Tariff Policy in Mongolia
URANZAYA ERDENECHULUUN
Space and Radio Communications Division
Information Technology, Post and Telecommunications Authority
Information Technology, Post and Telecommunications
Authority is in charge of formulating the law, regulation and
development policies in the ICT development matter.
Communications Regulatory Commission /CRC/ shall
work with functions to develop effective and fair competition
environment for market participants issue licenses, work out
professional conclusions and decisions. (Law on
Communication)
ITU Regional Seminar on Costs and Tariffs for SG3RG-AO
Tokyo, Japan
8-9 April, 2013
20240507 QFM013 Machine Intelligence Reading List April 2024.pdf
ICT sector Tariff Policy in Mongolia
1. Tariff Policy in Mongolia
URANZAYA ERDENECHULUUN
Space and Radio Communications Division
Information Technology, Post and Telecommunications Authority
ITU Regional Seminar on Costs and Tariffs for SG3RG-AO
Tokyo, Japan
8-9 April, 2013
2. 2
Content
.
• Country overview /brief/1
• Policy and Regulatory Authorities2
• Sector Overview3
• Traffic Policy and Regulation
Development4
3. 3
Country Overview
Location: Northern Asia, between China and Russia.
Capital: Ulaanbaatar (population approx. 800,000)
Terittory: 1,566,500 sq.km
Population: 2.8 mln
Climate: Average summer temperature +20oC, average
winter temperature - 26oC.
Natural resources: Oil, coal, copper, molybdenum,
tungsten, phosphates, tin, nickel, zinc, fluorspar, gold, silver,
iron
Language: Mongolian.
GDP (US$ bn): 9.9
GDP per capita (US$): 3,509
GDP by sectors: agriculture: 18.1%,
industry: 36.2%,
services: 45.7% (2011 estimate)
4. Content
4
• Country overview /brief/1
• Policy and Regulatory Authorities2
• Sector Overview3
• Traffic Policy and Regulation
Development4
5. 5
Policy and Regulatory Authorities
Information Technology, Post and Telecommunications
Authority is in charge of formulating the law, regulation and
development policies in the ICT development matter.
Communications Regulatory Commission /CRC/ shall
work with functions to develop effective and fair competition
environment for market participants issue licenses, work out
professional conclusions and decisions. (Law on
Communication)
6. 6
Content
.
• Country overview /brief/1
• Policy and Regulatory Authorities2
• Sector Overview3
• Traffic Policy and Regulation
Development4
7. 7
ICT Sector Statistics
Source: Communications Regulatory Commission website
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
2007 2008 2009 2010 2011
Number of mobile subscribers
12. 12
Content
.
• Country overview /brief/1
• Policy and Regulatory Authorities2
• Sector Overview3
• Traffic Policy and Regulation
Development4
13. Environment
- Law on Communication
(1995)
- Established Regulatory
council
- Separate network from
service
- Privatization
- Sector reform
- Separate business from
policy
- Ministry of Transportation
And Communication
- Ministry of Communications
handles policy and service
1995-
2000
1993-
1994
1992
Before
1992
Market
- Communications asset company
(NetCo)
₋ Mongolia Telecom Company (MTC)
₋ Mobicom,1st mobile operator (1995)
₋ Skytel, 2nd mobile operator (1999)
₋ From analogue to Digital
₋ Separate TV, Broadcast from
Communications company
₋ Established Mongol Post Company
₋ Datacom LLC- 1st ISP
₋ Established Communications
company
(TV, broadcast, post, telecom)
No competition
Traffic regulation
- Competition enhanced in
the Telecom market
₋ Government decides traffic of
Leased circuit, leased duct,
₋ Interconnection charge
required
₋ Interconnection charge still based or
revenue sharing
₋ Cross subsidy tariff system
₋ Tariff were still strictly
under control
- Telecom sector tariffs were
strictly under control
Timeline of ICT Sector Development
and Tariff Regulation
14. Environment
- Universal
system/Universal access
policy
- Sharpening competition
in mobile market
- Renew Law on
Communication (2001)
- Establish CRC (2002)
- Establish ICTPA (2004)
- Liberalization
- Sector restructuring
2007-
Present
2001-
2006
Market
- 3rd (Unitel) 4th (G-mobile)
mobile operators entered into the
market
- 3G license to mobile operators
- Local VOIP service providers
- International VOIP
- Designating dominant operators
in 2003 (MTC, Mobicom)
Traffic regulation
₋ Non geographic tariff
₋ Cost based Interconnection
rate between operators
₋ CRC set Interconnection rate in
2010
₋ Decrease leased circuit tariff
₋ High tariff for mobile service
₋ High Leased line tariff
₋ Requirement for change of tariff
regulation regime to go in line with
market mechanism
₋ Control dominant tariff
₋ Increase local call tariff
₋ Tariff rebalancing
₋ Set international settlement rate and
local termination rate for int’l call
Timeline of ICT Sector Development
and Tariff Regulation
15. 15
Policy and Regulation on Tariff
Legislation
Power of ITPTA
“…… to elaborate policy on Communications
to formulate policy on creation of competition in
communications market;
Power of CRC
“ ……. to approve accounting methodologies for service tariffs,
monitor service tariffs dominating a market;
to approve general terms of interconnection agreements
between networks and procedures of revenue distribution;
Methodology for setting up tariff for communications’
services
Procedure on determination of and imposing a control over
a dominant operator
General procedure for interconnection
Procedure on service charges of interconnection
Regulatory
documents
16. 16
METHODOLOGY FOR SETTING UP TARIFF FOR COMMUNICATIONS’
SERVICES /by CRC/
Tariff setting shall apply accordingly a principles accepted by ITU
recommendations and World Economic and Co-operations Organization,
World Trade Organization’s methodologies:
a. Cost based principle
b. Price cap principle
c. Principle of benchmarking
PROCEDURE ON THE CONTROL ON THE BASICS OF SERVICE
TARIFF /by CRC/
The Dominant operator and new service providers, in order of their
service tariff basics being checked shall submit to the CRC along with the
price quotation the related materials 45 days prior to the launch of the
service.
Retail Tariff Regulation
17. 17
Wholesale Tariff Regulation
GENERAL PROCEDURE ON INTERCONNECTION /ITPTA/
- Non-discrimination, transparency and sustainability principles
- Cost-based and co-efficient.
- Any inefficiency should not be passed through interconnection
or access charges.
PROCEDURE ON SERVICE CHARGES OF INTERCONNECTION /CRC/
- Cost should be calculated by the principles and methodologies
stipulated in of ITU recommendations and COSITU model or the
international accounting standards.
- The parties within 21 days prior to the signing the agreement shall
submit to the CRC commonly agreed the final proposal on the
charges for interconnection or each parties’ separate proposals
alone with their basics, if the common agreement had not been
reached.
18. Addressing Market Dominance
Competition Law
- Dominance exists when a
single business entity acting
alone, or a group of
business entities acting
together, account for over
one third of the sales of
certain kind of products in
the market.
18
Regulate
Relax
Monopoly
Dominant
33%
The CRC shall annually determine and announce to the public on the
dominant operators within the communications market.
19. Addressing Market Dominance
Services Indicators
1. International telephone calls service Minutes
2. Fixed telephone services End users, others
3. Mobile telephone service Number of customers, others
4. Wireless telephony package services End users, others
5. Mobile satellite services End users, others
6. CaTV services Number of customers, others
7. Internet services Number of customers, others
8. Leased circuits services Number of leased circuits,
capacity
9. International registered and ordinary Number of parcels and mails,
others postal
10. Local and domestic postal services Number of parcels and mails,
others
19
20. Regulation fee and interconnection
tariffs /CRC/
Non-dominant tariffs must be reviewed within 14-
21 business days and contentious dominant tariffs
reviewed within 14-21 business days respectively.
The CRC approved the minimum rates of external
billings for international incoming calls and termination
rates of international calls at mobile, wireless and fixed
networks.
The CRC also adopted a cost accounting model by
investigating economic efficiencies of a service cost and
service packages on the basis of service costs of Mongol
Post Company.
20
21. Regulation fee and interconnection
tariffs /CRC/
Difference between domestic and local
communication service fee has been changed to
same tariff.
-domestic mobile subscribers interconnection tariff reduced an
average of 1.7-2.1 times,
-domestic fixed subscribers interconnection tariff an average
of 1.6-2 times.
Domestic channel lease tariff for internet
service is regulated by CRC.
-internet subscriber’s monthly payment reduced by 15% in
average and enables to increase internet connection speed of
customers
21