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Challenge

An existing Public Private Partnership arrangement was in place between the Mongolian Government and Korea Telecom involving a 20-year lease of infrastructure and key ICT hardware to KT which, in the view of the Government, was not delivering the expected outcomes anticipated. The challenge for our team of ICT engineers, policy advisors, regulatory, legal, and economic advisors was to reimagine the entire ICT sector and then to see how the PPP could work under a new sector model.


Strategy

An analysis of the structure of the ICT and telecommunication sector in Mongolia was undertaken focusing on improving market operational efficiency and effectiveness to deliver highest quality, least cost, long-term sustainable services for consumers. Various market structure models were examined under a revised ICT strategy for Mongolia that matched long-term needs and recognized the unique geography, population density and ICT service demand across the whole country. The existing PPP legal agreements, contracts and regulatory environment were then examined by our legal and commercial experts, the operating and market structure revised by our economic and technical experts, and several PPP and full privatization options developed for consideration. Our team joined the Mongolian Government delegation in negotiations with Korea Telecom in Seoul, Korea and PPP contractual revisions agreed.


Transformation
The ICT sector moved close to a full Open Access model, whereby any ICT provider has equal and non-discriminatory access to an open access network (separating service delivery from the network) thereby minimizing risk of network duplication, maximizing use and delivering least cost unit pricing.

  • Open access networks spur competition between service providers - lowering both the costs for subscribers and the barriers to new service providers entering the market.
  • They facilitate economic development, as new firms look to relocate to areas with more choices for reliable, high-speed Internet access and existing businesses can be better served.
  • The benefits of publicly owned open access networks are that the community enables innovation, ensures real choices, and has a strong voice over its own future.
  • Removes conflicts between competitive service delivery and networks.
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