./ Increase e-applications for government organizations, and education and

health agencies, and create necessary conditions for a fast and reliable public service using broadband network.

Run training courses and public awareness activities for e-applications, promoting results and outcomes to the public.

Increase the application of e-governance at local government administration levels, and create a training system to improve ICT awareness and skills.

Support the access to the education, disseminate ICT into education system, and promote its applications from the primary school through informatics, information technology subjects and to provide e-literacy in national level and enhance computer education.

Improve national content, localize international resources to the national situation and provide policy support for content business.

Increase internal internet-based data traffic, support internal cross-connections, creates a favorable business environment.


ICT Vision up to 2021 To conduct e-literacy program for all Mongolian citizens and enable

the e-basic education To connect health, education and other sectors with high speed

broadband network; The 90% of total population will have an access to high speed

broadband network by utilizing the wireless communication technology;

The major metropolitan areas will be connected with high speed broadband network of minimum of 22 Gbps internet speed, soum and residential centers will be connected with minimum of 2 Gbps internet speed;

There will be at least one community service center in aymag andsoum centers to access to the high speed broadband network;

To develop internal content; To provide the technical possibility to gain 100% access to digital

broadcasting without time and location limitations;

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