Telecommunications in Mongolia
Telecommunications in Mongolia face unique challenges. As the least densely populated country in the world, with a significant portion of the population living a nomadic lifestyle, it has been difficult for many traditional information and communication technology (ICT) companies to make headway into Mongolian society. With almost half the population clustered in the capital of Ulaanbaatar, most landline technologies are deployed there. Wireless technologies have had greater success in rural areas.
Mobile phones are common, with provincial capitals all having 4G access. Wireless local loop is another technology that has helped Mongolia increase accessibility to telecommunications and bypass fixed-line infrastructure.
For Internet, Mongolia relies on fiber optic communications with its Chinese and Russian neighbors.
Telecommunications infrastructure
Telecommunications network is improving with international direct dialing available in many areas. A fiber-optic network has been installed that is improving broadband and communication services between major urban centers with multiple companies providing inter-city fiber-optic cable services. • 7 satellite earth station: Intersputnik (Indian Ocean Region), Intelsat, Asiasat-1. • International overland: Europe-Russia-Mongolia-China (ERMC) cable system.
Mongolia’s broadband market
Mongolia possesses a liberalised and competitive telecoms market served by multiple competing players and an incumbent operator that no longer holds a dominant share of its market. Mobicom is the number one mobile operator in the Mongolian market with 36% market share followed by Unitel (31%), SkyTel (24%) and G-Mobile (9%).
Operators have focused on expanding network reach and capacity to support the growing popularity of fixed and mobile broadband services, doubling the amount of fibre optic cable in Mongolia within the past five years alone and extending into Mongolia’s sparsely populated rural regions.
The fixed broadband market has been growing strongly over the past few years. Penetration has increased from 4.9% in 2013 to 7.1% in 2015 and 7.4% in 2016. Further strong growth is predicted over the next five years to 2021.
The penetration of fixed lines in Mongolia has increased strongly over the past five years as a higher proportion of residences decide to take a fixed line access option.
The growing popularity of mobile broadband has underpinned overall broadband growth and coincided with a contraction in fibre subscriptions, suggesting some end users are migrating from fibre to mobile. Broadband growth in 2017 will continue to be underpinned by mobile, consolidating Mongolia’s position as a “mobile first” telecoms market and shaping the future direction of Mongolia’s developing digital economy.
High mobile penetration levels in Mongolia are indicative of healthy competition although the market is undergoing transition. Overall mobile penetration levels as well as mobile voice traffic is contracting while 3G accounts for an increasing proportion of total subscriptions, with the total number of 3G subscriptions expected to overtake 2G subscriptions by 2017.
Mongolia’s mobile subscriber market has experienced relatively slow growth over the past five years in a relatively mature market. Market penetration has increased from 104.8% in 2011 to over 105% in 2016. Further slow growth is predicted over the next five year to 2021.
Key Developments:
- Fixed line penetration has increased from 5.2% in 2012 to nearly 9% in 2016.
- Mongolia Telecom no longer holds the largest market share in the fixed line market
- Operators are investing in fibre to support future broadband growth
- Total mobile voice minutes contracted for the first time in 2015
- Mobile represents the dominant share of total broadband subscriptions
- Mongolia has emerged as a “mobile first” country
- 3G subscriptions expected to overtake 2G by 2017
Radio
More than 100 radio stations, including some 20 via repeaters for the public broadcaster as well as transmissions by multiple international broadcasters are available. As of 1997, there were 360,000 radios.
Ulaanbaatar has 34 FM stations, including foreign radio stations BBC World Service, VOA, and Inner Mongolian Radio. In the whole country there are 5 longwave broadcasting stations, the most powerful at Ulaanbaatar with 1000 KW.
Television
The Mongolian National Broadcaster (MNB; Mongolian: Монголын Үндэсний Олон Нийтийн Радио Телевиз; Mongolian for Mongolian National Public Radio Television; shortened as МҮОНРТ) is the official, state-funded broadcaster in Mongolia.
Television broadcasts started in September 1967, a second channel was launched in July 2011 and the third channel was launched in July 2016.
There are over 64 channels broadcast in Ulaanbaatar and about 20 channels broadcast nationwide.