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Information and Communication Infrastructure Assignment

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Added on  2019-09-18

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Background - YinggeObjectives, Results, Implications - SydneySuccess and Failures - Kes Success and Failure Factors - KesProject Management Quality - Yusuf Lessons Learned - SydneyRecommendations - SoutchoConclusion - YinggeBackground:Information and Communications Infrastructure Development Project is a full size, long-term project support by the World Bank, implement by the Government of Mongolia, Information and Communications Technology Authority (ICTA) and Communications 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 financing include parchment, construction, research, and project management.
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Country background:In past 20 years, Mongolia is in the transit from a socialist country to a free market democracy county, and has achieved its economic growth with 5% per year to 12.4% from 2004 to 2012. Mongolia is working on improving the telecommunication infrastructure science mid-1990s, it has an effective liberalization of all market segments, partially private own fixed line incumbent named Mongolia Telecom Company (MTC), and an independent regulatory authority Communication Regulation Commission (CRC). Before the project start, total fixed and mobile tele density reached 26 percent.However, there are number of unique challenges Mongolian is facing. It is a Lockland country located in Northeast Asia, with 1,564,116 km2 of land, but only has 2.8 million of population, approximately 1.76/km2, it is one of the most sparsely populated countries in the world. In addition, significant share of the country’s 2.8 million citizens having nomadic lifestyle as herders, the rest are reside in settlements and cities. The extreme low population density and high population flowing in rural area leading to the high cost to offering service. The result is 80% of telecom service are offering in urban and suburban, such as Ulaanbaatar, the Aimag capitals, also some commercial centers like Erdenet. This area has 80% of existing phone and
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internet service. And in rural area, tele-density is only 1 present. Tradition approach isexpand and develop the state-owned telecommunications network through public investment. Other than demographic reason, insufficient capacity to proactively regulate and improve the development and implementation of an increasing telecommunication sector agenda. In order to consolidate reforms and address convergence after the first phase of telecommunication sector reforms, the regulator have to build institutional capacity.Despite there are challenges existing, but the policy from Government of Mongolia are supporting the development of ICT sector. GOM considers these actionsimportant to address its Economic Growth Support and Poverty Reduction Strategy which aims to accelerate pro-poor growth and reduce poverty through an approach that includes improving the environment for private sector led development and enhancing 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 2.7 million minutes. This surpassed the target value by over 2,000%. This was due to a few factors. First, there was a much higher demand then was expected and many more citizens of Mongolia desired telephone services. Second, due to new regulatory changes that helped spur investment the private sector invested more in the bandwidth allowing for a much higher number of citizens using the service.II.The project increased the number of soum centers with around 1,000 or more residents who had internet access from 300 to 12,000, this was higher than the 11,000 estimate. Overall, this was due to the project picking a manageable scope and following through with the project’s goals.
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