Within the framework of the Government's overall privatisation policy, the direction to be adopted for the privatisation of the telecommunications sector takes into account the particular characteristics of the entities concerned and, in particular, their technical, economic and financial capability to operate and develop independently.

The Government's policy on the privatisation of the Mongolia Telecom, the dominant supplier of telecommunications services includes the following:

1) Considering the worldwide trend of telecommunication development Mongolia Telecom, the state-ownership dominated company which leases the telecommunication network assets to provide basic telecommunication services, will be reorganised so that it would have its own network assets, truly commercial structure and incentives with domestic and foreign private investment participation. However, the Government will retain the majority of shares in Mongolia Telecom and the remaining shares will be sold through international competitive bidding;
2) the implementation of the main objectives of the medium and long term network development plan and strategy, improvement of network reliability and network expansion, universal service obligation, low-pricing requirements, the obligation of the privatised company to meet the country’s common interest etc will be considered and reflected in the privatisation program according to the relevant laws and regulations.
3) Within the framework of privatisation the  Government of Mongolia will pursue a policy to select the most appropriate form of restructuring the sector, transferring the telecommunication network assets to the privatised company together with the loan and repayment obligations incurred during establishment of those network assets, conduct re-evaluation of the assets, determine the share value considering the future market value and using all possible methods of determination and sell the shares of the company to those investors who won the tender and who accepted the privatisation program of the Government on the basis of share sale agreement.
4) At this stage of privatisation all the technical building facilities, the international gateway exchange and earth station granted by the Government of Japan will not be included in the privatisation process.
5) the further steps of privatisation process will be conducted by way of reducing the Government share portion to deepen the privatisation process.
6) the radio and TV transmitters, retransmitters and receivers will be privatised on the basis of competitive bid.