crc ar final 2013 eng
TRANSCRIPT
P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
2013
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Letter of Transmittal
To: His Excellency ALTANKHUYAG NorovPrime Minister
Mongolia
Your Excellency,
I am pleased to present you with the Communications Regulatory Commission’s Fiscal Year 2013 Performance and Account-
ability Report.
The report has been prepared in accordance with Article 8.11 of Communications Law of Mongolia, 2001. The report contains
an Overview of information and communication technology, telecommunication, broadcasting, postal sector, and a summary
of the key initiatives of the CRC on the regulatory issues with reference to the functions mandated by the Law.
The Audited Financial Statement of Accounts of the CRC 2013 has also included in the Report.
BALGANSUREN Batsukh Chairman & CEO
December 2013
3FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
EDITORIAL COUNCIL
Chairman & CEO
BALGANSUREN Batsukh
MEMbErs:
secretary-General of the Commission
Legal, Information and Administration Department
radio Frequency regulation and Monitoring Department
regulatory Department
Market and Tariff regulation Department
Postal regulation Department
CONTACT: Communications regulatory Commission of Mongolia
Metro business center, 5th floor, sukhbaatar district,
sukhbaatar street 13, Ulaanbaatar 14201, Mongolia
Tel:
Fax:
Email:
Website:
976-11-304257, 304258, 18001858
976-11-366040
www.crc.gov.mn
C O n T E n T
Country profile 6-7
Main indicators of telecommunication sector 8
Information of national programs in ICT sector 9-10
CRC Legal Environment 11-12
Key Statistics of ICT sector of Mongolia 2013 13-30
Mobile and Fixed Network 14-20
Internet 22-24
CATV and IPTV 25-27
Economic Factors 28-30
What we did in 2013 31-52
Legal and regulatory Frameworks 32-37
E-CrC Project 38-45
regulation on radio Frequency 46-48
Monitoring and Enforcement 49-52
Overview of the CRC 53-65
Seminars and workshops for service providers 64-67
Foreign visits and events 68-73
Human resource and social activities 74
Appendix 75-90
5FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Ethnic groups: 82.4% Mongol 3.86% Kazakh 13.74% Others
Religion: buddhism 53% Muslim 3% shamanism 3% Christian 2% Other 39%
Territory: 1,564,115.75 km2 (19th)
Climate: 4 seasons, extreme continental
winter ave. -23, summer ave. +25 sunshine >250 days/year
Highest peak: 4,267m above the sea.
Demography
Population: 2,965,000
Density: 1.76 per km2
Capital: Ulaanbaatar (45%)
No.of province: 21 aimags
Language: Mongolian
Geography and climate
COUNTRy pROfILE
Government type: Parliamentary
Government: 16 ministries21 agencies
GDP total: ₮ 11.52 billion
Economy: Agriculture, mining
Mineral resources: Copper, coal, molybdenum
Mongol empire
Post imperial
Independence Dec.29
Communist regime
Democratic regime
1206
1368
1911
1921
since 1990
History briefGovernment and Politics
7FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
MAIN INDICATORs Of TELECOMMUNICATION sECTOR
2010 2011 2012 2013
Revenue from telecommunication services (millon tugrugs) 401 631,1 459 006,8 569 052,3 630 989,9
Revenue from population (millon tugrugs) 315 027,5 343 898,5 436 128,3 468 312,1
Fixed telephone lines (thousands) 143,2 131,8 153,0 210,4
Telephone lines (per 1000 inhabitants) 52 49 56 75
Cable television subscribers 120 551 180 052 227 045 277 968
Mobile cellular users (thousand persons)*1 2 532,9 2 942,3 3 426,1 4 247,4
Wireless telephone (WLL) subscribers** 5 780 5 195 4 481 3 593
Satellite communication subscribers 773 986 1 016 1 369
Wired-radio stations (thousands) 56,2 50,5 50,6 49,0
Internet service providers (IsP)* 77 85 67 55
Internet cafes* 200 180 158 205
Internet users (thousand persons)* 199,8 457,6 695,6 762,2
Number of computers 373 075 421 901 478 186 505 596
Computers (per 1000 inhabitants) 136 157 175 181
Source: * Information technology, post and communication authority ** Deducted the subscribers of MTC from the wireless telephone subscribers 1 Number of registered users
8
name of national programs
Dates and approved numbers
Main purpose of program
1
Development of national innovation system 2008-2015
Government Resolution
#306
2007.11.28
Establish an effective and specific system of innovation in Mongolia to lay the foundation for development and designing national innovation system and to ensure sustainable economic development, competitiveness of the industrial sector, science and technology to improve operational efficiency purpose of government to take pre-emptive measures to identify.
2
national program on national satellite
Government Resolution
#137 2012.11.24
The main goal of this program is to develop and localize aerospace and satellite technology in Mongolia, to launch, customize, possess and use national satellite, and activate international cooperation and identify main activities related to the program in order to be implemented.
3
Approval of 26 priority projects to implement
Government Resolution
#320
2009
Priorities:
1. Develop the mining sector and set the base of heavy industry using mineral deposits
2. Implement policy on intensive agricultural development and industrialization
3. Develop infrastructure
4. Human development, education, environmental protection and sustainable develop-ment
5. Improving governance and the private sector to support key priorities in 2010-2015 in 5 approved a list of 26 projects, announced to investors.
INfORMATION Of NATIONAL pROgRAMs IN ICT sECTOR
9FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
4
national program on information security 2010-2015
Government Resolution
#141
2010.06.02
By creating electronic database of Mongolian government agencies and non-govern-mental organizations, citizens, businesses and the supporting infrastructure through the gradual implementation of measures to ensure the security of national security and citizens’ fundamental rights and freedoms will be provided to ensure.
5
national program switch over to digital technology television broadcasting network 2010-2015
Government Resolution
#275
2010.10.27
Implement Government resolution and increase the consumption of introducing and distributing new communication services, providing good quality services by making transition to digital technology of Mongolian national Radio and television broadcast-ing network.
6
national program on post to each household
Government Resolution
#126
2011
Create main network in Mongolia and improve network quality, and increase the types of services provided through the network of the new types of services and the intro-duction of the use of and access to postal services, fast and reliable delivery of this program is intended to create opportunities.
7
national program on high speed broadband 2011-2015
Government Resolution
#145
2011.05.03
Develop legal and regulation favorable environment to support expansion, use, and possession of information, communications, high-speed broadband networks.
8
national program on E-Government 2012-2016
Government Resolution
#101
2012.04.04
To make government activities transparent, open and to increase citizens’ participation in public policy development, and access to public services, without any delay, and introduction of web services developed goals and objectives can be identified.
INfORMATION Of NATIONAL pROgRAMs IN ICT sECTOR
10
There were 42 legal documents or requirements and regulatory documents modified and updated in 2013.
CRC LEgAL ENvIRONMENT
The CRC’s regulatory functions are subject to the following laws:
• Communications Law • Radio wave Law• Licensing business activities Law• Postal Law• Competition Law• Digital Signature Law
Communications Law | 2001
The first Communications Law was approved in 1995 and has been revised in 2001. The purpose of Communications Law is
to regulate relations between the state, citizen and legal entity; operation and protection of communications networks in
Mongolia.
Radio Wave Law | 1999
radio Wave Law was approved in 1999. The purpose of the this law is to regulate relations derived from allocation, usage,
protection, ownership and possession of radio waves.
11FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Licensing Business Activities Law | 2001
Licensing business Activities Law was approved by the Parliament in 2001. The purpose of this Law is to regulate relations to
issuance, revocation and cancellation of licenses for engagement in some utility activities that require particular circumstances
and specific professions or might be dangerous to public interest, human health, environment and national security. Licensing
in radio communications and telecommunications is subject to articles 15.16.
Postal Law | 2003
Post Law was approved by the Parliament in 2003. The purpose of this Law is to regulate relations associated with postal
networks, their operation and maintenance.
Competition Law | 2010
Competition Law was approved in 2010. The purpose of this law is to regulate relations regarding creation of conditions for
fair competition in the market, market-dominant, and the prevention of any activity contrary to competition and prohibition,
competition and regulatory authorities to determine the legal basis.
Electronic Signature Law | 2011
Electronic signature Law was approved in 2011. The purpose of this law is to regulate relations regarding determination to
the legal basis for the use of electronic and digital signatures, and public key infrastructure.
12
KEY STATISTICS OF ICT SECTOR OF MONGOLIA 2013
3CATV AND IPTV
4ECONOMIC FACTORS
1MOBILE AND FIXED NETWORK
2INTERNET SERVICE
P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
13FIsCAL YEAr 2013
MOBILE AND FIXED NETWORK
MOBILE AND FIXED NETWORK1
THE NUMBER OF MOBILE SUBSCRIBERS(registered)
PERCENTAGE OF MOBILE SUBSCRIBERS | 2013
15FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
47.6%
1.19
4.5
83
1.76
3.1
78
2.2
49.0
23
2.2
50.4
70
2.9
42.3
13
3.4
09.0
05 4
.247.
446
2007 2008 2009 2010 2011 2012 2013
27.6% 11.6% 17.2% 15.9% 24.6%
BACKBONE NETWORKFollowing service providers run backbone network business
in the market in 2013:
Length of fiber optic cable
Information Communication Network Company 15829.0 km
Mobicom Corporation LLC 5062.8 km
railcom Center 1405.5 km
Gemnet LLC 1210.3 km
skynetworks LLC 6700.0 km Total: 30207.6 km
10.86%29,37%15.97%43,8%
¯¯ÐÝÍ ÕÎËÁÎÎÍÛ ¯ÍÄÝÑÍÈÉ ÎÏÅÐÀÒÎÐ
NUMBER OF MOBILE SUBSCRIBERS BY TECHNOLOGY | 2007-2013
Title 2007 2008 2009 2010 2011 2012 2013
GsM 931,839 1,287,656 1,363,485 1,429,627 1,616,691 1,862,370 2,159,694
CDMA 262,744 475,522 816,945 926,799 1,041,340 1,046,269 969,835
3G - - 68,593 154,044 284,282 500,366 1,117,917
Total 1,194,583 1,763,178 2,249,023 2,510,470 2,942,313 3,409,005 4,247,446
CUSTOMER PORTFOLIO | 2007-2013
subscriber portfolio 2007 2008 2009 2010 2011 2012 2013
Post-Paid 8.10% 10.35% 10.33% 11.04% 11.50% 11.99% 12.21%
Pre-Paid 91.90% 89.65% 89.67% 88.96% 88.50% 88.01% 87.79%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
MOBILE AND FIXED NETWORK1
Title 2006 2007 2008 2009 2010 2011 2012 2013
Mobicom 79.24% 61.88% 53.39% 45.65% 44.23% 42.92% 37.96% 43.80%
skytel 15.87% 20.52% 21.62% 22.25% 21.92% 19.66% 17.24% 15.97%
Unitel 4.89% 16.12% 19.64% 18.03% 18.50% 21.21% 31.35% 29.37%
G-Mobile - 1.48% 5.35% 14.07% 15.35% 16.21% 13.45% 10.86%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
MARKET SHARE OF MOBILE SUBSCRIBERS | 2006-2013
16
Title 2007 2008 2009 2010 2011 2012 2013
Mongolia Telecom joint stock company 93.08% 92.80% 89.15% 89.00% 84.99% 72.14% 52.20%
Ub railway joint stock company 6.92% 7.20% 7.33% 6.32% 7.64% 5.82% 4.20%
Univision LLC - - 1.41% 2.56% 5.26% 16.69% 30.39%
skymedia LLC - - - - - 3.35% 9.10%
Mobinet LLC - - - - - - 2.53%
Other - - 2.11% 2.12% 2.11% 2.00% 1.58%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
NUMBER OF FIXED TELEPHONE SUBSCRIBERS 2008-2013
17FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
210.432
151.945
187.561193.239188.875184.843
2009 2010 2011 2012 20132008
2.2% 2.3% -19.0% 38.5%-2.9%
MOBILE AND FIXED NETWORK1 18
PENETRATION OF MOBILE AND FIXED TELEPHONE 2007-2013 (per 100 inhabitant)
2009
82.2
68.0
18.4
6.8
2010
90.0
76.6
6.9
17.8
2.942.313
2011
17.2
103.8
83.8
6.6
3.409.005
2012
16.7
116.4
88.1
5.5
4.247.446
2013
16.2
93.1
144.9
7.2
2008
65.7
59.7
18.5
6.8
2007
50.2
45.3
18.8
6.5
Mobile/World
Fixed /Mongolia
Mobile/Mongolia
Fixed /World
AVERAGE MOBILE CALL TARIFF
19FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Postpaid
Prepaid
Offnet tariff (tugrug)
Offnet tariff (tugrug)
Onnet tariff (tugrug)
Onnet tariff (tugrug)
2.942.313
2007 20072013 20132012 20122006 20061999 1999
111.0
350.0220.0
390.0
75.0
110.0
61.0
63.0
59.0
50.0145.5
425.0
114.0
131.5
67.5
89.0
61.0 61.0
Postpaid
Prepaid
52.5 47.0
AVERAGE FIXED CALL TARIFF
Mobile network
Fixed network
Long Distance
Urban
2013201220081996
0.012.0
2013201220081996
6.0 9.0 5.2 6.027.0
23.0
50.0 50.0 50.0 50.0
188.0
73.0
40.0 32.0
978.4
15977.0
2138.3
10092.7
2420.8
13344.0
2580.8
7876.3
2703.8
2009 2010 20102011 20112012 20122013 2013
International SMS sent (thousand sms)
MOBILE INTERNATIONAL ROAMING SERVICE | 2011-2013
TOTAL NUMBER OF MOBILE SMS SENT | 2009-2013
MOBILE AND FIXED NETWORK1 20
National SMS sent (million sms)
Roaming minutes by foreign subscribers (inbound)
Roaming minutes by subscribers of Mongolia(outbound)
2013
448682
1944391
2012
841480
1810793
2011
1769725
2416916
INTERNET SERVICE
Internet subscribersТypes of Internet
Connectivity
INTERNET SERVICE2
TOTAL NUMBER OF INTERNET SUBSCRIBERS | 2009-2013(registered)
Dial-up xDsL Fiber Optic Cable
Coaxial cable
GPrs, EDGE, 3G, EVDO
Wi-Fi WiMAX VsAT VPN Total
2009 2,166 19,159 24,439 949 54,740 184 3,142 195 1,074 106,048
2010 1,447 25,276 37,274 1,123 128,479 432 4,428 185 1,205 199,849
2011 24 27,946 51,073 9 354,760 3,325 18,554 175 1,758 457,624
2012 33 36,695 65,256 9 520,012 5,281 24,587 174 1,962 654,009
2013 271 40,684 107,886 165 655,107 10,444 24,322 110 2,154 841,143
23FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
841.143
654.009
457.624
199.849106.048
2010 2011 2012 20132009
Internet subscribers
Dial-up xDsL Fiber Optic Cable
Coaxial cable
GPrs, EDGE, 3G,
EVDO
Wi-Fi WiMax VsAT VPN Total
2009 2.04% 18.07% 23.05% 0.89% 51.62% 0.17% 2.96% 0.18% 1.02% 100.00%
2010 0.72% 12.65% 18.65% 0.56% 64.29% 0.22% 2.22% 0.09% 0.60% 100.00%
2011 0.01% 6.11% 11.16% 0.00% 77.52% 0.73% 4.05% 0.04% 0.04% 100.00%
2012 0.01% 5.61% 9.98% 0.01% 79.52% 0.81% 3.76% 0.03% 0.27% 100.00%
2013 0.03% 4.84% 12.83% 0.02% 77.88% 1.24% 2.89% 0.01% 0.26% 100.00%
PERCENTAGE OF INTERNET CONNECTIVITY BY TYPE 2013
0.01% 0.26%0.03%2.89% 0.02%1.24%12.83%77.88% 4.84%
GPrs, EDGE, 3G,
EVDO
xDsL VPNWi-FiFiber Optic Cable
Dial-upWiMAX Coaxial cable
VsAT
INTERNET SERVICE2 24
subscribers and Market share
CATV AND IPTV2007-2013
Title 2005 2006 2007 2008 2009 2010 2011 2012 2013
Cable 66,000 65,197 81,221 87,487 105,296 113,108 119,427 138,220 139,837
satellite - - - - 3,000 58,349 113,072 225,055 238,729
MMDs 6,700 6,792 7,032 15,703 27,923 39,425 61,993 86,835 59,193
IPTV - - - - - - - 32,518 86,000
Total 72,700 71,989 88,253 103,190 136,219 210,882 294,492 482,628 523,759
TOTAL NUMBER OF CATV AND IPTV SUBSCRIBERS 2007-2013
CATV AND IPTV3 26
136.219
523.759
88.253 103.190
210.882
294.492
482.628
71.98972.700
Total subscribers
2005 2006 2007 2008 2009 2010 2011 20132012
IPTV SUBSCRIBERS2013
IPTVsUbsCrIbErs
6727
TOTAL IPTV sUbsCrIbErs
86000
IPTV + VOIPsUbsCrIbErs OF DOUbLE sErVICE
454
IPTV + VOIP+ Internet
sUbsCrIbErs OF TrIPLE sErVICE
78819
MARKET SHARE OF CATV SUBSCRIBERS
Title 2005 2006 2007 2008 2009 2010 2011 2012 2013
Cable 90.8% 90.6% 92.0% 84.8% 77.3% 53.6% 40.6% 28.6% 26.7%
satellite - - - - 2.2% 27.7% 38.3% 46.6% 45.6%
MMDs 9.2% 9.4% 8.0% 15.2% 20.5% 18.7% 21.1% 18.0% 11.3%
IPTV - - - - - - - 6.7% 16.4%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
27FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Total revenue of ICT sector and ICT sector Investment
ECONOMIC FACTORS2007-2013
ECONOMIC FACTORS 2007-20134
TOTAL REVENUE OF ICT SECTOR (billion.tugrug)
2007-2013
TOTAL REVENUE 2013
283.5 365.2 449.2
470
.9
583.9 6
49.7 78
4.0
2007 2008 2009 2010 2011 20132012
28.8% 23.0% 14.4% 20.6% 20.7%4.8%
1.0%
IPTV
Whole-sale service of Internet
Free to air TV
Communications network service
International callFixed telephone operators
satellite Communications
Cable TV
Internet
Post
Other
1.0%
2.0%
2.0%
3.0%
3.0%
4.0%
4.0%
4.0%
7.0%
6.0%
6.0%
58.0%
Mobile sevice
29FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
THE TOTAL INVESTMENT IN ICT SECTOR (billion.tugrug)
2007 -2013
INVESTMENT STRUCTURE (percentage)
2013
108.7
76.4 9
4.4
89.9 10
7.7
108.0
122.2
2007 2008 2009 2010 2011 20132012
-29.7% 23.6% 19.8% 0.3%-4.8% 13.2%
IPTVOther
Communications network service
Internet
Free to air TV
Cable TV
5.0%5.0%
8.0%
6.0%
4.0%
2.0%
70.0%
ECONOMIC FACTORS 2007-20134
Mobile sevice
30
WHAT WE DID IN 2013 ...
1
LEGAL AND REGULATORyFRAMEWORKS
2
E-CRC PROJECT
3
REGULATION ON RADIO FREQUENCy
4
MONITORING AND ENFORCEMENT
31FIsCAL YEAr 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
LEGAL AND REGULATORY FRAMEWORKS
Communications regulatory Commission of Mongolia (CrC) has taken the following major actions and implemented the projects and programs.
BRIEf pERfORMANCE REpORT-2013
Planned actions and events
During the report period, Committee Meeting of CrC was held 15 times and it’s approved 73 resolution, with the 21 relevant memos and decisions followed. The committee meeting on modification of requirement of regulatory document, was made decision to adapt and amend more than 50 regulatory documents out of existing 70 documents.
Under the direction and guidance given by the Cabinet secretariat of the Government, “7 Leading strategies of the ICT sector” was presented and events such as “state Counting on the sector standardization”, “Morning Ini-tials” were organized with technical and financial support of CrC.
CrC representatives involved in working group on drafting amendment to Offences Law and Media’s Freedom Law and Innovation Law, Information Transparency and right to Information Law, Competition Law, Governments’ special Fund Law, Licensing business Entities Law, Concession Law, drafting of proposal of broadcasting Law, Information security Law and e-Government Law, Cyber Crime Law, Electronic Transactions Law, Data Protection Law. relevant comments and proposals were presented at Cabinet secretariat of the Govern-ment, Ministry of Justice and ITPTA respectively. Draft of amendment to Communications Law was delivered to the Cabinet secretariat.
Implementations of objectives and relevant actions of the National Pro-grams “broadband Network”, “Post to Every Household”, “switch over to dig-ital Technology”, “Information security” and “National satellite”, which were ap-proved and being implemented by the Government of Mongolia, were com-piled by semi annual and annual report and presented at the Cabinet secretariat of the Government.
1 32
According to the procedure on provid-ing the National security Council with information, the information about for-eign invested License holders, informa-tion on broadcasting regulation as well as relevant proposals were developed and submitted to the Council officially.
On 29th June, 2013, the procedure of Permission to Operate in Communica-tions sector was approved by the reso-lution No.37 of CrC, and was presented to individuals, business entities, compa-nies and organizations.
CrC representatives worked in working group to make amendments to Custom Law, Custom’s Tariff Law, Customs Tax Law and make amendments to regulation on Cross-border Procedure of International Cargo. Developed proposal on tax free crossborder postal cargo which of worth 3 times higher than the minimum wage, based on the World Postal Association convention and similar provisions of the other countries was delivered to the Ministry of Justice.
In order to protect youth from negative impacts of TV chats, text advertisements, for development of proper written and oral Mongolian language, the general terms and requirements of the regulation was revised as “not broadcast all type of chat, message and text advertisements, to transmit it on certain times, write text advertisement in the Cyril alphabet only and write it grammatically correct. The implementation of its regula-tion was monitored.
The issuance of the license started since August 1, 2013. More than 290 applications were received and issued from individuals and companies for introducing communication services, radio frequency utilizations as well as extentions, amendments and terminations of the licenses.
There have been 400 licenses and certificates extended during the report period, of which 53 radio licenses, 149 service and 181 permis-sions. CrC meeting revoked 45 cable channel licenses, who had received licenses but not started operation in time.
33FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Department, General Customs Author-ity, General Intelligence Agency, Cyber security Depeartment, Mongolian Uni-versity of science and Technology and Ub Transport Department.
CrC together with Authority of Intel-lectual property, Agency for Fair Com-petition and Consumer rights, inspec-torate agency and police of capital city was conducted monitoring and investi-gating among 17 TV broadcasters and 44 legal entities who holds TV channel license. As result of this monitoring more than 20 TV channel license holders operation was suspended.
CrC had approved draft of new pro-cedures to implement internal auditing and ordered to start its implement inter-nal auditing within 1st quarter of 2014.
Totally, 72 information, communica-tion and postal service licenses, 24 radio frequency licenses, 93 radio frequency certificates, in total 189 licenses of legal and business entities were terminated, with considering non-consistent opera-tion or failure to fulfill license contract duties, request of license holders.
In the accordance with implemen-tation of the resolution No.01 of the Government of Mongolia, “General sys-tem of Comments on Web Pages”was developed in cooperation with relevant government and non-government orga-nizations, and discussed and approved by the Commission meeting dated on 15th March, 2013.
In accordance with “Common proce-dure to provide information transparen-cy”, approved by the resolution No.411 of the Government, information that presents the transparency of the or-ganization was delivered on CrC web page.
Developed a proposal to identify postal universal service together with economic feasibility studies and presented to the Government, who approved it by the resolution No.24 of Prime Minister.
Inspected the performance of instal-lation of 86 sites and facilities of dig-ital TV transmitters and measured the operational quality and coverage of the equipment transmission of digital TVs and the relevant reports and assessment results were released.
According to the Article 8.9 of the Communications Law, in 9 provinces were appointed local representatives of CrC.
The Memorandums of cooperations in the communications sector were signed with organizations such as Agency for Fair Competition and Consumer rights, General Police
LEGAL AND REGULATORY FRAMEWORKS1 34
According to the resolution No.268 of Chairman and CEO of the Commis-sion, a working group was established to type, review and insert information of old data base and raw data about license, certificate and their holders to new unified database.
In this database inserted history of li-cense and licensee’s. This data base became as original database for billing system which calculates rF utilization fee and regulatory fee and generate the invoice. New formed data base and its billing system became ready for testing.
With assistance of spectrum manage-ment software, digital TV network cal-culation was made, which resulted the coverage of 150 soums and populated areas in total. Data including regis-try number, state registration number, extension period, payment and hold-er information of the entities who has received new license or extended or amended the current license was put into the database promptly.
recommendations and advices on policy of digital broadcasting and pro-gramme were provided to customer through website.
According to the Provision 39.8, Article 39 of the Law of Mongolia on Presiden-tial Election, Implementation of the Pro-cedure to broadcast Advertisement of the Presidential Election of Mongolia on broadcating was monitored. based on the result of monitoring and investigat-ing on advertisement during the period of the Parliament election 2012 and the conclusion of the state inspector, issued penalty to 13 TV license holders in total and eliminated the offences, based on the Provision 35.33 of the Law of Mon-golia on Parliament Election.
35FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
pROCEDURE Of LICENsINg TO OpERATE IN COMMUNICATIONs sECTOR
Modification to regulation on “Procedure of licensing to op-
erate in communications sector” was approved by the res-
olution No.37 of CrC meeting, dated on 29th June, 2013.
This regulation document has been delivered to the service
providers and came into force on August, 1st of 2013.
based on recommendations of international consulting
services on licensing, which financed by World bank and
Government principles, such as transparency and non-bu-
reaucratic manner of licensing, the regulation of licensing
procedure was updated in compliance with the Licensing
business Entities Law, Communication Law and radio Wave
Law.
services and operations regulated by this document are es-
tablishing network, providing services and utilizing radio fre-
quency in ICT sector, submission, extension, modification,
suspension, revokation of license according to the classifica-
tion of licenses, informing public about licensing procedure
and update in general, as well as making payment on regu-
lation and radio frequency usage, submitting operational re-
ports by licensees. Also, antecedent procedures and regula-
tions on communications network and licensing of utilization
and service of radio frequency were successfully integrated
and facilitated.
Different duration of licenses for establishing network, pro-
viding services and utilizing radio frequency was changed
into same, thus a license holder does not required to apply
for an extention separately for each license.
According to “Procedure of licensing to operate in commu-
nications sector”, all licenses are categorized into Certificate,
registration and License, which is classified as to establish
the infrastructure of communication, to provide communica-
tions service, to provide content service and to utilize radio
frequency.
LEGAL AND REGULATORY FRAMEWORKS1 36
According to the procedure to issuing of license, formal re-
quest letter to get the license shall be submitted togeth-
er with a filled application form and necessary attachment
documents. Missing document will not receive as well as,
consultancy provides from relevant specialists while collect-
ing the document for license.
Formal request letter to extend the license shall be submitted
to CrC together with the relevant application form, which
is filled with report information, and the payment slip at
least 60 days before the expiry date of the license, how-
ever, license may not extend accordance related laws when
license holders’ operations could not meet with requirement
of licensing. request letter to extend will not be accepted
and will be deemed as terminated if it is over the validity
period to request.
selling, pledging and donating of the license is illegal, how-
ever, it is allowed to transfer its license with permission of
CrC if license holder was reorganized, merged, transferred
to subsidiary or head company, or changed its title.
The issue of suspension and termination will resolve within
related laws and each case is strictly regulated by the “Pro-
cedure of licensing to operate in communications sector”
In scope of this regulation, manufacturing of telecom-
munication equipment, website hosting, internal network
installation, construction wiring and maintenance shall be
registered with one-time fee and registration has no time
limit.
Approvals of license submissions in accordance this new-
ly adapted regulation between August,1st and December,
31st of 2013.
CrC is preparing a guide on filling a license submission
application, which is modified to be simpler, user-friend-
ly, and less in numbers. We are working on identifying
required process time frame on licensing, from receiving
application, analyzing, to decision making.
37FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
WhAT WE DID IN ThE fRAME Of E-CRC pROjECT IN 2013
Under the upgrade and development of the structure of li-cense of business entities being implemented by the Govern-ment of Mongolia since November, 2012, the project “E-CrC” had been developed and started implementing with some stages. Within this project, organization’s activities, regulato-ry actions on ICT and postal sector, issuance of all kinds of licenses including service licenses, radio frequency Licenses and registration certificates, payment mechanism, income gathering and organizational operations completely prepared for introducing online mode of issuance.According to the resolution No.268 of Chairman and CEO of the Commission, a working group was established to type, review and insert information, into database and raw data about license, cer-
tificate and licensee’s to new format. As result of this work general database of license was established and started op-erating it as test.
The structure and content web site of CrC was completely renewed at the first stage of e-CrC.
52 materials with 145Mbit size in total, had been uploaded to the CrC web site in order to implement resolutions of CrC, an-nounce daily operations of CrC, advertise new procedures and rules as well as technology news, discussions, meeting results, announcements and other information.
8 online discussions and 6 pages to receive proposals were up-loaded.
52 pages of regulatory documents of the sector, with down-loadable files were uploaded as HTML and provided the public a possibility to use it as announcement, recommendation or guide-book.
A menu “For service provider’s education” was added to the web site of the Commission, which includes and advertises relevant instructions, guidebooks, video tutorials, recommendations, re-search materials and related links as well as brief report of the investigations held during the report period, speeches and pro-
38E-CRC PROJECT2
Make agreement
Make decision
Evaluate and
summary
reviewand
indicate to departments
Check document
set
return incomplete documents
refusal of request
Application form for
request of License
Issuing license
grams of the regional seminars since 2006.
submenu “Customers corner” which includes service tips and rec-ommendations of international organizations were added and updated on regular bases.
16 types of statistic information forms of the sector, together with its filling instruction, were revised and developed by ap-pointed working group. Those forms would prepared to fill out online and connect with national database of the license holders. The relevant changes were reflected and transfered to software company.
All processes of CrC such as, licensing, monitoring and inspections, documentation, internal and external regulatory service duties, financial reports, budgets and revenue data collection, reporting at the each workplace, determination of their relevance, time intervals, expected results, performance monitoring of each employee, their involvement to the Orga-nization’s licensing service were mapped by each work place and tested in paper case for transition to online mode.In order to provide the service and relevant instructions to the licensee, individuals and entities from single point, under im-plementation of this project, the Hall for “Information and service desk” was established on 5th floor of the main office of CrC. In this framework, the CrC officials made develop-ment on application forms for new request of license. We redraw the process of receiving new requests of license and made it more clearly for the costumers. /For example; see the procedure of receiving application and issuing licenses/
1
2
3
Administration department
Commission meeting
Related departments
Chairman and CEO
Administration staff
CUSTOMER
Procedure of receiving application and issuing licenses
Clarification
39FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
WORKINg gROUp ACTIONs ON DEvELOpINg BROADCAsTINg LAW
Accordance with the Decree No.143 of Prime Minister of
Mongolia dated on 27th september, 2013 on cooperation
with Asia-Pacific broadcasting Union (AbU) the working
group on broadcasting development trends, policies, and
innovation in legal environment has been cooperating with
researchers and specialists officially assigned by General
secretary Dr Javad Mottaghi of AbU. The experts has intro-
duced to Prime Minster of Mongolia and Chairman & CEO
of CrC and working group. Expert team will implement fol-
lowing activities sthrough 2 stages:
Stage 1.
“Make a study on current situation of broadcasting legal environment and, identify issue to improve“
Stage 2.
“Draft a recommendation, concept and legal frame-work on broadcasting and, participate in drafting Law on broadcasting“
E-CRC PROJECT2 40
Team members assigned by ABU:
Ms. PREMILA MANVI expert and lawyer of AbU. re-sponsible for action plan and its implementation and, pro-vide interconnection or association with AbU experts.
Dr TOBy MENDEL is the Law Programme Director with ArTICLE 19, “Centre for Law and Democracy”, a leading in-ternational human rights NGO based in Canada, a position he has held for 12 years. His work with ArTICLE 19, he has provided expertise on these issues to a wide range of actors including the World bank, various UN and other intergov-ernmental bodies, and numerous NGOs. In that capacity, he has worked extensively on freedom of expression and infor-mation and public broadcasting issues in different countries drafted recommendation and, even working with officials to prepare draft Law on broadcasting.
Dr VENKAT IyER is the lawyer, researcher, and the pro-fessor of Law on Media, constitution and Law on business in school of Law of University of Ulster of United Kingdom. He has gave a lecture in University of Meiji of Japan, University of Tsinghua of rOC, University of Melbourne of Australia, University of Malaysia of Malaysia, as well as he has worked as a consulter on law on media issues in different countries and running training seminars, critiquing laws, taking cases to both national and international bodies, advising NGOs and
governments.
Within the scope of first stage, the experts have visited
Mongolia between 07-17 December 2013 by the invitation of
CrC and organized discussions with TV association, repre-
sentatives of broadcasting service providers, ITPTA, Agency
of Intellectual Property, Globe International, Open society
Forum and Association of Journalists.
The experts made detailed study on Legal and regulatory
Environment of Mongolian broadcasting based on collected
information during their visit. CrC has cooperated to pro-
vide additional required information and studies. The first
draft of recommendation and report will be presented in 1st
quarter of 2014.
Ms. Premila Manvi, Dr Venkat Iyer
41FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Project title: renewing the vision-Mongolian communications licensing and regulatory policy in an era of convergence (Financed by the World bank)
sUMMARy Of fINAL RECOMMENDATIONs
based on the work undertaken and from consultations with the CrC and sector stakeholders, the Consultants have produced
the set of final documents that have been annexed to this Final report. This set of documents contains the final recommen-
dations for the CrC regarding the implementation of a new licensing framework for the communications sector. In summary,
these include the following:
Licensing recommendations
Contracted consulting company: AJH Communications LLC, MacMillan Keck Attorneys & solicitors
Andrew J.HAIRE
Rationale of the licensing frameworkThe current licensing framework relies on: (1) distinctions
between facilities, services and content, and (2) distinctions
between wholesale and retail services. The application of
these distinctions, however, is inconsistent (e.g., retail Li-
censes providers being allowed to deploy infrastructure) and
the CrC should review it with a view to streamlining.
License scopeThe CrC should provide more clarity regarding what activi-
ties are licensable and the scope of activities of each License
type, and to make the terms of Licenses available to the
public.
E-CRC PROJECT2 42
Necessity of certain License typesCrC should consider discontinuing licensing requirements for
services such as data hosting Licenses and content aggrega-
tors and address concerns through other regulatory means.
Separating transmission from contentThe current licensing framework addresses the means of
transmission and content (e.g., Licenses that distinguish
between content for cable TV channels and TV channels)
together. The CrC is advised to review its transmission and
content licensing classifications in order to define the two
concepts more clearly.
Technology neutrality and convergenceThe removal of licensing requirements that hinder the ability
of operators to take full advantage of service convergence
and maximise the usage of their networks will be consid-
ered. The CrC should consider a more technology neutral
and converged License classification framework that would
focus on the consumer as the ultimate beneficiary.
Limitations on the number of LicensesIn order to favour greater economic efficiency driven by
market forces of supply and demand, the CrC is advised
to consider removing limits on the number of Licenses in
most services except in cases where there are technical or
scarce resource constraints, such as particular radio spec-
trum bands. To the extent possible, in cases where License
number limitations are necessary, the CrC should endeav-
our to provide greater information to stakeholders regarding
the reasons behind such limitations, their expected duration
and efforts to overcome any regulatory unfairness resulting
from those limitations.
Monitoring and enforcementGiven operator complaints regarding the adequacy of regu-
latory monitoring and enforcement, the CrC should consider
adding terms and conditions related specifically to monitor-
ing and enforcement in order to reinforce this aspect of the
CrC’s functions.
License durationIn the interest of fairness and transparency, the CrC should
considering rationalising License durations based on objec-
tive factors, taking into account the useful life of the un-
derlying assets, so as to allow for an acceptable return on
investment for operators.
43FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Geographic scopeThe CrC should considering granting telecommunications Li-
censes on a national level (i.e., generally without geographic
restrictions) to allow operators to take advantage of econ-
omies of scale. some radio spectrum Licenses will naturally
remain geographic in limitation.
License fees The CrC is advised to review its License fee framework in
light of the growing international practice of levying fees as
a proportion of revenue, and with an eye to recovering costs
associated with its regulatory responsibility.
License applicationsIt should consider easing licensing application processes
through increased use of notification and registration pro-
cesses. It should also consider whether market entry con-
cerns can be addressed by less intrusive regulatory means,
such as an emphasis on consumer protection and education
efforts or by the use of performance bonds.
Clarity and transparencyThe CrC should considering introducing mechanisms by
which fairness and transparency can be safeguarded, such
as publishing criteria for qualification or selection where
possible and, in the case of disqualifications or rejections of
applications, providing justification.
License renewalsIn the interest of promoting investor confidence for ongoing
investment throughout the term of Licenses, the CrC should
consider whether there would be benefits in providing a
clearer presumption of renewal and the circumstances under
such a presumption would not apply, such as in the case of
serious infringements of License conditions and regulations.
E-CRC PROJECT2 44
Recommendations on broader issues
improving the transpar-ency, predictability and quality of CrC deci-sion-making generally;
providing the CrC with sufficient enforcement powers to regulate ef-fectively;
strengthening compe-tition through greater focus by the CrC on technical aspects of competition, dominance, abuse of market power and consolidation;
reviewing the merits and demerits of the separation policy as applied to Netco and MTC and as applied to service providers;
improving policies to reach rural areas, the current approach to the UsOF and the role of Netco (ownership struc-ture, exclusive rights and commercialisation);
examining the set up of the various roles of the state in the sector (e.g., policy, regulatory, ownership of operations, investment, UsOF management, subsi-dies, etc.) through the ITPTA, CrC and state Property Committee with a view towards avoiding conflicts of interest;
revisiting the advantages and disadvantages of current foreign investment limits;
strengthening the legal and regulatory obligations around interconnection, infrastructure sharing and access to wholesale services;
reinforcing effectiveness of dispute resolution;
improving management, licensing and pricing of the radio spectrum;
reviewing the adequacy of access to public property; and
supporting the enforcement of intellectual property rights.
45FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
REgULATION ON RADIO fREQUENCy
Within the implementation of the resolution №47, 2012 of the CrC on “release WLL Network” WLL technology and net-
work of Mobicom Corporation LLC and skytel LLC released, and radio spectrum of WLL networks are refarmed successfully
to IMT mobile network.
International cooperation on radio frequency coordination and monitoring
radio Frequency regulation and Monitoring Department has cooperated to explore international trend in policy and regulation of
radio frequency with following organizations:
Cross-border coordination of radio frequency
Communications regulatory Commissions and the Telecom-
munication Ministry of russian Federal finalized and ap-
proved the agreements (radio, TV broadcasting-5, mobile-1)
on the radio frequency planning and use border areas in
Moscow April 2014.
The drafts of agreements presented at Government of
Mongolia in July 2013 and the agreement signed between
Telecummunication Administrations Information, Technolo-
gy, Post and Telecommunication Authority of Mongolia and
russian Federation.
International Telecommunication Union
(ITU)
Central radio Management Office of Korea
(CRMO)
Korea Information society Development Institute
(KISDI)
National Communications Commission
(NCC, China)
International Telecommunication Union-Academy
(ITU-Academy)
Technische Uberwa-chungsVerein sud
(TUV Sud)
Independent regulator and competition authority for the UK communications industries
(OFCOM)
REGULATION ON RADIO FREQUENCY3 46
Policy and technical solution of digital radio
Accordance with order №100, 2013 of Chairman and CEO of the CrC, “Policy and blueprinting technical solution of digital
radio” has established.
Choosing standard for radio broadcasting transmission
to digital system, infrastructure, design for routing net-
work, allocation of utilizing frequency spectrum, identi-
fying and calculating radio wave coverage are done by
rFrMD.
DrM (medium and long wave) and DAb+ (VHF III wave)
standards chosen for transmission to digital system.
According to radio broadcasting chosen network op-
tions required equipment list was provided and required
amount of investment was calculated in advance based
on bid for digital radio equipment.
rFrMD evaluated current market situation of radio
broadcasting and made a study on transition period op-
tions. Within frame of this work broadcasting competi-
tion situation has assessed through international common
methods to identify management drive of broadcasting.
Overall, the sector drafted its recommendation to regu-
late transition period first time.
The study made on international digital radio standard
and principles, investment, advantages and disadvantag-
es of utilizing digital radio, legal environment and regu-
lation policy of radio frequency spectrum.
The comparison study to identify customers’ current interest with other media and future trend in consumption done through
study conducted over 982 urban and rural customers.
47FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
“Development of Undersized satellite” ITPTA and APsCO
joint international workshop has successfully organized
in Ulaanbaatar. scientists and researchers from Iran, Chi-
na, Pakistan and Mongolia gave a lecture on technology
to development undersized satellite. Workshop involved
more than 40 participants from bangladesh, China, Tur-
key and Thailand, Iran, Indonesia and Peru.
3 operators chosen to launch satellite in basic position
from “boeing satellite system International” from UsA,
Italia and France joint company “Thales Alenia space
Company”, Atrium from European Union, which are pro-
ducing, launching and servicing companies, Arianespace
from France, spaceX from UsA, russian Federation and
UsA joint company ILs which are run launching ser-
vice, Intelsat from UsA, sEs, Telesat from Canada who
are world leaders on communication operator service
and Asia broadcasting satellite based on their satellite
launching offers and, presented at Prime Minister and
made research on bid.
Satellite
“The National satellite” working group established with the order of Prime Minister has successfully implemented following
activities :
REGULATION ON RADIO FREQUENCY3 48
MONITORINg AND ENfORCEMENT
Planned annual monitoring
Tuv, Dundgobi, Umnugobi, Arkhangai,
Uvurkhangai and bayankhongor prov-
inces. Orders were given to entities and
individuals to eliminate violation and
suspended 2 licenses.
The inspection and measurement were
held on utilization of radio frequency
of 24 organizations in Uvurkhangai,
bayankhongor, Arkhangai, Gobi-Altai
who run mining, minerals and petro-
leum business and their security offic-
es. recommendations and orders were
given to organizations to eliminate violation. Orders were
given to 6 FM radio stations in Ulaanbaatar and rural areas
to meet standards and radio Wave Law.
In order to support implementation of
radio Wave Law, inspection was held
on business entities and individuals
who run communication radio sta-
tion business in second half of 2013.
The result of an inspection; detected
without trade license certificate-20
entities and individuals, non-standard
radio station trading-12. Professional
and methodological advices and or-
ders were given to entities and indi-
viduals to eliminate violation.
Determined 7 MMDs providers who run no activities and
3 MMDs providers without license through the inspection
was held on total 27 MMDs providers in Ulaanbaatar city,
Darkhan, Erdenet, bulgan, baganuur and Nalaikh district and
MONITORING AND ENFORCEMENT4 49FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Inspection was held in broadcasting service
providers to enforce the implementation
of licensing contract, to prevent violation
and to eliminate determined violation. The
coverage measurement was made of 18 TV
broadcastings in 40 points.
Violation was eliminated in 5 FM radio
providers which weren’t meet standard of Mongolia and 6
radio link permissions provided.
In 2013, radio frequency monitoring engineers had monitor
and inspect the usage of land mobile radio stations its radio
frequency used in over 80 hotels. During
the inspection total 27 illegal radio stations
which caused harmful interference to le-
gal stations are detected. In accordance
with radio wave law, operation of illegal
stations are stopped and sealed by state
inspectors and illegal stations owners are
received professional methodical advice
from radio engineers.
recommendations and guidence were given to organizations
to eliminate violation through suspension of operation and
arresting of radio stations.
Monitoring on TV broadcasters, channels and ISPs
Inspected 17 TV broadcasters and 44 Cable channel service
operator entities and individuals under implementation to
perform inspection, assessment and take relevant actions on
implementation of terms and requirements of licenses by TV
and Cable channel service operators in Ub City, according to
the guidance approved by the Chairmen and CEO’s of CrC,
Intellectual Property Agency, AFCCr, specialized Inspection
Department of Ub City and Ub Police Department. The in-
spection found more than 20 cable channels not complied
with standard requirements and state inspectors released
relevant conclusions on them. According to that, CrC tem-
porarily suspended their operations by releasing resolution
and monitored the implementation of the resolution.
MONITORING AND ENFORCEMENT4 50
Gem
net
Mob
icom
Ub r
ailw
ay
7567
93
80
67
77
Evaluation
CIT
Uni
verc
ity
27
0
Opt
inet
55
48
Erde
mne
t
72
16
sky
C&
C
68
54
sans
ar
49
59
MTC
68
50
Mag
icne
t
45
32
bM
D
48
35
bol
dsof
t
87
51
H&
I
4950
Asiat
el
53
68
Gne
t
56
40
Yok
ozun
anet
57
28
Dig
icom
58
41
Inco
mne
t
57
16
Nom
sys
51
24
Ulu
snet
76
42
Gm
obile
net
54
21
Mob
inet
83
47Kew
iko
73
44
Citin
et
5951
Meg
ajit
3328
supe
rvisio
n
27
35
NIT
sys
tem
s
3736
Com
tel
60
24
Topi
ka
53
30
UCs
18
35
Prog
amer
s ne
twor
k
166
Uni
vision
78
67
F
DCBA
Quality of technical performance
Quality of service
based on the result of working group to monitor and in-
vestigate on advertisement of the Parliamental election 2012
and the conclusion of the state inspector, recorded the of-
fenses found on 14 entities which broadcasted more than 2
hours of election advertisement on TV and issued penalty
to 13 TVs in total and eliminated the offences, based on
the Provision 35.33 of the Law of Mongolia on Parliament
Election,
special terms and requirements of “License for Internet
service” was developed and approved by resolution No.49
of the Commission meeting of the year 2013. Inspected im-
plementation of Mongolian laws and regulations and terms
and requirements of the license agreements in operation of
internet service providers. Comprehensive study was made
on service quality, tariff, market demands and competition
situation among 34 internet service providers in total in Ub
in order to prevent from offences, eliminate offences found
and to support fair competition. The result was presented
to the Commission meeting, the resolution of which de-
livered relevant requirements to 15 service providers within
the scope of regulation document of the license. After such
works and re-inspection, relevant proposals made on princi-
ple of 4:1 or background to set tariff which established low
quality service, speed test in the customer end and collecting
information sources requied for further regulations.
51FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Complaints and Disputes on Radio Frequency
In accordance with requests were received from mobile
operators, 74 inspection and measurements were held in
Ulaanbaatar and rural areas and complications were issued.
58 complaints were received from radio frequency certifi-
cate holders; of which: broadcasting operators, satellite TV
operators, MMDs, cable TV, Wireless Internet and Commu-
nication, Navigation, surveillance services Division and rele-
vant actions were taken.
by the fixed monitoring station, CrC started to monitor radio frequency interferences at the time and monthly reports are
on our website. Implemented projects and procurements were made in 2013. The projects were implemented to enhance
operation and monitoring system of Mongolian National radio Frequency following:
recommendation on policy and regulatory issues of Mongolian National radio Frequency jointly drafted by KIsDI and
the CrC.
Fixed monitoring station for radio Frequency received by donation from Ministry of science, Technology and Future
Development Korea. Within this station the CrC could monitor radio frequencies utilizing in center of Ulaanbaatar.
The documents on type approval were drafted jointly by ITU consulting service and internal consulting service.
required purchases on radio Monitoring stations made with internal investment, including:
Portable direction finder radio station
DVb-T2 Measurement receiver
Digital TV universal signal receiver
MONITORING AND ENFORCEMENT4 52
WhAT WE DO…
Overview of the Communications Regulatory Commission (CRC)
INTRODUCTIONThe Communications regulatory Commission is an independent regulatory Authority of Mongolia, which was established by the
Communications Act of 2001. It is in charge of regulating and supervising a wide range of subjects including competition issues,
the provision of telecommunications networks and services for fixed and wireless lines, television, radio, and satellite transmission,
spectrum management, postal services and the Internet to ensure that the public interest is well-served. The CrC’s jurisdiction
covers all regions of Mongolia.
CRC MISSION To advance the development of ICT sector in Mongolia by making it more efficient and creating fair competition environment
which meets the interests and needs of Mongolian citizens.
OUR VALUES • Fairness;
• Transparency;
• Efficiency;
Functions & responsibilities
54
CRC MAIN OBJECTIVES To facilitate access to safe, reliable and affordable ICT and broadcasting networks and services by pursuing, where appropriate, commercially viable and competitive environment;
TO sUPPOrT INNOVATION AND EXPANsION OF ICT, brOADCAsTING AND POsTAL MArKETs THrOUGH THE EFFICIENT AND IMPArTIAL OVErsIGHT OF NETWOrK AND sErVICE PrOVIDErs AND THE ENFOrCEMENT OF THEIr ObLIGATIONs INCLUDING THE UNIVErsAL sErVICE ObLIGATION.
TO PrOTECT THE INTErEsTs OF CONsUMErs WHO UsE NETWOrKs AND sErVICEs IN THE sECTOr IN WHICH WE rEGULATE.
TO INCrEAsE TELE-DENsITY AND ACCEss TO ICT AND TELECOMMUNICATIONs sErVICEs IN THE COUNTrY AT AFFOrDAbLE PrICEs.
TO EsTAbLIsH AN INTErCONNECTION rEGIME THAT ALLOWs FAIr, TrANsPArENT, PrOMPT AND EQUITAbLE INTErCONNECTION.
TO rE-bALANCE TArIFFs sO THAT THE ObJECTIVEs OF AFFOrDAbILITY AND OPErATOr VIAbILITY ArE MET IN A CONsIsTENT MANNEr.
TO PrOTECT THE INTErEsT OF CONsUMErs AND TO ADDrEss GENErAL CONsUMEr CONCErNs rELATING TO AVAILAbILITY,
PrICING AND QUALITY OF sErVICE.
TO MONITOr THE QUALITY OF sErVICE PrOVIDED bY THE
VArIOUs OPErATOrs.
55FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
The list of Commissioners during FY 2013 was the following:
Chairman & CEO Mr.bALGANsUrEN batsukh
Commissioner Mr.AMGALANbAATAr Delegdorj
Commissioner Mr.DAVAAJAMTs Choindon
Commissioner Mr.ENKHTsOG Davgadorj
Commissioner Mr.JADAMbAA Tsagaan-Uvgun
Commissioner Mr.MUNKHbAT buyandelger
Commissioner Mr.MYAGMArNArAN bavuujav
CRC ORGANIZATIONAL STRUCTUREThe CrC consists of six (6) commissioners, appointed by the Prime Minister for six-year
terms. The Prime Minister appoints the Chairman and CEO.
Chairman & CEO
Mr.BALGANSUREN Batsukh
56
Commissioner
Mr.AMGALANBAATARDelegdorj
Commissioner
Mr.DAVAAJAMTS Choindon
Commissioner
Mr.MUNKHBATBuyandelger
Commissioner
Mr.JADAMBAA Tsagaan-Uvgun
Commissioner
Mr.ENKHTSOG Davgadorj
Commissioner
Mr.MyAGMARNARAN Bavuujav
57FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Chairman and CEO
Legal, Information and Administration Department
Regulatory Department
Market and Tariff Regulation Department
Postal Regulation Department
Commissioners (6)
Radio Frequency Regulation and Monitoring Department
Radio Frequency Monitoring Center
The Communications Regulatory Commission’s organizational chart:
5858
The Chairman of Communications regulatory Commission leads the Commission as head of the agency.
The Commission has five operational departments for following functions:
1. Legal, Information and Administration Department - general services to the Commissioners and Chairman
and legal advisory, consumer protection, investigations team, compliance, complaints and dispute resolution, public rela-
tions, administration, finance, international relations, human resource and training, IT and website management.
2. Regulatory Department - licensing, standards, technical aspects of interconnection, numbering assignments, tech-
nical requirements and Internet affairs.
3. Radio Frequency Regulation and Monitoring Department - radio frequency spectrum planning, technical
analysis, radio frequency allocation and management, radio frequency monitoring and inspections, radio frequency uti-
lization licensing and broadcasting.
4. Market and Tariff Regulation Department - market strategy analysis, market research statistics, competition
and network access, tariff and interconnection, and and implementation and monitoring of Universal service Obligation.
5. Postal Regulation Department - international, domestic postal and parcel service licensing and regulation, inter-
connection, defining reserved areas of postal service, postal zip code assignment and its regulation.
59FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
CONsUMER pROTECTION AND QUALITy Of sERvICEs
In fiscal year, total number of consumer complaints are 212.The CrC is required to determine and monitor KPI (Key performance indicators) of each communication service and target performance particular reference to consumer satisfaction, consumer benefits and quality of service.
Dispute resolution and complaints
The CrC is obliged to receive comments, complaints and disputes from licensees and consumers for settlement under its
jurisdiction. The main matters raised throughout 2013 were disputes related to lease agreements, interference, free to air TV
broadcasting, and satellite TV and wireless internet access.
Licensees’ complaints / disputes Licensing and interconnection
Delay on interconnection payment
Delivery of the service, using suspended license
(numbering)
Most complained services were Wireless internet access
service quality of cable TV
TV and web content
Unavailability of TV channel
Consumer billing of international data roaming
60
Information about resolved complaints received from “11 11” Government call center
Received and responded feedback, comments by graphic:
In fiscal year of 2013, the CrC received total 888 complaints, suggestions and appreciations from consumers. “11 11” gov-
ernment call center was established by the new Cabinet in order to contact to all citizens and receive their complaints, opin-
ions, obligations etc., Then center arranges received complaints responsible agencies or organizations to provide coherent
responses to each individual. This center uses fully automated system in order to receive every single feedback, comments,
complaints, and compliments.
888.
0
844.
0
888.
0
44.0
0.0
0.0
96.0
2.0
204.
0
1.00.0
585.
0
Clo
sed
Ope
n
rec
ogni
tion
slow
Feed
back
Not
res
pond
ed
Petition
Tota
l
Critiza
tion
Fast
Com
plai
nts
res
pond
ed
61FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
CRC DRIvEN WEBsITEs
The CrC has developed and runs websites to monitor internet connection speed by consumers or end users, to be aware of cyber security and improve skills, postal code starch finding and identification of users.
www.speedtest.mnIn 2010 for the first time, the CrC introduced the speed testing program to internet users and started to run
www.speedtest.mn. In order to improve the measurement accuracy, CrC also presented the line quality test in
2011 and it increased usage of program. CrC speed testing program used by 144 210 consumers in 2013.
www.black-list.mnThis website lists websites which restricted their access from Mongolia because of violation of “Copyright and
related rights Law”, “Pornography Law”, “Protection of Children’s rights Law”, “Advertising Law”, “Criminal
Law”, “Competition Law”, “Consumer protection law“, and the CrC’s adopted rules and conditions, and inter-
national conventions and treaties. CrC restricts access based on decisions and findings of state Intellectual
Property Office inspectors and other order from related authorities.
Intellectual Property Department’s inspector’s findings and the decision of the authority would be remedies to
remove from the list to open access.
www.zipcode.mnMongolia Postal Codes/Zip Codes are provided to the website visitors. An integrated coding system of land loca-
tion (ZIP code) indentifies the area of the country and provides greater efficiencies to Mongolian postal services.
62
Regional Seminar 2013
CrC has been organizing the region seminar since 2006 on information communications
current development, its policy and regulation.
Company, Mongol Post Compa-
ny, Mobile Operators, benekraft
Company, Cable TV Operators
Association, United Media Group
and school of Information and
Telecommunications Technology
of The Mongolian University of
science and Technology were par-
ticipated in this seminar.
CrC called the meeting and open discussion with telecom-
munications operators and broadcasting operators on “Tele-
communications Network and Future Trend of Operators”
and “Challenges of Transition to Digital Technology” on 6th
November 2013 to increase an efficiency of seminar. CrC
organized associated meeting on “Future trend of Technol-
ogy and Telecommunications sector” on 7th November 2013
The regional seminar was suc-
cessfully productively held under
the theme of “Communications
regulation and Future Trend
2013” on 6-7 November 2013,
in central region Uvurkhangai,
Arvaikheer. The forum was de-
signed to give participants the
opportunity to hear the sector’s
new policy implementation and
renewal on regulations and the latest technology develop-
ments, participate in open forum and exchange ideas with
professionals.
More than 80 delegates, who were license holders and op-
erators of Mongolia and presenters from ITPTA, Intellectu-
al Property Agency, Netcom Mongolia, Mongolia Telecom
sEMINARs AND WORKshOps fOR sERvICE pROvIDERs
64
and has concluded the presentations and discussions which
are involved the issues on telecommunications sector’s new
service, its consumption, standard and type approval and,
copyright issues, future trend of technology and future
trend of rural area TV were made great significance. During
the seminar open discussion on “Telecommunications service
“Postal Regulation 2014” seminar
Affects rural Area Development” was created to share and
exchange ideas on proficiency of telecommunications ser-
vice and challenges of providing telecommunications service.
ITPTA, Intellectual Property Agency and NGOs were actively
supported seminar and sector’s professionals and scientists
were participated as presenter.
“Future Development and regulation of Postal sector” forum
and seminar were successfully held on 9-10 December 2013,
at Chinggis Hotel and meeting room of Netcom Mongolia.
During the forum ITPTA, CrC and Postal service License
holders and Customs General Administration were discussed
on current situation of postal service, its development trend
and public private partnership and government regulation
and, jointly drafted recommendation for further effective
implementation action.
The MoU signed for joint cooperation between CrC, Civil
Aviation Authority and National Center of Auto Transporta-
tion to support end to end freight of postal service providers
with government adjustment.
The forum provided information of projects; logistic cars,
smart post box and GPs for monitoring vehicle and comput-
er for post-bearer.
The trainings were held on further policy of postal service,
common law and standard on production and service, its
monitoring and, redress fund of UsOF and its expenditure
and custom regulation by UsOF and International Postal
Custom Department.
65FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Training was held for Administrative and Strategic Representatives of TV Broadcasters
casting TV and 6 cable televisions and their administrations
were participated to the training.
The training was led by Denis Vishya, director general of
Autograff Company of russia, training coordinator of inter-
national organizations “bbC World Trust” and “Inter news”.
The training focused on TV market marketing, definition
proposed audiences, drafting TV programs, news prepara-
tion, and administration of human resource and drafting
strategic plan.
“How to develop broadcasting business” training was held
for 40 administrations of TV, radio and cable channel in
Ulaanbaatar at the first day.
Joint training on topic of “Administration and strategy of
TV broadcasting” with TV Association of Mongolia and Au-
tograff Company of russia was held on 26-30 August 2013
for TV and FM operators and their administrations. 12 broad-
Forum on .MN domain name of Mongolia was successfully organized
Forum on .MN domain name of Mongolia has successfully
held on 28th June 2013. Whosale and retail internet service
providers and web sites and web hosting service providers
were participated to the forum.
CrC was presented presentation on authorization and regu-
lation of country code top level domain name /ccTLD/ and
its global experience as well as, discussion held on drafting
policy of. MN domain name accordance with relevant law
Seminars and Workshops for service providers 66
in frame of the implementation of Government 1st resolu-
tion 2013. After discussing difficulties of lack of policy and
regulation of .MN domain name issues, participants were
suggested to head of sector to draft policy and relevant
Seminars and trainings on Radio Frequency and Monitoring
The seminar and training were organized to following license and certificate holders by
the CrC:
Joint seminar and introduction with Motorola and Kenwood on digital communication station and its application and activities were organized to security services, police or-ganization and national emergency management agency.
“radio Frequency Allocation, regulation and Monitoring” seminar was organized to Mongolian Taxi Operators Association and Taxi service Operators and other entities.
The seminar and meeting were organized to entities who run security activities through ultra-short wave communication station among Ulaanbaatar.
Joint forum was organized with mobile operators on LTE introduction.
The forum on VsAT regulatory document was organized among satellite communication VsAT service operators.
Training was organized to promote implementation of digital radio and television to relevant organizations.
regulations. Furthermore, discussed on importance of pro-
motion of domain name in growth of internet application
and e-commerce and content development.
67FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Satellite 2013
Mr.balgansuren, Chairman and CEO of CrC and Mr.Jadambaa, Chairman of ITPTA and representatives of ICT sector of Mon-
golia were participated “satellite 2013” exhibition and conference, held on 18-21 March 2013 in Washington DC UsA. More
than 12,000 communications professionals in the satellite community representing more than 75 countries from the military,
government, broadcast, enterprise, mobile, telecommunications, maritime and commercial markets to explore next genera-
tion products and technology from 350 exhibiting companies were joined to exhibition and conference.
Vice chairman of Institute for Information Industry, Taiwan visited to CRC
CrC has been cooperating with regulatory organizations in-
cluding KCC, CrMO of Korea, and regulatory commissions
of singapore, India, and Malaysia and OFCA of HongKong
China. Within framework of cooperation Dr.Gary Kong, Vice
chairman of Institute for Information Industry, Taiwan, Chi-
na visited to CrC and met Mr.balgansuren, Chairman & CEO
of CrC on 31st May 2013. The meeting was discussed on
future cooperation on e-government, software, content and
universal e-education and its environment and researches,
joint meetings and trainings.
ITU officials organized seminar
International radio regulatory regulation seminar and train-
ing was successfully and productively held on June 07 2013
in Ulaanbaatar, Mongolia under support of the ITU, inviting
Mr.Yvon Henri, Director of space Technology Department
and Mr.Ashish Narayan ITU regional Office for Asia and the
Pacific and Mr.Abram son from ITU The main organizers are
the Information, Technology, Post and Telecommucations
Authority (ITPTA) and Communications regulatory Commis-
sion (CrC). The seminar attracted more than 50 professional
from across industry, government and ITU.
fOREIgN vIsITs AND EvENTs
68
CRC delegates participated to the “Satellite Installation and Regulation” training
ITU held Asia Pacific regional seminar and training on “sat-
ellite Installation and regulation” in Jakarta, Indonesia from
3rd to 5th of June 2013. The seminar was designed to give
participants the opportunity to hear the latest satellite tech-
nology developments, international regulation on satellite,
challenges and participate in open forum and exchange ideas
with professionals. The workshop brought together satellite
operators, experts and practitioners, senior government of-
ficials and other stakeholder groups from the satellite in-
dustry. Among the total 112 participants from 15 member
countries from the Asia-Pacific region including delegates
from the CrC of Mongolia.
Government agreement on “Cooperation on Information Technology Sector” has made
Mr.balgansuren, Chairman and CEO of CrC and Mr.Jadambaa, Chairman of ITP-
TA signed Government agreement on “Cooperation on Information Technology
sector” between Mongolia and People’s republic of Korea, on 1-4 July 2013, in
People’s republic of Korea. The opportunities for cooperation in the fields of
Communications regulation were discussed during the visit.
Chairman of ITPTA and Chairman of the CRC attended to the Connect Asia-Pacific Summit
A delegation led by Mr.Jadambaa, Chairman of ITPTA and
Mr.balgansuren Chairman and CEO of CrC were magnifi-
cently participated Connect Asia-Pacific summit which was
held on between 18-22 November 2013, in bangkok Thailand
under the support of ITU and the Government of Thailand.
The summit brough together global leaders, ICT ministers,
CEOs, and senior officials to exchange views on the digital
challenges and opportunities. This was an important oppor-
tunity for leaders of countries in the Asia-Pacific region to
foster a shared vision and strategy for creating an inclusive
information society, in line with the objectives of the World
summit on the Information society.
69FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
CRC delegates worked in Germany on conformity issues
CrC representatives were visited to Germany on 08-13
July 2013, to meet with Federal Network Agency, TUV
sUD and rohde schwarz organizations and discussed on
future cooperation and exchanged ideas and experiences
on regulation and environment of type approval, disaster
management and numbering.
Meeting on agreement of radio frequencies to be used in border zone
CrC representatives cooperated with the
Ministry of Communications, russian
Federation and discussed and approved
6 contracts in total on radio frequencies
to be used in border zone of those two
countries in Moscow in April 2014.
ITPTA finalized and signed 6 contracts (1 contract for radio & TV and 5 contracts for mobile communications) in total for
radio frequency zones to be used in border zone of those two countries with the Ministry of Communications of russia.
Drafts of those contracts were discussed and supported by the Parliament of Mongolia in August, 2013.
Foreign Visits and Events 70
Delegates from National Communications Commission visited to the CRC
CrC cooperates with more than 150 regulatory organiza-
tions around the world. Within the scope of cooperation,
a delegation led by Mr.shyr from National Communications
Commission of Taiwan, China visited to Mongolia on 14-18
August 2013 and jointly organized training and meeting on
futher trend of mobile and 4th generation and UsOF.
Widened foreign cooperation with OFCOM
Mr.balgansuren, Chairman and CEO of CrC and other rep-
resentatives of CrC joined to IIC’s 2013 annual conference
(held in London on 9-10 October), which was convergence
in all its forms among the telecoms, media and technology
sectors. The Chairman and CEO of CrC was joined to ses-
sion 5 “Access Infrastructure Issues and is getting the best
deal for the consumer the best society?” as speaker and
introduced current situation of Mongolian ICT sector and its
specific challenges.
71FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
CRC delegates successfully participated to the Global Symposium for Regulators 2013
Project on Fixed radio frequency monitoring station was implemented successfully
CrC delegates were successfully participated “ITU Global
symposium for regulators-2013” held on 2-6 July, 2013 in
Warsaw, Poland.
More than 650 representatives from 130 countries 190 reg-
ulatory commissions, organizations and committees partici-
pated the symposium.
The symposuim was covered the current issue of ICT sector
and its future regulatory trend includes; “Looking for spec-
trum”, “Are standards the Crux of ICT business in Today’s
digital World”, “building the Future Digital society”, “Infra-
The MoU was signed between The Korea Communications
Commission (KCC) of the republic of Korea and CrC on
Cooperation in the field of the Communications regulation
on 30 May 2013.
Within the scope of development cooperation with the Cen-
tral radio Management Office (CrMO) of Korea the MoU
and agreement on “Installation and Donation of Fixed radi-
on Frequency Monitoring station” were signed by CrC and
CrMO. Accordance with agreement, Fixed radio Frequency
Monitoring station was successfully installed and handed
over to CrC on 24 October 2013.
Foreign Visits and Events 72
structure 4.0 and beyong: How To attract Investment and
secure Funds, Maximising the Potential of Universal Funds
Through successful Administration and Management”, “Dig-
ital Transactions in Today’s smart society”, “A World of
data: The Need for more IP Addresses” and Moving to the
Next Level: New Apps and New Delivery Platforms, 4th Gen-
eration regulation.
73FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
Accordance with annual plan of trainings and development plan, 14 trainings were successfully held to
officers and experts of the CrC.
Total 31 officers and experts were participated professional trainings and language school include archive training on pro-
cedure and document professional for 3 months-1 officer, training on documentation for 3 days-2 officers, training on
procurement-14 officers and experts and Talk Talk English Language school-14 officers and experts. The social welfare was
issued for 11 officers and experts in frame of regulation on social welfare of the CrC.
Every year, on 1st of October we show honor to the former workers who retired from the CrC | 2013.10.01
The CrC staffs had planted trees in radio Frequency Monitoring Center field | 2013.10.19
The CrC staffs had cleaned up litter in the field of radio Frequency Monitoring Center | 2013.10.19
hUMAN REsOURCE AND sOCIAL ACTIvITIEs
74
APPENDEX
75P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
FIsCAL YEAr 2013
LIsTs Of ThE REsOLUTIONs AppROvED By ThE COMMIssION MEETINg IN 2013
CrC resolution Number
Date of approval
Name of regulations and Guidelines, Procedures, Terms and requirements, and Other Documents
resolution 01 2013.01.11 Suspension of licenses (Cable channel license)
resolution 02 2013.01.11 Amendment of the General Regulation Procedure and Terms on Radio and TV Broadcasting
resolution 04 2013.02.27 Amendment of the General Terms and Conditions on Digital Content Service
resolution 05 2013.02.27 The General Guidelines on Website Regulation
resolution 06 2013.03.01 Approval of Tariff
resolution 07 2013.03.01 Suspension of Licenses
resolution 08 2013.03.01 Issuing of Licenses
resolution 09-11 2013.03.01 Annihilation and Suspension of Licenses
resolution 12 2013.03.01 Direction of Regulation and Procedure on Radio Frequency of 470-690 MHz Band
resolution 13 2013.03.01 Suspension of Some Rule, Regulation Document, Terms and Conditions
resolution 14 2013.03.01 Annihilation, Suspension and Amendment of Licenses
resolution 16 2013.03.15 The Allocation and Technical Requirements of Radio Frequency in UHF 340-350 Band
resolution 17 2013.03.15 The Allocation and Technical Requirements of Radio Frequency in UHF 400-430 Band
76
resolution 18 2013.03.15 The Allocation and Technical Requirements Radio Frequency in UHF 440-450 Band
resolution 19 2013.04.05Procedure on the Presidential Election Advertising Campaign by Radio and Television Broadcasting
resolution 20 2013.05.01 Amendment of General Terms and Conditions on IPTV License
resolution 21 2013.05.01 Methodology to Monitoring of MMDS Channel
resolution 22 2013.05.01Amendment of Terms and Conditions on Installation Communications Network & Infrastructure and Operation License
resolution 23 2013.05.01 Annihilation and Amendment of Licenses
resolution 24 2013.05.01Procedure on Registration for Amateur Radio Communications/Stations in the Territory of Mongolia
resolution 25 2013.05.01Technical Terms & Operational Conditions on Radio Communications Stations in the Territory of Mongolia
resolution 26 2013.05.01 Direction of Regulation and Procedure on Information and Communications Network
resolution 27 2013.06.28 Regulation Rules and Guidelines, and Related Sets of Documents on Type Approval
resolution 28 2013.06.28 Approval of Allocation Plan of Radio Frequency Channel of Digital TV Broadcasting
resolution 29 2013.06.28Direction of Regulation of Radio Frequency in 2200-2400 GHz, 2500-2700 GHz and 2700-2900 GHz Bands
resolution 31 2013.06.28 Annihilation, Suspension and Amendment of Licenses
resolution 32 2013.06.28 Annihilation of Licenses
resolution 33 2013.06.29Amendment of General Terms and Conditions on Construction of Network and Service License
resolution 34 2013.06.29 Amendment of Special Terms and Conditions on MMDS service
77FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
resolution 35 2013.06.29Amendment of Special Terms and Conditions on TV and Radio Broadcasting, and Cable Channel Licenses
resolution 36 2013.06.29 General Terms and Conditions on Radio Frequency Utilization License
resolution 37 2013.06.29 General Rule and Procedure of License in Communications Sector
resolution 38 2013.06.29Special Terms and Conditions on Construction and Utilization of Information Communications Network and Infrastructure License
resolution 43 2013.08.30 Amendment of Rule on Type Approval of Information and Communications Equipment
resolution 44 2013.08.30 Regulation Procedure and Technical Terms and Conditions in Radio Frequency 2.4 GHz Band
resolution 45 2013.08.30 Regulation Procedure and Technical Terms and Conditions in Radio Frequency 5.0 GHz Band
resolution 46 2013.08.30 Direction of Regulation and Procedure in Radio Frequency 2.5-2.7 GHz Band
resolution 48 2013.08.30 Issue Licenses and Annihilation, Suspension and Amendment of Licenses
resolution 49 2013.09.06Amendment of Special Terms and Requirements on ISP Service License (Attachment-1) and Special Conditions and Conditions on Establishment of International Network License (At-tachment-2)
resolution 50 2013.09.06Regulation Terms and Conditions on Service License for Transmission of International Transit Traffics
resolution 51 2013.09.06 Issue Licenses and Annihilation, Suspension and Amendment of Licenses
resolution 52 2013.09.20Amendment of Special Terms and Conditions of TV and Radio Multichannel Broadcasting License
resolution 53 2013.09.20Amendment of Special Terms and Conditions of Information and Communications Network and Infrastructure License
resolution 54 2013.09.20 Amendment of Classification of Communications Licenses
resolution 55 2013.09.20 Approval of Basic Service Tariff (ICNC)
Lists of the resolutions approved by the commission meeting in 2013
LISTS OF THE RESOLUTIONS APPROVED BY THE COMMISSION MEETING IN 2013
78
resolution 56 2013.09.20 Issue Licenses and Annihilation, Suspension and Amendment of Licenses
resolution 57 2013.10.04 Direction of Regulation and Procedure on Internet Exchange Point Service
resolution 58 2013.10.04 Issue Licenses
resolution 59 2013.10.25 Issue Licenses and Annihilation, Suspension and Amendment of Licenses
resolution 60 2013.12.06 Amendment of Direction of Regulation on Voice Service by Using Special Numbers
resolution 61 2013.12.06 Tendering Rule and Procedure on Radio Frequency Utilization License
resolution 62 2013.12.06 Radio Frequency Allocation and Channels on Digital TV Broadcasting in Ulaanbaatar
resolution 63 2013.12.06 Issue Licenses and Annihilation, Suspension and Amendment of Licenses
resolution 64 2013.12.20Amendment of Special Terms and Conditions of Postal Network Construction and Postal Service Licenses
resolution 65 2013.12.20 Approval of Buildup Amount in 2014 year for Universal Service Fund
resolution 66 2013.12.20 Amendment of Radio Frequency Utilization and Service Fee
resolution 67 2013.12.20 Issue License
resolution 69 2013.12.25 Issue Licenses and Annihilation, Suspension and Amendment of Licenses
resolution 70 2013.12.25 Amendment of General Rule and Procedure of License in Communications Sector
resolution 71 2013.12.25Amendment of General Rule on Commissions Meeting and Regulation on Ethics of Employers
LISTS OF THE RESOLUTIONS APPROVED BY THE COMMISSION MEETING IN 2013
79FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
DIRECTIONs, TERMs AND REQUIREMENTs Of pROCEDUREs AND REgULATIONs AppROvED IN 2013
No Name Date of approval
reso-lution No.
Type Description
1Procedure to regulate comment relations on web sites
27 Feb, 2013
05 Procedure Newly approved
2
regulatory direction of 470-690MHz frequen-cy band, which is to be used for broadcasting of digital TV in Mongolia
01 Mar, 2013
12Direction of regulation Newly approved
3
Distribution of UHF 340-350MHz frequency band in Mongolia, technical requirements
15 Mar, 2013
16Terms and conditions
revoked the resolution No.18, “To distribute frequency band”, of CrC dated on 26 June, 2009 and newly approved.
4
Distribution of UHF 400-430MHz frequency band in Mongolia, technical requirements
15 Mar, 2013
17Terms and conditions
revoked the resolution No.24, “To distribute frequency band”, of CrC dated on 14 April, 2011 and newly approved.
5
Distribution of UHF 440-450MHz frequency band in Mongolia, technical requirements
15 Mar, 2013
18Terms and conditions
revoked the resolution No.13, “To distribute frequency band”, of CrC dated on 08 May, 2009 and newly approved.
6
Approval of procedure to broadcast adver-tisement of Presidential Election of Mongolia through radio & TV
05 Apr, 2013
18/19 Procedure Jointly approved with the General Election Commission.
7
Terms and requirements of license to provide IPTV service
01 May, 2013
20Terms and conditions
revoked with the resolution No.34 of CrC, dated on 29 June, 2013, despite it’s newly approved in 2013.
8
Methodology to control channel structure of TV & radio multi-channel transmis-sion service providers
01 May, 2013
21 Methodology Newly approved
80
9
special terms and requirements of the license to establish information and communication network and infrastructure
01 May, 2013
22Terms and Conditions
revoked with resolution No.10 of CrC dated on 21 February, 2014
10regulation of information and communication network of Mongolia
01 May, 2013
26Regulatory document Newly approved
11Direction of regulation for 2500-2700MHz frequency band in Mongolia
28 Jun, 2013
29Terms and Conditions
revoked the resolution No.28 of CrC dated on 07 May, 2010 and newly approved.
12Direction of regulation for 2700-2900MHz frequency band in Mongolia
28 Jun, 2013
29Direction of regulation
revoked the resolution No.38 of CrC dated on 31 May, 2011 and newly approved.
13
General terms and requirements of license to establish and serve with network
29 Jun, 2013
33Terms and Conditions
revoked the Attachment No.2 of resolution No.3 of CrC dated on 05 Nov, 2002 and newly approved.
14
special terms and requirements of license to transmit TV & radio multi-channels
29 Jun, 2013
34Terms and Conditions
revoked each of resolution No.47 of CrC of the year 2009, Attachment No.1 of resolution No.26 of the year 2011, resolution No.49 of the year 2011 and resolution No.20 of the year 2013 and newly approved.
15
special terms and requirements of TV & radio broadcasting and cable channels
29 Jun, 2013
35Terms and Conditions
revoked each of Attachments No.2, No.3 and No.4 of resolution No.26 of CrC of the year 2011 and newly approved.
16Terms and requirements of license to use radio frequency
29 Jun, 2013
36Terms and Conditions Newly approved
17
Procedure of permission to have an operation in communications sector
29 Jun, 2013
37 Procedure
revoked each of Attachments No.1 and 2 of resolution No.4 of CrC of the year 2002 and newly approved. Amended with the resolution No.8 dated on 21 Feb, 2014.
18
special terms and requirements of license to establish information and communication net-work and infrastructure
29 Jun, 2013
38Terms and Conditions Newly approved
81FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
19Procedure of inspection on type approval documents
28 Jun, 2013
27 Procedure Newly approved
20Procedure to register, access, storage and disposal
21Procedure on internal audit and monitoring
22Procedure on management analysis
23Procedure to confirm model of information and communication equipment
24Procedure to certificate, storage, renewal and suspension
25 Procedure to secure information
26Procedure on decision making on requests and petition related to type approval
27
Procedure on nonconformities and any addres-sor correction to ensure the effectiveness of measures taken to prevent
28
Procedure on evaluating sub-contractor andregistration, cooperation and monitoring system
29Procedure on writing report and evaluation on conformity
30Direction of regulation for 2.200-2.400MHzra-dio frequency band in Mongolia
28 Jun, 2013
29Direction of regulation Direction of regulation
31
regulation and technical terms and require-ments of radio frequency band regulation (Frequency band 2.4GHz)
30 Aug, 2013
44Terms and Conditions Newly approved
Directions, terms and requirements of procedures and regulations approved in 2013Directions, terms and requirements of procedures and regulations approved in 2013
DIRECTIONS, TERMS AND REQUIREMENTS OF PROCEDURES AND REGULATIONS APPROVED IN 2013
82
32
regulation and technical terms and require-ments of radio frequency band regulation (Frequency band 5GHz)
30 Aug, 2013
45Terms andconditions Newly approved
33Direction of regulation for 2500-2700MHz radio frequency band in Mongolia
30 Aug, 2013
46Direction ofregulation Newly approved
34special terms and requirements of license to provide internet service
06 sep, 2013
49Terms and conditions Updated and approved
35
Terms and requirements for international tran-sit stream transmission service over territory of Mongolia
06 sep, 2013
50Terms and conditions Updated and approved
36regulation of internet interconnection service
20 sep, 2013
57Direction of regulation Updated and approved
37regulation of special number used calling service
06 Dec, 2013
60Direction of regulation Updated and approved
38Procedure on issuing radio frequency license by competition
06 Dec, 2013
61 Procedure Updated and approved
39Allocation on radio frequency for digital TV broadcasting in Ulaanbaatar
06 Dec, 2013
62Direction of regulation
Newly approved
40Modification of use of radio frequencies, and additional service fees
20 Dec, 2013
66Direction of regulation
Amended and approved
41Terms and requirements of A-class license to provide postal service
20 Dec, 2013
64Terms andconditions Updated and approved
42Terms and requirements of b-class license to provide postal service
20 Dec, 2013
64Terms andconditions Updated and approved
DIRECTIONS, TERMS AND REQUIREMENTS OF PROCEDURES AND REGULATIONS APPROVED IN 2013
83FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
№ Class standard Name Pages
1 33,030 MNs 6365: 2013 requirements for call center operators of ICT service providers 11
2 33,030 MNs 6365: 2013 requirements for call center operators of ICT service providers 11
3 33,030 MNs 6366: 2013 Call center requirements for information and inquiry service 8
33.170 Television and radio broadcasting
4 33,170 MNs 6400: 2013 Digital television. Technical requirements of DVb-T2 digital terrestrial transmitter 25
5 33,170 MNs 6401: 2013Digital television. Technical requirements of DVb-T2 digital terrestrial broadcasting receiver
26
6 33,170 MNs 6402: 2013Digital television. Technical requirements of DVb-C2 digital cable transmission equipment
14
7 33,170 MNs 6403: 2013 Digital television. Technical requirements of DVb-C2 digital cable receiver 7
8 33,170 MNs 6404: 2013 Digital television. Technical requirements of DVb-s2 digital satellite transmitter 13
9 33,170 MNs 6405: 2013 Digital television. Technical requirements of DVb-s2 digital satellite receiver 11
33.180.10 Fibres and cables
10 33,180,10 MNs 5279: 2013 Installation of Cross connection Cabinet with capacity 1200,2000 pairs and terminal block of 100 and 200 pairs. General requirements
3
sTANDART LIsT Of ICT sECTOR Of MONgOLIA
84
№ Category Type Coverage
1
Establishing, owning and operating communications network and infrastructure
1. ICT backbone network and infrastructure
InternationalNational /regionalLocal
2. ICT access network and infrastructure
3. radio and television terrestrial (repeater) network and infrastructure
4. satellite network
5. Post network
6. Data hosting and storage infrastructure
CLAssIFICATIONs OF LICENsEs TO rUN COMMUNICATIONs PUbLIC sErVICEs(Appendix to the 13-th resolution of 2011, CrC meeting)
One. “A” Class: Communications network and infrastructure
CLAssIfICATION Of COMMUNICATION’s LICENsINg
№ Category Type Coverage
1Voice
InternationalLocal and long distance
2Internet, data
1. Internet According to service coverage2. Data
Three. “B” class: Communication service
85FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
3
Radio andtelevision multichannel
1. Cable TV
According to service coverage
2. satellite TV
3. IPTV
4. Mobile TV
4
Post
1. Main service
According to service coverage
2. Logistic
3. Courier post
4. International parcel
5. Direct route international parcel
5
Communications cable network and infrastructure installation and maintenance service
1. PbX installation and maintenance
According to service coverage
2. Outside cable network installation and maintenance
3. Cable network installation and maintenance inside building
4. Equipment installation and maintenance on tower
5. Network operation and maintenance
6
Retailer /Distributor/ and other services
satellite mobile service (Iridium, Inmarsat etc.,)
Public services through PbX
Establishing telecommunication or post service branches contractual basis with main license
According to service coverage
Classification of communication’s licensing
Three. “B” class: Communication service
86
№ Category Type Coverage
1 Television broadcasting
According to service coverage
2 radio broadcasting
3 Television channel
4 Toll free and premium rate service
5Content aggregator
1. Online
2. Mobile
Three. “C” class: Content service Four. Registration
№ Category Type Coverage
1
Web site
should be registered if average user access is exceeding 3000 in one month.
CLAssIfICATION Of COMMUNICATION’s LICENsINg 87FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
CERTIfICATE Of AUDIT
88
BALANCE SHEET as of 31st December 2013 PERFORMANCE STATEMENT as at 31st December 2013
AssETs /in thousand tugrugs/
CURRENT ASSETS
Cash and cash equivalent 2242457,9
receivables 959161,4
Prepaid expenses 345095,3
Goods 217,7
TOTAL CUrrENT AssETs 3546932,3
NON-CURRENT ASSETS
Physical assets 3786556.9
Non-physical assets 184444,2
Total non-current assets 3971001,2
TOTAL AssETs 7517933,5
LIABILITIES
Other liabilities 46863.9
Unearned Income 735160,0
Total liabilities 782024,0
EQUITy
Government fund 1169840,3
Total accumulation 5451437,4
retained surpluses 114631,8
TOTAL EQUITIEs 6735909,5
TOTAL LIABILITIES AND EQUITIES 7517933,5
ITEMs /in thousand tugrugs/
OPERATION REVENUE
basic operation revenue 3788088,6
Non-basic operation revenue 205951,7
TOTAL OPErATION rEVENUE 3994040,3
OPERATION EXPENCES
Employee related costs 1597291,8
remuneration 1435023,0
social and health insurance 162268,9
Allowances 127442,8
Good and service expenses 1399378,8
Depreciation 544506,9
TOTAL OPErATION EXPENsEs 3668620,3
PERFORMANCE 325419.9
89FISCAL YEAR 2013P e r f o r m a n c e a n d A c c o u n t a b i l i t y R e p o r t
ABU Asia-Pacific broadcasting Union
APEC Asia-Pacific Economic Cooperation
APSCO Asia-Pacific space Cooperation Organization
APT Asia and Pacific Telecommunication
CATV Cable television
CDMA Code division multiple system
CEO Chief executive officer
CRC Communications regulatory Commission
CRMO Central radio Management Office
DSL Digital subscriber line
EDGE Enhanced Data for GsM (Global system for Mobile) Evolution
EVDO Evolution Data Only
GPRS General Packet radio service
GSM Global system for mobiles
ICT Information and Communications Technology
ISP Internet service provider
ITPTA Information Technology, Post and Telecommunication Author-ity
ITU International Telecommunication Union
KCC Korea Communications Commission
KISDI Korea Information society Development Institute
gLOssARy Of TERMs
LTE Long Term Evolution
MMDS Multi point multi distribution system
NCC National Communications Commission
OFCOM The Office of Communications
QoS Quality of service
TV Television
TUV Sud Technische Uberwachungs Verein sud
UA Universal access
USOF Universal service obligation fund
VDSL Very high-speed digital subscriber line
VoIP
Voice Over Area Network/Network using short-range radio communications trans-mission links, for example, a private network of computer terminals, which may or may not be connected to the public networks./
VPN Virtual Private Network
VSAT Very small Aperture Terminal
Wi-Fi Wireless Fidelity /broadband wireless data technologies used for interconnecting computer equipment/
WiMAXWorld Interoperability for Microwave Accessbroadband wireless data technologies used for interconnecting computer equipment
WLL Wireless Local Loop
90
2013Pe r fo rmance and Ac coun tab i l i t y Repo r t
www.crc.gov.mn