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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

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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

[email protected]

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


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


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


#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


#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


4

national program on information security 2010-2015


#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


#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


#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


#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


#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.


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


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


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


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


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%


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


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.


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.


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.


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


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


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.


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.


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.


“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

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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.


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.


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


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.


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

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0.0

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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.


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.


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.


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.


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.


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


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 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 57 2013.10.04 Direction of Regulation and Procedure on Internet Exchange Point Service

resolution 58 2013.10.04 Issue 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 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 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


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


15 Mar, 2013


revoked the resolution No.24, “To distribute frequency band”, of CrC dated on 14 April, 2011 and newly approved.

5


15 Mar, 2013


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


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


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


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


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


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



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


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


Newly approved

40Modification of use of radio frequencies, and additional service fees

20 Dec, 2013


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


№ 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


1Voice

InternationalLocal and long distance

2Internet, data

1. Internet According to service coverage2. Data

Three. “B” class: Communication service


3

Radio andtelevision multichannel

1. Cable TV

According to service coverage

2. satellite TV

3. IPTV

4. Mobile TV

4

Post

1. Main service


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


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


Classification of communication’s licensing

Three. “B” class: Communication service

86


1 Television broadcasting


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


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


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