Telecoms & IT
From The Report: Mongolia 2013
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With an overall population density of only two people per square mile, and 40% of the nation living nomadically, providing 3G services has been more challenging than in other countries. However, as of December 2012, 3G services became available in all provinces. With 27% of the population under the age of 15 and a GDP that grew 15.7% per capita in 2011, the number of 3G users is expected to increase in the years to come. Debate is ongoing over which technology will prevail, however, with 4G demand expected to be highest in Ulaanbaatar and other large cities. Prospects for the telecoms sector are generally good. Also promising is the IT sector, thanks to a new corridor and fibre-optic networks. At the end of December 2012, the nation was ranked ahead of other players in the region, such as China and Indonesia, in terms of download speeds. The country is quickly becoming wealthy, benefitting from the fact that the market is relatively open and free. More competitive operators are expected to meet the market’s needs. Crucial to development will be how the government manages its dealings with the private sector. Companies must also ensure that employees are well-trained and qualified to work with rapidly evolving technology.

This chapter contains a roundtable with B. Byambasaikhan, Chairman, Mobicom; D. Bolor, CEO, Skytel; and R. Granbold, CEO, Unitel.

Articles from this Chapter

Overview

Gaining an edge: Moves to increase transparency and extend services benefit the sector
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On December 20, 2012, MobiCom extended its 3G network to Erdenebulgan soum (county), a remote area close to the Russian border with about 3000 inhabitants. For the company, which is the largest mobile operator in Mongolia, it was a significant step; it can now claim that it offers 100% 3G coverage in the country. Mongolia’s population density is less than two people per sq km. And with 40% of the country living in the capital city, the rest of the country is even more sparsely inhabited (Omnogovi…

Analysis

New restrictions: Regulations related to resource nationalism may have mixed effects
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Mongolia had a relatively open and free telecoms market — that was until May 2012 when the government passed the Foreign Investment Law of Mongolia that, among other things, restricted investment in the key areas of minerals, banking, finance, media and communications. The law was primarily motivated by the growing concern that foreign interests would take over the country’s mining assets. The law came before the June 2012 elections, in which resource nationalism played a large role. Telecoms…

Interview

OBG talks to B. Byambasaikhan, Chairman, Mobicom; D. Bolor, CEO, Skytel; and R. Ganbold, CEO, Unitel
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Interview: B. Byambasaikhan,D. Bolor,R. Ganbold With mobile penetration increasing, what are the prospects for new revenue streams in value-added services (VAS) such as mobile data? B. BYAMBASAIKHAN: We are expecting the mobile phone market to be saturated in Mongolia in the future, but that doesn’t mean the industry will not grow. It will expand by diversifying into VAS. Mobicom has been taking a proactive approach, focusing on developing VAS to meet customers’ needs, to provide…

Overview

Finding solutions: A new corridor and fibre-optic networks give signs of promise
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With one of the best internet infrastructures in the region, Mongolia is a technological surprise. Speeds are high, latency is near zero and restrictions are few. In tests done by Ookla, a broadband performance testing company based in Seattle, Washington, Mongolia’s download speeds were clocked at 11.89 megabits per second (Mbps) at the end of 2012. The country ranked 46th globally in terms of download speeds, ahead of Thailand, Malaysia, Indonesia, China, Vietnam, and even Ireland and New…

Analysis

Keeping options open: Wi-Fi has not stood out among the many internet services
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Wi-Fi has never truly caught on in Mongolia. In its 2011 White Paper, the Information, Technology, Post and Telecommunications Authority (ITPTA) noted that only 0.2% of all internet connections were made using that method, which was even less than connections made using dial-up, which came in at 0.7% of the total. The most popular way of accessing the internet in Mongolia was general packet radio service, at 64.3%. Optic cable came in at 18.7% and xDSL (which encompasses all the various types…