Draft Plan of action *

Introduction and scope of this action plan *

Background *

Issues related to ICT use and development in Mongolia *

Implementing the ICT Vision 2010 *

Objectives and action items *

Implementation schedule *

Budget considerations *

Annexes: *

Plan of action

ICT development in Mongolia

Over the period 2000 – 2003

Richard Labelle

Consultant, UNDP

rlab@sympatico.ca

The terms of reference for this action plan appear in Annex I. The plan of action contained in this report has been prepared in consultation with stakeholders from all sectors of society and of the economy, and especially the members of the ICT Council. The time frame of this plan is four years. Beyond that, it would not be possible to predict changes in technology and other factors. Four years corresponds to the length of the parliamentary cycle in Mongolia.

See Annex III

Several factors are now combining around the world to foster the creation of an information and knowledge based global society driven by nearly unlimited access to people, ideas, information, knowledge and resources of all kinds. The Internet drives this technology-facilitated economy of people, goods and services. The Internet is key because it is a technology that converges many of the most recent inventions and developments, technical and otherwise, into an increasingly pervasive, open and user friendly platform for near instantaneous access to and sharing of local and global communications. Recent geo-political developments, along with the dismantling of trade barriers and widespread deregulation, also known as globalization, have enabled the use of these technologies around the world, in a fashion that is largely unrelated to jurisdiction and value systems.

As a result of this convergence of technologies, ideas and opportunities around the microprocessor and the Internet, all forms of human interaction are being enabled, enhanced and facilitated like never before. Digital forms of broadcasting, whether point to point, multicast or broadcast, whether for radio or television, using fixed or wireless TCP/IP based networks, are becoming a reality. Multimedia communications of all types, as well as telephony and fax, sound and/or imaging, will be transported over the Internet. Devices of all types, located in all imaginable locations and for all kinds uses, will be embedded with microprocessors and networked over the Internet. A new category of service providers, application servers, are appearing around the corner and around the world to deliver any application, good or service that can be digitized.

These developments are now fueling entrepreneurial and economic activities of various sorts. Jobs are being created and creativity is being unleashed. Along with the convergence of these technologies, we are seeing the convergence of industries. The recently announced merger of two US companies: AOL and Time Warner is further evidence that these events will have a marked effect and impact on the ways business is transacted and goods and services are delivered to people around the world. AOL is the largest Internet service provider (ISP) in the world and Time Warner is the largest entertainment company in the world. Their merger is the largest business merger of all time and is valued at over USD 150 billion.

The use of information and communication technologies is growing dramatically, exponentially in some cases. In the near future, probably in the year 2000, the volume of traffic carried over the Internet using the TCP/IP protocol will surpass the volume of traffic using the public switched telephone network (PSTN). Already, it is estimated that around 250 million people are using the Internet. The volume of business that will be transacted over the Internet will surpass $ 1.3 trillion by the year 2003. It is predicted that in the coming 5-10 years, most telecommunications, including telephony, fax, interactive television, streaming multimedia including video-conferencing and electronic data exchange will grow in volume and will transit over the Internet. Internet bandwidth is expected to grow by about 50-100 times over the next 7 years.

The only communication technology that is growing faster than the Internet, is the growth in the number of users of cellular telephones. At present, it is estimated that there are about 300 million mobile phones users worldwide and that this will grow to about 1 billion in the year 2005. However cell phone growth is also contributing to overall growth in access to the Internet. Here as well, convergence is operating. According to the Yankee Group and Ovum, by the year 2005, the estimated number of smart phone users worldwide will range between 50 to 200 million. Smart phones are cell phones equipped with microbrowsers. About 3 million users today have access to the Internet using their cell phones.

Internet use continues to grow, with the estimated number of actual subscribers at around 250 million depending on the source quoted. The term subscribers and users must be used carefully because many subscribers are actually governments or large companies. In developing countries, it is common for many people to use one PC, so these figures are probably not accurate.

• ICT statistics and infrastructure indicators worldwide and in Asia
• Growth in the number of users of PCs and the Internet

• 43.6 million Asian users online presently
• 228 million Internet users in Asia by 2005
• 370 million Internet users in Asia by 2006
• By 2005, 37.5% of all users in Asia will be Chinese (87.5 million users)
• Business Internet use worldwide will grow by 6400% (64 times) in volume in 2003 compared to 1996

• Growth in bandwidth

• Via direct (point to point) fiber connections. Hubs to benefit: Singapore, Hong Kong, Japan and South Korea

• Growth in content

• Presently, most content is in English, but this is changing
• In China, there is growth in the use of English by Internet users
• English language content will slow compared to content in other languages (Chinese, etc.)

• Growth in applications and services

• Application service providers will become more and more important
• Best example is e-commerce: to grow to > $ 1.2 trillion by 2003

• Growth in e-commerce and business to business applications
• Online Banking in Asia Set to Boom
• $ 500 million of goods/services sold online in Malaysia in 1999
• 500% growth projected in 3 years

• Growth in other ICTs: radio, television, telephony

• When fiber and other high bandwidth IP networks are in place, it is predicted that these will replace all communication media over the coming 5-7 years
• In the year 2000, the volume of traffic over IP networks will be equal to the volume of all traffic over the public switched telephone network (PSTN) in 2000

• Growth in wireless services

• The number of cellular subscriptions worldwide will grow from 470 million at the beginning of 2000 … and will reach over 1 billion by the beginning of 2004 (Ovum Dec. 1999)
• Total cellular revenues worldwide will increase from $300 billion at the end of 1999 to $462 billion by the end of 2001, and 601 billion by the end of 2003 (Ovum Dec. 99)
• There will be 48 million worldwide smart phones (cell phones equipped with microbrowsers) users by 2002 and 204 million by 2005.
  Ovum, Sept 1999 Quoted From WSJ 9/20/99: "First Voice, Now Data"
• In 2005, there will be about one billion mobile phone subscribers, and a substantial portion of the phones sold that year will have multimedia capabilities.

• The economies of Japan, Singapore, Hong Kong and Australia are much more developed than the rest of Asian economies and experience high Internet growth.¹
• In Asia the Internet will grow significantly, in particular in the more developed economies. Japan will remain the most dominant Internet force in the region, both for business and consumer markets.
• Developing countries in Asia will only account for a small fraction of the overall Internet usage, although they will experience significant growth in terms of numbers.
• In developing Internet countries growth will be largely restricted to urban areas. In addition to a poor network infrastructure the necessary technology (phone, PC and modem) is still not affordable for most sections of society. Many users will use the same connection. These countries will have very low Internet penetration rates whereas highly developed Internet countries like Japan and Australia will experience increasing Internet penetration across the entire population.

Vision 2010 proposes turning Mongolia into a knowledge economy or society. What does this mean? Are there countries that have achieved and/or that are well on their way to becoming knowledge economies and information societies? What are their characteristics and what does this tell us about the choices that Mongolia may have to make to achieve its objectives, to achieve its Vision 2010?

• A high level of economic development overall
• A high literacy level among the population at large
• A high level of student enrolment in public and private educational establishments
• A high level of computer literacy
• A large installed base or park of PCs and ICTs
• A telecommunications infrastructure that provides universal access
• Ready and easy access to ICTs and the Internet. This comes from a liberal, open and competitive market for Internet services. The greater the numbers of competing ISPs, the greater the number of Internet users, local Web sites and electronic services available via the Internet
• A strong public education establishment, at all levels, from primary, through secondary and tertiary education, supported by continued investment in teacher training and equipment
• A sound business environment, supported by a sound financial and banking sector and access to credit on competitive terms for SMEs
• Presence of small, medium and large investors looking for opportunities and ready to invest locally
• Opportunities for outside investors
• A market for electronic goods and services

Some general trends and issues that affect the evolution of information and communication technologies in Mongolia are documented by Narantsetseg. Data includes projected growth of the number of ‘Internet users’, growth in e-commerce, etc.

These data show the considerable developments in the use of ICTs and especially the Internet in Mongolia. Unlike many other countries in the developing world, the private sector has and continues to have an important role to play in helping to provide and to extend the use of ICTs and the Internet. In many countries, the role of the private sector has been given lip service by national authorities that prefer to rely on their national telecommunications companies or agencies instead. The significance of these data are further discussed below when comparing advantages and disadvantages that Mongolia has in developing the Internet as per the Vision 2010.

The following data from Narantsetseg describes the state of ICT and Internet use in Mongolia

• Telephone density/100 inhabitants: 4.1 in Mongolia as a whole and 10.5 in UlaanBaatar
• Main telephone lines in operation: 96,000
• Number of cellular telephone subscribers: 5,300
• Number of Internet subscribers: 4,500
• Number of paging service subscribers: 3,300
• Number of households with cable TV: 25,000
• Number of telecommunications services operators: 2
• Mongolia Telecoms Company (MTC)
• Mongolia Railways
• Number of cellular services providers: 2
• Number of Internet service providers (ISPs): 5
• Number of providers of paging services: 2
• 70 % of the market for Internet services is made up of business users, including government, etc.
• Approximate total bandwidth to the Internet: about 1.28Mbps, not including DirecPC (400Kbps/)
• Main connection to the Internet backbone: satellite
• Connections in Mongolia use several vehicules:
• telephone dial-up
• leased-lines
• VSAT
• Wireless connections

What are the characteristics of Mongolia as it faces up to the challenge of becoming a knowledge society? What are the assets and liabilities of Mongolia that have to be taken into consideration as the country develops a plan of action to become a knowledge intensive society that takes full advantage of the information technology revolution and that participates to the fullest extent possible in the global economy?

• > 96 % literacy
• Highly trained population with many scientists, technicians and engineers
• Ability to adapt to technical change
• Presence of key decision makers who see the importance of ICTs
• Young population ready to learn new skills and languages
• Many well organized institutions of higher learning in UlaanBaatar
• ICT 2010 Vision statement which is forward looking. There is broad-based support for this. Most developing economies, and especially smaller countries, do not have a national vision for how to use ICTs, let alone a strategy
• Government support for ICT Vision 2010
• Unlike many countries, Mongolia offers international telecommunications channels such as very small aperture terminal satellites (VSAT), DirecPC, that allow private investors direct access to the global Internet: VSAT.
• Liberalized market for the resale of Internet services: there are 5 Internet service providers (ISPs) all operating in a level playing field. No single ISP dominates by reason of monopoly or control over access to the Internet backbone. Barriers to market entry are limited to access to resources and know how
• Relatively low import duties on PC and related hardware and software
• Government that does not interfere in provision of Internet services or access to international bandwidth. However, the Government does issue licenses
• Possibility of private sector to lease direct satellite connections to the Internet or to data networks
• Awareness of the needs to move ahead at many levels, including government
• Sufficient entry level technical and business expertise to build intranets and ISPs. Much self-training and learning using the Internet, etc.
• Entrepreneurial spirit is there in ICT sector
• Growing tourism industry with global appeal and world class attractions (Gobi, dinosaurs, diverse flora and fauna an ecosystems, traditional living – Gers, herding, trekking, etc.). Opportunities for winter tourism. 300 sunny days / year
• Awareness of Open Source solutions as possible options for low cost network construction, if trained personnel available
• Potential for using solar and wind power, especially in remote locations (Mongolia enjoys over 300 sunny days a year)

• Small and fragmented market (2.6 million people dispersed over a vast area)
• Remote location in respect to regional markets. One of the lowest population densities in the world
• No direct physical access to the Internet backbone
• Commodity based export market, with exception of tourism which is growing
• High cost of transportation to and from and within Mongolia (air and rail routes predominate, as there are few reliable roads)
• Climate: harsh and cold for much of the year. Short tourist season.
• Limited knowledge of the main international business languages. Some foreign language skills (Russian), but need foreign language teachers to develop proper language skills and to develop use of English as a business language for example
• Hardly any certified networking (TCP/IP and related) and IT technicians
• Limited ability to produce electronic goods and services and few electronic goods and services available, especially software
• Large and extensive use of pirated software
• Distinct possibility that many people trained and certified will leave the country in search for better prospects. However, people do return to Mongolia and remittances could increase substantially as a result.
• Lack of skills to grow ICT based businesses
• Lack of experience with Open Source solutions, especially Linux applications for office productivity and TCP/IP and thus more reliance on costly proprietary software systems and applications. Lack of readily available Linux certification programmes. However, there are several Linux servers operating in UlaanBaatar in both commercial and public organizations
• While there are over 1500 Ph.D.’s and over 290 research projects in Mongolia, only 0.17% of the national budget is allocated to research (Education Strategy document)
• While there appear to be no barriers to entry into the Internet service provider (ISP) market and while there seems to be open and relatively fair competition between ISPs in the Mongolian market, it is unclear whether this is due to the presence of policies that encourage this situation or to the fact that the regulatory and legislative authorities are unaware of the situation or unwilling to regulate an activity that appears to be running well. "An open, liberal, competitive and a well-regulated telecommunications sector is essential to improving access to the Internet because it lowers prices and increases the numbers who can afford to connect".

The Vision 2010 document states fact that Mongolia wants to become a ‘knowledge society’. The government, the private sector and the public, indeed all sectors of society and of the economy, need to harness the potential of the information and knowledge revolution to improve the health, wealth and well being of everyone.

What does this mean in fact given the present situation of the economy and the development priorities of the country? What are the priorities? How should the Action Plan and the Vision 2010 be implemented?

As a result of discussions that took place at one time or another with most of the 21 members of the ICT Council, and based on research and further discussions undertaken during the course of this mission, it is proposed that the focus of the action plan over the coming 4 years be in the following areas:

Creating an enabling environment for enhancing and extending the use of ICTs and the Internet by adopting, creating and/or strengthening appropriate standards, regulations, policies, financial support, mechanisms and institutions

Ensuring that a modern, cost effective, competent and universally accessible telecommunications infrastructure exists across the country

Developing the human resources base upon which a Mongolian Information Society will be built, grow and sustained

Strengthening the capacity of the private sector to make beneficial and commercial use of the Internet and of ICTs, and to generate employment and profits

Enhancing capacity to deliver government services across the country and encouraging greater citizen involvement in the governance of the country

Providing support for public computer access to the Internet at the local community level

Enhancing the presence of Mongolia on the Internet

Strengthening the capacity of scientists, researchers and other experts and professionals to collaborate using the Internet for the greater development and advantage of Mongolia

Establishing viable institutional arrangements to implement the action plan.

There are two categories of priorities: operational priorities and programmatic priorities.

The implementation mechanism is the only operational priority and it deals with how to implement this action plan and make it operational.

Among the programmatic priorities, human resource development is a pre-condition for dealing the other priorities. Awareness promotion, strengthening and maintaining an appropriate policy environment and encouraging and facilitating local community access are also pre-eminent. The priorities identified need to be addressed at the same time, in parallel and not sequentially, but emphasis initially should be directed to the first priorities.

An implementation mechanism needs to be agreed and support for implementation via this mechanism guaranteed. Support from the government, and especially from key decision makers in the government and from deputies and members of parliament, and the public and private sectors is essential. These key decision-makers have to be involved in the governance of the implementation mechanisms agreed upon for these to be effective. Preferably, the solutions and whatever institutional arrangements are put in place can become self-sufficient very quickly.

Implementation is to be undertaken via the involvement of two related but separate and independent entities, structured as such under the laws of Mongolia.

The ICT Advisory Council will be the formal structure into which the ICT Council evolves. It will hopefully also include members of the ICT Association, the government of Mongolia and its key ministries, the private sector and other partners from Mongolian society. The involvement of these entities should be as members of the board of Directors of the Advisory Council. The ICT Advisory Council will advise on matters pertinent to the implementation of the ICT Vision 2010. In a sense, the Advisory Council will be a guarantor of Vision 2010.

Like the ICT Council, the ICT Advisory Council will also involve representatives from all sectors of the economy and of society from across the country.

Technological change and infrastructure development is occurring at a very rapid pace everywhere. There is a need to track developments in ICTs worldwide as well as in Mongolia and to feed this back into the decision-making and research, planning and implementation process. The outputs of this work will feed government policy and help the private sector remain aware of trends, opportunities and partners. An existing cadre of key decision-makers has been assembled and regrouped under the present day ICT Council. Members of the ICT Council should form the board of the ICT Advisory Council, strengthened by the inclusion of key members of parliament and of other decision-makers.

The Council would be an independent organization, legally constituted, and capable of entering into legal and contractual arrangements to discharge its responsibilities. The Advisory Council will help guide ICT development for the good of all Mongolians and in support of official development policies and objectives. Inasmuch as possible, the Council will operate on a cost recovery basis, and will also seek funding via voluntary contributions from the Government of Mongolia, the private sector and the international community.

• To advise the government and the ICT Development Agency (see below) as well as others on matters, including strategies, pertinent to ICT development,
• To provide a voice for development stakeholders in the implementation of the ICT Vision 2010,
• To inform government, the private sector and elements of civil society, including development actors, of the present state of ICT advances and developments worldwide, and is Asia especially,
• To promote the use of ICTs for development,
• To advise the government on and propose to the government ICT standards appropriate to Mongolia,
• To continue the work of the ICT Council,
• To advise on and monitor the implementation of the Vision 2010 and the action plan.

• Collect, analyze and communicate information, and essentially become an observatory reporting on the development of ICTs worldwide and their impact on Mongolia and the Vision 2010,
• Obtain feedback and input from all sectors of society and of the economy, from across the country, on the implementation of the ICT Vision 2010 and this action plan,
• To make proposals to modify, adapt and enhance the action plan on an ongoing basis,
• Encourage official involvement in and also participate as needed in local, national, regional and international fora pertinent to ICT use and development in Asia and around the world, including events dealing with discussing or setting ICT standards,
• In collaboration with other actors, to undertake activities that will raise awareness of the importance of ICTs. An example could be business and other fairs, publicity campaigns, media events, seminars, training, study tours, activities aimed at encouraging overseas investors interested in ICTs to consider opportunities in Mongolia, etc.,
• Undertake research and analysis on ICTs and prepare an annual report on the state of ICT development in Mongolia and around the world,
• Flag issues of strategic importance to the government of Mongolia and to other Council stakeholders and national partners,
• To act as an independent overseer of the ICT Action Plan by providing input and/or undertaking planning, monitoring and evaluation,
• To undertake research and analysis on ICTs,
• To report its findings to the ICT Development Agency (see below), the government, other key decision-makers and the public.

The members of the Board of Directors of the ICT Advisory Council would also sit on the board of the implementation organization, the Mongolian ICT Development Agency.

A second and separate organization, the Mongolian ICT Development Agency, will be an independent non-governmental entity responsible for implementing the Action Plan and for eventually realizing Vision 2010. The ICT Development Agency will be a not for profit organization that can raise funds and enter into contractual arrangements. It will work closely with the ICT Advisory Council with which it will share some board members. The Mongolian ICT Development Agency will report to a Board of Directors that will answer directly to the Government of Mongolia via the Office of the Prime-Minister and/or via any channel deemed most appropriate for this. The ICT Development Agency will include on its board members from infrastructure departments and ministries, as well as the telecommunications sector.

• Implement the action plan, including securing support for this. Assume responsibility for operationalizing the action plan
• Engage and collaborate with other government and public sector organizations to implement the plan
• Help communities and organizations everywhere to use ICTs.

• Project management, including procurement of goods and services
• Organizing / securing funding, including negotiating with government, the private sector, donors and other sources of support
• Maintaining ongoing and open communication with the Government of Mongolia, local governments and administrations, especially in aimags, the private sector and elements of civil society
• Training: offering training directly, or better, supporting and building the capacity of organizations such as the formal educational system – schools, technical colleges and universities, and companies and others such as community groups, local governments and NGOs to provide this service. The Agency will encourage the development of certification programmes in Mongolia, including the provision of testing services and will negotiate with organizations in Mongolia and otherwise to deliver these services in a cost efficient and timely fashion
• Language training: encouraging and facilitating foreign language training for ICT students and professionals. Negotiating with entities such as the British Council, the Alliance Française and the French Cultural Centre, the Goethe Institute, the cultural sections of the embassies of China, Japan, Korea, Russia and others, as well as other organizations in Mongolia (private, public or otherwise) to help develop foreign language training in Mongolia. The Agency, in close consultation with the Government of Mongolia, the ICT Advisory Council, the educational authorities, the private sector and students, will decide which languages are a priority and act accordingly
• Setting up community access centres and helping to develop community based ICT applications
• Helping to set up and operate e-application business incubators in collaboration with the private sector (Chamber of Commerce, Association of Employers, other professional associations or groupings, etc.)
• Establishing a Mongolian trade and information portal, in collaboration with the trade promotion services of the Government of Mongolia, and especially the Foreign Investment and Foreign Trade Agency and others, such as the Chamber of Commerce). In collaboration with appropriate partners, to provide a virtual market place for trade in Mongolian goods and services. This will include establishing a Mongolian ICT procurement portal: see for example procurement sites such as www.merx.cebra.com.

The ICT Development Agency will seek self-sufficiency. The Agency will report to a Board of Directors seconded from key government agencies, such as the Ministry of Infrastructure Development, as well as other key ministries, as well as representative of the private sector most directly involved in ICT development.

One possible activity of such a Mongolian implementation mechanism could be a Mongolian Internet portal. Canada and China now use Web enabled business platforms for trade, auctions, referrals, news, information awareness and exchange and procurement services. See especially: http://www.meetchina.com/ and http://www.strategis.gc.ca/. Subscriptions and other cost recovery schemes from participating companies could be a way of generating revenue to support the implementation mechanism. The portal is a service the Agency would make available to the over 30,000 SMEs in Mongolia, as well as other potential subscribers.

The implementation mechanisms will require resources. In kind support for office space and logistics can probably be secured in negotiation with various governmental and other partners. Already some offers in this direction have been forthcoming. Operational funds are another matter. Staff and other direct costs to undertake research, for communications and travel, etc. will have to be secured through negotiation and also by offering goods and services on a cost recovery basis. This must be kept to a minimum by relying on short-term employees and consultants.

It should not be the intention of these proposed organizations to add to the already significant financial burden of the Government of Mongolia, which is presently operating under deficit or near deficit conditions. The creation of large organizations is not realistic so both agencies have to be small and catalytic in nature, and guided by their ability to raise support, either directly, through the provision of goods and services such as those presented above and/or by seeking support from other sources. The ICT Development Agency should be able to capture funding as part of the implementation process. The ICT Development Agency will be the main contractor in a way of the action plan.

The location of either of these organizations in government, for example in a ministry, especially a vertical ministry, will also present difficulties because this will imbue the project with a sense of ownership by one party. The intention clearly is to ensure that implementation is open and accessible to all. If these organizations or the activities they are to undertake are located in an existing organization, that organization should be perceived to be a neutral facilitator. The need to seek support from the private sector needs to be considered as well.

This plan proposes the creation of 2 organizations. Even if these entities are not created, there will still be a need to accomplish the activities listed below. Creating new organizations to do this is the cleanest way of proceeding because everything starts at ground zero. This will help focus issues and create and maintain momentum However, if it is not feasible to create these organizations, then others will have to take on the task of implementation. One option is to include both organizations into one entity that will be responsible for everything. The reason for separating the entities is to entrench the ICT Advisory Council as an overseer and more or less independent organization not directly involved in implementing the action plan, but responsible for monitoring and evaluating the results. Being a separate entity facilitates this.

The creation of two new and separate entities may encourage rivalries and lack of collaboration, which could have the reverse effect on the outcomes that are being sought. Enlightened management, inclusiveness and open and frequent communication are necessary to overcome these potential pitfalls. It is important to work closely with public corporations and key ministries and agencies of the Government of Mongolia, especially so in areas of overlapping responsibilities.

There is also the risk that these implementation mechanisms will be perceived by some as being too close to the government and thus not sufficiently independent. The importance of including representation from all sectors of society and of the economy and from across the country on the Board and in the governance of the implementation mechanism cannot be overstated.

There is also the risk that the implementation mechanism will be captured by one interest group or that representation between interest groups and stakeholders is not balanced. This could be due to a variety of reasons, including poor communications across the country. The result could be inefficiency and tardy implementation without sufficient input from concerned and involved parties. One interest group that needs to be part of the whole process is the rural dwellers, and especially the one-quarter of the population that lives a traditional and nomadic life style.

There is the risk that not all groups will feel represented on the Board or at the executive and operational levels of the entities created. The reaction and involvement of the ICT Association and of representative of local community groups and aimags will help to gauge the significance of this risk. All of these groups should be effectively represented.

Finally, one of the greatest risks will depend on the degree of high level support for the action plan. In Malaysia, a similar ambition, has lead to the creation of the National Information Technology Council (NTIC). NTIC was established "… with the vision of creating an information-rich society in line with the aspiration of Vision 2020". The chairman of NTIC is the Prime Minister of Malaysia, Dr. Mahathir Mohamad.

Creating two separate entities may be overkill and may not succeed under the present circumstances because of a lack of available resources to support both entities. However, once the action plan starts to be implemented, funds should be available to the Development Agency as a management fee for execution of the action plan. Still, this may not be sufficient.

Given the current financial crisis of the Government of Mongolia, government funding for the mechanisms suggested here might not be forthcoming. Novel and innovative forms of funding will have to be secured, including seeking funding from the private sector and building cost-recovery into the operations of both entities.

Whatever solution is finally adopted, it is imperative that the principles of implementation suggested below be respected. Otherwise, the plan will not capture the full range of opportunities and potential open to Mongolia.

Within these areas of intervention, the first priority is to quickly develop human resources to help sustain and extend the important gains that Mongolia has made in using and applying ICTs and especially the Internet. The rapid deployment of Internet infrastructure around the world and the especially large current and predicted increases in the growth in the number of Internet users in Asia make this a priority for Mongolia. Indeed, growth in the number of Internet users over the coming years is expected to be fastest in the Asian region.

As a result of the initiatives taken by companies such as Datacom, and with the catalytic assistance of outside organizations such as the International Development Research Centre IDRC) of Canada and the National Science Foundation (NSF) of the USA, access to the Internet has been a reality. Other entrepreneurs such as BodiComputer, including individual investors and large corporations such as TelecoMongolia and the Mongolia Railways Corporation, have jumped into the fray, and a competitive market place for Internet services exists.

Self taught specialists have emerged and have so far been able to provide the basis for growing and managing the Mongolian Internet. However, there is a need to increase the number of ICT experts and to strengthen their capacity, otherwise further growth and development will be compromised. More important, innovative ICT applications tailored to the needs and circumstances of Mongolia will not have the intellectual and entrepreneurial energy and resources to help develop appropriate solutions that will contribute to enhancing Mongolia’s competitiveness.

There is also a need to create appropriate policies and practices to direct ICT development and to make it more of a tool for national development in general and for corporate development in particular. There is also a need to extend the Internet and bring into the fold companies and people by helping them acquire some of the tools and expertise that are used around the world. Also, given the accelerated rate of Internet growth predicted in Asia, and Mongolia’s ambitions as expressed in the Vision 2010 document, there is a very urgent need for Mongolia to train its own experts according to international standards.

Presently, in Mongolia, there is a human capacity gap in ICTs. Few certified ICT specialists exist. Internationally recognized ICT certification could not be obtained in Mongolia, until recently, although no one has been trained yet. Those who do have the skills or who acquire these skills overseas are likely as not to leave Mongolia and not return. Neighbouring countries, especially South Korea, Taiwan, Hong Kong, Singapore and Malaysia, even the USA offer enticing wages to attract engineers and IT specialists from around Asia. The ongoing worldwide shortage of skilled IT engineers and specialists requires Mongolia to develop its own strategy in order to establish local expertise and help keep these experts in country. A strategy to retain these specialists must be devised. This needs to be accompanied by the creation of opportunities locally that make leaving Mongolia unnecessary or less likely.

Awareness promotion continues to be necessary. Although it appears that many decision makers, managers and even school teachers in aimags have an interest in the Internet, there is still a need to ensure that key decision makers and the public, not to mention the international development community itself, understand the importance of using ICTs as a tool for the development of Mongolia.

Another key priority is to help the private sector and government develop the understanding and capacity to make beneficial use of ICTs and of the internet. For the private sector, there are two priorities: first, raising awareness among the 30,000 + Mongolian SMEs and larger enterprises of the use of the Internet for business to business e-commerce. Secondly, there is a need to help grow business to business e-commerce. As the data show, this is such a significant development that if something is not done to bring Mongolia up to speed quickly, then the country could lose out. Mongolia could miss important business opportunities and see its competitive advantage eroded as others develop cheaper and quicker means to trade with partners everywhere.

The strategy of this four year Action Plan, the first such Action Plan on the way to implementing the ICT Vision 2010, is the following:

1. Institutionalize the implementation mechanism

This will provide a conduit for ongoing discussion and involvement from all sectors of society and the economy across the country in realizing the Vision 2010 through the Action Plan. It will help provide essential feedback, manage change to the implementation process and assume responsibility for implementation. The mechanism should be seen as ways of facilitating action, and not be an institution in itself. Therefore, the mechanism(s) should be very open, flexible and adaptable in its arrangements and avoid bureaucratic practices, a bit like the way the Internet operates.

2. Develop local capacity as soon as possible

Short-term training is the immediate way of achieving this. Focus on networking skills and short-term certification programmes while strengthening the institutions responsible for providing longer-term academic training. Look at cost recovery options. Work with existing education and training service providers, including the universities and technical schools. Encourage the private sector to offer, alone or with foreign partners, short term training courses.

3. Help locally certified networking specialists find and/or create employment

Help locally certified specialists create employment and new ventures, companies, etc. by creating ICT business incubators. Provide short terms courses to improve capacity in other spoken languages, especially English, Japanese, Korean, Russian, etc.

4. Continue brainstorming ICT possibilities

Continue to explore the possibilities nationally and in the region to exploit ICTs and the Internet especially. The ICT Vision 2010 should be revised on an ongoing basis. Support for this endeavour needs to be institutionalized, but not under the heading of a government organization. This mechanism needs to be established and agreed upon as soon as possible to ensure that the effort to achieve the Vision 2010 is recognized in a legally established entity in conformity with Mongolian law.

5. Work nationally and collaborate regionally as well as globally.

There are significant infrastructure, policy and standards issues that Mongolia should at least be informed about and tracking. Some of these are relevant to the Asian region. Along with tracking these issues, the ICT Advisory Council and other organizations in Mongolia, should become directly involved in any ongoing discussions concerning Internet infrastructure development in the region. One forum where these discussions take place is the International Telecommunications Union (ITU). There are also regional infrastructure development plans and activities that Mongolia must be more aware of and get involved in.

One reason for this is the significant role that Mongolia could play as a trans-Asia backbone linking South, South East, East and North Asia with Europe via the fiber railroad link that has been laid across the country. Some of these organizations include the Asia Pacific Internet Association (APIA: apia-sec@apia.org http://www.apia.org) and the Asia Pacific Network Information Centre (APNIC: http://www.apnic.org). Private Mongolian firms are already members of these organizations, but there is also a need to involve the ICT Advisory Council.

6. Focus on developing the capacity of the private sector

Help the business sector make beneficial use of business to business e-commerce. There are over 30,000 SMEs in Mongolia. If only a few had access to e-commerce tools, this could facilitate business exchanges not only in Mongolia, but also with trading partners around the world.

7. Develop local community access

Use existing structures, such as local government, local non-governmental organizations, including voluntary organizations, local schools, etc. to encourage local community access to computers. A public access centre or site operated by a local citizen's groups can have a role to play here. The local government, as was evident during a field visit to Zuunmod City in Tuv aimag, can be especially helpful by providing a venue and a connection to the Internet.

8. Develop an enabling environment

Develop an enabling environment by adopting appropriate policies and modernizing the banking and financial sectors. Encourage local and foreign investment in IT startups. Promote awareness among key decision-makers. Ensure the rule of law and fairness in its application.

9. Take advantage of existing telecommunications infrastructure

Look into the possibility of using existing satellite based and / or wireless links to Aimag centres and some somoms. Negotiate with state and or private companies to gain access to these VSAT, fiber and or other connections to provide universal access to ICTs.

10. Strengthen research networks

Use the Internet and related technologies to strengthen research and to encourage greater involvement in the international academic and research community of topics and projects of common concern. Research networking is a key way of drawing investment and grants, and of enhancing the profile of Mongolia as a research and trading partner, and as a centre of knowledge, intellectual energy, innovation and entrepreneurship.

11. Encourage foreign investment in ICTs

In collaboration with the Foreign Investment and Foreign Trade Agency (FIFTA) of the Government of Mongolia, explore opportunities to involve private sector partners from around the world to help implement the action plan.

12. Encourage adoption of Open Source software (OSS) technologies

Encourage adoption of Open Source software (OSS) technologies, especially those based on the Linux operating system. Linux and OSS in general could offer significant advantages to Mongolia. Focus on building capacity to experiment with and use these tools and to adapt them to local needs and circumstances. Seek to engage the Open Source community worldwide. Undertake Linux certification in Mongolia and introduce Mongolia Linux experts.

13. Inform and engage the international community

As the action plan becomes accepted and is put in place, it is clear that some in the international community will be interested in advising, partnering with and otherwise assisting Mongolia implement ICT Vision 2010. These partners need to be appraised of the situation and involved now.

• The plan will support sustainable development in Mongolia by encouraging and facilitating fair, open and equitable access to information by all members of society and of the economy, at all levels across the country.
• The implementation of the plan will be based on the principles of participatory development, where all sectors of society, including the government, the private sector and civil society will be represented and can have their say in the development and implementation of policies affecting the creation of a knowledge society that is appropriate to Mongolia
• Work with existing initiatives and build on existing experience. Avoid the creation of large and bureaucratic structures, avoid duplication and coordinate action with other actors in this field. Encourage solutions and approaches that will harness entrepreneurial energy
• Look at activities that are self-sufficient. The Action Plan should aim to create and preserve health, wealth and well being, and not rely solely on government or seek handouts to do so
• The plan will build in accountability to the government and investors, whether public, private, local foreign or otherwise
• The plan will consider the needs of the large numbers of Mongolians who live in the provinces and in a rural setting. For this, the plan will adopt a community approach and will encourage local community access to PCs and the Internet
• The plan will seek to learn from and partner with other countries and jurisdictions.

In order to achieve the goals stated in the Mongolia ICT Vision 2010, the following objectives are proposed for the coming 4 years. The objectives are grouped under the respective headings.

1. To establish an independent ICT Advisory Council

The ICT Advisory Council will advise, support and oversee all actors on the implementation of Vision 2010. The ICT Advisory Council would act in a fashion similar to the way national level chapters of the Internet Society operate.

Action items

1. Create legal basis
2. Identify and establish Board of Directors, mission statement

• ICT Council members become Board members

1. Secure initial funding
2. Hire Chief Executive Officer and small secretariat (depending on funding)

• Hire all positions based on open competition
• Staff should include some programme officers, a webmaster and a Web development team

1. Establish office location
2. Negotiate for support, financial and otherwise
3. Develop programme of work and budget

• Include provision for public awareness activities
• Seek ways to include provinces and remote parties

1. Start operations
2. Create Web site

• Communicate all non personal information about the activities of the Council here, seek feedback, input to the process

1. Create mailing list for friends of ICT Vision 2010
2. Institute regular ICT information / news service

1. To establish an independent ICT Development Agency

Action items

1. Create legal basis
2. Identify and establish Board of Directors, mission statement

• ICT Council members become Board members

1. Secure initial funding
2. Hire Chief Executive Officer and small secretariat (depending on funding)

• Hire all positions based on open competition
• Staff should include some programme officers, a webmaster and a Web development team

1. Establish office location
2. Develop a business plan

• Undertake a market analysis of ICT needs in the private, public and other sectors, including a description of key players: government, private sector and civil society (universities, NGOs, local and community groups, etc.). Much if not all of this information is now available. An extended study is not needed.
• For the market analysis, focus on consulting and other needs such as:

• Support for small and medium sized enterprises (SMEs) via in-situ training, in collaboration with the Chamber of Commerce and Industry, the universities, NGOs, the government, etc.,
• Needs for e-business / e-commerce solutions…

• For a Web commerce portal. This will be undertaken in collaboration with other key actors from the government of Mongolia and others: the Foreign Investment and Foreign Trade Agency, the Chamber of Commerce and Industry, ISPs, etc.
• Create subject specific or vertical portals
• For cost recovery: offer access to the Web portal on a cost basis. Companies subscribe at a given cost and in exchange, the ICT Development Agency provides a Web based description of the company. Cost would vary with the size of the company / organization, and the nature and extent of the information published on the ICT Development Agency portal.

1. Negotiate for support, financial and otherwise
2. Develop programme of work and budget

• Include provision for public awareness activities
• Seek ways to include provinces and remote parties

1. Start operations
2. Create interactive Web site

• Communicate all information about the activities of the Council here, seek feedback and input to the action plan
• Create Mongolia Web portal (in collaboration with others)
• Create Web procurement site for personnel (staff, consultants) and goods and services necessary for the realization of the ICT Vision 2010 action plan
• In collaboration with the private sector (Chamber of Commerce and Industry, Association of Employers, financial institutions, etc.) and government, create a Mongolian business directory on the Internet. Have Mongolian business subscribe to this directory on a cost basis. Companies provide descriptions and coordinates and the Agency enters the data, including referrals to company Web sites, etc. For a listing of international online business directories, see : http://strategis.ic.gc.ca/SSG/bm09478e.html

1. Create mailing list for friends of ICT Vision 2010

• Provide regular (monthly at least) updates via an online newsletter or publication
• Respond to feedback from Mongolian stakeholders online
• Create a Usenet electronic forum for threaded discussions.

1. To encourage public participation in the implementation of the action plan

1. Create public access Internet sites
2. Encourage the creation of local ICT Vision 2010 support groups or committees at the provincial and local level. Organize these groups with the help of local government, for example via the Office of the Governor, a local school or library, or other community based organizations. Involvement at the local community level, and in the aimags and somoms is essential. These support groups and/or activities need to be directly involved in establishing and managing local community access centres. These groups will work directly with the ICT Advisory Council.
3. Organize periodical public events, such as open houses in public organizations as well as events such as trade shows to showcase ICT skills and achievements and developments in Mongolia and elsewhere. Do this in selected locations (aimags, somoms) as appropriate.

1. Encourage and develop open and accessible procurement

Ensure that opportunities for procurement of national telecommunications and ICT infrastructure, goods and services required to implement the action plan are open and transparent, and that all duly registered Mongolian entities are informed well ahead of time of these opportunities and that they can compete on a fair, open and equitable basis

Action items

1. Develop Web based procurement, ensuring that all tenders are offered publicly. This can take the form of posting the text of the offers, along with information about deadlines and procedures to follow, to actually offering the opportunity of obtaining bid documentation (the official documents to complete the tender) and making the bid.

1. Increase awareness among policy makers

The objective is to increase the awareness of policy makers and of key decision-makers in government, the private sector and in civil society of the role and importance of ICTs for economic, social and human development.

Action items

1. Identify key policy makers
2. Communicate and share information about ICT development worldwide and in Asia especially with policy makers. Develop mechanisms such as focused electronic mailing lists, to keep all concerned appraised and to encourage information exchange.

1. Encourage ICT development

The objective is to create a policy environment that will encourage the development of the use ICTs by all sectors of the economy and of society across the country.

Action items

1. Undertake an economic analysis of the costs and benefits of investing in ICTs in Mongolia (ICT Advisory Council)
2. In close consultation with existing policy makers and others, develop the outline of the policy regime that will best support ICT Vision 2010.
3. Review existing policies and undertake a comparative analysis of ICT policy developments worldwide and in Asia especially (a task for the ICT Advisory Council) in respect of the outcomes i. and ii.
4. Track and examine business models for ICT deployment and commercialization (ICT Advisory Council in collaboration with the Government of Mongolia, the Chamber of Commerce and others). Examine and analyze the policy environment under which these models were deployed.
5. Collaborate and exchange information and experiences with other policy makers and researchers, as well as key international organizations working in this area (Asian research organizations, ITU, the World Trade Organization (WTO), World Bank, ICT industry groups, private companies, NGOs and donors) to examine the options available (ICT Advisory Council)
6. Recommend policy options to the Government of Mongolia
7. Seek support from the international community (ITU, donors, researchers and research networks) to gain access to this information and relevant expertise (ICT Advisory Council).
8. Network with other policy research organizations in Asia and elsewhere.

1. Promote investment in ICTs

In collaboration with existing agencies and government departments, examine and propose policies and other mechanisms to encourage investment in and the deployment of more bandwidth for IP data communications, with particular attention given to high-speed technologies such as cable, DSL, fiber and wireless, and with a view to increasing access to computers.

Action items

1. Examine the pros and cons of providing tax incentives and even subsidies to encourage local firms, local community groups and others to acquire and install these technologies (ICT Advisory Council to help draft proposals in collaboration with the Ministry of Infrastructure Development and others)
2. Research and track developments in this area in countries around the world. Use the Internet and supplement by collaborating and networking with partners around the world examining these issues
3. Examine policies used in other countries to encourage and incite private and community based investment in ICT deployment. For example, look at what Canada is doing here via its ‘Community Access Program’
4. Plan, develop and implement projects to deploy these technologies
5. Monitor the market for ICT goods and services and share results via the Internet.

1. Strengthen and entrench telecommunications liberalization

Liberalization is ongoing in Mongolia. However the way forward to liberalization and the examples from other countries can always be useful and can anyway influence access to the Internet and ICTs in general. This is more so the case because Mongolia is landlocked and dependant on its two neighbours for overland trade and access to the Internet backbone and major Asian Internet hubs.

Action items

1. Document the advantages and disadvantages of liberalization. Show why it is needed
2. Track developments in this area, especially in the international arena and in Asia, where policy changes will have a major influence on Mongolian access to the Internet. Countries of particular concern are China and Russia.
3. Work closely with the Mongolian Telecommunications Authority and others who have in depth knowledge and expertise in this area
4. Track developments at the ITU and in other international venues
5. Recommend appropriate interventions based on consultation, research and analysis
6. Make recommendations to the Government of Mongolia and to the Parliament as appropriate.

1. Ensure that the national regulatory authority is independent.

The national regulator should also be vigilant to ensure that prices, especially those of access to and use of backbone Internet networks reflect costs as much as possible.

Action items

1. Separate the ICT regulatory agency from the ICT operators. This appears to be ongoing.

1. Adopt policies that will create an enabling environment

Action items

1. Continue the reform of the banking and financial services sector to encourage SMEs and investment
2. Create a level playing field for foreign investors
3. Create incentives for local investors (foreign investors already have tax incentives)
4. Maintain a liberal market place for access to and for reselling ICT goods and services, including the market for access to international telecommunications circuits. Avoid the market and central controls imposed by other countries: China, India and Singapore
5. Remove or reduce import duties and VAT on PCs, network hardware and software.

1. Strengthen and further develop the Mongolian national backbone

1. Start by establishing peering exchanges between all ISPs
2. Use existing wireless (VSAT, etc.) capacity to help reach all Aimag centres and select secondary cities and selected somoms
3. Examine the possibility of using satellite solutions such as DirecPC in rural areas with existing dial-up connections
4. Consider the possibility of introducing local dial-up access to ISPs from all Aimag centres and selected other locations. Mongolia Telecoms (TelecoMongolia) is in the process of doing this.

1. Negotiate the use of existing telecommunications infrastructure

Several public corporations maintain VSAT and possibly other wireless connections to many of the aimag centres.

1. Examine the business case for extending Internet access to aimags and other locations using unused capacity. ISPs have already considered the possibility and will advise accordingly. In collaboration with these organizations, determine the technical characteristics of their telecommunications networks and facilities. In Bangladesh, the Grameen Bank has developed a novel project that allows entrepreneurs, mostly women, to purchase cell phones and rent these out on a call by call basis. Bangladesh has a very large and concentrated population, so the business case for extending this service was very clear.
2. Encourage existing telecommunications users such as the Civil Aviation Authority, the National Petroleum Company, the Mongolian Railway Company and others to share facilities, services and bandwidth in Mongolia.

1. Participate in Asian infrastructure initiatives

1. Mongolia must participate officially via the ICT Advisory Council in regional infrastructure planning activities such as:

• The Asia Pacific Advanced Network (APAN)
• The Asia Pacific Information Infrastructure (APII)
• Asia Pacific Network Information Centre (APNIC)

1. Strengthen Mongolian connections to the Asian Internet backbone

1. Participate in Asian infrastructure networking initiatives, especially those that encourage intra-regional connections between Asian countries.

• The possibility exists to connect directly via the Mongolian Railway Project optical fiber cable network to be laid along the railway. This network will stretch from North to South. Will it extend beyond to enable connection to other centres in Russia and China?

1. The Government of Japan has considerable interest in, involvement with and investment in Internet infrastructure in the Asian region. The Government of Japan is also the largest provider of development aid to Mongolia, i.e. about USD 150 million / year. With the support of the Government of Mongolia, approach the Government of Japan and other donors to examine the possibility of obtaining help to strengthen connections between Mongolia and an Asian Internet hub.
2. Consider establishing a direct or point to point connection to Europe. Similarly, approach European donors to consider their support in establishing this broadband network connection. One possible European partner is the European Academic Research Network: Dante: see: http://www.dante.net. One possible way of realizing this is via the railroad fiber connections and its possible extension via Russian fiber and wireless links to Europe.

1. To provide universal access to ICTs by all Mongolians, starting in the provincial and sub-provincial centres

Action items

1. In collaboration with the Ministry of Infrastructure, TelecoMongolia and the Mongolia Railways Corporation, and other national and local government authorities, encourage, promote and augment existing plans for linking all aimag centres and selected somoms to the Internet. This will involve:

• Evaluating telecommunications options presently available and associated costs of using these
• Several Mongolian public organizations use satellite communications. Negotiate with these organizations to determine the feasibility of using (renting or leasing) spare capacity on these telecommunications links to establish IP connections with as many aimag centres as possible. Negotiate fair prices based on market conditions and then seek other support when the business case for self-sufficient or user-pay access renders the proposal to not be commercial viable
• The business case of extending Internet connections is probably not sufficient to warrant extending full channel satellite communications, via very small aperture terminal (VSAT) satellites for example, to all aimags, although some aimag centres are thus connected.
• Other options need to be considered, including DirecPC type of connections. The DirecPC footprint covers the Eastern part of Mongolia and could be sufficient to help establish a LAN linking a variety of public access facilities and even businesses. In some cases, a live connection may not be possible, in which case, other information exchange options, including CD-ROM, could be considered. The ICT Advisory Council and the ICT Development Agency will examine this and other options.
• Select 5 representative aimags from around the country and develop connectivity solutions / proposals for them. Do the same for 10 somoms.
• Test the solutions proposed in these aimags and somoms.

Develop human capacity through short-term professional and technical training. For the technical training, work with existing expertise in PC hardware and software and train these people in networking technologies. For the professional training, provide short-term course on business management as applied to small and medium sized enterprises (SMEs). Provide language training to help create a core of multilingual IT experts.

The short-term training should focus on training the trainers. The benefits will be felt more rapidly, in a matter of weeks for the MCSE and Linux certification, and will have a nearly immediate impact in helping Mongolia bridge the capacity gap. The idea is to rapidly develop a core of trained and certified IP (Internet Protocol) networking professionals.

Support for these activities will come in the form of technical assistance from the international community and/or from the Government of Mongolia, and/or from the private sector in Mongolia. Because the certified specialists will be in high demand, it is not unreasonable to ask for payment of fees for the courses and/or to seek student participation on the basis of tendering for the privilege of taking the course and being certified.

Selection is based on agreed upon criteria. Mongolia should seek technical support for this training, and/or the participation of the companies involved themselves (Microsoft, RedHat, Corel, etc.). Cisco is already participating via the Cisco Academy.

1. Train the trainers: Internet infrastructure

Provide short-term certification in Internet infrastructure to a core group (50) of people who will then train others.

The first priority is for training in TCP/IP and related infrastructure networking skills (Internet services and servers, routing, etc.) to strengthen and extend the Mongolian Internet backbone and staff the Mongolian businesses and government departments and public and private services (educational institutions) and groups (NGOs, local community groups) that will use it and develop it. Focus on Microsoft Certified Systems Engineer (MCSE), Linux or Cisco certification. Look for courses that can be completed over a short time frame B less than 6 months.

2. Train the trainers: adding value to the Mongolian Internet

The second priority is to train people who will develop the value added services and enriched Mongolian Web content in such a way that it will attract traffic: visitors and business in Mongolian. Along with this training, there will be a need to undertake training in English and other languages: Russian, Japanese, Korean, Chinese, German and French. Outputs of this training will be:

• Informative and interactive Web sites (with forms, etc.)
• Online knowledge bases and databases (Cold Fusion and open source variants)
• Consumer to business e-commerce servers,
• Business to business e-commerce servers using EDI (electronic data interchange) / EDIFACT
• More companies present online
• Increased Mongolian presence on the Internet.

Action items for objectives a) and b):

1. Hire or otherwise obtain trainers, one group for Mongolian language based training and one or more other groups for training offered in English and possibly other languages, depending on interest in supporting such training. These trainers, whatever their language, must be certified in each of the following:

• Network systems engineering for network administrators (Microsoft Windows 98 and NT4.0; Linux B various distributions; Cisco):

• 2 Microsoft certified trainers: 1 for NT and 1 for Windows 85/98
• 2 Red Hat Linux Certified Engineer trainers or trainers with equivalent certification
• 2 Cisco trainers (one is already being trained for the Cisco Network engineer programme now being offered at the Mongolian Technical University)

• Solution development certification for software developers working in the above mentioned environments

• 2 Microsoft Certified Solutions Developer (MCSD) trainers
• 2 Red Hat Developer Training track or equivalent trainers

• Locate Mongolian speaking trainers overseas and pay or otherwise entice them to come and teach in Mongolia
• Also hire English or other language speaking trainers for English or other language training
• Undertake these activities in collaboration with the private sector, the educational community, the government and the international community
• Consider obtaining certified professionals via volunteer programmes such as NetCorps of the Government of Canada, United Nations Volunteers, and other volunteer programmes of the international community.
• The ICT Development Agency will take the lead and push this project forward in collaboration with interested parties.

1. Develop internationally recognized short certification programmes in network management and deployment

• Microsoft Certified Systems Engineer (MCSE) courses and examination
• Microsoft Certified Solutions Developer (MCSD) courses and examination
• Certified Linux System Engineer (equivalent to the Red Hat Certified Engineer course) and examination
• Red Hat Developer Training Track or equivalent and examination
• Cisco systems engineer (ongoing)

1. Undertake feasibility study of also developing certified trainer programmes: MCSE, MCSD, Linux, Cisco to meet local regional needs.

• A train the trainers programme would help ensure the local supply of certified engineers and could be a way of generating revenue by becoming a training focal point offering expertise in Microsoft, Linux and possibly Cisco based technologies and expertise
• Develop a support programme for offering such a course
• Ask for tenders to provide these courses.

1. Look into establishing a national training and examination centre linked to existing international certification programmes and service provides, for example the Sylvan Learning Centers or Sylvan Prometric examination centers

• Ask for tenders to provide such a facility.

1. Provide training in English as a Foreign Language, along with certification examinations (TOELF: Test of English as a Foreign Language), along with training in other languages as appropriate to help Mongolian language speakers develop their fluency in languages other than Mongolian
2. Train 50 people per semester (every 3 months) or 200 people / year. Start by offering courses in English as well as Mongolian, and, depending on support or priorities, in other languages as well.

1. Growing an ICT business

1. Train people in the skills to set up an ICT business or to take advantage of ICT specialists or skills.

1. To strengthen existing ICT education and training

Action items

1. Strengthen ICT teaching, training and research institutes such as the Mongolian Technical University >Institute of Telecommunications and Information Engineering= B ITIE as well as the School of Computer Science and Management and the Pedagogical University.

• Enroll teachers and technicians as well as students in the short courses mentioned previously and start developing certification programmes in house in these institutions
• In collaboration with teachers and the educational institutions I question, review the curricula in these institutions in relation to Vision 2010 and the action plan. Enhance and modify accordingly
• Develop, as appropriate, curricula that builds capacity to use and apply ICTs
• Seek support from the international community to implement recommendations.

1. In the case of private sector firms that provide short term training in the form of certification, the government could help:

• Provide credit, tax and other incentives to companies to offer ICT training
• Provide credit, financial incentives, including grants and/or bursaries and fiscal incentives to students and their parents or sponsors
• Encourage firms to offer gainful employment to staff and students in exchange for providing them with training.

1. Provide credit and/or direct student subsidies in exchange for a guarantee from the student that he / she will stay in the country for a given period of time to ensure that the benefits of such an investment are felt locally first and not exported immediately after the course has been completed. The ICT Advisory Council will help determine the feasibility of such a programme and recommend a level of support or subsidy.

1. To raise awareness of ICTs

To raise awareness of the nature and importance of ICTs and of the Internet as a tool for enhancing productivity and as a platform for global commerce.

1. Assist the Chamber of Commerce and Industry and other private sector associations to communicate this message

• Work with the Chamber and others to develop and deliver a publicity campaign to the 30,000 + SMEs and other companies in Mongolia of the uses and benefits on the Internet for business.

1. To strengthen the capacity of the private sector

To strengthen the capacity of the private sector to do participate in the market for electronic services worldwide.

1. Build capacity to recognize global business opportunities, and establish partnerships and joint ventures in the fields of software engineering and >back-office= electronic support

• Encourage SMEs to train and/or hire ICT specialists by providing incentives of various sorts, including affordable credit, fiscal and cash incentives

1. Building the capacity to develop and market appropriate software locally, regionally and internationally using the Internet

• Help SMEs use business to business e-commerce tools
• Help SMEs develop a Web presence
• Include corporate profiles of participating SMEs in the ICT Development Agency Web portal

1. Building the capacity to provide >back-office= electronic support to clients around the corner and around the world over the Internet

• Undertake a feasibility study to determine the entry costs, possible niches and comparative advantages that Mongolia has that permit it to compete in this and other markets

1. Establish consumer to business e-commerce

The objective is to build the capacity of entrepreneurs to provide consumer to business e-commerce: buying and selling goods and services over the Internet

Action items

1. Support and strengthen the efforts of the Chamber of Commerce and Industry to provide these services
2. Develop training courses in e-commerce tailored to the needs and circumstances of Mongolian SMEs
3. Develop these courses in collaboration with other agencies such as UNCTAD, the WTO and the international community
4. Develop the financial mechanisms to permit online commerce

1. Establish business to business e-commerce

The objective is to build the capacity of the private sector to use and apply business to business e-commerce solutions to facilitate transactions.

Action items

1. Support and strengthen the efforts of the Chamber of Commerce and Industry to provide these services and to raise awareness about their importance
2. In support of the Chamber of Commerce and Industry and of others, including FIFTA, provide training in e-commerce tailored to the needs and circumstances of Mongolian SMEs
3. Develop these courses in collaboration with other agencies such as UNCTAD, the WTO and the international community
4. Introduce and demonstrate the application of Electronic Data Interchange (EDI): standards that will facilitate computer to computer exchange of business documents such as purchase orders, shipping documents, custom forms, invoices, invoice payments, etc., between different companies computers using phone lines and especially the Internet. EDI is used for placing orders, for billing and for paying for goods and services via private electronic networks and via the Internet using secure transaction protocols such as SSL. See http://www.edi-info-center.com/html/hotline.html.
5. Train of a core group of government, banking and private sector business people in e-commerce applications, including consumer to business e-commerce and especially business to business e-commerce.
6. Provide technical training in establishing secure servers using secure socket layer (SSL), and/or other appropriate technologies
7. In collaboration with the Chamber of Commerce and FIFTA, raise awareness and strengthen the capacity of the business community and especially of the banking and financial sectors in their ability to establish and take advantage of secure electronic financial transactions nationally and internationally.

1. Support the development of ICT businesses

Specifically, help local entrepreneurs launch businesses that use and/or that are based on the provision of electronic goods and services. See also under the objectives on Education and training

Action items

1. Establish an investment fund to help entrepreneurs / small companies that have invested in certifying staff build ICT applications into their business
2. Create business incubators for ICT start-ups, i.e. newly established companies working in the ICT market

1. Strengthen the banking and financial systems

To lobby and encourage the government and banks and financial institutions to provide world class electronic services in support of the Action Plan. Considerable effort is being made to address this situation.

2. Develop a Mongolian business gateway

The ICT Development Agency is to help this happen in collaboration with others, including the Chamber of Commerce and Industry and the Foreign Investment and Foreign Trade Agency (FIFTA)

Action items

1. Encourage Mongolian SMEs and other businesses to register their businesses on the Web and to participate in the creation of a Mongolian business gateway or portal on the Internet.
2. Develop a business services gateway. Other countries have done so, for example: the government of Canada (see the >Strategis= site of Industry Canada for example)
3. Develop interactive and value added applications for Mongolian Internet sites
4. Create, in collaboration with the Mongolia National Tourism Center Government Implementing Agency, a Mongolia tourism portal.

1. Facilitate access to government information and services

Encourage access to government services across all sectors of society and of the economy and across the country using the Internet and associated technologies

Action items

1. Continue to build and strengthen the government information network and Web site (PMIS)
2. Continue to create and develop the content and services available, moving to test interactive services
3. Encourage government departments to develop Web sites and make information available to the public via these sites
4. Encourage the government to deliver Internet enabled services on a test basis
5. Establish standard formats for EDI applications appropriate to the needs of the Government of Mongolia. Use International Organization of Standardization (ISO) and other international standards to ensure greatest compatibility with international partners to facilitate business to business transactions. Test these applications.

1. Raise public awareness of government services provided online

Action items

1. Undertake an advertising campaign as part of a national communications and awareness promotion plan on the use of ICTs

1. To raise awareness among government staff / public servants

To create awareness of the use of ICTs in support of the provision of public services among government decision makers, civil servants and community leaders and eventually among members of the public across the country, starting in the Aimag centres as well as in other centres.

Action items

1. Create incentives for public servants to use the Internet
2. Specifically, encourage and create incentives so that government departments, at all levels, make government information such as forms, approvals, licenses, taxation and related documents and processes readily accessible
3. Inform and educate public servants about the importance of access to information and of the role of the Internet and of related technologies in the process.

1. Deliver basic government services over the Internet

1. Demonstrate the delivery of basic government services over the Internet
2. Deliver these selected government services to selected target groups of users using the Internet

Action items

1. Develop government content on the Web
2. Build on existing initiatives such as the PMIS project
3. Test the use of interactive content (forms, etc.) over the Internet
4. Build on existing initiatives such as the PMIS project
5. Select test groups in government and audiences outside of government
6. Extend the PMIS project

1. To train public servants

Action items

1. Certify government technicians in networking technologies and related applications

1. To link citizens to public servants over the Internet

Action items

1. Make available over the Internet (Web enable) certain government services that require public input via forms for example
2. Create public computer / Internet access centres to government services
3. Evaluate the results
4. Make changes as appropriate and expand access to government services over the Internet

1. Enhance links between elected deputies and the electorate

To create opportunities for citizens to communicate directly with parliamentarians, government decision makers and civil servants and to access public information and services

Action items

1. Provide parliamentarians with computer and Internet access
2. Create Web sites for parliamentarians (may already exist).

The objective of research networking is to enhance collaboration at all levels using ICTs and the Internet. There are some good reasons for encouraging research networking using the Internet.

Researchers are likely already aware of the potential on ICTs and of the Internet. However, efforts have to be maintained to ensure that existing research networks, including the Mongolian Academy of Sciences and related organizations have the resources and connectivity to participate in research networks in the region and worldwide.

There are three main research institutions in Mongolia: the Academy of Sciences, the Science, Technology and Production Corporation and the National Council of Science and Technology. As of end 1997, there were 1790 researchers of which 1575 with a Ph.D. or equivalent working on 298 projects in science and technology. However, the proportion of GNP devoted to research is only 0.17%.

The advantages of enhancing research networking include:

• Helping researchers stay in touch and stay contemporary. This is especially important for young researchers newly returned to Mongolia who are at the greatest risk of feeling lost and losing their competitive and professional edge because they are no longer in touch with their colleagues and professions. The Internet allows them not only to remain connected to their areas of specialization, but also to their peers around the world.
• Research collaboration will in the long run enhance competitiveness of Mongolia in a global market place (see http://www.dante.net/cape/cape.html)
• Collaboration will also help partners establish a presence in Mongolia and in Asia
• The collaborating students and researchers of today will develop into the business partners of tomorrow (http://www.dante.net/cape/cape.html)

Objectives

1. Connect to research networks around the world over the Internet.

Action items

1. Identify key research networks and link up with those most relevant to Mongolian interests
2. Establish distance-learning and -teaching programmes
3. Access to digital libraries and databases (http://www.dante.net/cape/cape.html)

1. To increase participation in research networks

To increase the participation of Mongolian researchers in global research networks and activities

Action items

1. Develop joint research applications (for funding, equipment, study tours, exchanges, participation in meetings, training and professional development, etc.)

To come (over 4 years)

These are estimated costs, including some options, of possible infrastructure projects. These costs are included to underline the significant cost of connecting Mongolia to the Internet backbone. At this time, this project, the ICT Action Plan, should not expect to receive significant funding for direct infrastructure development. However, other developments, such as the railroad fiber optic connection and extension of the national telecommunications grid by TelecoMongolia, could provide the necessary infrastructure to establish the connection to the Internet backbone. The advantages to Mongolia of so doing would be considerable. The proposals made in this action plan could be instrumental in encouraging Government of Mongolia decision-makers to seek such a connection.

• 2.2 Mbps satellite connection: USD 22,000 B 30,000 / month
• Fiber optic links along the railroad to China and/or Russia. Cost may be high and permissions may not be given, but the Mongolian part of the link will exist shortly.

• Use existing VSAT and X.25 connections. Cost would be minimal for email and low bandwidth connections if the public corporations that own these facilities agree to make them available as is, at little or no cost.
• DirecPC (400Kbps) connections for downlink ($50 / month, $ 350 installation) for community access centres with access to data (128Kbps) or dial-up telephone connections (33.6 Kbps) across the country. May be compatible with use of existing telecommunications infrastructure but this technology is only available in the Eastern part of Mongolia because the satellite footprint does not extend to the Western reaches of the country.
• Enlarge existing dedicated VSAT connections and extend to all Aimag centres and selected other locations, about 25 sites in all: $800 B 3,000 / month for 64-128Kbps full duplex connections. $20,000 B 75,000 / month
• Investigate possibility of using existing capacity of Intelsat channel used for television broadcasting. Note that costs of the downlink connection to the Internet (a foreign-based ISP) would have to be paid for and this could be very expensive. Also, Intelsat ground reception facilities used by individuals is for reception, not for transmission, and would therefore require costly modifications such as a transmitter.

• Fully equipped IP networking laboratory for 200 students / semester (priority to Mongolian students: minimum 100 Mongolian students trained / semester) at the Computer Science and management School of the Mongolian Technical University
• Fully equipped digital telecommunications laboratory for 200 students / semester (priority to Mongolian students: minimum 100 Mongolian students trained / semester) at the Institute of Telecommunication and Information Engineering of the Mongolian Technical University
• Creation of online training centres locate is aimag centres to work with above training facilities and to open the possibility of offering distance learning

• Reduced access to or ability to compete in the global market place
• Reduced or lack of ability to fully prepare for and participate in international fora and events, including meetings of the United Nations and the international community at large on a variety of issues of direct relevance to Mongolia
• Reduced or lack of ability to participate in global e-commerce, estimated to be worth upwards of 1.2 trillion USD in 2003 ($1,200,000,000)
• Isolation in an increasingly wired or networked world
• Slower or stagnant employment growth. Fewer opportunities for trained Mongolians in and outside of Mongolia. Decreased remittances from trained Mongolian knowledge workers both in Mongolia and outside the country
• Decreased tax revenues.

Terms of Reference for Consultancy work in Information and Communications Technology

The objective of the intervention is to assist the Government of Mongolia in building on and completing the work undertaken so far to complete a national strategy and plan of action for the use of information and communication technologies (ICTs) as tools for sustainable human and economic development. The action plan should focus on the next 2-3 years, but also include a longer-term vision.

In consultation with the GoM, and other key actors, including business leaders in telecommunications, NGOs and other donors:

To develop a full understanding of what is wanted and needed and why for the use of IT in Mongolia. Thus, the goals, objectives, needs and circumstances of the economy and of society (public, private, civil society), concerning the use and application of information and communication technologies and management practicies for the sustainable human and economic development of Mongolia must be claried.

To evaluate the financial, economic, organizational, technical, human and social issues affecting the use and application of ICTs in Mongolia including constraints.

To outline what options are suitable for Mongolia . Technical solutions based on examples used in other developing countries facing similar problems to Mongolia or based on recent technological innovation will be discussed. The basis for evaluation will be technical, financial, and on the basis of ease of implementation and experience in other countries, etc. (What are the options). Needs for upgrading/expansion will be taken into account.

To outline in broad terms a strategy for ICT action over the next 2-3 years in the light of (i), (ii) and (iii) above bearing in mind the serious economic and social challenges confronting Mongolia.

To outline alternatives for implementation of the ICT strategy, i.e. who will be responsible, for what, and what are the budgetary implications.

Extensive consultations and consolidation of existing efforts and results,plans, proposals, including Mongolia Vision 2010.

A draft national strategy and plan of action for ICTs as a tool for human and economic development in Mongolia that can be presented to the GoM for endorsement.

A mechanism for the ongoing evaluation and updating/improvement of this plan in relation to technological change.

As a result of this intervention, the GoM will be in a much better position to secure support from the international community and other sources (private sector) in realizing this strategy, and to do so in collaboration with several international endeavours seeking to support the ability of countries to use and apply ICTs for development.

The product must be submitted before 31 December 1999. A fifteen day period of work from 22 November to 8 December is presently proposed for two consultants. The Team Leader should have extensive experience in policy/strategy planning in other developing countries. He should be accompanied by a specialist familiar with state of the art technical applications that are suitable for Mongolia and he will be responsible for identifying this latter consultant.

The consultants will work in the Office of the Prime Minister, whole staff will facilitate their schedule of appointments. The consultants will have access to two computers and the internet.

Prior to their arrival the GoM wil organise four working groups around economic, social, technical and business issues and ask each group to submit brief (2-3 pages) summaries that address point 2 (i) of the above Terms of Reference.

The Government is the founder of a social system with ICT, an open source for information and data and it should offer the main service.

Set up a business environment that can be integrated efficiently with the world ~onomy and to increase the intellectual potential and competitiveness of the national products.

Create a favourable environment for Mongolian citizens to communicate freely among themselves and with the world community regardless of location and to provide equal and active involvement and participation in the social relationships.

o Promote the favourable legal and development environment:

• Set up an ICT organizational structure
• Set up a system to make government information accessible and to foster citizens' feedback over the government activities

o Set up a policy coordination system:

• Establish a state foundation, coordination of a budget distribution, a development programme and a mechanism for management planning
• Promote ICT-based services
• Develop sofiware in Mongolian language
• Develop infostructure to foster information based national industries

o Support and enhance the government information system:

• Increase office hi-tech supply
• Develop a government information network together with the public, non-governmental and private sector information networks

• Export information technology products
• Create new markets for information service and application
• Foster every economic entity to have an e-mail address
• Set up information service business centers
• Create a market for information and communication technology products

• Introduce e-trading and commerce (verified information exchange, electronic signature, smart card, electronic cheque, bar codes and etc.)
• Create a proper business environment

• Banking and Insurance
• Law and Legislation
• Science and Technology
• Education
• Environment
• Agriculture, Industry and Infrastructure
• Public Health and Social welfare
• Labour market
• History, Art and Culture Trade and Commerce

• The demand for information, intellectual wealth and value of professional skill should become of priority importance in a man's lifetime
• Universal access of any types of information from any desired information source
• Support the equal right in participation of every citizen in a social relationship regardless their religion, political views, race, age and gender
• Promote the computer literacy education for each two out of three persons

• Provide a comprehensive information access in schools, libraries and public service which are the most mobile units that carry out permanent and regular activities
• Establish and run the knowledge based high technology centers in Ulaanbaatar, the capital city and the regional centers of the country's socio-economic development
• Foremostly set up an infostructure in the country's socio-economic sectors of strategic importance
• Solve the development of human resources to foster the national info structure

• Offer universal service to every third household in the eQuntry
• Offer various electronic services accessible to every citizen
• Apply widely ICT in social surveys and general elections

E-commerce helps to:

• Overcome barriers to trade by reducing costs and helping to overcome physical barriers such as distance
• Trade in some intellectual services such as: consulting, medical services, online education services, databanks and other online information and knowledge retrievals (online libraries, databanks, statistical sources, etc.)
• Complements traditional means of undertaking trade:
• Facilitates market research
• Facilitates searching for goods and services and international purchasing
• Advertizing and marketing
• Facilitates transaction processing: purchase orders, invoices, custom clearance forms and duties, payments, shipping documents and airway bills, and other business to business transactions.