The Law of Mongolia on Telecommunications, October 18, 2001 (Amended by the aw of May 15, 2003, the Law of January 27, 2005, the Law of December 19, 2008, the Law of  July 08, 2010, the Law of December 15, 2011, the Law of July 01, 2014)

October 18, 2001 Ulaan baatar

CHAPTER ONE.- GENERAL PROVISIONS

Article 1. Purpose of this Law

1.1 The purpose of this Law is to regulate relations between State, citizen and legal persons engaged in the creation, utilization and protection of communications network in Mongolia.

Article 2. Legislation on communications

2.1 The legislation on communications is comprised of the Constitution of Mongolia, this law and other acts of legislations consistent with those laws.

2.2 If an international treaty to which Mongolia is a party is inconsistent with this law, then the provisions of the international treaty shall prevail.

Article 3. Definitions of terms

3.1 In this law the below mentioned terms shall have the following meanings:

3.1.1 “Line” means any conductors (such as wire, capacity) used for broadcasting, transmitting and receiving information and complex of insulators, ducts, poles, towers and other materials used for their protection.

3.1.2 “Network” means a set of lines used for broadcasting, transmitting and receiving information between two or more users, furthermore a device system for receiving, sorting, transporting and delivering mail.

3.1.3 “Operation” means the repair, maintenance, testing and adjustment of communications network for its sustainable functioning.

3.1.4 “Service” means a delivery of service providing satisfaction of communications and information demands of customers through communications network.

3.1.5“Provider” means a legal person or citizen holding license for communications universal service.

(This subparagraph was amended by the Law of May 15, 2003)

3.1.6 “Customer” means a citizen or legal person having the right to purchase service in the contract of communications service.

3.1.7 “point of interconnection” means an interconnection point of lines and networks between operators, and operator and customer.

3.1.8 “Universal service obligations” meansin the frame work of state policy, a delivery of telecommunications’ essential service to population of remote areas and areas without service access, at real cost.

3.1.9 “Universal service obligations fund” means assets accumulated for implementation of Universal service obligation.

(Subparagraph amended by the Law of May 15, 2003)

3.1.10  “Communications” means all types of technology for telecommunications, radio and television broadcasting, postal service and information as well.

(Subparagraph amended by the Law of May 15, 2003)

3.1.11 “Telecommunications service” means transmission of all kinds of information through telecommunications network.

(Subparagraph amended by the Law of May 15, 2003)

3.1.12 “Integrated numbering plan” means numerical meanings of codes for identifying international, domestic or local networks and subscribers as well as calling directions.

(Subparagraph amended by the Law of May 15, 2003)

3.1.13 “Number portability service” means service allows user to transfer with the number which is using at the present, while quits from account of one telecommunication service provider and registers to other telecommunication service provider.

(Subparagraph added by the Law of July 01, 2014)

CHAPTER TWO.- POWERS OF STATE BODIES IN RELATION TO TELECOMMUNICATIONS

Article 4. Powers of State Ih Hural

4.1 The State Ih Hural shall elaborate the State policy on communications.

Article 5. Powers of Government

5.1 The Government shall exercise the following full powers on communications:

5.1.1 implement the State policy on communications, organize applications of the legislation on communications;

5.1.2 set up Communications Regulatory Commission and ratify its Charter.

5.1.3 establish Universal Service Obligations Fund and approve procedure of its disbursement.

Article 6. Powers of the State administrative body in charge of telecommunication

(Title added by the Law of January 27, 2005 and amended by the Law of December 19, 2008)

6.1 The State administrative body in charge of telecommunication shall exercise the following powers:

(Provision amended by the Law of January 27, 2005 and by the Law of December 19, 2008)

6.1.1 to implement legislation and decisions of the Government on communications;

6.1.2 to elaborate policy on Communications

6.1.3 to formulate policy on creation of competition in communications market;

6.1.4 to approve procedures on establishment of costs for regulatory service to license holders;

6.1.5 to approve the integrated numbering plan

6.1.6 to elaborate policy on universal service obligations , monitor its implementation

6.1.7. to ensure reliability, immediate- responding and quality of communications service and monitor security protection of communications and correspondences privacy

6.1.8. to develop policy on qualified manpower in communications sector

(Subparagraph amended by the Law of May 15, 2003)

6.1.9. to organize scientific research, to plan and develop technical, technological, organizational plans to ensure stability work of state owned major network in frame of implementation of policy

(Subparagraph amended by the Law of December 19, 2008)

6.1.10. to develop projects, assessment and analyze in purpose to expand and development of the state owned major network according to the strategic plans

(Subparagraph amended by the Law of December 19, 2008)

6.1.11. to manage investment of the state owned major network, to conclude network operation agreements with providers

(Subparagraph amended by the Law of December 19, 2008)

6.1.12. to accumulate capital in universal service fund, spend it in intended purpose, report the implementation to the Prime Minister

(Subparagraph amended by the Law of December 19, 2008)

6.1.13. to provide professional and methodical assistance to state administration, administrative units and relevant organizations in purpose of implementation of the state policy on communication

(Subparagraph amended by the Law of December 19, 2008)

6.1.14 other powers stipulated in the Legislation.

(Paragraph amended by the Law of May 15, 2003 and by the Law of December 19, 2008)

6.2 Authorized body, which is appointing and dismissing agree on designated candidates for administration of fully and partially state owned legal entities which is providing communication service shall consent with state administrative body in charge of communication.

(Paragraph amended by the Law of January 27, 2005 and by the Law of December 19, 2008)

Article 7. Powers of Governors at all territorial levels

7.1. Governors at each territorial level shall exercise the following powers on communications:

7.1.1 to undertake measures to improve communications service on their territories in collaboration with relevant authorities.

7.1.2 to approve and monitor schedules of mail delivery in their territories; to undertake measures for allocation of identifiable addresses in each street, square, building, apartment and fence in the capital city, subprovince (soum), district, subdivision (bag) and subdistrict (khoroo).

(Subparagraph edited by the Law of May 15, 2003)

7.1.3 to organize rehabilitation works of damages and deficiencies in communications network due to emergence case of natural disaster and force majeure.

(Subparagraph edited by the Law of May 15, 2003)

7.1.4 to support and assist initiatives to establish and utilize radio, television and other communications networks;

(Subparagraph edited by the Law of May 15, 2003)

7.1.5. other powers stipulated in the legislation.

(Subparagraph edited by the Law of May 15, 2003)

Article 8. Communications Regulatory Commission

8.1. The Regulatory Commission for Communications /hereinafter “Regulatory Commission“/ shall work with duties to develop effective and fair competition environment for market participants such as business entity of all type property, citizen, to issue license, to make professional analysis and decisions.

(Paragraph amended by the Law of December 15, 2011)

8.2. The Regulatory Commission shall consist of the Chairman and nonexecutive 6 Members.

8.3. The Prime Minister nominates Chairman and members of Regulatory Commission.

(Paragraph amended by the Law of January 27, 2005 and the Law of December 19, 2008)

8.4. The term of office of both the Chairman and Members shall be 6 years. Terms of the first nomination of Members of Regulatory Commission shall be 2,4 and 6 years, and further they shall be nominated for a 6 year term.

8.5. The Chairman of Regulatory Commission can be re-nominated for one more term.

8.6 Persons to be nominated as the Chairman and the Members of Regulatory Commission shall be citizens of Mongolia, who have worked by their profession minimum 5 years and met the following requirements:

8.6.1 Having university degree in legal, economics, information communications, management or technical field; highly qualified and experienced, skillful organizer.

8.6.2 The Chairman and Members of the Regulatory Commission shall not be persons who posses 20 or more than 20 per cent of common stock of the service provider or persons with common interests with the late.

8.7. The Chairman and Members of the Commission shall have rights of State Inspectors.

8.8. The Regulatory Commission shall have working staff.

8.9. The Regulatory Commission shall have local sub-councils comprised of  onexecutive members.

8.10. The Regulatory Commission shall be funded by fees for regulatory services provided to licensees and payments for use of radio frequencies and other services.

8.11. The Government shall ratify the annual budget of Regulatory Commission. The Regulatory Commission shall report to the Government its budget performance and work each year.

8.12. The Regulatory Commission shall have its financial report audited and published annually.

8.13. The Regulatory Commission’s some duties that provided by the law could be carried out by others on the basis of a contract.

(Paragraph added by the Law of July 01, 2014)

Article 9. Powers of Regulatory Commission

9.1 The Regulatory Commission shall exercise the following powers:

9.1.1 to furnish authorized organizations with information and develop proposals on the State policy on communications;

9.1.2 to grant, suspend and revoke licenses, monitor applications of license conditions and requirements, establish contracts within the framework of policies on communications;

(Subparagraph amended by the Law of December 15, 2011)

9.1.3 to determine technical conditions and requirements for equipment of communications network and customers, and certify;

9.1.4 to approve general terms of interconnection agreements between networks and procedures of revenue distribution;

9.1.5 to approve accounting methodologies for service tariffs, monitor service tariffs dominating at the market;

9.1.6 to create conditions for fair competition in communications sector;

9.1.7 to ensure implementation of universal service obligations;

9.1.8 to work out communications standards, have them duly approved by relevant authorities, and monitor their applications;

9.1.9 to elaborate an integrated numbering plan of networks and implement it;

9.1.10 to make radio frequency allocations and conduct monitoring;

9.1.11 to determine regulatory service fees stipulated in 6.1.4 of this Law.

9.1.12 to settle various disputes between license holder and customers within its specified powers.

9.1.13 to introduce (domesticate), manage, implement the number portability service, to approve relevant regulation to this service

(Subparagraph added by the Law of July 01, 2014)

9.1.14 other powers stipulated in the legislation

(Subparagraph amended by the Law of July 01, 2014)

Article 10. The Post Telecommunications Authority

(Article repealed by the Law of December 19, 2008)

CHAPTER THREE.- UNIVERSAL SERVICE OBLIGATION FUND

Article 11 Universal Service Obligations Fund

11.1. The Universal Service Obligations Fund shall be accumulated and disbursed with purpose of construction of new networks, expansion and renovation of existing network, providing necessary telecommunications service to remote areas and populations without access.

11.2. The Universal Service Obligations Fund shall be formed from the following sources:

11.2.1. donation, loan and aid grants;

11.2.2. others

11.3. Universal Service Obligations Fund shall be disbursed only for purposes stipulated in article 1.1. of this Law.

CHAPTER FOUR.- LICENSE

Article 12 License

12.1 The Regulatory Commission shall grant a license to a legal person and citizen planning to conduct the following activities on the territory of Mongolia:

12.1.1 to provide service specified in article 15.8.7 of Law on licensing.

(Subparagraph amended by the Law of May 15, 2003)

12.1.2. to use radio frequency and radio spectrum

(Subparagraph amended by the Law of May 15, 2003)

12.1.3. (Subparagraph repealed by the Law of May 15, 2003)

12.2 A term of licenses shall not exceed 20 years.

12.3 The Regulatory Commission shall register communications service, operation and manufacturing by citizens or legal persons except the mentioned in the 12.1 of the Law.

Article 13. Documents for applications for license

13.1 The citizen and legal person applying for license shall forward to the Regulatory Commission its application with documents spelled out in the law.

13.2 The application for license shall enclose documents stipulated in the legislation, and additionally shall enclose the following documents:

13.2.1 Accounting and information on the applicant’s capability in finance, economic and technical resources as well as in professional capacity;

13.2.2 Information on its activities. (Coverage of its service, location, technology and tariff offer.)

Article 14. Issuance of license and refusal of license application

14.1 If the Regulatory Commission grants the license, then it shall conclude contract with the licensee. The Contract includes:

14.1.1 specific region to be covered and service access;

14.1.2 technological specifications of communications lines, network and equipment;

14.1.3 prevention measures and obligations in case of emergency circumstances of war and natural calamities;

14.1.4 pre-conditions for the interconnection;

14.1.5 rights and duties of the Regulatory Commission and the licensee.

14.1.6 other.

14.2 The license applied for shall be refused by the Regulatory Commission if:

14.2.1 there is not radio frequency bandwidth which the applicant requested for;

14.2.2 The applicant has not been furnished with financialeconomical, technical and professional capacity required to set up and operate communications network;

14.2.3 safety or interest and national securities aspects would be prejudiced as a result of license being granted;

14.3 If several applications are submitted for a license for one area then there shall be selection tendering.

Article 15. Revoking a license

15.1 Apart from those provisions specified in the Law on licensing, the Regulatory Commission shall be entitled to revoke licenses if:

15.1.1 The Licensee fails to comply with its obligations under the Communications laws and contract.

15.1.2 The Licensee discloses privacy of communications and correspondences relations;

15.1.3 The Licensee has not started its business specified in the license for 1 year since its issuance.

15.1.4 The Licensee conducts activities not specified in the Law and contract.

15.2 The Regulatory Commission shall not be liable for any claim for damages derived from the revocation of license under the provision of Article 15.1;

15.3 If there is disagreement in connection to revocation and suspension of license, any claim shall be submitted to the Court.

CHAPTER FIVE.- COMMUNICATIONS NETWORK

Article 16. Types of communications network

16.1 Communications network shall consist of telecommunications, postal service, radio and television broadcasting and information /Internet, computer and other/ networks.

16.2 Communications network shall be classified as public service and internal or special usage networks according to their purposes;

Article 17 . Telecommunications network

17.1 Telecommunications network includes all lines, equipment and other facilities required for transmission or reception of signs, signals, sounds, images and other information between customers.

17.2 Backbone telecommunications network means public network which consists of international and domestic long distance transmission, and international long distance switching facilities. The Backbone network may belong to State property.

17.3 The possessor of telecommunications network shall organize a network through integrated technical and technological management, which operates without interruptions.

17.4 The backbone network may be constructed and possessed by all type property entity and individuals.

Article 18. Postal service network

18.1. All postal network, its usage, service related relations shall be regulated by the Law.

(Paragraph amended by the Law of May 15, 2003)

Article 19. Radio and Television Broadcasting network

19.1Radio and Television broadcasting network comprise of all equipment and facilities required for transmission or reception of radio and television broadcasts.

19.2 The radio and television broadcasting network shall be used by the program producers of radio and television broadcasting on the basis of contract with the service- provider

Article 20. Communications network for special purpose

20.1 For the purpose to ensure defense and security of Mongolia and to keep civil protection, criminal and social orders, state or local administrative bodies shall establish and operate communications network for special purpose.

20.2 The communications network for special purpose shall be under protection of the State.

20.3 The Government of Mongolia shall determine proce contract concluded with the operator- service provider.

20.5 Confidentiality and protection of the information of communications for special purpose during transmission through communications network shall be carried by the body specified in Article 20.1.

Article 21. Communications network for internal purpose

21.1 Any enterprise and business entity may establish and operate communications network for internal needs, which allows prompt coordination of its technological management.

21.2 Based on the license issued by the Regulatory Commission it shall be allowed to be interconnected to backbone telecommunications network and provide service.

Article 22. Connections to communications network

22.1 The possessor of network for special and internal purposes, and possessor of newly constructed network shall bear all responsibility in respect to additional lines and equipment required to demarcation points of interconnection with network possessed by other persons.

22.2 Within its technical capability, the operator shall provide conditions for connections of other network to own network without any hindrance.

22.3 The network demarcation point shall be determined by the Regulatory Commission.

Article 23. Mobilization of communications network

23.1 Pursuant to the event of imposition of war and martial law, or extreme natural emergency conditions in Mongolia, the communications network shall be mobilized in accordance with the legislation.

CHAPTER SIX.- RIGHTS AND OBLIGATIONS OF SERVICE PROVIDER AND CUSTOMER

Article 24. Responsibilities of service provider

24.1 Rights, obligations and responsibilities of the service providers and customers shall be regulated by contract in accordance with the Civil Code.

Article 25. Provider’s rights and obligations.

25.1 The Provider shall enjoy the following rights:

25.1.1 To determine tariff for communication services on the basis of method provided by the Regulatory Commission.

25.1.2 To cease provision of the service and terminate contract if the customer fails to fulfill contract obligations.

25.1.3 Other rights specified in the contact.

25.2 The service provider shall have the following obligations:

25.2.1 to ensure to the provision to customer without discrimination, of reliable service in accordance with the license.

25.2.2 to be subject to provisions and rules of technical and technological requirements as well as standards of communications operations, service and expansion;

25.2.3 to notify in advance both the Regulatory Commission and customers on any new replacement, expansion, modification of service and temporary interruption of communications equipment.

25.2.4 To protect and keep privacy of all information and data transmitted through communications network.

25.2.5 allow usage of the network by others without any prevention in accordance with the legislation in the case of circumstances stipulated in Article 23.1 of this Law;

25.2.6 not to interrupt communications service except those fixed in the legislation, to bear all responsibility under the Civil Law if any loss occurred to customers.

25.2.7 to give required information to the Regulatory Commission on specified time.

25.2.8 to connect authorized bodies to the communication network, to provide conditions to use it in accordance regulation specified in article 9.1.1. of Law on intelligence activities

(Subparagraph added by the Law of July 08, 2010)

25.2.9. to compose technical conditions of telecommunication number portability within providers .

(Subparagraph added by the Law of July 01, 2014)

25.2.10. other powers stipulated by the law and contract.

(Provision added by the Law of July 08, 2010 and by the Law of July 01, 2014)

25.3 The employee of service providing body shall have free access to maintain and repair its own communications lines, network housed in the premises of state-protected enterprises and organizations.

25.4. (Paragraph repealed by the Law of May 15, 2003)

Article 26. Rights and obligations of customers

26.1 The customer shall have the following rights:

26.1.1 to select and use the certified equipment, which complies with standards and technical requirements of communications network.

26.1.2 to demand the repair of deficiencies occurred in communications network on the time specified in contract and get information on it.

26.1.3 to claim compensation under the Civil Code if stopped the service or did not operate the equipment for reason other than specified in article 23.1 of this Law.

(Provision amended by the Law of May 15, 2003)

26.1.4 Other rights stipulated in the Contract.

26.2 The customer shall have the following obligations:

26.2.1 to protect communications network and equipment housed in the customer’s premises or region, and notify service providers on any damages or deficiencies occurred or to be occurred.

26.2.2 to pay charges for communications service in time specified in the Contract.

26.2.3 to use certified equipment compatible to requirements given by communications service providers.

26.2.4 Other obligations stipulated in the Contract.

CHAPTER SEVEN.- PROTECTION OF COMMUNICATIONS NETWORK

Article 27. Obligations of legal entity, organization and citizen

27.1 The business entity, organization and citizen shall have the following duties in regard to the protection of communications network:

27.1.1 obtain permission from the service provider for setting up links and networks, constructing facilities, surveying and mapping of engineering lines and network furthermore in the case of replacement, conduct such work at own expenses.

27.1.2 obtain identifiable address and code from post office and if any modification, update on time.

(Subparagraph repealed by the Law of May 15, 2003)

27.1.3 to refrain from posting any explosives (weapons, gunpowder, bullets, etc) or radioactive and flammable items (gasoline, fuel, spirits, acid, alkali, etc) and other items prohibited by the customs clearance.

(Subparagraph repealed by the Law of May 15, 2003)

Article 28. Protection of rights of way

28.1. “Protection of rights of way of communications” means an area of land and space designated for communications network assigned from the integrated Land fund of Mongolia. The dimensions of protection rights of way shall be as follows:

28.1.1 an area 10 meters on either side of all open-air lines;

28.1.2 an area 5 meters on either side of all cable lines

28.1.3 an area within 300 meters radius of a station established for transmission via microwave station or satellite;

28.1.4 any area considered harmful to humans because of the capacity of radio and television transmitting equipment and radio frequency generators.

28.2 In accordance with their respective powers, the Central State administrative body and local government shall resolve all aspects in regard to the rights of way of communications network.

Article 29. Control over protection of rights of ways

29.1 The rights of ways of communications shall under control of service provider.

29.2 The signs indicating rights of ways of communications shall be erected along directions of the lines.

29.3 It shall be prohibited to carry out the following works on the rights of ways:

29.3.1 construction of building, erection of ger and fence, and cultivation of trees.

29.3.2 disposal of any heavy items, leakage of chemical and caustic substances, which may cause serious damages to, cables.

29.3.3 to pass across open-air lines with transportation with excessively tall load.

29.4 If the performer of order is entitled to carry out works on rights of ways of communications, then he/she shall obtain approval from service provider of such actions.

29.5 The performer of order on rights of ways of communications after completion of works on them shall take actions to restore and refurbish the site to its original state at own expenses.

CHAPTER EIGHT.- SUPERVISION AND LIABILITIES

Article 30. Control over communications operations, services and manufacturing

30.1 The State Communications inspectors shall conduct control over and inspect compliance with the legislation, technical and technological standards in process of communications operations, services and manufacturing.

30.2 The State Communications inspectors in addition to powers specified in the Law of State control and inspection shall have the following powers:

30.2.1 to monitor adherence of the legislation of communications and radio frequency, and issuance of licenses, and control and inspect of performance;

30.2.2 to inspect implementation and adherence of the relevant technological norms and rules, standards and technical requirements and other legal provisions governing communications operations, services and manufacturing;

30.2.3 to terminate unlicensed communications operations, services and manufacturing and unregistered usage of radio frequency.

Article 31. Adjudicating

31.1 The Regulatory Commission and its branch, representative offices shall be entitled within their competence to settle disputes among licensees, and licensee and customer.

31.2 If the licensee or customer is not agree to settlement of disputes as mentioned in clause 1 of this article he/she shall have right to submit complaint to the Court.

Article 32. Liability for breach of the Law

32.1 If an infringement of the legislation is held not constitute a criminal offence, state inspectors on communications shall impose on the offending person the following administrative penalties:

32.1.1any person who causes damage to any communications equipment installed on common use territories shall be fined between 10000-25000 tugrugs, and business entity or organization shall be fined between 100000- 250000 tugrugs.

32.1.2 any person during survey and mapping activities of building and facilities, and engineering lines and network has cut and moved without prior permission communications lines, network housed on that site, and as result of such work made damage to lines, network (communications cables, open-air lines, subscriber cable box, built-in wires, transformer, ducts, post office box, etc.) and made out of order, shall be fined in the case of citizen or officials between 25 000-35 000 tugrugs, in the case of business entity and organization shall be fined between 150 000-250 000 tugrugs.

32.1.3 any person who dismantles or defaces any sign erected  along communications lines and network, or causes damage to communications poles, or leaves extraneous items in cable box, manholes, ducts or post office box shall be fined between 3 000 to 10 000 tugrugs, and in the case of business entity and organization shall be fined between 30 000 to 150 000 tugrugs.

32.1.4 any person who has made without license an interconnection to communications network, using interconnection acquired transmitted information, and conducted communications operations and service, then such activities shall be terminated immediately, shall be fined between 10 000 to 35 000 tugrugs, and in the case of business entity and organization shall be fined between 50 000 to 250 000 tugrugs.

32.1.5 any person who breaches Article 29.3 and 29.4 of this Law shall be fined between 5 000 to 35 000 tugrugs, and in the case of business entity and organization shall be fined between 150 000 to 250 000 tugrugs.

32.1.6any person who breaches Article 25.2.6 of this Law shall be fined between        5 000 to 35 000 tugrugs, and in the case of business entity and organization shall be fined between 100 000 to 250 000 tugrugs.

(Subparagraph amended by the Law of May 15, 2003)

32.1.7any person who breaches Article 25.2.2 and 25.2.3 shall be fined between     15 000 to 25 000 tugrugs, and in the case of business entity and organization shall be fined between 100 000 to 200 000 tugrugs.

(Subparagraph amended by the Law of May 15, 2003)

Article 33. Compensation for damage

33.1 Damages caused by the guilty party by infringement of the communications legislation shall be compensated in accordance with legislation.

CHAIRMAN OF STATE IH HURAL OF MONGOLIA

TUMUR.S