LAST UPDATE: 2016/02/26

Universal service obligation fund

The following services are covered under USOF:


  • Delivering mobile services to soum centers;
  • Public telephone services to baghs;

Information Technology

  • Internet – delivering 128/512kbps to soum centers for public and private use;

Post Service

  • Receiving, transmitting and delivering ordinary letter posts which conforms to the standard size and have 0-70g of weight at maximum;
  • Electronic mail, which is being transmitted through general postal network with the validation of electronic stamps;


  • Radio – enabling delivery of Mongolia radio programs at soum and baghs;


  • Television – enabling delivery of Mongolian television programs at soum centers;

Universal Service Obligation Fund (USOF) has been established upon approval of the regulation on “composition and spending of Universal Service Obligation Fund” by Government of Mongolia in December, 2006. The World Bank provided initial seed money for USOF through “Information Communications Infrastructure Development Project” (ICIDP).

Result: Information Communications Infrastructure Development Project

Through its work with the government and the Communications Regulatory Commission, the Bank projects created and supported:

  • Mobile base stations to serve the population of 90 soums centers and the surrounding herder areas without mobile telephone service;
  • A network of 152 satellite public telephones to serve herders in remote areas beyond the reach of the mobile networks;
  • Internet services for schools, commercial customers and Internet cafés in 34 prime soum centers;

Additionally, the project’s successful implementation yielded the following benefits:

  • All 335 soums in Mongolia have been provided with access to mobile voice service, in many cases also enabling a medium-speed Internet service. Although only 90 soums benefited directly from IDA financed subsidies, a large number of additional soums benefited indirectly as the Universal Access program demonstrated that demand for services in rural areas is significantly higher than originally expected;
  • The herder public access network, combined with the mobile services, reduced the average travel distance required to make a call for herders to 15 km from 39 km;
  • 34 prime soum centers have broadband Internet access for public and private users at the same tariffs as in the capital, Ulaanbaatar; schools are connected at discounted rates, and in all of these 34 communities people are benefitting from access to public Internet cafés;

Information and communications infrastructure development project financed by World Bank, was successfully implemented in years 2005-2008.

 This project consisted of two sub-projects:

  • Soum center internet services (SCI)
  • National Spectrum Management and Monitoring system

Very few of the country’s rural soums (rural district center) had internet services.

 It had been determined through an examination of previous pilot projects and a market analysis from national demand study carried out for the CRC that only a minority of soum centres was ready to support Internet services supplied by a commercial Internet Service Provider, especially if they have a low population, less than 24-hour commercial electricity supply, and/or little prior experience of private fixed or mobile voice communication services.

 The Soum Center Internet (SCI) service provider had to provide the mandatory SCI services in accordance with the provisions Agreement between CRC and the SCI service provider to the mandatory USO service areas.

In order to promote the Government’s policy of expanding access to telecommunications services, SCI subsidies were paid as an incentive to the SCI Service Provider. The SCI Subsidy payments were made in accordance with the SCI Service Agreement from the CRC (USOF).

Under the framework of the World Bank grant MOG-H232 contracts between the Government of Mongolia and World Bank, the CRC implemented the National Spectrum Management and Monitoring system (SMMS) consisted to followings:

  • Automated spectrum management system
  • Fixed monitoring
  • Mobile monitoring
  • Portable monitoring

In 2006, Universal Service Obligation Fund was established at CRC according to the Law of Mongolia on Government Special Fund (USOF). The regulations and procedures to manage the USOF were approved end license holders were starting the leavy to the newly established USOF.

In 2008, USOF was transferred to the ITPTA according to the amendment of the Law of  Mongolia on Communication. 


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