The objective of this research is to design, and determine the feasibility of, a telecommunication system for the city of Erdenet, Mongolia. The Mongolian Telecommunication Company, Telecommunication Company of Erdenet city, and the National Statistical Office of Mongolia provided the data required for telecommunication forecasting of Erdenet. The literature review and analysis of the telecommunication forecasting indicate the need for a model of a new Telecommunication system in Erdenet, Mongolia. The model, as indicated, should become a useful example for planning and updating the telecommunication system in Mongolia. The design of a proposed telecommunication network involves the following considerations: analyzing and forecasting telephone traffic, calculating the required number of channels, determining exchange locations, traffic matrix, and establishing a basic hierarchical structure.