Promoting the Internet in Rural Mongolia

Following the introduction of the internet in Mongolia in 1996, many Mongolians awaited access to it, which, as of the writing of this report in 2000, was slow to arrive. Satellite connections and wireless technology are being used to "leap over" inadequate infrastructure and ageing telecommunications facilities to provide direct internet access to some 4,000 account-holders, in a nation of 2.4 million people.

Not all areas of Mongolia are connected, but steps have been taken to extend coverage when affordability catches up with technology. The country's first internet service provider, Datacom, reports that demand is pushing the access to technology: people with email access and web access are asking for "video phones, even in rural areas....But the former state-run enterprise has its sights set first on achieving its goals under the International Development Research Centre's Pan Asia Networking (PAN) programme. This initiative aims to promote speedy and more efficient access to the Internet among the least developed countries of Asia.

Under the first phase of the PAN Mongolia project, Datacom installed a low-cost dial-up gateway system to the Internet in 1994. Over the next two years, a dedicated satellite connection was established and a Mongolian website created with the help of other international donors and local partners. Since then, five urban public Internet centres have been opened, in rent-free premises sponsored by the government." Centres are accessed by teenagers and entrepreneurs; users are given 50 free hours of access for every person they introduce to the service. Every person who enrols two new users for the monthly online subscription gets a free website hosted by the service. Marketing includes telling entrepreneurs that "it's trendy to include their website on their business card or in print advertisements....

Meanwhile, Datacom is trying to make its services financially self-sustaining and relevant to user needs. Immediate obstacles are the traditional mindset, low incomes, and language barrier." Because radio and television services have been state-funded and initial access to the internet was cost-free in urban centres, there is a barrier in the minds of users to paying fees for internet access. "To avoid further misunderstanding, the company is asking donor agencies to issue and distribute vouchers to new users within their ...groups. These vouchers have a pre-set cash value, to indicate the cost of services and that someone is paying for it."

As indicated here, development of rural internet access will need financial sponsorship and local language material that is useful to the rural population. "[P]roject sustainability... is being addressed through three strategies. The first step involved training 'results-oriented' informal community leaders - such as well-respected teachers and doctors - to head the rural centres and promote the Internet. Next, Datacom will identify local businesses that are willing to support rural services by paying most of the operational costs - while generating revenues in the process. It also plans to encourage international agencies working in Mongolia to include Internet costs in their budget."

The head of Datacom states that building blocks must be put in place for an internet-based economy, including:

• Business people must learn how to make electronic commerce (e-commerce) profitable and how to organise electronic shops and internet banking facilities.
  
• In rural areas, real demand for an e-commerce market must be identified, along with how to deliver technology at a price that can be recovered through effective usage.
  
• Education structures need to be upgraded to enable Mongolians, of whom 95 % are literate, to utilise knowledge from the internet.