Traditional ICT companies have struggled to make headway into Mongolian society, however those focused on wireless solutions have seen greater success and uptake.
Mobile penetration in Mongolia has increased from a rate of 30 per cent in 2006 to almost 117 per cent in 2012 as mobile phones have become increasingly popular, particularly in rural areas.
Mongolia’s second-largest mobile operator and holder of a quarter of the domestic market, with over 500,000 active subscribers, the Skytel Group has pulled out all the stops to boost its coverage and customer service.Last year, it launched the country’s largest CDMA 3G network, covering all the main provincial centres, and the company aims to start rolling out 4G connectivity from 2014.
“Current penetration rate in rural areas is very low for Skytel, just 20 per cent,” says D Bolor, CEO of Skytel Group. “Although, experience says that the penetration ratio for the sector in these areas and the capital city is 50:50, which reveals the need to expand our business in rural areas.”
Mr Bolor believes greater future revenues lie in mobile internet services, such as IPTV, high-speed mobile internet and VoIP. It has started importing new handsets, particularly smartphones that use the latest Android operating system, to support the growth in mobile services.
“In recent years, mobile phone subscribers have grown to be much more sophisticated, demanding better customer service and better products to help them simplify their lives,” says Mr Bolor.
In addition to its focus on technology, the company has undergone structural and managerial changes that, according to the CEO, provide it with “a renewed focus on the fundamentals of our business: friendly and effective customer service.”
“Skytel is well positioned and set to grow,” adds Mr Bolor. “It is a very exciting time at Skytel and we are already beginning to reap some of the benefits from our changed management programme.”