The universal service issues in Mongolia

Abstract

The Government of Mongolia has opened up the telecommunications market and introduced competition since 1996. In time of state controlled monopolies, Universal Service Obligation was imposed on the monopolist. Cross subsidies were used as a tool to finance Universal Services. Once telecommunication markets are liberalized, the old system of cross subsidies no longer works. In June 2002, the Universal Service Obligation fund were established the under Post and Telecommunication Authority by the Telecommunication``s Law. But all former social obligations for telecommunications and their financing mechanism are not clear. This paper analyzes current situation of Mongolian telecommunication market and identifies a clear definition and specification of Universal Service Obligation in Mongolia and to whom it should be available. Other countries experiences, especially USA and Chile``s Universal Service Obligation issues are compared in this paper. Finally, the paper identifies how a financing scheme has to be in place which is realistic and does not discriminate network operators and service providers. It also clarifies a clear procedure to monitor Universal Service issues.