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1 Annex No.1 to the 25th resolution of the Communications Regulatory Commission, 2007 REGULATION ON VOICE OVER INTERNET PROTOCOL /Amended by 26th resolution of 2009, 4th resolution of 2012, 39th resolution of 2014 of CRC respectively/ 1. General provision 1.1. This document defines the general direction on voice over internet protocol service regulation in the framework of recommendation on Internet voice service from Information, Communications and Technology Agency / No.1/307 of 19th of June, 2007/ 2. Definition of terms 2.1. Internet voice (voip) means voice transformed in packet form and transmitted using internet protocol. various terms are used to define internet voice such as internet telephony, Ip telephony, Broadband telephony and voice over Broadband depending on technology, type and format. the term Internet voice (VoIP) will be used in this document hereafter. /Reformulated by 39th resolution of Commission in2014/ 2.2. Internet voice service means the service to transmit internet voice to subscribers using the numbering issued for this type of service according to General numbering plan for communications network of Mongolia from the Communications Regulatory Commission /hereinafter referred to as Regulatory Commission./ 3. Classification of Internet voice service Internet voice service shall be classified into 3 layers depending on service type and quality to subscriber Layer 1 means traditional PSTN service or same quality internet voice transmission service with PSTN or service complied with quality condition 516

2 indicated in provision of Terms and condition of Voice service. This service shall be referred to as Telecommunication basic service and complied with Terms and condition of Voice service. For instance: - Switching system and technical condition - Subscriber network, its operation and maintenance service - Interconnection with other communications network - Service quality and standard - Mongolian Telecommunications Numbering /started with 7,8,9/ - Calling to Emergency numbers - Number portability - Customer care service /tariff, inquiry service etc./ - Universal Service Obligation /Amended by 39th resolution of Commission in2014/ 3.2. Layer 2 service shall comply with minimum requirement indicated in provision of Terms and condition of Voice service. Layer 2 service providers not necessarily to have subscribers network and deliver its service to subscribers transit through other Mongolian Telecommunications network. This kind of service includes International voice card service, Satellite voice service and shall comply with following minimum requirements. For instance: - Switching system and technical condition - Subscriber network - Interconnection with other Telecommunications network - Service quality and standard - Customer care service /tariff, inquiry service etc./ - Mongolian Telecommunications Numbering /16xx numbering/ /Amended by 39th resolution of 3.3.Layer 3 means internet voice service to subscribers using public internet, not using Mongolian Telecommunication numbering, not interconnecting to Mongolian telecommunications networks. This kind of service includes voice 1 The Layer 1 service providers shall comply with quality requirement that 8-64kbps of one voice channel capacity according to ITU recommendation G.729, G728, G The Layer 2 service providers shall comply with quality requirement that kbps of one voice channel capacity according to ITU recommendation G

3 services using various applications /viber, skype, wechat etc./ and shall comply following minimum requirement. For instance: - Customer care service /tariff, inquiry service etc./ 3.2. Layer 2 service shall comply with minimum requirement indicated in provision 5.32 of Terms and condition of voice service. Layer 2 service providers are not required to have subscribers network and can deliver its service to subscribers transiting through other Mongolian Telecommunications network. This kind of service includes International voice card service, satellite voice service and shall comply with following minimum requirements. for instance: 4. Service coverage and License 4.1. If Internet voice service network is interconnected with other public communications networks in order to render Internet voice service to subscribers, the service provider shall apply to the Regulatory Commission for license. Otherwise rendering the Layer 1 and 2 services indicated 3.1, 3.2 of this regulation shall get license. But following cases shall not require license. These are: No license required for Internet voice transmission using software from computer to computer or within local area network of entity without using any numbering; Internet voice service using Special /state/service network 3 shall not comply with this regulation The Regulatory Commission classifies the Voice service license by it s type of service to subscriber /fixed and mobile/ and coverage /local, long distance and international/. This principle shall apply to Internet voice service as well service providers with fixed telecommunication service license from regulatory Commission are allowed to provide Internet voice service with quality indicated in Layer 1 in local and long distance and The regulatory Commission shall issue them numbering for internet voice service according to general numbering plan for communications network of Mongolia. In this case, it is not required to apply for additional license. 3 Special use network means communication network that using encryption technology, complied with reliable safety and accessibility, protecting national interest for special and state communication use, Provision of Information and communications network regulation of Mongolia of Communications Regulatory Commission 518

4 4.2.2.License for Internet voice service indicated Layer 2 shall be issued to qualified person or entity whomeets relevant terms and condition of the regulatory Commission If service provider, having Internet voice service /Layer 1/ indicated in 4.2.1, allowed its subscriber to communicate from foreign country, shall get international internet voice service license and comply with following requirements. These are: - To use separate soft switch which having functionality to support pre/ post paid mode for international voice service, to process statistical information about service quality and functions for subscriber registration and service possibility; - To use dedicated trunk line with only one IP address to connect to other internet and telecommunications service providers network; - To comply with requirement indicated in of this document To protect voice market from high dominance condition, international internet voice service license shall not be issued to cellular telephony licensee. Regulatory service fee 4.4. The regulatory service fee for services indicated in 4.2 of this regulation shall be paid annually in accordance with regulatory service fee for Licensee approved by the regulatory commission. /The numbering of this provision has changed by 39th resolution of 5. Interconnection 5.1. The service provider shall comply with The license terms and condition of Voice service. /Added by 39th resolution of 5.2. International internet voice service interconnection principle and call routing can be in following two options: 519

5 Version 1: Transit through international carrier network Version 2: Connect through any internet accessible point from abroad /incoming voice/ 5.3. The Regulatory commission shall define international incoming call termination charge to telecommunication /fixed, mobile/ network The Regulatory commission shall define the charge for telecommunication service provider per subscriber payment for outgoing international call from telecommunications network Local, long distance and international internet voice service tariffs shall be defined in accordance with guideline of the Regulatory Commission and reviewed by the Regulatory Commission if necessary. 6. Service quality 6.1. Procedure on Monitoring Quality of Information and communication service, The license terms and condition of Voice service approved by the Regulatory commission shall be complied. /Amended by 39th resolution of 7. Numbering 7.1. The service provider shall comply with General numbering plan for communications network of Mongolia and section 5 of The license terms and condition of Voice service. /Amended by 39th resolution of 7.2. The service provider shall register its IP addresses for internet voice service to the Regulatory commission by each coverage /local, long distance or international/ If the service provider owns both licenses on international and local internet voice service, it shall use separate IP addresses on each service Local and long distance internet voice service /refer to Layer 1/ 520

6 Block of 70xx xxxx 78xx xxxx from Telecommunications network numbering shall be allocated to local and long distance voice service in Mongolian territory on non-geographic basis Numbering block from block of 70xx xxxx 78xx xxxx indicated in of this regulation to be issued for one service provider shall not be more than five hundred thousand numbers The service provider shall make possibility for its subscribers to make a free call to emergency numbers /100, 101, 102, 103, 105 etc./ within its city or aimag center and provide detail information on this issue International internet voice service If version 1, indicated in of this document is used for connection, depending on service quality, the Regulatory commission shall issue 00x prefix numbering in case for Layer 1 service, 16xx prefix numbering in case for Layer 2 service If local and long distance internet voice service provider complied with requirement indicated in of this document and use connection / incoming call/ indicated in of this document, shall use block number of 79xx xxxx. In this case the service provider shall comply with Layer 2 terms and conditions for quality of service and set up service tariff different from local and long distance voice service. 8. Others 8.1.This regulation document may be updated according to technological advance and ITU recommendations time to time. 521

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