Annual book 2012-eng

1. 2012PerformanceandAccountabilityReport

3. 2 - 3
Letter of Transmittal
To: H.E.ALTANKHUYAG Norov
Prime Minister
Mongolia
Your Excellency,
I am pleased to present you with the Communications Regulatory Commission’s
Fiscal Year 2012 Performance and Accountability Report.
The report has been prepared in accordance with Article 8.11 of Law on Com-
munications 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-2012 has also been
included in the Report.
BALGANSUREN Batsukh
Chairman & CEO
December 2012

4. CONTENT
Letter of transmittal
Review of general regulatory Environment in the sector
CRC organizational structure
CRC legal environment
Telecommunications and information infrastructure development
Sector development policy and strategy
Regulatory frameworks in The sector
Introduction of the consulting project
Classification of licensees
Consumer protection And quality of services
5.
6.
8.
10.
12.
14.
16.
19.
22.
25.

5. 27.
29.
30.
33.
46.
47.
47.
51.
52.
54.
Radio frequency Spectrum regulation
Regulation of broadcasting
Regulation fee and Interconnection tariffs
Key statistics - 2012
Regulation of postal sector
Attachments
A1. Lists of regulations and procedures
A2.Classification of communication’s licensing
A3. Audited financial report
Glossary of terms

6. Review of General Regulatory
Environment in the sector
Overview of the Communications Regulatory Commission (CRC)
INTRODUCTION
The CRC is an independent Mongolian Government Regulatory Authority, which was established
by the Communications Act of 2001. It is charged with regulating and supervising a wide range of
subjects including competition issues, the provision of networks and services for fixed line and wire-
less telecommunications, 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
In September of 2009, CRC approved “The Strategy and Action Plan for 2009-2013 year” and we are
implementing related measures in each year action plan.
OUR VALUES
• Fairness; • Transparency; • Efficiency;
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 in ICT, Broadcasting and Postal markets, through the effi-
cient and impartial oversight of network and service providers and the enforcement of their obli-
gations including the USOF.
• To protect the interests of users of 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 af-
fordable prices,
• To establish an interconnection regime that allows fair, transparent, prompt and equitable inter-
connection,

7. 6 - 7
• 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 avail-
ability, pricing and quality of service and other matters,
• To monitor the quality of service provided by the various operators.
In order to support our mission, values and objectives, the CRC employs the
following workplace principles:
1. Well
informed
Through
research,
investigation,
inter-agency
cooperation,
ongoing public
consulta-
tions, and by
monitoring
and resolving
complaints and
disputes data,
we commit to
operate from
a solid base of
evidence.
2. Openness
By publishing
objectives,
procedures,
annual strate-
gic plans,
divisional
remits and
responsibilities,
decision
making
processes, the
reason for our
decisions and
by conducting
open consulta-
tions, we seek
continuously
to engage with
our
stakeholders to
inform them,
and to have
them inform
our policy
decisions.
3. Timeliness
By setting
organizational
timeframes
and goals for
granting
licenses,
consultations,
investigations,
adjudications,
resolution of
disputes, and
by publishing
these
timeframes,
we are com-
mitted to
providing an
efficient
service
without
sacrificing
thoroughness.
4. Profession-
alism
By adhering
to best prac-
tice and laws
on handling
confidential
information,
adopting
internation-
al standards,
committing to
staying
informed,
setting and
meeting
deadlines, and
by
offering an
open com-
plaints chan-
nel, we seek
to reflect a
consistently
high level of
professionalism
in everything
that we do.
5. Account-
ability
By
evaluating our
own
effectiveness
and publishing
these findings
in our Annual
Report to the
State Ikh
Hural;
operating a
complaints
procedure;
assigning par-
ticular func-
tions to named
individuals;
providing an
appeals pro-
cess; an
independent
external au-
diting process;
and setting out
open consulta-
tion,
decision
making and
complaints
processes; the
CRC is fully
accountable
for its actions.
6. Quality of
human
resources
By ensuring
that we
employ the
best staff
available;
training these
people in the
CRC’s methods
of carrying out
its operations;
giving individu-
al contracts
setting out
clearly what is
expected of
them;
affording them
comprehensive
training to
improve skills
and ensuring
whether they
receive annual
appraisals;
offering a
competitive
salary and an
incentive bonus
scheme; we
are committed
to attaining
higher staff
standards.

8. CRC ORGANIZATIONAL STRUCTURE
The CRC consists of seven commissioners, appointed by the Prime Minister for six-year terms. The
Prime Minister appoints the Chairman and CEO, and six non-executive Commissioners.
The list of Commissioners during FY 2012 (since October) was the following:
Commissioner
Mr.AMGALANBAATAR
Delegdorj
Commissioner
Mr.DAVAAJAMTS
Choindon
Commissioner
Mr.MUNKHBAT
Buyandelger
Commissioner
Mr.JADAMBAA
Tsagaan-Uvgun
Commissioner
Mr.ENKHTSOG
Davgadorj
Commissioner
Mr.MYAGMARNARAN
Bavuujav
Chairman & CEO
Mr.BALGANSUREN
Batsukh

9. 8 - 9
The Commission’s Chairman leads the Commission as head of the agency. The Commission has
five operating departments that implement the following functions:
The Commission’s
organizational chart is
below in figure.
1. Justice, Information and Administration Department – general counsel and legal advi-
sory, consumer protection, investigations team, compliance, complaints and dispute resolu-
tion, public relations, administration, finance, international relations, human resource and
training, IT and website management.
2. Regulatory Department – licensing, development of standards, technical aspects of inter-
connection, numbering assignments, technical 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 utilization licensing and broadcasting.
4. Market and Tariff Regulation Department – market strategy analysis, market research
statistics, competition and network access, tariff and interconnection, and USOF.
5. Postal Regulation Department – international, domestic postal and parcel service licens-
ing and regulation, interconnection, define reserved areas of postal service and USP, postal
zip code assignment and regulation.
THE CHAIRMAN’S COUNCIL IS RESPONSIBLE FORMAKING DAY-TO-DAY
DECISIONS AND ASSISTING TO THE CHAIRMAN.
Chairman
and CEO
The CRC
Commissioners-6
Justice,
Information and
Administration
Department
Regulatory
Department
Radio
Frequency
Regulation and
Monitoring
Department
Market and
Tariff
Regulation
Department
Postal
Regulation
Department

10. CRC LEGAL ENVIRONMENT
Law on Radio
Wave (1999)
The Law on Radio
Wave was approved in
1999. The purpose of
this Law is to regulate
relations derived from
allocation, usage,
protection, ownership
and possession of
radio waves.
1999 2001 2001 2003
Law on licensing
business activities
(2001)
The Law on licensing
business activities was
approved by the
Parliament in 2001.
The purpose of this
Law is to regulate
relations related to
issuance, revocation
and cancellation of
licenses for
engagement in some
utility activities that
require particular
circumstances and
specific professions
or might be danger-
ous to public interest,
human health,
environment and
national security.
Licensing in radio
communications and
telecommunications is
subject to articles 2.2.
Law on
Communications
(2001)
The first Law on
Communications was
approved in 1995 and
it was revised in 2001.
The purpose of Law
on Communications is
to regulate relations
between the state,
citizen and legal per-
son on construction,
operation and
protection of
communications
networks in Mongolia.
Law on Post (2003)
The Law on Post was
approved by the
Parliament in 2003.
The purpose of this
Law is to regulate re-
lations associated with
postal networks, their
operation and
maintenance.
The CRC’s regulatory functions are subject to the following laws and regulations:
• Law on Radio wave,
• Law on Communications,
• Law on licensing business activities,
• Law on Post,
• Law on Governments’ Special fund and etc.
• Law on competition,
• Law on Signature and etc.,

11. 10 - 11
OBJECTIVES
A regulatory approach
that promotes benefits to
end-users and contributes to
an efficient and competitive
Mongolian communications
sector.
2006 2010 2011
Law on
Governments’
Special Fund (2006)
The Law on
Governments’ Special
Fund was approved in
2006. The purpose of
this law is to regulate
Governments’ spe-
cial funds, including
USOF in the ICT and
Telecommunications
sector.
Law on Electronic
Signature (2011)
The Law on Electronic
Signature was
approved in 2011. The
purpose of this law is
to regulate relations
regarding determi-
nation to the legal
basis for the use of
electronic and digital
signatures, and public
key infrastructure.
Law on
Competition (2010)
The Law on
Competition 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, and
regulatory authorities
to determine the legal
basis.
Regulatory rules and procedures
Regulatory functions and activities are subject to the rules and procedures
that are issued and approved by the CRC. A list of procedures and
regulations are available at Attachment-A.1. >

12. TELECOMMUNICATIONS AND INFORMATION
INFRASTRUCTURE DEVELOPMENT
The state owned Mongolian telecom backbone
network consists of approximately 1400km of
digital microwave, more than 12,100km of opti-
cal cable links, plus more than 400 VSAT systems
linked to Ulaanbaatar and all provincial centres.
Mongolia has made considerable progress in
developing its information and communications
infrastructure in recent years, particularly in the
availability of modern basic service and cellular
services.
The number of main fixed lines grew from 3.5
per 100 inhabitants in 1996 to 6.1 in 2011. Mobile
telephone penetration rate per 100 people has
grown from 9.2 in 2002 to 103.8 in 2011. The
number of cellular subscribers grew from 1800
in 1996 to 2.9 million in 2011 (December) with
the licensing of five operators.
Mongolian Telecommunications
backbone network
Special symbols
City
Center of soum
Settlement
Boundary
Train stop
ICNC (state owned company) fiber optic network
Mobicom LLC fiber optic network
Ulaanbaatar railway fiber optic network
Gemnet LLC fiber optic network
Skynetworks LLC fiber optic network
Project on “Extension of backbone network“

13. 12 - 13
Mobicom Corporation, RailCom, a subsidiary
of Mongolia Railways, and Gemnet LLC oper-
ate their own private fiber optic and microwave
infrastructure along main backbone networks,
road and railways. This creates a favorable envi-
ronment for both the Government and custom-
ers, by providing affordable bandwidth while
increasing returns on state owned assets and
investments.
A number of licensed VSAT service providers
also provide various value-added services such
as managed network services and on-line ser-
vices of commercial bank services.
The Internet service market is fully liberalized
and there are approximately 657.009 Internet
subscribers by the end of 2012.
As the broadcast media has an important role
to play in the development of Mongolia by pro-
viding information to its citizens, the equipment
of radio and TV studio, transmission systems
and TV broadcasting stations were upgraded in
2006-2008. Within this framework, Mongolia
started broadcasting 6 domestic digital TV (in-
cluding the National Public TV and other com-
mercial TV channels) through whole Mongolia.
Mongolia will ensure that the policy and regu-
latory environment allows fair and competitive
provision of infrastructure and services.
Two 3G/ GSM system operators - Mobicom and
Unitel LLC - and two CDMA system operators
– Skytel LLC and G-Mobile LLC - are providing
mobile communications services in Mongolia.
There were 50 Internet service providers in the
market at the end of 2012. Internet service pro-
viders connect with key ISPs via fibre-optics net-
works; these are connected to Russia and Chi-
na, and are operated by the Railcom Center,
Gemnet Company and MobiCom Corporation.

14. SECTOR DEVELOPMENT POLICY AND STRATEGY
ICT applications can support sustainable development, in the fields of public administration, busi-
ness, education and training, health, employment, environment, agriculture and science within
the framework of national e-strategies e.g. e-government, e-commerce, e-learning, e-health,
e-environment, e-agricultural and e-science.
The Information Technology, Post and Telecommunication Authority (ITPTA) of Mongolia is re-
sponsible for all ICT policies, coordination and implementation under the direct auspices of the
Prime Minister of Mongolia. The ICT sector has been given great priority and is regarded as the
leading direction of the Government development strategy.
The government’s development strategy considers the ICT sector among its greatest priorities.
The government’s 2005 Mid-term Strategy for the Development of the ICT Sector will be imple-
mented according to the E-Government Master Plan, and the subsequent E-Mongolia National
programme.
The E-Mongolia National programme in-
tends to establish an information society and
the foundation of a knowledge based society in
Mongolia through the extensive use of ICT in all
sectors of our society so that, by 2014, Mongo-
lia becomes one of the top ten ICT developed
countries in the Asian Region. The Visions of the
“e-Mongolia” National program are to establish
the information society and the foundation of
the knowledge based society in Mongolia by en-
hancing extensive application of ICT in all sec-
tors of society and to make Mongolia one of the
top ten ICT developed countries in Asia on a per
person basis by 2014.
Mongolia’s E-Government initiatives include a
build-up citizen-centred, result-oriented, mar-
ketbased government by utilizing ICT through-
out the government sector, including central
and local administrative units.
The Government Action Plan 2012-2016 de-
fines practical actions concerning the intro-
duction of e-Government into all government
institutions at all levels, to modernize and cen-
tralize the basic telecommunications network to
international broadband standards, to provide
an integrated information system by creating
a Nationwide numbering code, to establish an
integrated information network for hospitals,
to provide computers to homes and schools in
all population centers with a regular source of
energy.

15. 14 - 15
Mongolia’s National Broadband program, to be implemented by 2015. Its main goals are to improve
the quality of life for all citizens by:
• by enhancing industrial productivity via
ICT, to upgrade Mongolian competitive-
ness;
• to establish a high speed DWDM backbone
network and national IP/MPLS network
and migrate to IPv6.
• to provide universal data service for public
and private organizations and households.
This policy document was based on global ICT development trends guided by the mon-
itoring and evaluation on midterm implementation strategy of the World Summit on
Information Society-2008 conducted by international Telecommunications Union (ITU),
10 proposed objectives up to 2015, the monitoring and evaluation on information and
communications technologies of European Union countries.
Also, as a part of the objective to support the development of business and the private sector,
the Government intends to create a favourable policy and regulatory environment for Public
and private partnership (PPP) development in the ICT sector. As a first step, the Government
implemented the policy and regulatory framework for building the appropriate regulatory and
management structure, and renovation of the backbone telecommunications network.
The State policy on ICT development up to 2021 was drafted in the end of 2011 and it based
on the MDGs based comprehensive National Development Strategy of Mongolia; “E-Mongolia”
national program and other sectors’ policy guidelines and programs; the studies and recommen-
dations from international organizations; and ICT policy documents of some foreign countries.
• by increasing wide range, always-on,
applications such as e-government, e-com-
merce, e-learning, e-health etc;
• through high speed and low cost broad-
band network with an IPv6-based back-
bone network (IP/MPLS) which covers all
of Mongolia;

16. The Internet of things, cloud computing and mo-
bile Internet networks convergence, and more,
are all important advances. The next generation
of Internet addressing - IPv6 – will be essential
to their development. A rich supply of Internet
addresses is vitally important to the deployment
of many new technologies including cloud com-
puting, smart grids, RFID, IPTV among others.
The telecommunication sector has been sub-
ject to reforms since the end of the 1990s. It
should be mentioned that Mongolia signed an
agreement with the WTO in 1997, which oblig-
es it to liberalise the telecommunication sector.
The agreement makes provision for a roadmap,
which includes the allocation of a second mobile
licence, a licence for a data transmission oper-
ator, a licence for a fixed-line operator and the
partial privatization of the incumbent operator.
The opening of the telecommunication sec-
tor created a new context for the incumbent
operator on the one hand, and on the other
necessitates a de!nition of the action rules for
operators who plan to establish themselves in
the Mongolian market. In order to organize the
sector in this new framework, a Communica-
tions Act was promulgated in 2001.
The CRC, established by the Communications
Act of 2001, is an independent Mongolian Gov-
ernment regulatory agency. The CRC regulates
and supervises a wide range of subjects includ-
ing competition issues, the provision of net-
works and services for fixed line and wireless
telecommunications, television, radio, and satel-
lite transmission, spectrum management, postal
services and the Internet throughout Mongolia.
Key operators like Mobicom Corporation, Rail-
Com, a subsidiary of Mongolia Railways, and
Gemnet LLC operate their own private fibre-optic
and microwave infrastructure along main back-
bone networks, roads and railways. A number
of licensed VSAT service providers also provide
value-added services such as managed network
services and online commercial bank services.
During 2009, the Government of Mongolia in-
troduced DTH multichannel TV broadcasting
covering all of Mongolia by satellite. The CRC
licensed earth stations, which began operations
in July 2009, for the Ku-band satellite; they pro-
vide capacity for more than 20 DTH television
channels.
In November 2009, the CRC granted two IP
television (IPTV) and two Mobile TV licences
in Ulaanbaatar, the capital city. This important
step introduced IP services and new mobile ap-
plications and content to Mongolian people. In
April 2011, Univision LLC was launched the first
IPTV services in Ulaanbaatar. In 2012 Skymedia
IPTV service also launched in Ulaanbaatar.
In 2010-2012, four existing mobile operators-
Mobicom Corporation, Skytel LLC, Unitel LLC,
G-Mobile LLC - began 3G services.
The CMMB and DMB standards have been ad-
opted in Mongolia for the provision of mobile
digital television services. These services will be
established by private companies who make the
choice of technology between the systems. Oth-
er than the fact that they are most likely to op-
erate within the Band III Television Band, there
REGULATORY FRAMEWORKS IN THE SECTOR

17. 16 - 17
is no specific requirement that they be
interoperable with the terrestrial broad-
cast standard.
In October 2010, CRC and ICTPA jointly prepared
and submitted the “National Program on Radio
and TV Broadcasting Transition to
Digital Technology” to the Mongolian
Government, Government of Mongolia
has been approved and decided to migrate all
analog television to digital, and has announced
that analog services will switch-off on 31 July
2014.
The broad objectives for the Mongolian Government’s DTV migration plan can be
summarized as follows:
1. Analogue switch off will occur 31th of July 2014,
2. The Government plans to migrate all of the terrestrial rebroadcast transmitters to digital un-
der a Government-funded project.
3. The Government would like the first stage of this project to be completed by October 2011
(basically a pilot programme to demonstrate the system capability and implementation). De-
pending on costs, this might establish up to ten provincial or regional transmitters and the
necessary up-linking arrangements.
4. The Government would like to see at least ten SDTV programme services on the digital mul-
tiplex available across the country.
5. Guidance has yet been provided about coverage of digital services. A reasonable assumption
would be that the digital services should, as a minimum, match the coverage of existing an-
alog transmissions and that when necessary the DTV coverage be extended to cover growing
urban areas, and to address any nine coverage deficiencies with the current analog services.
6. If possible DTV implementation should allow for competitive proposals for the provision of
up-linking and satellite capacity for distribution of the services.
7. The proposed initial services should share a single multiplex.
8. The ability to insert local programs Aimag Centre transmitters should be incorporated within
the design, even if implementation is not carried out immediately. These services should, if
possible, be part of the single multiplex.
9. The initial Government-funded implementation will install DTV in all existing 374 sites.

18. CRC established its nationwide System for Spec-
trum Management and Monitoring (SMMS),
which includes mobile, portable and fixed radio
monitoring and inspection facilities. With help
from the World Bank, CRC purchased the SMMS
equipment to strengthen its regulatory capaci-
ty, radio frequency regulation and broadcasting
services and to properly implement ICT sector
reform policies and promote competition and
growth in the sector.
Services to provide with triple play service access
to customers thanks to Internet protocol tech-
nology is blooming now. Main confronted issues
to develop the service are network quality, vid-
eo, TV quality and copy right issues. Also differ-
ence between terminology “triple play service”
and “IPTV service” needs to be clear for custom-
ers and the service operators and it is required
to be reflected in the license classification.
Digital TV standards
Regarding the decision on DTV transmission
standards, the CRC used one approach that is
instead of organizing wide and time consum-
ing field tests, CRC organize 4 Research groups
which consist of local universities and experts
of ICT sector to give a recommendation based
on the comparative field tests of the different
standards made in many countries in the world.
In conclusion of the research in the end of 2011,
CRC has decided to use DVBT2 for terrestrial
transmission DVB-C2 for cable networks and
DVB-S2 in use for the Direct to home services.
ITU-UNESCO Broadband Commission for Digital Development set four important targets
to be reached by 2015. These are:
• Making broadband policy universal. By 2015, all countries should have a national broadband
plan or strategy or include broadband in their universal access/service definitions.
• Making broadband affordable. By 2015, entry-level broadband services should be made
affordable in developing countries through adequate regulation and market forces (for
example, such services should cost less than 5 per cent of average monthly income).
• Connecting homes to broadband. By 2015, 40 per cent of households in developing coun-
tries should have Internet access.
• Getting people online. By 2015, Internet user penetration should reach 60 per cent world-
wide, 50 per cent in developing countries and 15 per cent in least developed countries
Broadband network development and introduction of services issue, which is the main topic of the 12th
ITU Global Symposium for Regulators’, is also confronted and crucial issue for Mongolia.

19. 18 - 19
INTRODUCTION OF THE CONSULTING PROJECT
Contracted consulting company:
“Macmillan Keck Attorneys & Solicitors”
Communications is chang-
ing very rapidly today.
Worldwide, the informa-
tion and communications
technology (ICT) sector
is characterised by rapid
convergence of services
and technologies.
Mongolia is no exception, and the changes in
market and technology need to be met with
commensurate changes in regulatory policy.
An increasing variety of wire-line and wireless
technologies carry a wider range of types of
communications than ever before. Voice calls are
made over the Internet using software on user
devices, no longer just across traditional mobile
networks or a public switched telephone net-
work (PSTN). Consumers communicate across
fibre, copper, mobile (2G, 3G and now 4G) Wifi
and Wimax networks among others. Video and
audio content can be distributed across satellite,
cable and traditional broadcast technologies –
and over the Internet. Very often any one com-
munication service will rely on a combination of
this proliferating array of technologies. Very of-
ten also, any one network technology is used to
carry many different kinds of services. Leaps in
information technology have created ever-more
useful devices and an extraordinary multitude of
innovative platforms for communication “over
the top” of the networks.
The development of information technologies
and communication networks has transformed
the potential of the ICT sector to bring great
benefit to countries’ populations, business sec-
tors and Governments around the World. Im-
proved communications among people, busi-
nesses and Government makes the public and
private sectors more efficient, stimulates inno-
vation, attracts investment, leads to economic
growth and can strengthen social inclusion.
Mongolia too can benefit from these opportu-
nities. Indeed, Mongolia’s large geographic ter-
ritory and small population make telecommuni-
cations a vital element of the nation’s economic
and social development, and its security.
Many countries are formulating national ICT
policies and introducing next generation legisla-
tion to ensure that they enjoy the fullest possi-
ble benefit from the ICT sector’s transformation
and role as a key engine for growth.
These policies have both supply side and demand
side elements. On the demand side, ICT policies
have focused on use of ICTs by the public sector
(e.g., eGovernment, eHealth, eEducation) and
increasing ICT literacy in the population.
On the supply side, they focus on development
of networks, including higher speeds, great-
er robustness and wider geographic coverage.
Competition has been the cornerstone of suc-
cessful policies for the provision of networks
and services. Ensuring that public resources, in
Project title: Renewing the vision-Mongolian
communications licensing and regulatory policy in an era of
convergence (Financed by the World Bank)

20. particular radio spectrum and land, are made as
available as possible is increasingly at the fore-
front. In some countries, greater private sector
investment in such networks is the goal. In oth-
ers, the public sector has been prepared to sub-
sidise large infrastructure projects for backbone
networks, access networks that reach customers,
and international connectivity. In some cases,
cooperatives among operators (and sometimes
including the Government) have shared risk and
investment costs over essential infrastructure.
In this context, the Communications Regulatory
Commission (CRC) and its advisers are reviewing
the existing licensing regime with the purpose
of ensuring it strengthens competition, attracts
investment, and deals with the challenges and
opportunities of convergence of technologies
and services.
Key aspects of the Mongolian
communications market
• Significant growth in penetration and reve-
nue for the past 5 years
• Horizontally segmented markets (wholesale
vs. retail)
• State-owned fibre-optic core and access net-
work (Netco)
• Some self provisioning of national backbone
infrastructure
• Active and competitive mobile sector
• Competitive broadcasting sector with large
number of CATV providers
Role of licensing
• Optimizing the allocation of scarce resources
• Defining market structure
• Managing market forces
• Vetting market entry
• Reinforcing regulatory certainty and enforce-
ment
• Generating revenue (cost-recovery)
• Expanding networks and services
Key aspects of the current approach
to licensing
• Licence required to provide “public communi-
cations service”
• Separation policy as basis of licensing frame-
work
• Licence classes separated into A (infrastruc-
ture and network), B (services) and C (con-
tent)
• Applications for all licences subject to indi-
vidual approval
• Some limitations on the number of licences
due to concerns over market size, competi-
tion, duplication
• Certain licences limited to fixed geographic
scope
• Fixed annual licence fees (and upfront fees
for VoIP)
Licensing regime issues for discussion
The CRC’s advisers have met with sector stakeholders, including discussions with the Information Tech-
nology, Post and Telecommunications Authority (ITPTA) and several of the country’s mobile and fixed
line service providers and broadcasters. As a basis for that consultation, the CRC seeks to discuss the
following areas where reform might be considered in order to keep pace with changes in technology
and the market. :

21. 20 - 21
1. Rationale of the licensing framework: The current licensing framework relies on: (1) distinctions
between facilities, services and content, and (2) distinctions between wholesale and retail services. How
consistently are these distinctions applied? Do they need streamlining? How conducive is the current
licensing framework to convergence?
2. Licence scope: How clear are the scope of the different licence categories (e.g., definition of licence
classes and types? How could they be improved?
3. Necessity of certain licence types: Are there any types of licences that are redundant or unnecessary
(e.g., data hosting licences and content aggregators)? Should the CRC discontinue licensing requirements
in any cases and address concerns through other regulatory means?
4. Technology neutrality and convergence: What licensing requirements hinder the ability of operators
to take full advantage of service convergence and maximise the usage of their networks? Should a more
technology neutral and converged licence classification framework be adopted?
5. Limitations on the number of licences: What limits should apply to the numbers of licences for ser-
vices? Should the CRC focus more on necessary qualifications to enter markets where excessive number
of licences may reduce quality (e.g., cable TV)?
6. Monitoring and enforcement: A number of comments have been made about the inadequacy of
regulatory monitoring and enforcement. Should the CRC add terms and conditions related specifically to
monitoring and enforcement in licences in order to reinforce this aspect of the CRC’s functions? Should
the CRC employ greater use of performance bonds to ensure compliance with licence conditions?
7. Licence duration and renewal: How are licence durations perceived? Should the CRC review licence
durations with a view to rationalising them based on objective factors, taking into account the useful
life of the underlying assets, so as to allow for an acceptable return on investment for operators? How
should the CRC balance the importance of investor confidence through likelihood of renewal and the
need for flexibility in regulating where technologies and markets are constantly changing?
8. Geographic scope: Licences are typically set according to geographic location, and some radio spec-
trum licences will naturally remain geographic in limitation. However, should the CRC as a general matter
aim to grant licences on a national level (i.e., generally without geographic restrictions)? Would this help
allow operators to take advantage of economies of scale?
9. Licence fees: The CRC is reviewing its licence fee framework. In light of the growing international
practice of levying fees as a proportion of revenue, should the CRC set fees in this manner? Should fees
be set at levels intended to recover costs associated with the CRC’s regulatory activities?
10. Licence applications: Licence applications for all types of service licences are currently subject to a
single standard application procedure, which requires substantial information and review, regardless of
the type of licence. The CRC seeks to review the process with a view to accelerating it. Should it ease
licensing application processes through increased use of notification and registration processes for some
types of licences?
11. Clarity and transparency: What mechanisms can the CRC introduce to strengthen fairness and
transparency? E.g., will it help to publish criteria for qualification or selection where possible and, in the
case of disqualifications or rejections of applications, providing justification?
In the next, CRC is preparing to organize a consultation forum to discuss with licensees the issues
identified and recommendations made by its advisers in this project. The purpose is to give licens-
ees an opportunity to express to the CRC and its advisers their perceptions of the challenges in the
sector and the priorities for reform.

22. LICENSING AND SERVICE REGULATION
While issuing licenses, the CRC has maintained the principles to develop an efficient and fair com-
petitive environment that will better accommodate the interests of end users, technical specifications,
network coverage and expansion within the framework of government policy to develop the commu-
nications sector.
• By the 13th CRC resolution of year 2011, the CRC has approved the general conditions and
requirements on building and use of ICT networks and infrastructures (A-class license); on
providing information, communications and postal services, installation and maintenance of
ICT networks, retailing and distribution services (B-class license); C-class license, that allows
a service provider to provide television and radio broadcasting and CATV; providing content
services, aggregation of contents and revised the general terms, conditions and requirements
for certification of mass media websites.
Regulation of ICT, Telecommunication
and Postal Sector
CLASSIFICATION OF LICENSEES
The CRC has responsibility for administering the licensing of ICT and telecommunications, including
construction of networks and provisioning of information, communications, and postal public services
for promoting competition and ensuring a favourable investment climate for the network and service
providers of the sector.
There are three classes of licenses plus registration certificate:
A-class license,
which allows an
operator to construct
information, commu-
nications and postal
networks; to build
infrastructures;
B-class license,
which allows a service
provider to provide
information, commu-
nications and postal
services; installation
and maintenance of
Information and Com-
munications networks;
distribution services
and other type of
services.
C-class license,
that allows a service
provider to provide
television and radio
broadcasting and
CATV; providing con-
tent services, aggre-
gation of contents.
Registration
certificate, which
allows individuals and
entities to provide
mass media websites.

23. 22- 23
A-class licensing
An A-class license must be held by the owner of information, communications and postal networks
used to supply network services to the public. The CRC may grant an A class license if the applicant
satisfies:
• General terms and conditions of Licensing Requirements Procedure;
• Technical conditions for interconnection with any other networks operating in Mongolia;
• Quality demands during the installation and usage of equipment, specified by the Communi-
cations Regulatory Commission;
• Technical solutions for the security of information transmitted over a network and any related
organizational measures.
B-class licensing
B-class licenses must be held by service providers for supplying information, communications and
postal services to the public. Also, by the 13th resolution of the CRC, a service providers of Com-
munications cable network and infrastructure installation and maintenance services and Retailers /
Distributor/ and other service providers must have B-class licenses. The CRC grants B class licenses
if the applicant satisfies:
• General terms and conditions of Licensing Requirements Procedure;
• Any interconnection agreement existing in Mongolia, which should be concluded in accordance
with the procedure issued from the CRC;
• Interconnection fee determined in accordance with the methodology specified by the CRC;
• Quality demands set up by the CRC;
• Service pricing and tariff in accordance with the methodology developed by the CRC and prior
to tariff being applied shall inform customers by publishing in the media;
• Consumer rights and confidentiality.
C-class licensing
C-class licensing is allowing a service provider to broadcast television and radio and CATV; providing
content services, aggregation of contents.
Registration certificate
Registration certificate allows individuals and entities to provide mass media websites.

24. LICENSE TYPE Total
issued
In 2012
Issued
License
Terminated
License
Amended
License
Extended
“A” class license: COMMUNICATIONS NETWORK AND INFRASTRUCTURE
ICN 6 1
RTVTN (radio, TV) 1
SN (satellite) 3 1
DSI (data storage)
“B” class license: COMMUNICATIONS SERVICE
IDD (international) 24
LDD (intercity-mobile) 8 1
LDD (intercity-fixed) 7 1 1
IS (internet) 67 4 19 3
DS (data) 3 1 1
CaTV 81 1 1 5 3
SatTV 1
IPTV 2 1
MobileTV 1 1
CSR (satellite) 6
CSR (PBX) 7
CSR (mobile) 1 1
CSR (message)
CSR (radio, TV)
NIIM 181 34 72 34
“C” class: CONTENT SERVICE
TV 104 10 16 6 4
FM 95 14 28 4 8
TV channel 92 39 4 2
Content Aggregator
(online, mobile)
3 2
Total 693
REGISTRATION CERTIFICATE
Mass media website 20
Total 20
RADIO FREQUENCY LICENSE
HF Radio 2
MMDS 15
Wi-Fi 6 1
SatNonGeo 1 4
Total 24 5
Table 1: CRC License statistics in 2012

25. 24- 25
CONSUMER PROTECTION
AND QUALITY OF SERVICES
FeedbackRecognition ComplainsCritization
IN FISCAL YEAR, TOTAL NUMBER OF
CONSUMER COMPLAINTS IS 78
The CRC is required to determine and monitor
KPI (Key performance indicators) for each com-
munication service and targeted performances
with particular reference to consumer satisfac-
tion, consumer benefits and quality of service.
DISPUTE RESOLUTION AND
COMPLAINTS
The CRC is required to receive comments, com-
plaints and disputes from licensees and con-
sumers for settlement under its jurisdiction. The
main matters raised throughout 2012 were dis-
putes related to lease agreements, interference,
air - to free tv broadcasting, 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 as following;
• wireless internet access
• service quality of cable TV
• TV and web content
• unavailability of tv channel
• consumer billing of international data
roaming
THE GOVERNMENT CALL CENTER
“11 11”
“11 11” Center was established by the new gov-
ernment in order to be open for the citizens and
aiming to be transparent, eliminate bureaucracy.
It will take citizens opinions, critics by 10 chan-
nels such as email, messages, and social net-
works. Then make an arrangement to answer
their questions or concerns with the other gov-
ernment agencies and administrative organiza-
tions to give specific answers.
This center will use fully automated system in
order to take every single individual’s feedback,
comments, complaints, and compliments and
provide them to related authorities to evaluate
the implementation.
Number of Request
0
0
1
30
56
10025 12550 150 20075 175
212
COMMUNICATIONS
REGULATORY
COMMISSION
Feedback-212
Recognition-1
Complains-56
Critization-30

26. RUNNING WEBSITES
The CRC was developed and run websites to monitor internet connection speed by users, to aware
cyber security and skills, postal code finding and identification of users.
www.speedtest.mn
In 2010 for the first time, the CRC introduced the Ookla’s speed testing program to
internet users. In order to improve the measurement accuracy, CRC also presented
the line quality test in November 2011 and increased usages of these programs have
been proven to be very useful. The research showed that many consumers access
the web via their mobile phone, so we need new version for mobile users. CRC
speed testing program used by 144 210 consumers in 2012.
www.happywebs.mn
This web provides the basic knowledge and skills of security system, safety, infor-
mation security and protection including patch management, Email security, virus,
spyware and adware and firewall, piracy.
www.cybersafety.mn
Web designed to inform public awareness of cyber security, including online pro-
tection, tips and lessons.
The International Telecommunication Union urged its member countries, informa-
tion and communications industries and companies to work towards online protec-
tion and content of children in online environment in 2012. Since it’s certain that
internet environment has become smarter with various achievements, children need
to be environmentally secure while they are online. Therefore all member coun-
tries, organizations and companies should have training for cognitive development,
attend to international exhibitions, seminars and specialized training in order to
inform parents and young children to be able to monitor security of online environ-
ment. Please find recommendations on “Protecting Children in Cyberspace” trans-
lated by clicking this link http://www.crc.gov.mn/main.php?cid=1&do=100&did=0
www.zipcode.mn
Mongolia Postal Codes/Zip Codes are provided to the website visitors. An integrat-
ed coding system of land location (ZIP code) indentifies the area of the country
and provides greater efficiencies to Mongolian postal services.
HAPPY
webs

27. 26- 27
RADIO FREQUENCY
SPECTRUM REGULATION
SPECTRUM PLANNING AND MANAGEMENT
• 3 kHz-400 GHz. The Table is a legal in-
strument that prescribes spectrum usage
arrangements for LF, MF, HF, VHF, UHF
and SHF in the band of 3 kHz-400 GHz. A
range of radio communication services such
as broadcasting, mobile, data communica-
tions, space communications and special
consumption services is arranged in these
bands.
• LF, MF, HF: LF, MF and HF. These bands
are assigned for broadcasting, high power
radio transmission, plus transmission of 5
radio programs abroad. An aviation naviga-
tion control is also provided in these bands
in cooperation with ICAO.
• VHF. VHF band is assigned for television
and FM radio broadcasting. Walkie-talkie
The radio frequency spectrum has a wide variety of users, ranging from amateurs to providers of space
communications between satellites and ground stations. An efficient management of the spectrum
involves the planning of the spectrum to ensure that capacity meets a wide diversity of different user
needs where emerging technologies are consistent with international spectrum allocation principles. It
is also necessary to ensure that licensing regimes are in place that enable the allocation of spectrums in
a way that clearly defines the rights of users and protects the rights of licensees to use that spectrum
without interference.
According to the recommendations of the ITU World Radio Conference of 2007, the “National Radio
Frequency Table” was renewed, and a new chart for National Radio Frequency allocation was made in
2011. The allocations are:
OBJECTIVES
Efficiency in planning, allocation
and use of national resources
such as radio frequency spectrum.
stations, special consumption and signaling
systems are also covered in the VHF band.
• UHF. UHF band is allocated for television
channels. 4-6 channels have been provided
for each soum (totally 342 soums). Mo-
bile (GSM and CDMA), WLL, WiFi, satellite
communications services such as Iridium,
some types of radio relays are assigned
for this band.
• SHF. SHF band is planned for WiFi, WiMAX,
radio relays and earth stations.
• UHF band 694-790 MHz, the CRC is iden-
tified for use to implement IMT. (Interna-
tional Mobile Telecommunications). The use
of IMT in this band will not start until 30
June 2014.
Based on the introduction of 3G mobile technology in Mongolia by the policy and approach of CRC,
the steps for bidding and selection have been arranged, and approval granted to the bidding winners.
With the purpose of introducing and establishing new wireless technology in Mongolia, CRC issued
part of frequency bandwidth 2.3 and 2.5 GHz, developed the technical specifications, and undertook
measures to implement these. As a result of the bidding selection, one special license has been given
for the WiMax on 3.5 GHz bandwidth.

28. RADIO FREQUENCY LICENSING AND REGISTRATION
Radio frequency license. Total of 393 organi-
zations and business entities submitted requests
to obtain the special licenses for radio frequency
in 2012 to the CRC. Upon the decision of the CRC
Commission meetings, 43 of the total requests
were approved to get the special licenses, which
met the requirements and conditions for special
license. Special license of 28 business entities
and organizations were renewed and extended.
Upon the Committee meetings 47 special licens-
es had been cancelled which had payment prob-
lem; the contracts were expired and did not met
with related law and requirements.
Licenses for radio and television frequencies in Ulaanbaatar, Darkhan and Erdenet cities, and public use
mobile and fixed communications radio frequencies are awarded through competitive bidding selection
(tendering) in accordance with the Radio Wave Law of Mongolia and the Procedures on Competitive
Award of Licenses for Radio Frequency Utilization respectively. Frequencies for other services, including
rural service provisioning, are allocated if the applicant satisfies all terms and requirements subject to
the requested frequency availability.
Radio frequency authorization is granted in two types, which are “License” and “Certificate” in accor-
dance with the Law on Radio Wave of Mongolia.
MONITORING AND INSPECTION OF RADIO FREQUENCY ARRANGEMENT
The CRC is responsible for interference manage-
ment by monitoring and detecting illegal users
of radio frequency, investigating and analyzing
interferences of transmitters, measurement and
investigation of radio equipment at customers’
or licensees’ requests.
Radio frequency utilization certificate. A total
of approximately 846 businesses and individuals
sent in requests to obtain a certificate for radio
frequency, and 136 requests were approved, 111
requests were extended and 6 of the requests
were cancelled in 2012.

29. 28- 29
REGULATION OF BROADCASTING
Because the broadcast media has an import-
ant role to play in the development of Mongo-
lia by providing information to its citizens, the
equipment of radio and TV studios, transmission
systems and TV broadcasting stations were up-
graded in 2006-2009. Within this framework,
Mongolia started broadcasting with four do-
mestic digital TV channels (including the Nation-
al TV and other commercial TV) throughout the
whole of Mongolia.
For the first time in Mongolia, the CRC estab-
lished a Nation-wide System for Spectrum Man-
agement and Monitoring (SMMS) including mo-
bile, portable and fixed radio monitoring and
inspection facilities. With assistance from the
World Bank, the CRC purchased a SMMS for
strengthening regulatory capacity, radio fre-
quency regulation and broadcasting services for
proper implementation of ICT sector reform pol-
icies to promote competition and growth in the
sector.
The Government of Mongolia introduced DTH
multichannel TV broadcasting covering all of
Mongolia by satellite. The CRC licensed earth
stations, which began operations in July 2009,
for the Ku-band satellite; they provide capac-
ity for more than 20 DTH television channels.
In November 2009, the CRC granted two IP
television (IPTV) and two Mobile TV licences
in Ulaanbaatar, the capital city. This important
step introduced IP services and new mobile ap-
plications and content to Mongolian people.
The CMMB and DMB standards have been ad-
opted in Mongolia for the provision of mobile
digital television services. These services will be
established by private companies who make the
choice of technology between the systems. Oth-
er than the fact that they are most likely to op-
erate within the Band III Television Band, there
is no specific requirement that they be interop-
erable with the terrestrial broadcast standard.
In October 2010, CRC and ICTPA jointly prepared
and submitted the “National Program on Radio
and TV Broadcasting Transition to Digital Tech-
nology” to the Mongolian Government, Gov-
ernment of Mongolia has been approved and
decided to migrate all analog television to digi-
tal, and has announced that analog services will
switch-off on 31 July 2014.
A
NALOG SERVICES
SWITCH OFF

30. REGULATION FEE AND
INTERCONNECTION TARIFFS
revenue sharing between telecommunications
operators was renovated. Difference between
domestic and local communication service fee
has been changed to same tariff by agreement
CRC and Information Communication Network
LLC, Mobicom LLC, Skytel LLC, Unitel LLC,
G-Mobile LLC, and Mongolia Telecom LLC. Re-
sults of the implementation this interconnection
regime, mobile off net prepaid 2.4, post paid
3.6 times tariff reduced. Fixed subscribers in-
terconnection tariff an average of 1.7-2.5 times.
Information Communications Network LLC’s do-
mestic channel lease tariff for internet service
is regulated the 1st CRC resolution in 2010. As
a result of tariff approval, internet subscriber’s
monthly payment reduced and enables to in-
crease internet connection speed of customers.
At the CRC fourth meeting on April 14th of 2011,
the Interconnection income distribution princi-
ple on monitoring and approved tariff of office
telephone users of Mongolian Telecom compa-
ny, approved principle to distribute income for
starting international call from mobile operator,
setting highest limit of postage service tariff of
Mongol Post state-owned company and about
special permission was reviewed and approved
by resolution No. 10.
According to CRC resolution No. 3 of 2012, it’s
decided to approve price and tariff of radio and
telecommunication equipments type approval
service by following categories:
The CRC is required under the Communications
Law and relevant procedures to assess all service
providers’ tariff filings for precision and detail,
and to assess dominant’s tariffs for discrimina-
tion and anti-competitive impact. Non-dominant
tariffs must be reviewed within 14-21 business
days and contentious dominant tariffs reviewed
within 14-21 business days respectively.
The CRC approved the minimum rates of exter-
nal billings for international incoming calls and
termination rates of international calls at mo-
bile, wireless and fixed networks.
“Cost allocation methodology” for services was
adopted in order to settle long-lasting disputes
on discharged local long distance transmission
for local and long distance calls between MTC
and mobile telephony service providers.
The CRC also adopted a cost accounting model
by investigating economic efficiencies of a ser-
vice cost and service packages on the basis of
service costs of Mongol Post Company. Under
the policy to allow postal operators to distribute
and sell definitive stamps, the CRC has cooper-
ated with the Road, Transportation and Tourist
Ministry and developed relevant proposals for
approval.
In according to resolution of CRC meeting,
non-discriminatory interconnection price regard-
less of location has been introduced since 1st
February, 2010 and principle of interconnection

31. 30 - 31
Radio communication Equipment:
• Public Radio communication & Private Land
Mobile Radio communication Equipment
• Digital radio communication equipment
• Short Range Devices
Telecommunication Equipment:
• Consumer broadband access equipment
• Multi line Equipment
• Single line Equipment
RADIO SPECTRUM PRICING
AND CHARGES
The CRC is responsible for setting fees in ac-
cordance with the Methodology of Spectrum
Pricing, which was approved by the Minister
for Infrastructure in October, 2003. Fees were
determined in November, 2003 and application
and compliance with spectrum fees have been
implemented since 1 January, 2004 and proce-
dure was modified in 2010 and 2012 year.
Fees for frequencies that have high demands
and efficiencies (mobile, WLL, Wi-Fi, WiMax
etc) are higher than frequencies for lower de-
mands and usages (rural television and radio
etc).
NUMBERING CHARGES
AND PRICING
The CRC commenced a collection of numbering
charges in March, 2003. Prefix codes of inter-
national numbers were charged at 50 million tu-
grugs in the first year as regulatory fees. Regu-
latory fees are compared in the following table.
NUMBERING TYPES
Regulatory fees per year
/in thousand tug/
A. SPECIAL NUMBERS
1. Numbers to be used for emergency purposes such as ambu-
lance calls, fire alerts and enforcement agencies for social
order or crimes
Free of charge
2. Numbers for the purposes of technical monitoring of net-
works or technical maintenance
50,0 per number
3. Business and information directory services 500,0 per number
4. Internet service purposed 200,0 per number
B. ACCESS CODES
1. Access codes for independent gateways of /001, 002, 003,
004 / international call
3000,0
2. Area codes for domestic long distance calling 100,0 per number
C. NETWORK NUMBERING
1 Serial (10,000 ) 600.0
1 Serial (100,000) 6,000.0
1 Serial (1,000,000) 120,000.0
Regulatoryfeestonumbering

32. Regulation of Tariff and Pricing
PROMOTING COMPETITION
The CRC of Mongolia has always endeavoured
to encourage greater competition in the ICT,
telecommunications and postal sectors in order
to meet the objectives of “e-Mongolia national
program up to 2012” and “Government Action
plan 2008-2012”.
Because on the introduction of 3G mobile tech-
nology in Mongolia through the policies and ap-
proaches of the CRC, the activities surrounding
the bidding and selection processes have been
arranged, and approval has been given to the
bidding winners.
In November 2009, the CRC issued two IP tele-
vision (IPTV) and two Mobile TV licenses in
Ulaanbaatar, the capital city. This is an import-
ant step to introduce IP services and new mobile
applications, as well as the resulting content, to
Mongolian people. According to the CRC license
agreement, Univision LLC will be started the first
IPTV services in Ulaanbaatar in first quarter of
2011.
In 2010-2011, Mobile 3G licensee holders under-
took modernization of their networks and intro-
duced 3G services in more than 90 sites includ-
ing Ulaanbaatar.
Since February 2011, CRC has responsibility the
regulation of content issues due to the new law
approved by the Parliament.
Due to expanded foreign relations, international
investment and growth in Mongolian markets,
the number of citizens living outside Mongolia
is increasing; therefore, enlarging the scope of
the international parcel post service and increas-
ing the number of postal operators for courier
service is under consideration.

33. 32- 33
Names 2006 2007 2008 2009 2010 2011 2012
Ìîbicom
Corporation LLC
79,24% 61,88% 53,39% 45,65% 44,23% 42,92% 37,96%
Skytel LLC 15,87% 20,52% 21,62% 22,25% 21,92% 19,66% 17,24%
Unitel LLC 4,89% 16,12% 19,64% 18,03% 18,50% 21,21% 31,35%
G Mobile LLC 1,48% 5,35% 14,07% 15,35% 16,21% 13,45%
Total 100% 100% 100% 100% 100% 100% 100%
Names 2007 2008 2009 2010 2011 2012
GSM 931,839 1,287,656 1,363,485 1,429,627 1,616,691 2,362,736
CDMA 262,744 475,522 816,945 926,799 1,041,340 1,046,269
Total 1,194,583 1,763,178 2,249,023 2,510,470 2,942,313 3,409,005
3G 68,593 154,044 284,282 500,366
THE NUMBER OF MOBILE SUBSCRIBERS BY TECHNOLOGY | 2007-2012
1,194,583
2007 2008 2009 2010 2011 2012
1,763,178
2,249,023
2,510,470
2,942,313
3,409,005
3,500,000
2,500,000
2,000,000
3,000,000
1,500,000
1,000,000
THE NUMBER OF MOBILE SUBSCRIBERS
MARKET SHARE OF THE MOBILE SUBSCRIBERS
47.6%
27.5%
11.6%
17.2%
18.6%
KEY STATISTICS - 2012
This information, which is for users and costumers, is to provide clients with an overview of the com-
munications sector and consist of the following components. These include;
1. Mobile and fixed
network
2. Internet 3. CATV and
IPTV
4. Economic
factors
5. Human
resources
Mongolian national mobile market in 2012
reached 3,409,005 and the number of active
users rose by 18.6 percent compared with the
same period of the previous year. Throught to
the development of information technology,
communications, global trends, it is certain this
number will continue to increase.

34. THE NUMBER OF FIXED TELEPHONE SUBSCRIBERS | 2008-2012
Names 2008 2009 2010 2011 2012
Mongolia Telecom joint stock company 89,10% 86,11% 86,3% 82,3% 74,48%
Ulaanbaatar Railway shareholding company 6,9% 7,08% 6,2% 7,4% 6,35%
Government Cyber security office 2,03% 2,2% 2,2% 2,19%
Univision LLC 1,36% 2,3% 5,2% 13,32%
Skymedia LLC 4,0% 3,42% 3,0% 3.1% 3,66%
Total 100% 100% 100% 100% 100%
www.crc.gov.mn
Names 2007 2008 2009 2010 2011 2012
Postpaid 8,10% 10,35% 10,33% 11,04% 11,50% 11,99%
Propaid 91,90% 89,65% 89,67% 88,96% 88,50% 88,01%
Total 100% 100% 100% 100% 100% 100%
MARKET SHARE BY TERMS OF CUSTOMER PAYMENT | 2007-2012
For the structure of mobile users, there are total
of 88,01 percent prepaid, 11,99 percent postpaid
customers. Also the number of 3G service users
in 2010 was 154,044 and in 2012 this number
The number of fixed telephone users in 2011
was 187.561 decreased to 151.945 in 2012, which
shows users trend has changed. Global fixed
2008
176,000
178,000
180,000
182,000
184,000
186,000
188,000
190,000
192,000
194,000
196,000
2009 2010 2011 2012
Fixed telephone subscribers
184,813
188,875
193,239
187,561
151,945
telephone use dropped sharply in recent years
and is expected to continue and this situation is
likely to continue.
has increased to 500,366 with the 69 percent
by compared to the previous year. This shows
that Internet and information technology has
become as an integral part of our life.

35. 34- 35
In our country, the number of total mobile users
reached 3,4 million in 2012 and the density of
center of telephones per 100 inhabitants has be-
come 116,4, which is more than 32 points higher
5,46
2012
2011
2010
2009
2008
2007
0 20 40 60 80 100 120
16
116,4
80,5
103,8
6,6
16,5
79
6,9
17,2
90
76,2
6,8
17,8
82,2
67
6,8
18,5
67,7
59,7
6,5
19
45,3
50,2
MOBILE AND FIXED TELEPHONE SUBSCRIBERS | 2007-2012
Per 100 inhabitant
Fixed Telephone /Worldwide/ Fixed Telephone /Мongolia/ Mobile /Worldwide/ Mobile /Мongolia/
than the global average. For the fixed telephone
users, density of center of telephones per 100
inhabitants became 6,2, which means more than
10 points below the average of the world.

36. USAGE OF TELECOMMUNICATION SERVICES | 2007-2012
Per minute
The number of fixed telephone users decreased,
while the number of mobile phone users is in-
creasing every year. Call tariffs to increase the
number of user and service package options for
Names 2007 2008 2009 2010 2011 2012
Mobile network 63,27% 83,22% 90,41% 93,82% 96,78% 97,78%
Fixed network 36,73% 16,78% 9,59% 6,18% 3,22% 2,22%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Total Mobile network Fixed network
2012
2011
2010
2009
2008
2007
9,172,050,136
8,985,524,984
186,525,152
6,819,364,799
6,606,810,893
212,553,906
4,463,730,900
4,187,794,673
275,936,227
2,979,369,546
285,725,858
2,693,643,688
463,629,890
2,300,119,094
1,975,918,172
1,250,158,839
725,759,333
2,000,000,000 4,000,000,000 6,000,000,000 8,000,000,000 10,000,000,000
2,763,748,984
choosing the users need, depending on the mo-
bile phone operator. This increasing use of tele-
communications services has become one of the
main reasons.

37. 36- 37
CHANGES OF THE AVERAGE MOBILE PHONE CALL TARIFF | 1996-2012
By tugrug
Year
Network in the
average rate of
speech
Percentage of
decrease of tariff
Average tariff to
talk to other
networks
Percentage of
decrease of tariff
Postpaid Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid Prepaid
1 1996 425 390
2 1999 132 350 -321.0 -110.4 220 310
3 2006 89 110 -377.5% -254.5% 113 112 -94.7% -176.8%
4 2007 53 63 -701.9% -455.6% 70 73 -214.3% -324.7%
5 2011 52.4 54 -711.1% -622.2% 62 64.6 -254.8% -379.9%
6 2012 49 51 -722.5% -652.6% 62 62 -258.2% -404.6%
1996
1996
1999
1999
2006
2006
2007
2007
2012
2012
250
250
200
200
150
150
450
100
100
400
50
50
350
350
0
0
300
300
ON NET TARIFF
OFF NET TARIFF
Postpaid
Postpaid
Prepaid
Prepaid
1,1 times
3,2 times 3,5 times
4,8 times
1,3 times
2,1 times
2,9 times
2,4 times
3,6 times
2,0 times
6,2 times
8,0 times
7,2 times
8,2 times

38. BACKBONE NETWORK
Currently, there are 5 service providers who established bisinesses in the telecommunication market by
creating fiber optic transmission network. These include:
NAMES OF COMPANIES LENGTH OF FIBER OPTIC
Information Communication Network 7876 km
Mobicom Corporation LLC 5062,8 km
Railcom center 1405,5 km
Gemnet LLC 1199 km
Skynetworks LLC 2800 km
Total 18123.8 km
0.0 0.0
8,9 4,0
8,4 16,0
12,3 18,7
13,3 18,7
13,3 18,7
20.0 20.040.0 40.060.0 60.080.0
96,7
90,0
70,0
56,7 53,3
50,0
50,0
50,0
56,7 53,3
100.0
2008 2008
2009
2009
2010
20102011
20112012
2012
Between cities To mobile
subscribers
Calls on net | 1 min Calls off net in the city | 1 min
In the cities To fixed
subscribers
AVERAGE URBAN TELEPHONE CALL TARIFF ON FIXED TELEPHONE CALL
As of 2012, the Communications Regulatory
Commission has issued licenses of wholesale In-
ternet services to Information Communications
Network company, Mobicom Corporation LLC,
Railcom center and Gemnet LLC. These four ser-
vice providers relate to the international gate-
way with the Russian (Transtelecom) and China
(China Telecom, China Unicom).

39. 38- 39
Since the first use of Internet services in 1995,
internet has become use of every sectors of the
country and daily use for the people as well.
Since 2009, the number of Internet subscrib-
ers have increased dramatically in the Internet
service market and this started open and free
competition in service market. In addition to
2007 2008 2009 2010 2011 2012
1000000
17329
41835
106048
199849
457642
657009
2000000
3000000
4000000
5000000
6000000
7000000
0
TOTAL NUMBER OF INTERNET SUBSCRIBERS | 2007-20012
Costumers made contract
TYPES OF INTERNET CONNECTIVITY | 2007-20012
Costumers made contract
Number of internet subscribers
Year Di-
al-up
xDSI Fiber
Optic
Co-
axial
cable
GPRS ED
GE, 3G, E
VDO
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 27,964 51,073 9 354,760 3,325 18,554 175 1,758 457,642
2012 33 36,695 65,256 9 520,012 5,281 24,587 174 1,962 654,009
that decision of the Communications Regulatory
Commission to introduce 3rd generation tech-
nology has impacted positively.
At the end of 2012, Internet service 65 licenses
and the number of contract customers reached
657,009, which means increased by 6,17 times
compared to 2009.

40. INTERNET TRAFFIC BETWEEN COUNTRIES (Mbit/s)
0 5000 10000 15000 20000 25000 30000 35000 40000
2009
2010
2011
2012
2008 1,248
8,112
17,188
30,004
36,600
Internet traffic between countries has increased
by 22 percent compared to the same period of
2011. Due to the population and housing census
which was done in 2010 by the National Statis-
tical Office, 30,6 percent of the population of
age 6 and older use the Internet. For instance,
49,3 percent of the population in Ulaanbaatar,
22,6 percent of the population in central region
provinces, 11,0 percent of the population in the
western region, 13.8 percent of the population
in the eastern region and 14,4 percent of the
population in mountainous region use the Inter-
net services. By gender, 46 percent of Internet
users, or 325,3 thousands are male and 54% or
384,2 thousands are female.
By the end of 2012, there are three wholesale internet servise providers.
/Mobicom corporation LLC, Gemnet LLC, Ulaanbaatar Railway-Railway center/
Above mentioned servise providers rent internet traffic from the Transtelecom, Russia and China Unicom, China

41. 40- 41
2008
2005
2009
2006
2010
2007
2011
2012
50.0000
72,700
66,000
6,700
6,792
7,032
15,703
27,923
3,000
71,989
65,197
88,253
81,221
103,190
87,487
136,219
105,296
210,883
113,108
39,425
58,349
294,492
119,427
61,993
113,072
450,110
138,220
86,835
225,055
100.000 150.000 200.000 250.000 300.000 350.000 400.000 450.000 500.000
Total MMDS Satellite CATV
NUMBER OF TV BROADCASTING PROVIDERS | 2007-2012
MMDS
19%
Satellite
50%
CATV
31%
Analogy
31.98%
Digital
68.02%

42. NUMBER OF SUBSCRIBERS
OF IPTV | 2012
Univision LLC and
Skymedia LLC were
created technical
abilities to provide
IPTV services for
more than 148.000
households in
Ulaanbaatar.
IPTV subscribers
TOTAL 31,238
Only IPTV
subscribers 3,522
Dual service
IPTV+VoIP
208
Number of
triple service
subscribers
27,508
Univision LLC has started to provide IPTV+In-
ternet+Fixed telephone triple service first time
in Mongolia. Afterwards, since Skymedia also
Types 2005 2006 2007 2008 2009 2010 2011 2012
Cable 66,000 65,197 81,221 87,487 105,296 113,108 119,427 138,220
Satellite 3,000 58,349 113,072 225,055
MMDS 6,700 6,792 7,032 15,703 27,923 39,425 61,993 86,835
Total 72,700 71,989 88,253 103,190 136,219 210,883 294,492 450,110
Types 2005 2006 2007 2008 2009 2010 2011 2012
Cable 91% 91% 81% 87,4 69,1% 54% 41% 31%
Satellite 3% 27,6% 38% 50%
MMDS 9% 9% 10% 12,6% 27,9% 18,4% 21% 19%
Total 100% 100% 100% 100% 100% 100% 100% 100%
NUMBER OF SUBSCRIBERS | 2007-2012
MARKET SHARE OF SUBSCRIBERS | 2007-2012
Univision LLC has started to provide IPTV+Internet+Fixed telephone triple
service first time in Mongolia. Afterwards, Skymedia also started to provide
same triple service in 2012, which made this service more selectable and
better.
started to provide same triple service in 2012,
this service has become more selectable and
better.

43. Information and
communication
sector has been
increasing every
year, and con-
sidering the total
revenue by the
type of services,
the mobile phone
service is leading
in the market
by its revenue.
Mobile service
revenue growth
is related to
the increasing
number of users
and the scope of
services in rural
areas.
65,33%
MARKET SHARE BY SUB SECTOR OF TOTAL REVENUE
Mobile operators
Fixed telephone operators
CATV
International calling
Free to air TV
Internet
Postal service
Satellite
Revenue of IPTV
Revenue of internet wholesale service
Other
8,68%
1,82%
1,11%
6,79%
6,72%
2,08%
3,56%
1,64%
1,29%
0,98%
2011
2012
2010
2009
2008
2007 283,5
365,2
449,2
470,9
649,7
0 100 200 300 400 500 600
28,8%
23%
4,8%
14,4%
20,5%
538,9
30,7%
42%
34%
12%
18%
11%
TAX CONTRIBUTION OF ICT SECTOR TO THE STATE BUDGET & GROWTH RATE
(billion. tug) | 2006-2012
2011
2012
2010
2009
2008
2006
0.0 20.0 40.0
38,0
54,0
70,6
73,0
81,8
96,5
107,2
60.0 80.0 100.0 120.0
2007
42- 43
TOTAL REVENUE OF ICT SECTOR (billion.tug) | 2007-2012

44. 74,45%
6,65%
6,60%
4,64%
2,40%
2,94%
1,39%
0,93%
Average salary in ICT sector
State owned companies
Mobile operators
Mobile operators
Free to air TV
Fixed telephone operators
Internet
Satellite
CATV
Postal service
Other
THE SHARE OF TOTAL REVENUE IN TO THE STATE BUDGET
NUMBER OF EMPLOYEES IN ICT SECTOR AVERAGE SALARY (thousand.tug)
2011
2011
2012
2012
427,4
780,9
630,0
415,6
578,0
750,8
390,9
465,0
712,8
360,2
450,0
700.4
350,8
360,0
650,4
2010
2010
2009
2009
2008
2008
2007
6,950
7,000
7,150
7,260
7,650
8,023
6.000 0 200 400 600 800 10006.500 7.000 7.500 8.000
By the end of 2012, in the information and com-
munications sector of Mongolia, there are 8023
employees.
Besides that in the sector there are 20,000 peo-
ple have permanent jobs for service providers,
29,7%
23,5%
-4,8%
19,8%
0,3%
contractors, vendors, trade, fixed and mobile
end-user device etc., In addition to that for
maintenance and construction work, such as
the cable construction work, such as the cable
construction works there are about 1000 people
have supplied seasonal work.

45. 108
107,7
108,7
89,9
94,4
76,4
Mobile operators
Revenue of IPTV
Internet
Fixed telephone operators
CATV
Free to air TV
Other
PERCENTAGE OF THE TOTAL INVESTMENT
2011
2012
2010
2009
2008
2007
0 100 200 300 400 500
-29,7%
23,5%
-4,8%
19,8%
0,3%
THE TOTAL INVESTMENT IN THE INFORMATION AND COMMUNICATION
SECTOR, GROWTH REDUCTION RATE (billion.tug)
70,56%
8,8%
6,2%
5,74%
2,45%
4,37%
1,88%
44- 45

46. REGULATION OF POSTAL SECTOR
In the Mongolian postal service market, there are currently 66 licensed postal operators running postal
service business. There is one state owned company (designated operator) Mongol Post LLC and other
60 private companies.
Following the existing Postal Laws and Regulations, the CRC issued thirteen new “B” class license for
postal services in 2012, and 9 license issued and 1 license were terminated. CRC also amended 6 “B”
class licenses.
1. Building postal network and use of it “A”
class
2. Postal service provider “B” class
3. Building across the country network and
use of it “A” class
4. Procedures on registration of postal service
between the countries
1
2
2
4
5
6
25
International Parcel
Service by directed route
Express Mail Service (EMS)
Domestic mail
Ordered and additional service
International Parcel
Establish postal network and utilization
International mail logistics service
1. Under license
“Law on licensing of business operation” in re-
lation to changes in communications classes to
update the license to engage in the types of
postal services, license conditions and revised.
Related that “Law on licensing of business oper-
ation” has amended, some changes has done in
classifications and revised the licenses engaged
in the types of postal services and conditions.

47. 46- 47
A1. LISTS OF REGULATIONS AND PROCEDURES
List of procedures and regulations, terms and reguirement apporoved by the CRC meeting for a period
from July 2002 to December 2012
Name of Procedures
and Regulations
Approved/Amendments/Modifications
(CRC Resolution number and Date)
2012
1
License classifications
to run communications
public services
Res.- 3,
05.11.2002
Annex 1,
Res.-7,
31.03.2004
Res.-38,
10.12.2004
By
meeting
.12.2005
2
Terms and require-
ments of licenses to run
communications public
services
Res.- 3,
05.11.2002
3
Procedure to issue,
prolong and cancel licens-
es and certificates and
enforcement
Res.- 4,
05.11.2002
Res.-39,
26.12.2003
Annex 1,
Res.-36,
25.11.2004
By
meeting
April.
2008
ATTACHMENTS
2. On zip code:
Ministry of Road and Transportation, Infor-
mation, Post, Communications and Technology
Authority, Communications Regulatory Commis-
sion, Geodesy and Cartography Authority, Urban
development and planning agencies and other
administrative organizations has been working
for last 5 years with Mongolian Post Agency on
implementing zip code project. Relating to this
project these agencies published updated hand-
book on zip code in 2012 and this time the book
was published including statistics and results of
Population census made in 2010. Besides that
the CRC is using www.zipcode.mn for providing
related informations.
3. Withing standards, new services
and education:
Information, post and telecommunications mo-
bile sector MNS 6356: 2012 standard was ap-
proved, and this raised the first step in the in-
troduction of one-stop services in postal and
telecommunications sector.
With the participation of custom inspectors,
CRC experts organized training, seminars by
each license holder and for each type of services
4 times at the workplace and build successful
discussions and meetings.
As a result of training, we created opportunity
for the costumers to have choice to take ser-
vices cargo-freight or mail services by differen-
tiating technological and tariffs served.

48. 4
Procedure to issue,
prolong and terminate
licenses or certificates to
utilize radio frequency
and monitor compliance
Res.- 4,
05.11.2002
Res.-39,
26.12.2003
Annex 2,
Res.-36
25.11.2004
Res-58,
14.12.2009
5
Procedure on competitive
award/tendering/ of li-
censes for radio frequen-
cy utilization
Res. -6
23.12.2002
Res.-33
17.10.2003
Res.-16
12.05.2004
6
Procedure on number-
ing telecommunications
networks
Res.-7
28.02.2003
Res.- 21
02.06.2003
Res.- 5
09.03.2005
By
meeting
Feb.
2006
By
meeting
Feb.
2008
7
Procedure to determine
regulatory service fees to
licensees
Res.- 12
28.02.2003
Annex 2,
Res.-7
31.03.200
Res.- 01
04.01.2006
8
Procedure on monitoring
communications service
quality
Res.-19
02.06.2003
9
Procedure on Complaints
and Disputes
Res.- 25
30.06.2003
Res.06
20.01.2012
Amend-
ment
10
Methodologies to define
communications service
tariff
Res.- 27
30.06.2003
11
Procedure on determining
and controlling dominants
in ICT markets
Res.- 30
09.09.2003
In respect with establishment of UCRA,
the procedure was invalidated.
12
Radio frequency utiliza-
tion and service fees **
Res.- 36
17.11.2003
By meeting
of May
2006
13
General procedure on
telecommunications net-
work access and inter-
connection
Res.- 37
26.12.2003
Res.- 19
08.06.2004
By meeting
of Feb.
2006
Res-46,
06.11.2009
14
Procedure on unbundling
Res.- 08
31.03.2004
By meeting
of Feb.
2006
15
Procedure on reviewing
backgrounds of commu-
nications services
Res.- 09
31.03.2004
16
Procedure on post net-
work access and inter-
connection
Res.- 20
08.06.2004
17
Procedure on frequency
utilization for amateur
radio stations in the terri-
tory of Mongolia
Res. 22
08.06.2004

49. 48- 49
18
Special terms and con-
ditions to licenses for
cable line installation,
assembly and mainte-
nance
Res.- 29
09.07.2004
19
Procedure on telecom-
munications network
access and interconnec-
tion charges
Res.- 37
30.12.2004
Integrated to “General
procedure on telecommu-
nications network access
and interconnection” in
2006
20
Procedure on con-
trolling international call
tariff compliance
By
meet-
ing
of Sep.
2006
21
Procedure on defining
regulatory fee
Res.-12
15.03.2003
Res.-48,
06.11.2009
22
Special terms and
conditions to provide
multimedia services
Res.-47,
06.11.2009
23
Terms and conditions
to local and domestic
telephony services
Annex-2,
Res.-26,
08.07.2009
24
Terms and requirements
of licenses to provide
international telephony
services
Annex-3,
Res.-26,
08.07.2009
25
Methodologies to
define radio frequency
fee and tariff
Res.-5,
18.03.2009
26
Procedure of tariff
regulation the ICNC
Res.-01,
12.01.2010
27
Procedure of Content
Regulation
Res.-09,
22.02.2010
28
Procedure on monitor-
ing the USOF quality
requirement
Res.-18,
28.04.2010
29
General Procedure on
Type approval
Res.-39,
30.09.2010
30
Amendment of Postal
license classification
Res.-01,
20.10.2010
31
Regulation of website
business by using com-
munication network
Res.-46,
14/11/2010
32
Terms and General
Requirements of Radio,
Television Broadcasting
Regulation
Res.-07,
17.02.2011

50. 38
Amendment of Regula-
tion guidelines of VoIP
services
Res.03
20/01/2012
(Revised
.25.2007)
39
Amendment of special
requirement of ISP
Res.25
26.04.2012
40
Special requirements
of two A-type licensee
holders in postal sector
Res.26
26.04.2012
Ammend-
ment-1 and 2
41
Regulation guidelines of
Wi-Fi system implemen-
tation
Res.27
04.05.2012
42
Additional requirement
for TV broadcasting
services
Res.35
10.05.2012
43
Code of conducts and
ethics for CRC staffs
Res.60
28.09.2012
44
Methodology for defin-
ing of monopoly and
dominant operators in
communications market
Res.74
27.12.2012
45
Requirements for
operators and license
holders in the border
zones and border spe-
cial areas
Res.75
27.12.2012
* “ Procedure on telecommunications network numbering” which was approved by Res.07, 28/02/ 2003 was invalidated
and revised by Res.-05, 09/03/2005
** “Procedure on radio frequency utilization and service fees” was approved by Decree#216 of the Minister for Infra-
structure in 2003 and subject to this procedure the CRC has determined “ Radio frequency utilization and service fees”.
33
General Requirements
of Digital Content Ser-
vice Regulation
Res.-08,
24/02/2011
Res.18,
23/03/2012
Amendment
Res.41,
25.05.2012
Amendment
34
Classification of
Licenses in ICT
Res.-13,
18.03.2011
35
Terms and Require-
ments on Postal Service
License
Res.-14,
18.03.2011
36
Terms and Require-
ments on content
Aggregator
Res.-42,
27.06.2011
37
Price lists of type
approval the communi-
cations equipment
Res.03
20.01.2012

51. 50 - 51
CLASSIFICATIONS OF LICENSES TO RUN
COMMUNICATIONS PUBLIC SERVICES
(Appendix to the 13-th Resolution of 2011, CRC meeting)
A2. CLASSIFICATION OF COMMUNICATION’S LICENSING
One. “A“ class: COMMUNICATIONS NETWORK AND INFRASTRUCTURE
Category Type Coverage
1
Establishing, owning
and operating
communications
network and
infrastructure
1. ICT backbone network and infrastructure
International
National / Regional
Local
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
Two. “B“ class: COMMUNICATIONS SERVICE
Category Type Coverage
1
Voice
International
Local and long
distance
2
Internet, data
1. Internet According to
service coverage2. Data
3
Radio and televi-
sion multichannel
1. Cable TV
According to
service coverage
2. Satellite TV
3. IPTV
4. Mobile TV
4
Post
1. Main service
According to
service coverage
2. Logistic
3. Courier post
4. International parcel
5. Direct route international parcel
5
Communications
cable network
and infrastruc-
ture installation
and maintenance
service
1. PBX installation and maintenance
According to
service coverage
2. Outside cable network installation and maintenance
3. Cable network installation and maintenance inside building
4. Equipment installation and maintenance on tower
5. Network operation and maintenance
6
Retailer /Distributor/ and other services
• Satellite mobile service (Iridium, Inmarsat ãì)
• Public services through PBX
• Establishing telecommunication or post service branches contractual basis with
main licensee
According to
service coverage

52. Three. “C“ class: CONTENT SERVICE
Category Type Coverage
1 Television broadcasting
According to service
coverage
2 Radio broadcasting
3 Television channel
4 Toll free and premium rate service
5 Content aggregator
1. Online
2. Mobile
Four. REGISTRATION
Category Coverage
1 Web site
Should be registered if average user access is
exceeding 3000 in one month.

53. 52- 53
AUDITED FINANCIAL REPORT
OF COMMUNICATIONS REGULATORY
COMMISSION OF MONGOLIA: 2011 Mongolian national audit office
Date: 19 March 2013 Ref.No.2/423
To: Mr. B.BALGANSUREN
Chairman and CEO, Communications Regulatory Commission of Mongolia
CERTIFICATION AUDITING
Scope. According to the section 15.1 of Law on Audit and section 8.9.8 of Law on State Treasury and
Finance, Mongolian National Audit Office has been audited the financial statements of the Communi-
cations Regulatory Commission of Mongolia (CRC) for the year ended 31 December 2012.
Management responsibilities on financial statement. Management of the CRC is responsible for
preparing financial statements that give a true and fair presentation of the financial position and per-
formance of the Communications Regulatory Commission.
Auditor’s responsibility. Our responsibility is to prepare independent audit report based on our au-
dited financial statements. We have audited in accordance with the International Audit standards and
Law on Audit, Law on State Treasury and Finance of Mongolia.
The audit has been conducted in accordance with international standards, in order to provide reasonable
assurance as to whether the financial statements are free of material misstatement. Audit procedures
included examination, on a test basis, of evidence supporting the amounts and other disclosures in the
financial statements, and the evaluation of accounting policies and significant accounting estimates.
Audit opinion. In our opinion, CRC’s statements of the year 2012 are true and fair in all financial
aspects and gave a true and fair view of the CRC’s financial position as at 31 December 2012 and of
its performance and cash flows for the year the ended in accordance with international accounting
standards.
S.ENKHZAYA
Director General
Department of Financial Audit
A3. Letter of Report

54. ASSETS
in thousand
tugrugs
CURRENT ASSETS
Cash and equivalent 2375237,7
Receivables 710492,3
Prepaid expenses 58691,2
Goods 2112,0
Total current assets 3146533,2
NON-CURRENT ASSETS
Physical assets 3593114,2
Non-physical assets 50894,8
Total non-current assets 3640090,0
TOTAL ASSETS 6790542,2
LIABILITIES
Other liabilities 380052,7
Unearned Income
Total liabilities 380052,7
EQUITY
Government fund 1169840,3
Total accumulation 5126017,4
Retained surpluses 114631,8
Total equities 6410489,5
TOTAL LIABILITIES AND
EQUITYIES
6790542,2
ITEMS in thousand
tugrugs
OPERATION REVENUE
Basic operation revenue 2973648,5
Non-Basic operation revenue 229046,4
TOTAL OPERATION
REVENUE
3202694,9
OPERATION EXPENCES
Employee related costs 1419650,8
Remuneration 1278501,4
Social and health insurance 141149,4
Good and service expenses 1249981,9
Levy funding 435823,9
TOTAL OPERATION
EXPENSES
3105456,6
OPERATION PERFORMANCE
Non operation revenue 20000
Non operation cost 483064,0
TOTAL NON OPERATION
PERFORMANCE
483044,0
PERFORMANCE 385805,7
BALANCE SHEET as of 31 December 2011

55. “CRC ANNUAL BOOK-2012” PREPARED BY:
T.NARANMANDAKH (WG Leader)
naran@crc.gov.mn,
TS.MUNKHZUL
munhzul@crc.gov.mn
B.MUNKHBAT
A.LUVSAN-OCHIR
CH.OYUNGEREL
B.ANKHBAATAR
Communications Regulatory Commission of Mongolia
Metro business center, 5th floor, Sukhbaatar district, Sukhbaatar street-13
Ulaanbaatar 14201, Mongolia
Tel:
Fax:
Email:
976-11-304257
976-11-366040
info@crc.gov.mn, foreignrelations@crc.gov.mn
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56. 2012Performance and Accountability Report