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Rural access and telecentres

Output-based aid in Mongolia : expanding telecommunications services to rural areas (pdf 420kb)

This publication looks at two pilot projects which are bringing phone service to remote herder communities, both mobile phone and Internet services to rural villages in Mongolia.

To support the delivery of these services, onetime subsidies were competitively awarded to licensed telecommunications operators in Mongolia. These are output-based subsidies: the winning bidders take on the investment risks of expanding their networks, receiving subsidy payments largely only after meeting service targets. The operators are obligated to continue offering the services for the duration of their 5 year service agreements without further subsidy.

 

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