Information and Communication Infrastructure Assignment

Added on - Sep 2019

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Background - YinggeObjectives, Results, Implications - SydneySuccess and Failures - KesSuccess and Failure Factors - KesProject Management Quality - YusufLessons Learned - SydneyRecommendations - SoutchoConclusion - YinggeBackground:Information and Communications Infrastructure Development Project is a fullsize, long-term project support by the World Bank, implement by the Government ofMongolia, Information and Communications Technology Authority (ICTA) andCommunications Regulatory Commission of Mongolia. The project has following keydates:For the financial information, the commitment amount is US$ 8.00 million,the actual total project cost is US$ 11.85 million. The spending of bank financinginclude parchment, construction, research, and project management.
Country background:In past 20 years, Mongolia is in the transit from a socialist country to a freemarket democracy county, and has achieved its economic growth with 5% per year to12.4% from 2004 to 2012. Mongolia is working on improving the telecommunicationinfrastructure science mid-1990s, it has an effective liberalization of all marketsegments, partially private own fixed line incumbent named Mongolia TelecomCompany (MTC), and an independent regulatory authority CommunicationRegulation Commission (CRC). Before the project start, total fixed and mobile teledensity reached 26 percent.However, there are number of unique challenges Mongolian is facing. It is aLockland country located in Northeast Asia, with 1,564,116 km2of land, but only has2.8 million of population, approximately 1.76/km2, it is one of the most sparselypopulated countries in the world. In addition, significant share of the country’s 2.8million citizens having nomadic lifestyle as herders, the rest are reside in settlementsand cities. The extreme low population density and high population flowing in ruralarea leading to the high cost to offering service. The result is 80% of telecom serviceare offering in urban and suburban, such as Ulaanbaatar, the Aimag capitals, alsosome commercial centers like Erdenet. This area has 80% of existing phone and
internet service. And in rural area, tele-density is only 1 present. Tradition approach isexpand and develop the state-owned telecommunications network through publicinvestment. Other than demographic reason, insufficient capacity to proactivelyregulate and improve the development and implementation of an increasingtelecommunication sector agenda. In order to consolidate reforms and addressconvergence after the first phase of telecommunication sector reforms, the regulatorhave to build institutional capacity.Despite there are challenges existing, but the policy from Government ofMongolia are supporting the development of ICT sector. GOM considers these actionsimportant to address its Economic Growth Support and Poverty Reduction Strategywhich aims to accelerate pro-poor growth and reduce poverty through an approachthat includes improving the environment for private sector led development andenhancing regional and rural development.PDO Indicators and Success/Failure FactorsI.The Mongolian ICT project increased its number of telephone minutes to 56.5million minutes from 1.2 million minutes, which was much higher than the target of 2.7million minutes. This surpassed the target value by over 2,000%. This was due to a fewfactors. First, there was a much higher demand then was expected and many more citizensof Mongolia desired telephone services. Second, due to new regulatory changes that helpedspur investment the private sector invested more in the bandwidth allowing for a muchhigher number of citizens using the service.II.The project increased the number ofsoumcenters with around 1,000 or moreresidents who had internet access from 300 to 12,000, this was higher than the 11,000estimate. Overall, this was due to the project picking a manageable scope and followingthrough with the project’s goals.
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