Vol. XLV Friday — 9th June, 2000 No. 42
No. Page ACT
Lesotho Telecommunications Authority …………………………………………………. . . 327 Act 2000
LESOTHO TELECOMMUNICATIONS AUTHORITY ACT 2000
Act No. of 2000
ARRANGEMENT OF SECTIONS
Section
Part 1 Preliminary
Part IV Finances of the Authority
Part V Meetings and proceedings of the Board
Part VI Licensing of telecommunication services providers
Part VII Duties of telecommunication service providers
49. Equipment standard 50.Type approval and inspection
Part IX Management of the use of the radio frequency spectrum
Part XI Offences, penalties and enforcements
Part XII Restructuring of the Incumbent National Operator
Business of the Authority
Restructuring of the Incumbent National Operator
LESOTHO TELECOMMUNICATIONS AUTHORITY ACT 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
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.
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.
3. The Minister may, in consultation with the Authority, formulate general overall policies for the telecommunication sector.
Part II
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.
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.
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 –
7. A member of the Board shall vacate his office and that office shall become vacant
8. (1) Members of the Board shall conduct themselves in accordance with the rules of conduct to be prescribed by the Minister.
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.
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.
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.
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.
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.
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
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) –
16 (1) The Authority shall, without limiting its powers, issue such administrative orders and rules as are necessary to
(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.
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.
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
Funds of the Authority
19. (1) The Authority’s funds shall consist of
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.
21. (1) The Authority shall keep proper accounts of its operations in compliance with international accounting standards
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 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.,
Disclosure and declaration of interest
24. | (1) | If at any meeting of the Board, a Board member is aware or becomes aware | |
---|---|---|---|
that a matter which affects that Board member or his spouse directly is | to | ||
be discussed or under discussion, the Board member shall, forthwith, declare | |||
his interest or the interest of his spouse in the matter, and the Board may, if | |||
it considers it appropriate, require such Board member to recuse himself | |||
from deliberations or discussion on that matter. | |||
(2) | A member who fails to comply with subsection (1) commits an offence | ||
and shall be liable, upon conviction, to a fine not less than M6000 or to | |||
imprisonment for a period not less than 6 months. |
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
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.
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.
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.
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.
30. The Authority shall make Rules for procedures that govern the grant of licences and may impose conditions on licenses.
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
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.
33. The Authority may
Review of agreements entered into by service providers
34. | (1) | Any agreement between licence holders, | or | any agreement between | a | ||
---|---|---|---|---|---|---|---|
licence holder and | a | foreign correspondent telecommunications carrier, | |||||
shall be submitted to the Authority for approval and the Authority may | |||||||
review any agreements entered into by licensees to ensure compliance with | |||||||
this Act except that the Authority may exempt certain classes of agreements | |||||||
from this provision. | |||||||
(2) | Any licence holder who fails to disclose the existence of, and submit an | ||||||
agreement which, may affect competition or the objects of this Act commits | |||||||
an offence and on conviction shall be liable to a fine not exceeding M6000 | |||||||
or to imprisonment for a period not less than 6 months. | |||||||
(3) | If the Authority does not respond to a submitted agreement within 90 days | ||||||
from the date of submission, the Authority shall be deemed to have given its | |||||||
approval to the terms of such agreement. |
Part VII
Duties of telecommunication service providers
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.
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
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
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.
39. It shall be an offence by a public telecommunication service licensee to restrict the resale of its services, unless the licence permits such restrictions.
40. (1) The Authority may regulate the rates and charges of all public telecommunications services licensees:
Provided that no licensee shall be required to offer services under rates or charges that do not permit it to recover its incremental cost of providing such service plus a reasonable return on capital investment,
41. | (1) | A public telecommunication services licensee shall submit tariffs proposals, | |
---|---|---|---|
in writing, to the Authority, of the tariffs, rates and charges it intends to | |||
apply for the use of its system, facilities and others. | |||
(2) | Tariffs shall contain all relevant information concerning rates, charges for | ||
services, including deposits, non recurring charges, monthly charges as well | |||
as terms and conditions applicable to the provision of services including | |||
rights and remedies available to consumers in the event of unauthorised | |||
charges or other disputes or claims over billing or provision of services | |||
(3) | Tariffs proposed by the licensee shall be effective 30 days after filing with | ||
the Authority unless, within the 30 day period, the Authority issues | a | ||
counter proposal or notice of modification to the licensee. | |||
(4) | Notice of any such filing shall be published by the Authority for public |
information and allow consumers to comment on the reasonableness of the tariffs.
42. (1) All tariffs filed with the Authority shall be kept complete, accurate and up to date.
43. (1) At any time after the tariff takes effect, upon receiving evidence that the tariff may not be reasonable, the Authority may suspend the tariff and investigate its reasonableness.
(2) The Authority shall conclude any such investigation within 2 months, publish the findings of its investigation, and may require refunds to subscribers where such findings conclude that a tariff was unreasonable.
44. Tariff filings shall be accompanied by all accounting and costing information as the Authority may require, and shall comply with all other requirements and conditions as shall be applicable to the corresponding license.
45. The Authority shall prescribe reasonable accounting procedures for the costs of operations which procedures shall be followed and implemented by all public telecommunication service providers.
46. (1) Any person who provides public telecommunication service shall file with the Authority, his annual reports, any occasional reports that he may issue from time to time, and such other reports as the Authority may require.
(a any trade secret;
person who submits or files it.
of this section under cover of confidentiality or which is confidential, commits an offence and upon conviction shall be liable to a fine not less than M6000 or to imprisonment for a period not less than 6 months.
47. (1) The Authority may, in consultation with the Minister, reasonably deny or restrict access to any documents or information requested by any person for the purposes of preserving national security.
(2) Except to the extent that reports and any documents filed with the Authority under this Act contain confidential business or national security information, such reports and documents shall be open to the public and may be made available to members of the public on payment of a fee to be prescribed by the Authority and may be inspected by interested persons during the normal business hours of the Authority.
48. (1) The Authority shall develop annual objectives for services to be provided with the purpose of ensuring that the public telecommunication service, in particular the basic telephone service, is accessible to the widest number of users and shall take into account the work and recommendations of the international and regional organisations of which Lesotho is a member.
(2) The Authority may establish a fund into which providers of telecommunication services (public and private) shall pay any fees the Authority may prescribe as universal access development fees; or the Authority may make it a condition of a grant of a licence that every provider of public telecommunication services shall establish a universal access fund the proceeds of which shall solely be used with the Authority’s approval for the development and expansion of its telecommunication service infrastructure in areas where there are no services and to provide access to widest users including those with disabilities.
Part VIII
Equipment standards, type approval and inspection
49. The Authority may establish technical standards applicable to telecommunication equipment and customer premises equipment to ensure against harm to telecommunication networks or services or to public health, safety or the environment.
50. (1) The Authority may prescribe Rules specifying the types of telecommunication equipment (hereinafter referred to as “type approval”) which may be used for providing a telecommunication service for operating or connecting to a telecommunication system or for terminal equipment.
Part IX
Management of the use of the Radio frequency spectrum
51. (1) The Authority, in managing the use of the radio frequency spectrum, including spectrum and orbital locations used by satellite services, shall
Grant of licences
52. | (1) | No person shall utilise radio frequencies or provide radio communication | ||||
---|---|---|---|---|---|---|
services except under and in accordance with a licence issued pursuant | ||||||
to this Act. | ||||||
(2) | The Authority may grant licences to utilise radio frequencies in accordance | |||||
with the national frequency allocation table and the spectrum management | ||||||
plan. | ||||||
(3) | Applications for licences to utilise radio frequencies shall include such | |||||
information | as | the Authority may, by Rules, prescribe | as | to character, | ||
financial, legal and technical qualifications of the applicant to construct | ||||||
and operate a facility utilising radio frequencies. | ||||||
(4) | The Authority may require an applicant to provide updated or supplemental | |||||
information during the pendency of an application, at any time during the | ||||||
licence term and upon application for renewal of the licence. |
Competitive bidding for licences
53. | (1) | The Authority may, for the purpose of assigning radio frequency spectrum, | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
use competitive bidding procedures if it determines that it would be in | ||||||||||
the public interest where | ||||||||||
(a) | a licence is to be granted to a new applicant; | |||||||||
(b) | competing, | mutually | exclusive | application | have | been | filed | by | ||
qualified applicants. | ||||||||||
(2) | The Authority shall prescribe Rules and procedures which shall ensure | |||||||||
that only bona fide bidders participate in bidding. |
54. Any per son who intentionally causes harmful interference to the validly licensed radio communication of another party, or falls to obey an order of the Authority to cease and desist such harmful interference, commits an offence and on conviction shall be liable to a fine not less than M12000 for each separate offence, or to a term of imprisonment not less than 12 months, or both.
Part X
Use of public and private property
55. (1) Subject to this section, a public telecommunication service provider may, for the purpses of providing telecommunication service to the public, enter upon any public property, and construct and maintain thereon or alter or remove a telecommunication facility:
Provided that in doing so it does not interfere unduly with the use and enjoyment of such public property.
56 (1) Where the acquisition of any private property or an interest in any private property by a public telecommunication service provider is reasonably required for the purposes of providing telecommunication services to the public and no reasonable alternatives to such acquisition exist, the provider shall –
Part XI
Offences, penalties and enforcements
Offences and penalties Production of books and records
57. | (1) | Any person who |
(a) makes abusive, threatening or obscene calls; | ||
(b) obtains a telecommunication service with intent to avoid payment | ||
of applicable charges for such service; | ||
(c) uses a telecommunication service required to be licensed, knowing | ||
it to be unlicensed; | ||
(d) provides, without being licensed, telecommunication services | ||
required to be licensed; | ||
(e) intentionally modifies or interferes with the contents of any message | ||
sent by means of a telecommunication service; | ||
(f) engages in interception or tracing of telecommunication operations | ||
or messages unless author sed by the Authority or other appropriate | ||
governmental authority; | ||
(g) intentionally damages telecommunication facilities belonging to | ||
another person; or | ||
(h) contravenes any provision of this Act where a penalty has not been | ||
provided, | ||
commits an offence and on conviction shall be liable to a fine not less than | ||
M6000 for each separate offence, or to a term of imprisonment not less than | ||
6 months or both. | ||
(2) | All fines imposed and payable under this Act shall be paid into the funds | |
of the Authority. |
58. (1) The Authority may, by notice in writing, direct a licensee to produce or furnish to the Authority, at a time and place specified in the notice, such accounts, records and other documents or information specified in such notice and relating to any matter in respect of which a duty is imposed on the licensee under this Act.
(2) A licensee who fails to comply with this section commits an offence.
59. (1) The Authority may on its own motion or on application by interested persons conduct inquiries and investigations with respect to any activity prohibited or permitted to be done under this Act and the Authority may appoint inspectors for this purpose.
Provided that no person shall be punished twice for the same offence.
60. (1) The Authority shall have all the powers of a Magistrates Court of First Class of record necessary to enforce and adjudicate on any matter or proceedings under this Act.
(2) Any substantive matter which the Authority is empowered to deal with at its own discretion under this Act shall be entitled to be deferred on appellate review of the Authority’s decisions in the High Court and may be overturned in the event they are unsupported by the record of the Authority’s proceedings, arbitrary and capricious, or an abuse by the Authority of its discretion.
61 The Authority shall adjudicate disputes and complaints arising between telecommunication service providers, or between telecommunication service providers and subscribers and shall establish procedures for the adjudication of such disputes or complaints.
Part XI
Restructuring of the Lesotho Telecommunications Corporation
62. The Lesotho Telecommunications Corporation shall be restructed in accordance with Schedule II.
Transitional provisions
63 | (1) | Any person granted a licence, and lawfully providing telecommunication |
services consistent with this Act before the effective date of this Act shall | ||
deemed to be a licensee under this Act. | ||
(2) | The material terms of the licence shall be made to conform to this Act | |
and such licence shall be subject, in all respects, to this Act. | ||
(3) | Any person providing telecommunication services for which there was | |
no requirement to be licensed before the commencement of this Act, where | ||
such services are requited to be licensed under this Act, shall apply for | ||
a licence within 30 days of the coming into force and effect of this Act | ||
and shall continue to provide services pending the determination of his | ||
application | ||
(4) | Any person who fails to apply for a licence within the 30 days period | |
and continues to provide services as before commits an offence and | ||
on conviction shall be liable to a fine not less than M6000 or to | ||
imprisonment for a period not less than 6 months. | ||
(5) | All applications for licences pending before entry into force of this Act | |
shall be transferred to the Authority for determination and applicants shall | ||
be afforded an opportunity to amend their applications to conform to | ||
provisions of this Act. | ||
(6) | Pending the appointment of the members of the Board, the Minister shall | |
appoint an acting Chairman of the Board who shall conduct the business | ||
of the Authority and such acting Chairman shall be assisted by such staff | ||
as he may require for the efficient performance of the functions of the | ||
Authority. |
64. The Minister may, by notice published in the Gazette, and in consultation with the Authority
Repeals and savings
65 | (1) | The Minister shall, by notice published in the Gazette and after Schedule | |||||||
---|---|---|---|---|---|---|---|---|---|
II has been complied with, repeal the Telecommunications Act 1979. | |||||||||
(2) | Notwithstanding | subsection | (1), | anything | done | by | the | Lesotho | |
Telecommunication Corporation under the repealed Act shall be deemed | |||||||||
to have been done under this Act. |
Note
1. Act No 12 of 1979
Business of the Authority (section 23)
SCHEDULE I
Business of the Authority
1. The Board of the Authority may, for efficient discharge of its duties, constitute itself into several committees as it deems fit and may establish such advisory committees comprised of experts or individuals possessed of appropriate expertise to fairly represent views and interests of users and operators and to advise Board members and staff of the Authority.
2. 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.
Public availability of information
3 The Authority shall establish and publish, in the Gazette, internal procedures to make the following documents and information publicly available
4. (1) The Authority shall maintain a public register, with such details as it may determine, of all licences it issues, amends or revokes,
(2) The register shall contain the name of the licensee, directors of the licensee, address of the licensee and other related matters.
5. (1) The Authority shall establish procedures to be followed in proceedings before it, to determine applications fox licences.
(2) Such procedures shall establish the format of licence applications, full details to be provided, publication of licence application, invitation to objections and time a schedule for replies to objections.
Public access to information
6. (1) The public shall have access to public information (information that is not secret or confidential business information) on payment of such fees as may be charged.
(2) Upon payment of fees that may be levied, the Authority shall make available copies of documents or information requested by such person.
7. (1) Applicants for licences may appear in person or through their representatives and submissions on the application may be either oral or in writing.
8. (1) In consideration of the application for the licence, the Authority shall take into account any submission, whether written or oral, made by the applicant and interested parties and shall state its decision in writing and incorporate all the rules taken into consideration.
(2) The decision of the Authority shall be made public and shall become effective 30 days thereafter unless the Authority, for good cause, waives the 30 day period.
9. The Authority may issue subpoenas for the attendance and examination of witnesses and production of documents at its hearings and shall exercise such powers inherent in the magistrate courts of first class record necessary for the exercise of its powers and performance of its duties.
10. All patties involved in disputes before the Authority shall, within 14 days of privately settling their dispute, inform, in writing, the Authority of the terms of the settlement in cases where a dispute is settled privately.
SCHEDULE II
Restructuring of the incumbent National (section 62)
Operator
SCHEDULE II Restructuring of the incumbent National Operator (section 62)
1. The Minister shall, within a period of not more than 2 years from the coming into operation of this Act, cause to be incorporated a new public company limited by shares under’ the Companies Act 1967.
Share allotment
2. In allotting shares, the directors of the new company shall reserve shares for local, national and international telecommunication and related services providers.
Classes of shares
3. The articles of association of the new company referred to in paragraph 1 may establish different classes of shares that have different voting rights relating to the respective functions and responsibilities of each class or the management and governance of the new company.
4. (1) The Minister shall determine which assets and liabilities currently owned or controlled by the incumbent national operator, as well as which employees, shall be sold and transferred respectively to the new company.
Terms and conditions of transfer
5. All employees in the service of the incumbent national operator shall be entitled to be transferred to the new company without losing their period of service and on terms and conditions not less favourable than those enjoyed by them prior to theft transfer and any service with the incumbent national operator shall be deemed to be service with the new company.
Rights and privileges
6. The new company shall have the rights and privileges as were granted to the predecessor company subject to the provisions of this Act.
7. The new company shall be privatised in accordance with the Privatisation Act of 1995 (Act No. 9 of 1995).
8 (1) The Minister shall, immediately prior to privatisation, procure the resignation of all the directors of the new company, who shall continue to hold office until theft successors are elected.
The main object of the Bill is to make provision for the restructuring and the development of the telecommunications industry (sector) in Lesotho within the framework of the Southern African Development Community (SADC) region This will be achieved by the establishment of an independent regulatory authority which shall be responsible for, inter alia,
Currently, telecommunications services are basically licensed, regulated and provided by Lesotho Telecommunication Corporation established by Act No. 12 of 1979 Under this Bill, Lesotho Telecommunications Corporation will be restructured into a public company in which citizens will be free to purchase shares, and which company and other telecommunications service providers will have to be licensed and regulated by Lesotho Telecommunications Authority as market conditions and the public interest may warrant.
In granting those licences, the regulatory authority will have to pay particular regard to fairness, transparency, universal service and accountability to the general public.
The Bill also introduces competition in a regulated environment so as to enhance development, quality of service and universal access in the telecommunications sector.