CONTENTS

No. Page ACT

Lesotho Telecommunications Authority …………………………………………………. . . 327 Act 2000

Part II Establishment of the Authority

1. Establishment of the Authority 
2. The Board 
3. Disqualification for appointment as a member of the Board 
4. Vacancy in the office of a member of the Board 
5. Removal from office for misconduct
6. Resignation of a member 
7. Suspension 
8. Filling of vacancies
9. Remuneration 
10. Chief Executive
11. Functions of the Chief Executive

Part III Functions of the Authority

1. General duties of the Authority 
2. General powers of the Authority 
3. Powers of the Authority in relation to international matter’s
4. Personal liability

Part IV Finances of the Authority

1. Funds of the Authority 
2. Annual budget
3. Accounts and audit
4. Annual report of activities

Part V Meetings and proceedings of the Board

1. Meetings of the Board 
2. Disclosure and declaration of interest
3. Signification of documents

Part VI Licensing of telecommunication services providers

1. Classes of providers of services
2. Licensing of providers
3. Delisting of licences
4. Records of licensing 
5. Rules governing licensing 
6. Services under licence
7. Control of’ transfer or’ assignment of licences
8. Refusal
9. Review of agreements entered into by service providers

Part VII Duties of telecommunication service providers

1. Timely provision of service
2. Agreements for’ interconnection 
3. Submission of interconnection disputes to Authority 
4. Submission of agreements governing external interconnections
5. Restriction of resale
6. Tariffs and rates
7. Tariffs, rates and charges
8. Accuracy of rates
9. Review of tariffs
10. Costing information 
11. Accounting procedure 
12. Reporting requirements
13. Access restriction and denial
14. Universal access

Part VIII Equipment standard, type approval and inspection

49. Equipment standard 50.Type approval and inspection

Part IX Management of the use of the radio frequency spectrum

1. Frequency management
2. Grant of licences
3. Competitive bidding for licences
4. Harmful interference

Part X Use of public and private property

1. Access and use of public property 
2. Use of private property

Part XI Offences, penalties and enforcements

1. Offences and penalties
2. Production of books and records
3. Inquiries and investigations
4. Powers of enforcement
5. Disputes

Part XII Restructuring of the Incumbent National Operator

1. Lesotho Telecommunication Corporation 
2. Transitional provisions
3. Regulations
4. Repeal and savings

SCHEDULE I

Business of the Authority

SCHEDULE II

Restructuring of the Incumbent National Operator

LESOTHO TELECOMMUNICATIONS AUTHORITY ACT 2000 

ACT NO. 5 OF 2000

An Act to provide for the restructuring arid the development of telecommunications; establish an autonomous and independent regulatory authority; license the providers of telecommunication services having regard to fairness, transparency, universal service, accountability to the general public; and for related matters.

ENACTED by the Parliament of Lesotho PART I PRELIMINARY

Short title and commencement

1. This Act may be cited as the Lesotho Telecommunications Authority Act, 2000 and shall come into operation on such a date as the Minister’ may, by notice published in the Gazette, appoint.

Interpretation

2.  In this Act unless the context otherwise requires  “allocation” means the apportionment of segments of the radio frequency 

spectrum among various users and radiobased services; “appointing authority” means, in the case of member’s of the Board of the Authority, the Minister or any other body or person vested with powers to 

make appointments; “assignment” means the designation to an individual licensee of specific radio frequencies for use in providing a particular service;

“Authority” means the Lesotho Telecommunications Authority established under section 4 of this Act;

“Board” means the Board of the Authority established under section 5 of this Act;

‘‘competitive services” means any telecommunication services that are or may be provided by 2 or more persons;

“customer” means a person who receives and pays for a telecommunication service over a period of time under an agreement with or pursuant to terms and conditions established by the service provider with the approval of the Authority;

“customer premises equipment” ox “terminal equipment” means equipment employed on the premises of a customer of a public telecommunication service or private telecommunication service to originate route, or terminate telecommunication services and includes telephone handsets (whether for wireless or wireline communications), fax machines, computer modems, associated hardware and internal wiring to the customer ‘s premises or property on which the customer has installed the customer premises equipment;

“domestic telecommunication services” means telecommunication services provided within Lesotho;

“exclusive services” means any telecommunication services that are provided or may be provided by one person over the whole country or by 2 or mole persons in specific areas of the country;

“incumbent national operator” or “incumbent” means the national telecommunication enterprise, Lesotho Telecommunications Corporation;

“information” includes signs, signals writings, pictures, sounds or other information of any nature which constitutes the content transmitted by telecommunication;

“international telecommunication services” means telecommunication services provided between Lesotho and any other country including transit traffic;

“licence” means an authorisation granted by the Authority for the provision of telecommunication services or for the use of the radio frequency spectrum;

“licensee” means a person that holds a valid licence duly granted by the Authority;

“member” means a member of the Board appointed under section 5; “Minister” or Ministry” means, unless otherwise specified, the Minister or Ministry responsible for telecommunication services;

“network” means an integrated system of facilities which comprise the facilities used to provide one or more telecommunication services;

“operator” means a person who operates telecommunication facilities; “person” means any individual, partnership, association, joint venture, trust, company or corporation;

“private line service” means the offering of telecommunication services in which certain telecommunication facilities or an agreed upon amount of capacity between or among fixed points is reserved for the exclusive use of a particular customer for an agreed upon period of time, for which the customer compensates the provider based on the total amount of capacity leased rather than the customer’ s actual usage of that capacity and which may be offered as a private telecommunication service or as a public telecommunication service;

“private telecommunication service” means telecommunication services not interconnected with the public switched network and subject to prohibitions against resale, provided exclusively for transmission and reception by one person or its employees or among persons under common ownership or control or their employees;

“public telecommunication network” means a fully interconnected and integrated system of telecommunication consisting of various means of transmission and switching, utilised to provide telecommunication services to the general public;

“public telecommunication services” means telecommunication services provided to the general public or to a class of persons so as to be generally available;

“public telecommunication services provider” means a licensed provider of telecommunication services having the authority and responsibilities assigned by this Act;

“radio frequencies” Or “radio frequency spectrum” means frequencies or spectrum of naturally propagated electromagnetic waves that are utilised for transmission and reception of telecommunication signals;

“resale” means the offering to users or customers for profit of telecommunication services obtained from another telecommunication service provider;

“subscriber” means a person or entity who is provided a telecommunications service by a licensee, and who is responsible for

payment of all charges and rentals thereof;

“tarrifs” means the published rates and other usage conditions under which a customer may receive telecommunication services;

“telecommunication” means any domestic or international transmission of information by wire, radio waves, optical media or other electromagnetic systems, between or among points of the user’s choosing;

“telecommunication equipment” means equipment (including hardware and software) used in the provision of telecommunication;

“transfer date” means the date designated by the Minister when assets, liabilities and employees are transferred from the incumbent national operator to a success or company.

Policies

3.  The Minister may, in consultation with the Authority, formulate general overall policies for the telecommunication sector.

Part II
Establishment of the Authority 

Establishment of the Authority

4.  There is hereby established an autonomous and independent Lesotho Telecommunications Authority which shall be a body corporate with a common seal, perpetual succession, capable of suing and being sued and subject to this Act, capable of performing such acts as bodies corporate may, by law, perform.

The Board

5.  (1) The powers and duties of the Authority shall be exercised and performed by a Board consisting of 5 members including the Chief Executive appointed by the appointing authority through a competitive and transparent selection procedure. 

(2) 

Candidates for appointment shall be selected and forwarded to the appointing authority by an Appointments Recommendation Committee which shall consist of 

(a) 

a nominee of the Ministry of Communications;

(b) 

a nominee of the Ministry of Finance;

(c) 

a nominee of the AttorneyGeneral’s Chambers; and 

(d) 

a nominee of the Ministry of Trade. 

(3) 

Subject to this Act, a member of the Board shall hold office for a term not exceeding 3 years and shall be eligible for reappointment upon the expiry of his term of office:

Provided that the initial appointment to the Authority upon its establishment shall be for terms of 1, 2 and 3 years respectively. 

(4) 

The appointing authority shall, in appointing members of the Board, appoint persons who collectively have knowledge or qualifications or experience in the fields of economics, accounting, telecommunications technology, engineering, public policy, business practice, finance, law or any other relevant experience. 

(5) 

In the appointment of the members of the Board of Authority, the Minister may specify whether the appointment is on a full time or part time basis being guided by the requirements of the business of the Authority. 

(6) 

Where appointments are on a full time basis, remuneration of the Board members of the Authority shall be determined by the Minister after consultation with the Minister responsible for finance.

Disqualification for appointment as a member of the Board

6.  No person shall be appointed to hold office as a member of the Board who has in terms of any law in force in any country – 

(a) 

been adjudged or otherwise declared insolvent and has not been rehabilitated or discharged;

(b) 

made an assignment to or arrangement or composition with, his creditors which has not been rescinded or set aside;

(c) 

who has been convicted of a criminal offence of which dishonesty is an element thereof;

(d) 

who holds or has a direct interest in a licence issued under this Act;

(e) 

whose spouse holds or has an interest in a licence issued under this Act; or 

(f) 

is a member of Parliament.

Vacancy in the office of a member of the Board

7. A member of the Board shall vacate his office and that office shall become vacant 

(a) 

if he becomes disqualified in terms of this Act;

(b) 

if he is declared insolvent;

(c) 

if he is absent from 3 consecutive meetings of the Board without a valid excuse;

(d) 

upon termination of his services in accordance with this Act;

(e) 

upon dismissal;

(f) 

upon conviction for a criminal offence of which dishonesty is an

element thereof or is sentenced to imprisonment for 6 months without the option of a fine;

(g) 

if he becomes mentally or physically incapable of performing his duties as a member of the Board;

(h) 

if that member or his spouse acquires a direct interest in a licence or becomes a holder of a licence

Removal from office for misconduct

8.  (1) Members of the Board shall conduct themselves in accordance with the rules of conduct to be prescribed by the Minister. 

(2) 

A member of the Board may be removed from office for misconduct, physical or mental incapacity. 

(3) 

Where the appointing authority becomes aware of a misconduct of a member, the appointing authority shall appoint a tribunal, headed by a judge or person qualified to hold judicial office, to investigate the alleged misconduct. 

(4) 

The appointing authority shall act in accordance with the recommendations of the tribunal.

Resignation of a member

9.  (1) A member may resign from his office by giving notice of not less than 3 months to the appointing authority, with a simultaneous copy of the notice to the Board. 

(2)  The appointing authority shall, pursuant to section 5, appoint a person to serve the unexpired term of office of the resigning member.

Suspension

10.  The appointing authority shall, in writing, suspend from office, a member of the Board against whom an investigation by a tribunal has been set up or criminal proceedings are instituted for an offence in respect of which a sentence of imprisonment may be imposed.

Filling of vacancies

11.  (1) Where a vacancy occurs in the membership of the Board either due to the death, resignation or removal from office of a Board member, the Minister shall, pursuant to section 5, appoint a person to take the place of the Board member who has been removed or has died or resigned, for the length of period that would otherwise have been served had such member not resigned, died or been removed. 

(2) 

Where 3 or more Board members have recused themselves with regard to any one or more pending matters, or where 3 or more Board members have been duly suspended for any reason, or where 3 or more Board members are unavailable to hear any specifically designated matters due to any combination of recusals or suspensions, then the Minister shall,

pursuant to section 5, appoint persons to hear such specifically designated matters in the place and stead of the recused or suspended members

(3) 

A person appointed pursuant to subsection (2) shall have the power, authority and responsibility of a member with regard to specifically designated matters only

Remuneration

12.  (1) A Board member shall be paid such allowances and travelling expenses incurred in the performance of his duties as the Minister may, after consultation with the Minister responsible for finance, determine. 

(2)  The allowances of a Board member shall not be reduced during his tenure of office.

Chief Executive

13.  (1) There shall be a Chief Executive of the Authority who shall be appointed by the Minister pursuant to section 5(1) on such terms and conditions as the Minister may determine. 

(2.)  The Chief Executive shall be the Secretary of the Board and shall hold office for a period of 3 years and shall be eligible for reappointment.

Functions of the Chief Executive

14.  The Chief Executive shall be responsible for the execution of the policy of the Authority, and the transaction of its daytoday business, and the exercise of such powers as may be delegated to him by the Board subject to section 16 of this Act.

Part III

Functions of the Authority 

General duties of the Authority

15.  (1) The Authority shall promote, develop and supervise the provision of efficient local, national, regional and international telecommunication services in Lesotho. 

(2) The Authority shall, without limiting the generality of subsection (1) – 

(a) 

take all reasonable steps to promote network development, universal service and access to telecommunication services;

(b) 

take all reasonable steps to ensure the efficient and effective use of the radio frequency spectrum;

(c) 

promote the range and quality of telecommunication services and other consumer interests;

(d) 

promote efficient management and human resource development

within the industry;

(e) 

promote private ownership of telecommunication operations;

(f) 

promote sustainable and fair competition between telecommunication service providers;

(g) 

collect and disseminate information for use by the industry, consumers and prospective investors;

(h) 

take reasonable steps to promote telecommunication services that will satisfy reasonable demands of least advantaged members of the communities for the provision of services such as emergency services, public call box services and directory information services;

(i) 

establish advisory committees composed of individuals with appropriate expertise to fairly represent the views and interests of users, consumers and operators and to advise the Authority on specific or technical issues and such advisory committees shall be appointed and conduct their business according to rules as the Authority may issue;

(j) 

represent Government, in consultation with the Minister, in international matters relating to telecommunications

General powers of the Authority

16 (1)  The Authority shall, without limiting its powers, issue such administrative orders and rules as are necessary to 

(a) 

appoint promote, remove and discipline staff;

(b) 

conduct the administrative operations of the Authority;

(c) 

establish its own internal organisation, including creation of bureaux, divisions and offices as it may deem necessary for the exercise of its powers;

(d) 

delegate its authority, which shall not extend to licensing, to the Chief Executive and the bureaux, divisions and offices of the Authority;

(e) 

grant, amend and revoke licences;

(f) 

oversee the overall management, administration and enforcement of numbering schemes;

(g) 

assign frequencies, manage the use of the radio frequency spectrum and satellite orbital locations;

(h) 

set technical standards and procedures to monitor adherence to such standards;

(i) 

contract for services of professional outside consultants and advisors as may be necessary and prudent to the conduct of the business of the Authority;

(j) 

establish the procedures and principles of interconnection;

(k) 

establish and, as required, amend the fees and other charges applicable

under this Act; and 

(1) 

investigate possible violations and otherwise enforce the provisions of this Act. 

(2)  The Authority shall, by notice published in the Gazette, issue such other administrative orders and rules as are necessary for exercising its powers and performing its duties in the implementation of policies under this Act.

Powers of the Authority in relation to international matters

17.  (1) The Authority may perform all such acts and do all such things as ale reasonably necessary, ancillary, incidental or supplementary to the performance of any of its functions in relation to international matters and obligations. 

(2) 

Without derogating from the generality of subsection (I), the Authority shall 

(a) 

be responsible for any intergovernmental telecommunications agreements and conventions as may be signed, ratified, approved or acceded to by the Government of Lesotho;

(b) 

represent Lesotho in international meetings and negotiations in matters relating to telecommunications, radio frequency spectrum or any other related matters;

(c) 

designate one or more operators or service providers to participate in and be signatory to operating agreements relating to international telecommunication organisations to which Lesotho is a party. 

(3) 

A designated operator or service provider referred to in subsection (2)(c) shall fulfil any financial obligation placed upon the signatory to the operating agreement, and in the event the Authority designates more than one signatory for any one organisation, the Authority shall specify the relative financial shares of such signatories

(4) 

The Authority may, at any time after giving 3 months prior notice, revoke t the signatory designation to an operating agreement of any organisation should it find that this Act would be best served by designation of another operator.

Personal liability

18.  (1) No Board member, officer, or employee of the Authority shall be liable for any damages in respect of any act or omission or thing done by the Board member, officer or employee in good faith in the execution of the duties or exercise of the powers under this Act.

(2)  The Authority may contract with an insurance company or other body for liability insurance

Part IV

Finances of the Authority 

Funds of the Authority

19.  (1) The Authority’s funds shall consist of 

(a) 

such monies as may be appropriated by Parliament;

(b) 

such fees as the Authority may impose for services provided under this Act;

(c) 

such fees as the Authority may impose for licenses issued under this Act;

(d) 

such other fees or monies as the Authority may, by virtue of this Act, raise or impose;

(e) 

fines and other monetary sanctions imposed by the Authority under this Act;

(f) 

grants, contributions or endowments from any other source; and 

(g) 

loans

(2) 

The Authority shall use the funds raised under this Act to meet the cost of its operations and shall use any surplus accrued for the promotion and development of telecommunications. 

(3) 

The funds of the Authority shall be administered through a bank account approved by the Minister after consultation with the Minister responsible for finance. 

(4) 

The Authority shall issue policies and procedural rules necessary to administer the funds, with approval of the Minister responsible for finance.

Annual budget

20.  The Authority shall, not less than 2 months before the beginning of its financial year, which shall be April 1, submit a budget for its annual operations to the Minister.

Accounts and audit

21.  (1) The Authority shall keep proper accounts of its operations in compliance with international accounting standards

(2) 

The AuditorGeneral shall appoint an independent, qualified and internationally recognised accounting firm to audit the accounts of the Authority annually. 

(3) 

The Authority shall, within 3 months after the end of the financial year,

submit the auditor’s report to the Minister. 

(4) 

The accounts of the Authority and the annual audit report of such accounts shall be publicly available.

Annual report of activities

22.  (1) The Authority shall, within 6 months after the end of the financial year or such other period as the Minister may approve, submit a comprehensive report on its operations to the Minister. 

(2)  The Minister shall cause a copy of the report, within 30 days of its receipt, together with the auditor’s report and the audited accounts to be laid before Parliament.

Part V

Meetings and proceedings of the Board

Meetings of the Board

23.  (1) The Board shall meet as often as may be necessary or expedient for the

discharge of its functions:
Provided that the Board shall meet at least once a quarter., 

(2) 

The meetings of the Board shall be held at such places, times and days as it may determine. 

(3) 

The Minister shall appoint one of the members of the Board to be Chairman but such member shall not be the Chief Executive. 

(4) 

The meetings of the Board shall be called by the Chairperson and the Chairperson shall call a special meeting of the Board on receipt of a written request of not less than half of the members of the Board for such a special meeting. 

(5) 

3 members of the Board shall form a quorum

(6) 

The decision of the Board shall be by majority vote and in any meeting of the Board where there is a tie in any voting on any issue the Chairperson shall have both a deliberative and casting vote. 

(7) 

The Chairperson shall preside at any meeting of the Board, and in his absence any member of the Board elected from their number shall preside and be chairperson for the purposes of that meeting 

(8) 

The minutes of each meeting of the Board shall be properly recorded, kept and shall be confirmed at a subsequent meeting. 

(9) 

The proceedings of the Authority shall not be invalidated by reason of any vacancy in its membership. 

(10) 

The Board may invite any expert or adviser to sit in its meetings during

its deliberations and the proceedings of the Board shall not be held invalid on that account

(11) 

In any licensing meeting, no person may disclose to any other person information or documents where the disclosure may invade personal privacy or injure or harm the security or interests of the State. 

(12) 

Any other business of the Authority not specifically provided for shall be conducted in accordance with Schedule I. 

(13) 

Subject to this section, the Board may regulate its own procedure at its meetings.

Disclosure and declaration of interest

Signification of documents

25.  All documents made by and all decisions of the Board may be signified under the common seal and the hand of the Chairperson of the Board or any member or senior officer of the Authority generally or specially authorised in that behalf.

Part VI

Licensing of telecommunication services providers

Classes of providers of services

26.  The Authority shall, from time to time, prescribe classes of telecommunication services which may be offered on domestic or international basis and such classes shall include public telecommunication and private telecommunication services.

Licensing of providers

27.  (1) No person shall establish or provide telecommunication services in Lesotho except under, and in accordance with, a licence issued pursuant to this Act. 

(2)  The Authority shall license such private and public telecommunication service providers as market conditions and the public interest may warrant.

Delisting of licenses

28.  (1) The Authority may, from time to time, determine that a class of licensed services shall, in future, be provided without prior approval or licensing and shall base such determination of unlicensed class of service if it reaches a conclusion that no harm to either a service provider or consumer s shall be occasioned by such determination or decision; following such determination, such services shall be deemed “unlicensed services” even if not so classed by the Authority. 

(2)  Providers of unlicensed services shall be subject to such reasonable reporting requirements as the Authority may, from time to time, determine.

Records of licensing

29.  The records of meetings held to determine the grant of licences shall be made available to members of the public on payment of a fee that may be prescribed by the Authority.

Rules governing licensing

30.  The Authority shall make Rules for procedures that govern the grant of licences and may impose conditions on licenses.

Services under licence

31.  (1) Each licence that is granted by the Authority shall describe the services that the licensee shall provide. 

(2)  Services which a licensee may provide are, but not limited to, the following services 

(a) 

exchange services;

(b) 

national long distance services;

(c) 

international public switched voice and data services;

(d) 

international telex and telegraph services;

(e) 

public pay telephone service; and 

(f) 

private telecommunications services.

Control of transfer or assignment of licences

32.  No licensee may transfer or assign or sell a licence granted to it under this Act or cede control in the operations of the licence or merge with another person or licensee without prior approval, in writing, of the Authority, which approval may not be unreasonably withheld.

Refusal

33.  The Authority may 

(a) 

refuse a cession, sale or assignation of licence or a merger or take over of a licence holder in accordance with rules governing the

approval of transfer or assignment of licences;

(b) 

revoke a license for non compliance with, or violation of, this Act

Review of agreements entered into by service providers

Part VII

Duties of telecommunication service providers

Timely provision of service

35.  (1) All licensees and operators providing delisted services for which a licence is not required, shall furnish such telecommunication services to consumers upon reasonable request, and all practices and charges with respect thereto shall be reasonable and nondiscriminatory. 

(2) 

The Authority may require any licensee, after affording the licensee an opportunity to be heard, to provide adequate telecommunication facilities for! efficient performance of its duties under this Act. 

(3) 

All public telecommunication services licensees shall, upon request, establish physical connections with other public telecommunication services providers, share networking, signalling and data bases with providers of value added services for the transport and termination of telecommunication and information, and establish and provide the facilities and arrangements for that purpose and establish reasonable charges and rates of service and division of charges thereof.

Agreements for interconnection

36 (1)  Public telecommunication service providers shall enter into agreements governing the interconnection of their facilities, sharing of infrastructure, local number facilities, and other inter networking, and other facilities that the Authority may deem to be in the public interest, as well as with providers of value added services, on reasonable and nondiscriminatory terms

(2) 

Copies of agreements referred to in subsection (1) together with a summary of their principal terms shall be submitted to the Authority; and the Authority may publish such agreements in the Gazette. 

(3) 

Where public telecommunication service providers fail to agree on charges and terms and conditions of interconnection within the time period prescribed by the Authority, the Authority may, on its own motion, or pursuant to a request from one or both operators under section 37, establish binding charges and terms and conditions of interconnection in accordance with this section and the requirements of the Authority. 

(4) 

Where a completed agreement for interconnection fails substantially to comply with the principles of inter connection established by this Act and the Authority, the Authority may, on its own motion or pursuant to a complaint by an interested party, and after affording the patties an opportunity to be heard, order a modification of the terms.

Submission of interconnection disputes to Authority

37.  (1) Any disagreements or disputes over interconnection charges, terms and practices of public telecommunication service providers shall be submitted to the Authority for resolution. 

(2)  In resolving such disputes or disagreement the Authority shall be guided by the following principles 

(a) 

the terms and practices for interconnection arrangements shall not discriminate between users of interconnection arrangements and similarly situated users;

(b) 

charges for interconnection services and facilities shall reflect the public telecommunication services licensee’s costs defined as the incremental cost, and may include allowance for a reasonable return on capital investment;

(c) 

differences in charges between different users may only be justified based on cost differences directly attributable to providing interconnection for those users.

Submission of agreements governing external interconnections

38 (1)  Any agreement between a local and a foreign public telecommunication service licensee shall be submitted to the Authority for approval or modification of any terms, including accounting rates and settlement arrangements, agreed upon by the parties; but such an agreement shall not be effective until approval or modification by the Authority. 

(2) 

Public telecommunication service licensees shall comply with international

and bilateral arrangements relating to or governing such arrangements as well as any rules prescribed by the Authority concerning such arrangements. 

(3) 

In approving or modifying international interconnection arrangements, the Authority shall take into account exclusionary and discriminatory practices of foreign telecommunication service licensees or providers and authorities and ensure that local telecommunication service licensees are not subjected to unreasonable terms or discrimination by non local licensees or service provides or foreign authorities.