Universal service refers to the principle of making telecommunications services accessible to as many people as possible at affordable prices. According to ITU documentation, universal service is built on the following three fundamental principles:
- Availability – Services must be available regardless of a user’s geographic location, ensuring that the same types and quality of services are accessible whether at home or at the workplace.
- Accessibility – Prices and tariffs must not pose a barrier to service usage, enabling all users to obtain essential telecommunications services without financial hardship.
- Affordability – Telecommunications services must be provided equitably to all users—regardless of race, gender, religion, or location—at fair and non-discriminatory prices and quality levels.
Common Approaches to Achieving Universal Service Globally (Source: ITU, 2013. Universal Service Fund and Digital Inclusion for All):
• Market-based reforms – Encouraging competition and liberalization to expand service coverage.
• Mandatory service obligations – Requiring designated operators to serve underserved areas.
• Cross-subsidization – Using profits from lucrative markets or services to support uneconomical areas.
• Access deficit charges – Compensating operators for losses in low-revenue or high-cost areas.
• Public-Private Partnerships (PPPs) – Collaborating with the private sector to deliver services.
• Universal service funds (USF) – Establishing dedicated financial mechanisms to support universal access projects.
Traditionally, universal service policy focused on voice telephony. However, in the last decade, it has expanded to include Internet connectivity, particularly broadband services. The number of countries that incorporated broadband into their universal service frameworks increased from 42 to 89 between 2010 and 2019.
(Source: ITU and The World Bank, 2020. Digital Regulation Handbook, Chapter 3: Access for All)
Universal Service Fund (USF) in Mongolia
In Mongolia, the Universal Service Obligation Fund (USOF) was established in 2006 under the Law on Communications and the Law on Government Special Funds. The fund is administered by the government body in charge of communications, which is responsible for both mobilizing and disbursing the fund.
According to the Law on Communications (Article 3.1.8):
“Universal service obligation” refers to the delivery of essential postal and telecommunications services, under state policy, to remote or underserved populations at affordable prices.
According to the Law on Government Special Funds (Article 9.1):
The Universal Service Obligation Fund aims to ensure the provision of essential telecommunications services to remote and underserved regions at affordable prices, to establish new infrastructure, and to promote the introduction, expansion, and modernization of advanced communication technologies.
