Stimulating broadband through


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Stimulating Broadband through
Universal Service
Convergence of Era Broadband training program
2-4 April , 2012
Hyderabad, India
Information, Communications Technology and Post Authority

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Stimulating broadband through

  1. 1. Telecom Regulatory Authority of India Stimulating Broadband through Universal Service Convergence of Era Broadband training program 2-4 April , 2012 Hyderabad, India SOLONGO MALTAR ( Information, Communications Technology and Post Authority Mongolia
  2. 2. Telecom Regulatory Authority of India Content  Country overview  ICT sector  Universal service legal framework  Universal service implementation 2
  3. 3. Telecom Regulatory Authority of India Content  Country overview  ICT sector  Universal service legal framework  Universal service implementation 3
  4. 4. Telecom Regulatory Authority of India Country overview 4 Location: Northeast Asia, between China and Russia (landlocked) Population: 2.7mln Capital: Ulaanbaatar Territory: 1,566,500 Government: Parliamentary Natural resources: Coal, copper, gold, molybdenum, tungsten, phosphates, tin, nickel, zinc, wolfram, fluorspar, silver, iron, phosphate GDP (USD bn): 4.2 GDP per capita (USD) 1,560 GDP by sectors agriculture: 21.2%, industry: 29.5%, services: 49.3% • Separate Business from Policy (1992) • Sector Reform (1993-1994) • Restructuring & Privatization (1995) • Law on Communication (1995) • From Analogue to Digital (1995) • Competition in a telecom market (1996) • liberalization (2001 - 2006) • Renewed Law on Communication (2001) • Establishment of CRC (2002) • Establishment of ICTPA (2004) • Sharpening of the Mobile Market competition (2006) • Universal service/Universal access policy (from 2007)
  5. 5. Telecom Regulatory Authority of India Content  Country overview  ICT sector  ICT sector indicators  Government structure of ICT sector  Policy and Regulatory framework  Universal service legal framework  Universal service implementation 5
  6. 6. Telecom Regulatory Authority of India ICT sector indicators 6 0 100 200 300 400 500 600 2005 2006 2007 2008 2009 2010 2011 140.4 181.7 283.5 365.2 449.2 471.0 539 mil.tug Total revenue of ICT sector Composition of ICT sector revenues Mobile2 71 74,29% FIxed 34,9; 9,56% VoIP20,1, 5.49% Post 6,8; 1,85% Internet 17,3; 4,74% TV broadcast ing 6,0, 1.65% CaTV 3,10, 1.09% Other 4,9; 1,34% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2006 2007 2008 2009 ICT in GDP 21.5 29.9 45.3 65.7 82.2 90.3 6.8 7.4 6.5 6.8 6.8 7.0 0.3 0.4 0.6 1.5 3.9 7.2 0 10 20 30 40 50 60 70 80 90 100 2005 2006 2007 2008 2009 2010 Mobile Fixed Internet
  7. 7. Telecom Regulatory Authority of India ICT Sector players  Fixed line operator – 3  Mobile network operator – 4 (3G license issued in 2009)  ITSP - 4  ISPs – 75  International VoIP service provider - 28  IPTV – 2 in 2009  Mobile TV – 2 in 2009 7 Infrastructure and Service  175 soums (village) are connected by fiber optic out of 331  Over 18.700 km fiber optic network and 8.400 km digital microwave network (state and private)  All of the soums have at least 1 mobile operator’s service  38 soums of them have Internet
  8. 8. Telecom Regulatory Authority of India Government structure ICT policy and regulation 8 President Communications Regulatory Commission Cabinet members of the Government Prime minister Parliament Information, Communications Technology and Post Authority Other Ministries Citizens, Businesses, Other public and Private entities Telecoms and IT sectors are overseen by ICTPA, regulatory function by CRC in telecoms
  9. 9. Telecom Regulatory Authority of India Policy and Regulatory framework 9  ICT Vision up to 2021, draft  (Parliament of Mongolia, 2011)  Policy Guidelines (GSM 1800, Broadcasting of Digital TV, 3G, WLL etc.)  Policy guideline on tariff (draft, 2011)  Law on Communication (renewed in 2001)  Law on Radio Wave (approved 1999)  Law on Government’s Special Fund (renewed 2007)  Law on Licensing Business Activities (approved 2001)  Law on e-signature (approved 2011) Policy papersLegal Framework Regulatory Frameworks  Licensing (classifications, conditions, Issue, prolong and cancel licenses and radio frequency)  Numbering  Regulatory service fees  Monitoring QoS  Complains and disputes  Methodologies for service tariff  Determining and controlling dominants  Access & interconnection National Programs  E-Government national program (draft, 2011)  E-Mongolia National Program for 2005- 2012 (ICTA, 2005)  National Broadband program (ICTPA, 2011)  To ensure of information security (2010-2015)  To switchover Radio and Television broadcasting to digital technology (2010-2015)
  10. 10. Telecom Regulatory Authority of India Content  Country overview  ICT sector  Universal service overview  Legislation  Funding mechanism  ICT sectors players  Universal service implementation 10
  11. 11. Telecom Regulatory Authority of India USOF legal framework 11 Legal Framework Regulatory Frameworks  Law on Communication (renewed in 2001)  Law on Government’s Special Fund (renewed 2007)  Law on Licensing Business Activities (approved 2001)  Procedure of collecting and expending USOF (Government of Mongolia, 2006)  Procedure on USOF  USOF is Legally created in 2001 / operational in 2007  Control of USOF transferred from CRC to the ICTPA in 2009  USOF is composed from 2% levies of taxable revenues of communications service providers
  12. 12. Telecom Regulatory Authority of India Funding Mechanism  95% is generated from mobile sector (by 2010)  For 2007-2010, USOF disbursed about 85% of collections ($8m)  USOF was able to fully take advantage of the practical experience gained working with 2006 WB Pilot projects  Most of the fund was dedicated to enable access to mobile services to rural areas. Today as most of the areas are covered by mobile services, we are using a fund to expand the internet services to rural areas. 12
  13. 13. Telecom Regulatory Authority of India ICT sector players  Fixed line operators – 3 13  Mobile network operators – 4  Internet Telephony service provider – 4  ISPs – 75  International VoIP service provider – 28  IPTV – 2  Mobile TV – 2  Cable TV - 70 State communication depart. , Railway GSM, W-CDMA CDMA, W-CDMA GSM, W-CDMA CDMA 450, WCDMA 684 licenses were granted to the entities
  14. 14. Telecom Regulatory Authority of India Content  Country overview  ICT sector  Universal service overview  Universal service implementation  Rural ICT initaitives  National program Broadband  ICT Vision 2021  Stimulating broadband access  Challenge 14
  15. 15. Telecom Regulatory Authority of India Rural ICT initiatives Situation of Rural ICT  Fixed and mobile teledensity are four to five times higher in the urban  Mongolia likely to have 40% of population living in rural areas in mid/long term – Voice component of universal service is close to being achieved – progree has been undertaken relatively very quickly (in the last 5 years) – Next challenge is the wide-spread roll-out and adoption of broadband World Bank financed UAS Program (ICIDP) A series of World Bank-funded activities that included pilot projects and culminated in the UA/US Program provided technical assistance and subsidy financing (US $5 million) over the period 2005-08 for UAS promotion 15 Program Maximum subsidy Number of covered soums Herder Public access network 970.000$ 142 baghs (administrative unit) Soum center wireless network 4.600.000$ 90 soums Aimag center internet services 1.160.000$ 34 soums and aimag centers
  16. 16. Telecom Regulatory Authority of India Other projects 16  Mongolian Internet Exchange (MIX) point  Delivering radio and television programs to rural areas  Connecting Ger district households to high-speed Internet connections through wireless technology  Delivering Internet services to Soums (villages)  Projects to improve mobile service coverage
  17. 17. Telecom Regulatory Authority of India National broadband program of Mongolia 17 The goal of National Broadband Program of Mongolia is to support national economic growth and livelihoods by the establishment of a high-capacity, high-speed broadband network to deliver an accessible, low-cost, comprehensive information service to all government agencies, businesses and households, especially for rural and remote areas.  Implementation priod: 2011-2015
  18. 18. Telecom Regulatory Authority of India National Broadband program of Mongolia /cont/ 1. Government support for the establishment of a high-speed broadband network, with companies providing services, with the development of broadband being based on a mutually beneficial public-private partnership. 2. Use of foreign loans and aid, supported by foreign and domestic investment, with provision of specific discounts and incentives for service providers to deliver services to isolated rural areas. This will involve the following: 3. Enhancement of the business environment, so that previous investment in the main network is improved and investment returns improved. 4. Government support for increasing use of broadband networks and development of content, involving training courses, promotional activity and fund mobilization. 5. Expansion of the existing network to rural areas and Ulaanbaatar's peri-urban areas, improvement of service quality and coverage, reduction of network lease costs for delivery of internet to rural areas, training courses and promotional activity. 18
  19. 19. Telecom Regulatory Authority of India National broadband program of Mongolia /cont/ 19 Objectives 1. Creation of a legal, regulatory and conducive business environment to develop a high-speed broadband network 2. Increased capacity and quality of existing urban networks and diversification of services. 3. Creation of infrastructure for rural area and establishment of a broadband infrastructure and services in currently non- connected remote areas. 4. Increased content on, and use of, the broadband network. 5. Research into convergence advanced technology, with the development and implementation of a national mid-term strategic plan under global standards. Benefit and results • A favorable legal, regulatory and conducive business environment for the establishment and development of a high-speed broadband network will exist. • Indicators for Mongolia’s broadband development (speed, price and use) will be above the global average. • No less than 90% of government organizations, education and health agencies will have access to high speed broadband network. • At least 50% of all households will have access to cheap triple-play service access delivered through broadband. • Over 40% of households in remote areas and more isolated populated areas will have access to a wireless broadband service.
  20. 20. Telecom Regulatory Authority of India ICT Vision up to 2021 /basic objectives/ 20  Vision The Information and communication technologies (ICT) is driving force for knowledge based economy and accelerator for social and economic development.  Mission To build information and knowledge based economy high income society with technology supported decision making in Mongolia by developing, disseminating and using ICT applications for social and economic development.
  21. 21. Telecom Regulatory Authority of India ICT vision up to 2021 21 Education Health Banking, Finance Mining Herding and Agriculture Information and Communications Technology ICT human resource Information Security E-Government
  22. 22. Telecom Regulatory Authority of India ICT vision target Broadband 22 Household Big cities Provinces Soums 100% - 100Mbps 70% - 50Mbps 60% - 50Mbps At the present moment, when it is obvious that Mongolia as well as other countries recognize the importance of the new wave of broadband development, the Government agencies have been implementing a series of concrete actions to ensure successful deployment of a broadband throughout the country.
  23. 23. Telecom Regulatory Authority of India  Strong Leadership to Support ICT initiatives  Policy makers should recognize key benefits of the ICT  Cabinet-level ministry plays key role in coordinating ICT related initiatives. (Several funds)  Most of the countries have strong financial support from the Government on the rural ICT development. (PPP)  Sustainability of the project  Local Governors should play important role in developing rural ICT  Well trained personnel to manage service, attract others (Champions)  To assist on further rural development and infrastructure construction  Ongoing evaluation and review of the effectiveness of the Strategy  Not only Commercial center, but also Community center to provide E-government service and training (15-25%)  Not only basic telephony service, but also Advanced telecom services  Long Term Policy/Master plan on US/UA program and USOF  Set very specific, clearly defined target on the UA/US on long term Policy  Public consultation and transparency of the Policy plays important role  Conduct economic research and result of the initiatives  Separate Policies on both connected and unconnected areas (by backbone network)  Enabling market environment Success factors of US/UA programs
  24. 24. Telecom Regulatory Authority of India Challenge  Nowadays, the main challenges for the deployment of internet services and broadband are that the accessibility and tariff of ICT backbone network services limits its broad utilization by the new internet service providers and businesses. The cost of connecting to internet services has been kept stable from the cost of 2009. The internet connection for corporate organizations is starting from 145 US$ for 1Mbps for dedicated leased line for monthly basic.  In the beginning of 2011, the number of internet connection was 199,849 representing an increase of over 53% compared to 2009. Even though internet connection is increasing at the reasonable level, broadband penetration (5.2%) and average speed (1Mbps in urban area, 128kbps in rural area) is very low comparing to a world average. 24
  25. 25. Telecom Regulatory Authority of India Challenge /cont/ 25  Separated Service from Network (1995)  Government of Mongollia sold a 40% share of Service Company (MTC)  Two separated companies “NetCo” offering wholesale network services on a non-exclusive basis and “ServCo” offering retail services (2007)
  26. 26. Telecom Regulatory Authority of India 26 Stimulating Broadband Access In order to facilitate successful development of broadband, Information communications infrastructure is needed to accelerate the country’s social and economic development. However, this requires large amounts of capital for a country like Mongolia, specialy to implement infrastructure to connect all schools, hospitals and communities. • Encourage cooperation in building networks and infrastructures to reduce costs and risks (especially for economically unfeasible areas) - government- private, private-private, central-regional governments. Once a target area is chosen for broadband development (green or brown fields), select the lowest bidder for government subsidies on conditions of meeting public obligations (in case the works to do are pre-determined) • Encourage the would-be participants to form a consortium of operators if the project cannot be done by a single operator within the government’s budget constraint. • Let regional governments (in partnerships with operators and using subsidies from the central government) develop the broadband fit for their regions on the condition that they meet the standard for interoperability, QoS, etc.
  27. 27. Telecom Regulatory Authority of India • Build more backbone and backhaul networks in the above ways of cooperation. Let the incumbent operator, a consortium of competitors, or a newly established government-owned company participate in this project. Find and develop more civil engineering infrastructure (ducts, poles, manholes, access to in-building wires, etc.) and let them be shared for broadband development. • Similar with the ”Connect a school, Connect a community” initiative of ITU, the “Low cost computer” program will be very helpful in developing countries to universal access and broadband development. • Provision of low-prices PCs to provide benefits to the rural residents in informatization and the Government alike, in that the rural residents is provided with an opportunity to purchase a high efficient PC without a sizable amount of money that is guaranteed by the Government at an inexpensive price, and the Government can prepare a base for universal servicing of PCs and Internet information services, which are part of the Government subjects. 27 Stimulating Broadband Access /cont./
  28. 28. Telecom Regulatory Authority of India 28 Stimulating Broadband Access /cont./  Increase e-applications for government organizations, and education and health agencies, and create necessary conditions for a fast and reliable public service using broadband network.  Run training courses and public awareness activities for e-applications, promoting results and outcomes to the public.  Increase the application of e-governance at local government administration levels, and create a training system to improve ICT awareness and skills.  Support the access to the education, disseminate ICT into education system, and promote its applications from the primary school through informatics, information technology subjects and to provide e-literacy in national level and enhance computer education.  Improve national content, localize international resources to the national situation and provide policy support for content business.  Increase internal internet-based data traffic, support internal cross- connections, creates a favorable business environment.
  29. 29. Telecom Regulatory Authority of India ICT Vision up to 2021  To conduct e-literacy program for all Mongolian citizens and enable the e-basic education  To connect health, education and other sectors with high speed broadband network;  The 90% of total population will have an access to high speed broadband network by utilizing the wireless communication technology;  The major metropolitan areas will be connected with high speed broadband network of minimum of 22 Gbps internet speed, soum and residential centers will be connected with minimum of 2 Gbps internet speed;  There will be at least one community service center in aymag and soum centers to access to the high speed broadband network;  To develop internal content;  To provide the technical possibility to gain 100% access to digital broadcasting without time and location limitations; 29
  30. 30. Telecom Regulatory Authority of India 30