A Five-year Term for the License is Insufficient

A discussion titled “Challenges and Solutions in Obtaining and Renewing Special and General Licenses under the Law on Licensing”, which was adopted by the State Great Khural of Mongolia on June 17, 2022 and came into effect on January 1, 2023, was held at the Mongolian National Chamber of Commerce and Industry (MNCCI) on October 2, 2024.

The event brought together over 20 representatives from the education, culture, mining, tourism, and communications sectors, including a Member of Parliament, Kh. Gankhuyag, who leads the working group on the Law on Licensing, as well as other members of the group. Participants exchanged views on the implementation of the Law on Licensing and its accompanying laws and regulations, focusing on the challenges encountered and potential solutions.

U. Tamir, Executive Director of the Mongolian Information and Communication Operators’ Association (MICOA), stated:
“For telecommunications operators, rapid technological advancement requires substantial investments. However, realizing returns on these investments heavily depends on the duration of the special licenses. Setting the license term at only five years disrupts policy continuity and negatively impacts the business environment. The amendments introduced under the Law on Licensing should be revisited. Additionally, in sectors such as banking, finance, and telecommunications, where liberalization is higher and business models evolve in response to technological changes, the classification of special licenses should also be adaptable. Rather than reducing the number of license types, it would be more effective to reform and make them convertible.”

Ch. Buyantogtokh, Director of Legal and Regulatory Affairs at Mobicom Corporation, added that “provisions regarding the duration of licenses are currently interpreted inconsistently across various laws, regulations, and by the Licensing Council. Therefore, it is essential to clarify the policy on license duration.”

It was agreed that the proposals discussed during the meeting would be consolidated among the members and submitted in writing.