ICT Cluster Development Strategy for High-Tech Industry Park in Mongolia - Technopolis: Best Practices for Science and Technology Cities - page 472

Table 1 Core indicators of the ICT sector

2005 2006 2007 2008 2009 2010

Total revenues of ICT sector (bln Tugrug) 140.4 181.7 283.5 365.2 449.2 471

Investment (bln Tugrug) 34.5 38 54 70.6 73 89.9

Tax contribution to state budget (bln Tugrug) 54.3 71.4 108.7 74.4 76.5 81.8

2.3.2 Information and Communications Technology 5

ICT serves as the main infrastructure of a modern knowledge-based economy.
ICT sector is one of the fast and intensively developing sectors and important
factor that demonstrates the development of ICT in Mongolia is the contribution of
the ICT development to the GDP. The ICT development of Mongolia has
advanced tremendously for the past several years and made considerable progress
in developing its information and communications infrastructure, particularly
modern basic service and cellular services (Table 1 ). In order to achieve the
highest sustainable economic growth, ICT should be developed and maintained in
all available economic sectors and thus it could contribute to the interrelated
growths of each sector.
In terms of composition of ICT sector revenues, about 74 % of total revenues
are generated by mobile services and the remaining 26 % are contributed by fixed
telecommunications network, VoIP, Internet, Cable TV, broadcasting, and others.
Currently, there are over 500 enterprises providing communications services
with 684 special licenses and comprised around 10 % of the GDP. The number of
software and development companies has reached to 100, which currently run their
business in the field of IT consulting, accounting software, web design, out-
sourcing, and IT training.
There are educational institutions such as the Computer Science and Man-
agement School and Information, Communication and Technology School at the
MUST, The School of Mathematics and Information Technology at the NUM and
''Khuree,'' a private institute which are engaged in preparing specialists in engi-
neer, technique, and management in the sector and activities for research and study
apart from as well as the Informatics Center at the Academy of Science which runs
specialized research activities.

3 Initiative for ICT Cluster Development in Mongolia

Mongolia having low population, insufficient market, and has landlocked location
experiences a number of challenges in the process of developing an export-oriented
economy while an Information technology industry is such a unique industry that

5 Information, Communication Technology, and Post Authority: White Paper 2011, Ulaanbaatar
(2011).