Draft Plan of action

 

ICT development in Mongolia

Over the period 2000 – 2003

 

 

Richard Labelle

Consultant, UNDP

rlab@sympatico.ca

version 00/01/15 8:17:25 PM

 

 

 

 

 

Table of contents

Draft Plan of action *

Introduction and scope of this action plan *

Background *

ICT Vision 2010 *

General trends in the use of ICTs *

ICTs and the Internet around the world *

Facts and figures *

Internet growth and level of development *

Characteristics of a knowledge economy *

Characteristics of countries with knowledge societies *

Issues related to ICT use and development in Mongolia *

ICTs and the Internet in Mongolia *

ICT infrastructure indicators and statistics in Mongolia *

Analysis of the situation in Mongolia in comparison to the rest of the world *

Assets and advantages of Mongolia *

Constraints and liabilities *

Implementing the ICT Vision 2010 *

Priorities *

Policies *

Infrastructure *

Education and training *

E-commerce *

Government services *

Community access *

Research networking *

Implementation mechanisms *

Categories of priority *

Operational priorities *

Programme priorities *

Implementation mechanisms *

Components of the implementation mechanism *

ICT Advisory Council *

Mission of the ICT Advisory Council: *

Activities of the ICT Advisory Council: *

The Mongolian ICT Development Agency *

Mission of the ICT Development Agency: *

Activities of the ICT Development Agency: *

Risks *

Resource availability *

Location of the implementing organizations *

More bureaucracy? *

Inter-institutional rivalry *

Independence *

Interest groups *

Representation for all *

Degree of high level support for the action plan *

Other priorities *

Human resources development *

Awareness promotion *

Focus on government and the business sector *

Action plan strategy *

a) Institutionalize the implementation mechanism *

b) Develop local capacity as soon as possible *

c) Help locally certified networking specialists find and/or create employment *

d) Continue brainstorming ICT possibilities *

e) Work nationally and collaborate regionally as well as globally. *

f) Focus on developing the capacity of the private sector *

g) Develop local community access *

h) Develop an enabling environment *

i) Take advantage of existing telecommunications infrastructure *

j) Strengthen research networks *

k) Encourage foreign investment in ICTs *

l) Encourage adoption of Open Source software (OSS) technologies *

m) Inform and engage the international community *

Principles of implementation *

Objectives and action items *

Implementation mechanisms *

a) To establish an independent ICT Advisory Council *

b) To establish an independent ICT Development Agency *

c) To encourage public participation in the implementation of the action plan *

d) Encourage and develop open and accessible procurement *

Policies *

a) Increase awareness among policy makers *

b) Encourage ICT development *

c) Promote investment in ICTs *

d) Strengthen and entrench telecommunications liberalization *

e) Ensure that the national regulatory authority is independent. *

f) Adopt policies that will create an enabling environment *

Infrastructure *

a) Strengthen and further develop the Mongolian national backbone *

b) Negotiate the use of existing telecommunications infrastructure *

c) Participate in Asian infrastructure initiatives *

d) Strengthen Mongolian connections to the Asian Internet backbone *

Education and training *

a) Train the trainers: Internet infrastructure *

b) Train the trainers: adding value to the Mongolian Internet *

c) Growing an ICT business *

d) To strengthen existing ICT education and training *

E-Commerce *

a) To raise awareness of ICTs *

b) To strengthen the capacity of the private sector *

c) Establish consumer to business e-commerce *

d) Establish business to business e-commerce *

e) Support the development of ICT businesses *

f) Strengthen the banking and financial systems *

g) Develop a Mongolian business gateway *

Government services *

a) Facilitate access to government information and services *

b) Raise public awareness of government services provided online *

c) To raise awareness among government staff / public servants *

d) Deliver basic government services over the Internet *

e) To train public servants *

f) To link citizens to public servants over the Internet *

g) Enhance links between elected deputies and the electorate *

Research networking *

a) Connect to research networks around the world over the Internet. *

b) To increase participation in research networks *

Implementation schedule *

Budget considerations *

Some possible infrastructure investments *

International telecommunications infrastructure *

National telecommunications infrastructure: some options *

Training and educational facilities *

Costs (of not investing significantly in ICTs) *

Annexes: *

I. Terms of reference *

II. People met *

III. Mongolia ICT Vision 2010 *

IV. Steps to establish an electronic commerce operation *

 

Plan of action

ICT development in Mongolia

Over the period 2000 – 2003

Richard Labelle

Consultant, UNDP

rlab@sympatico.ca

 

Introduction and scope of this action plan

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.

 

Background

ICT Vision 2010

See Annex III

General trends in the use of ICTs

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.

ICTs and the Internet around the world

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.

Facts and figures

Internet growth and level of development

Characteristics of a knowledge economy

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?

Characteristics of countries with knowledge societies

 

Issues related to ICT use and development in Mongolia

ICTs and the Internet in Mongolia

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.

ICT infrastructure indicators and statistics in Mongolia

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

Analysis of the situation in Mongolia in comparison to the rest of the world

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?

Assets and advantages of Mongolia

Constraints and liabilities

 

Implementing the ICT Vision 2010

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?

Priorities

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:

Policies

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

Infrastructure

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

Education and training

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

E-commerce

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

Government services

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

Community access

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

Strengthen Mongolian content on the Internet

Enhancing the presence of Mongolia on the Internet

Research networking

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

Implementation mechanisms

Establishing viable institutional arrangements to implement the action plan.

Categories of priority

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

Operational priorities

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

Programme priorities

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.

Implementation mechanisms

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.

Components of the implementation mechanism

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

 

 

ICT Advisory Council

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.

Mission of the ICT Advisory Council:

Activities of the ICT Advisory Council:

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.

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.

Mission of the ICT Development Agency:

Activities of the ICT Development Agency:

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.

Risks

Resource availability

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.

Location of the implementing organizations

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.

More bureaucracy?

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.

Inter-institutional rivalry

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.

Independence

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.

Interest groups

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.

Representation for all

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.

Degree of high level support for the action plan

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.

Other priorities

Human resources development

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

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.

Focus on government and the business sector

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.

Action plan strategy

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
  2. 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.

  3. Develop local capacity as soon as possible
  4. 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.

  5. Help locally certified networking specialists find and/or create employment
  6. 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.

  7. Continue brainstorming ICT possibilities
  8. 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.

  9. Work nationally and collaborate regionally as well as globally.
  10. 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.

  11. Focus on developing the capacity of the private sector
  12. 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.

  13. Develop local community access
  14. 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.

  15. Develop an enabling environment
  16. 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.

  17. Take advantage of existing telecommunications infrastructure
  18. 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.

  19. Strengthen research networks
  20. 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.

  21. Encourage foreign investment in ICTs
  22. 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.

  23. Encourage adoption of Open Source software (OSS) technologies
  24. 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.

  25. 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.

Principles of implementation

 

Objectives and action items

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.

Implementation mechanisms

  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

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

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

  1. Start operations
  2. Create Web site

  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

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

  1. Establish office location
  2. Develop a business plan

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

  1. Start operations
  2. Create interactive Web site

  1. Create mailing list for friends of ICT Vision 2010

  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.

 

Policies

  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.

Infrastructure

  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: