During the last five years, information and communication technology (ICT) was seen as a dynamic and active sector in Mongolia. Foreign investments, technical assistance, and cooperation with technically advanced nations have enabled Mongolia to achieve significant progress in ICT development. The Government policies and strategies for development of ICT sector have been reflected in “E-Mongolia” the national program and ICT Policy for 2010.

 
In 2004, Government of Mongolia has established the Information and Communication Authority/Agency under the Prime Minister. National Information and Communication Technology Committee is an organization with consulting and recommendatory functions to the Mongolian government.
 
The government of Mongolia focuses its attention to ICT as a prime mover to socio-economic development.  Therefore, various strategies were formulated to tap this opportunity. The main strategy is contained in the ICT Vision 2010, which aims to provide favourable conditions for the development of government-legislation framework, business-economic framework, and people-society framework and on the necessity to establish state policy and regulatory regimes. The medium-term development strategy for ICT supports the ICT Vision 2010 by presenting different approaches and project implementation schemes to realize the vision.
 
Since its establishment, in the framework of relevant laws and such programs as  “The Concept of Development of ICT until 2010”, “Master Plan for Development of Rural Communications until 2021”, “E-Mongolia”, the ICTA is implementing activities aimed at the sector liberalization, deepening competition, elaboration of the legal environment for development of the sector, development of the information, communications infrastructure, development of e-consumption, including e-Government, decrease of the digital divide, elaboration of the legal environment for serving everybody, decreasing the internet price and increasing the access.
 
In the economic development of Mongolia this sector has the fastest growth and achieved much success in the area of development of its infrastructure in recent years.
 
The government's relatively forward-looking policies have encouraged the private sector to become a leading force in the ICT sector. The private sector has in turn responded to opportunities in building infrastructure and providing hardware and software services. In the framework of renovation of the communication backbone network according to the trend of the world development, establishment of broadband network country-wide, cable transmission system of 2700 km length, the information and communications network consists of the cable network of 11000 km length, digital radio line of 2500 km length leading to the opportunity of raising substantially the quality of information and communications services to the centers of 21 aimags, 167 big sums and settlements. Support of the private sector in the development of the communications infrastructure has lead to good results. Our operator companies installed the cable network 1800 km long connecting aimags with local areas, the capital city and foreign countries.
 
Based on the current level of the development of the communications sector of Mongolia, its future need and development trend, by the decision of the Government the network company has been established for the activities to develop the core network of information and communications, creation of equal utilization conditions to service providers.
 
As a result of the Government policy of deepening the competition in the information and communications sector, now there are 4 mobile phone operators and over 30 internet providers.
 

The government recognizes the important role of the private sector and expresses their support in the following interventions: use ICT for increasing the competitiveness of national industry and services, support start-up businesses in ICT, activate domestic ICT market by promoting and intensifying ICT consumption by the government.
 
The telecommunications network of the country was renovated and installed according to international standards by Alcatel of France, EWSD of Germany and KDD of Japan. And also in 2006, Information and Communication Authority of Mongolia has signed memorandum of understanding with Korean Information and Communication Authority.
 

The country is connected with more than 150 countries via American Intelsat, Asiasat-1 and Intersputnik satellite links. Moreover, mobile telephone services, paging and data networks, cable TV networks, radio and TV broadcasting, and intranet networks are presently operating in Mongolia.
 

As a result of such programs as “Computer to everybody”, “One tugrug internet”, “Internet to every family” aimed at development information and communications education, raising usage of internet, the price of computer and internet services reduced substantially. Since one year implementation of the program over 30 000 families acquired computers. Now over 80 000 families have computers and the number of internet users exceeded 400 000. One year ago it was 70 мб\с, and although this year the international flow of the Mongolian internet is 155  мб\с,  it still does not fully meet the rising demand.
 

Although the development information and communications sector achieved much success it should be noted that development of certain policy is required. For example, attention should be paid to transfer of Government services to citizens and organizations to the digital form and support of information technology in the education and health sectors. We are ready to support activities and initiatives aimed at resolving these issues and making it possible to make investment beneficial is not denied.
 
The Government of Mongolia aims at creation and development of program supply, the information technology products and services for international market. Within the framework of this objective the National Information Technology Park has been established for support of the information technology venture business and out-sourcing. The Government decided the policy of supporting this sector and some program supply entities started reaching international market.
 
As of last year, there are 46,000 Internet subscribers, over 400,000 Internet users and over 80,000 households with a cable TV all over the country.  The digital divide between the rural and urban area is very wide. The fiber optic cable along railway was already set in place and operational. This will serve as the main regional backbone traversing between Russia and China. The government is working on it to optimize the use of this facility.
 
Post and communication
 
At the end of 2008, revenues from post and communication services amounted 343.4 bln.tugriks. Compared with 2007, revenues of the post and communication services amounted increased by 39.1% or 96.6 bln.tugriks, of which revenue from population was 297.4 bln.tugriks.
 
At the end of 2008, number of telephones were 151.4 thousand. Compared with 2007, number of telephones increased by 1.4 thousand.
 
At the end of 2008, there were 35.4 thousand wireless telephones, 1745.9 thousand cellular mobile telephone users and 101.3 thousand cable television subscribers. Compared with 2007, wireless telephones were increased by 40.9% or 10.3 thousand, cellular mobile telephone users and cable TV subscribers were increased by 48.6% or 570.8 thousand and by 13% or 11.6 thousand, respectively.

At the end of 2008, total soum of the state had connected to mobile phone service.
 
In the 2008, postal service’s division delivered 649.8 thousand pieces letter and mail, 51.3 thousand pieces wrappers and parcels, 18975.9 thousand pieces periodicals to the customers.