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Challenge

Our team consisted of experts in ICT engineering, policy, regulation, law, and economics. We had to rethink the whole ICT sector in Mongolia and propose a new PPP model. The previous PPP with Korea Telecom had a 20-year lease of ICT infrastructure and equipment, but it did not meet the Government's expectations. We aimed to find a better solution for the ICT sector development.


Strategy

Our team conducted a study on the ICT and telecommunication sector in Mongolia, aiming to enhance market performance and quality to provide the best, lowest cost, long-lasting services for consumers. We explored different market structure models under a new ICT strategy for Mongolia that aligned with long-term needs and acknowledged the distinct geography, population density, and ICT service demand across the country. Our legal and commercial experts assessed the current PPP legal agreements, contracts, and regulatory environment, and our economic and technical experts modified the operating and market structure under various PPP and privatization scenarios for later evaluation by the government. After the government chose their preferred options, our team joined the Mongolian Government delegation in negotiations with Korea Telecom in Seoul, Korea, and finally reached a mutually agreeable PPP contractual revision.


Transformation

The ICT sector underwent a major transformation towards an Open Access model, where any ICT provider can access an open network on fair and equal terms (separating service provision from the network) to avoid unnecessary network duplication, increase network utilization and offer lower unit prices.

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