Prepared by: T. G. Masia
Lesotho Telecoms Corporation
Fax: +266 310091

Preamble

In 1996 a few private entities approached Lesotho Telecommunications corporation LTC (which was mandated to develop and provide telecommunication services on monopolistic basis an vested with regulatory powers for these services), applying for licenses for the provision of Internet service in the country. But at the same time all of them seeking partnership with LTC.

At that time within LTC there was none or very little knowledge about the Internet.

LTC then approached several organisations such as CSIR Telkom SA, Afralti, for enlightenment as to what the IP is in terms of Technology and business. Also seeking guidance with respect to Policy issues.

Observations

(i) LTC's national telecommunications infrastructure was analogue and could not effectively support the IP services and their requirements.

(ii) There were conflicting views with regard to the policy governing the provision of Internet in different countries. I.e. The total exclusion of the traditional telecommunications operators or the extend or level of their participation in the provision of Internet.

(iii) There were also issues on Regulation of the content.

LESOTHO TELECOMMUNICATIONS CORPORATION APPROACH

Infrastructure

Efforts were made to put in place the back bone infrastructure that would support the IP service buy providing digital network. But these efforts were frustrated and delayed by in unavailability of finances.
Some limited achievement was made through supplier finance and bilateral cooperation arrangements.

Policy

LTC acknowledging its limited know-how in the Internet Issues, proposed to its Board of Directors that the way forward be to go into partnership, but it should be with one of the well established and major internet access providers, in preference operating in South Africa.

The view here was that with wise an careful choice, the partner would provide the necessary capital outlay to setup the service and also provide the expertise in running and managing the Internet Business. In consideration of the general restructuring of the telecommunications sector towards privatization worldwide, it was proposed that this partnership be for a limited period of 5 years.

No decision was given. The reason for indecision, one could only attribute to conflict of interest.

Resultant

The demand for the service grew nd some companies set-iup servers in South Africa and marketed the service in Lesotho.

Some leased the dedicated digital lines to South Africa and pirated the service in Lesotho.

Subsequently the Board ruled that LTC should license private companies registered in Lesotho for provision of Internet.

Current Status

In May 1999, U.S. Ambassador discussed with the Lesotho Minister of Trade and Industry about Lesotho becoming one of participants in the Leland Initiative. This initiative aims at operating the Sub-Sahara countries with the establishment of Internet Services.

Susequently the National Steering Committee was set up in January 2000 referred to as the Lealand/Internet Task team.

The composition of the Steering Committee chaired by the Ministry of Trade and Industry drew from all sectors of the community. Viz Government, Learning Institutions, Business, Media etc.

The committee is structures in the following sub-committees.

• Policy
• Infrastructure
• Government Connectivity
• E-Commerce Issues

The main resolutions of the Steering Committee have been as follows:

(a) LTC shall not participate as an ISP.
(b) LTC shall establish the Hub, manage and operate it.
(c) LTC shall provide a unique access code for ISP dial up with uniform tariff throughout the country.
(d) Schools and health centres to be assisted with computers and connectivity to Internet.
(e) Training of all sectors

The LTC's Position

The Hub equipment has been installed (uncommissioned)
Internet access contract has been signed.
Access bandwidth connectivity - leased circuit to South Africa is in process of being established.

Conclusion

Government of Lesotho and the United States Government have negotiated and singed the Memorandum of Understanding for the establishment of Internet Service and access in Lesotho during May 2000.
The Web page for Lesotho is in the making.