Lesotho - Telecoms, Mobile and Broadband

Executive summary

Broadband still hindered by high prices

This annual report provides a comprehensive overview of trends and developments in Lesotho’s telecommunications market. Subjects covered include:

• Key statistics;
• Market and industry overviews;
• Government policies affecting the telecoms industry;
• Market liberalisation and regulatory issues;
• Telecoms operators – privatisation, acquisitions, new licences;
• Major players (fixed, mobile and broadband);
• Infrastructure development;
• Mobile voice and data markets, including 3G;
• Internet and broadband development and growth, including 3G mobile;
• Convergence (voice/data, fixed/wireless/mobile);
• Mobile Average Revenue per User.

Telecommunications in this small Southern African country has undergone transformation from a state-owned monopoly to a privatised national operator, with competition in the mobile sub-sector between two networks, South Africa-based Vodacom and Econet. However, mobile market penetration is still well below the African average.

Econet also controls the national fixed-line operator, Telecom Lesotho. Fixed-line teledensity is low, but the network gained more value when ADSL broadband technology was deployed in 2007. In parallel, Telecom Lesotho is rolling out a CDMA2000 fixed-wireless network to provide fixed-line replacements and wireless broadband services, following an upgrade to EV-DO technology. In addition, the company has introduced a fixed-mobile convergence product based on its GSM network.

Vodafone on the other hand was first to introduce 3G HSDPA mobile broadband services in the country. In parallel, the company is rolling out a WiMAX wireless broadband network. Several other Internet service providers have rolled out their own wireless infrastructure.

Although landlocked, Lesotho is set to benefit from the greater choice of international bandwidth sources that the recent landing of several new submarine fibre optic cables on the African east and west coasts has brought, with more cables planned to arrive in 2012.

Market highlights:

• Second 3G mobile network launched;
• Lower international bandwidth prices expected;
• Estimates to end-2012 for mobile, fixed-line and Internet markets;
• Profiles of major players in all market sectors.

Estimated market penetration rates in Lesotho’s telecoms sector – end-2011

(Source: BuddeComm based on various sources)

Companies covered in this report:

Telecom Lesotho, Econet Ezi-Cel, Vodacom Lesotho, Eskom, Comnet.

Table of Contents

• 1. Executive summary
• 2. Key statistics
  • 2.1 Country overview
• 3. Telecommunications market
  • 3.1 Overview of Lesotho’s telecom market
• 4. Regulatory environment
  • 4.1 Telecommunication Policy of 1999
    • 4.1.1 National Master Plan
  • 4.2 Telecommunications Act of 2000
  • 4.3 Regulatory authority
    • 4.3.1 Lesotho Communications Authority (LCA)
  • 4.4 Telecom sector liberalisation in Lesotho
  • 4.5 Licence fees
  • 4.6 Universal access fund
• 5. Fixed network operator in Lesotho
  • 5.1 Telecom Lesotho (TL)
    • 5.1.1 Privatisation
    • 5.1.2 Services
    • 5.1.3 National telecom infrastructure
    • 5.1.4 Wireless local loop (WLL), CDMA2000 1x EV-DO
    • 5.1.5 Fixed-line statistics
• 6. International infrastructure
  • 6.1 Satellite
  • 6.2 Terrestrial and submarine fibre
• 7. Internet market
  • 7.1 Overview
    • 7.1.1 Internet statistics
  • 7.2 Lesotho’s ISP market
    • 7.2.1 Lesotho Office Equipment (LEO)
    • 7.2.2 Comnet
• 8. Broadband market
  • 8.1 Overview
  • 8.2 ADSL
  • 8.3 WiMAX
  • 8.4 EV-DO
• 9. Mobile communications
  • 9.1 Overview of Lesotho’s mobile market
    • 9.1.1 Mobile statistics
  • 9.2 Major mobile operators
    • 9.2.1 Vodacom Lesotho
    • 9.2.2 Econet Ezi-Cel
  • 9.3 Mobile data services
  • 9.4 Third generation (3G) mobile
  • 9.5 Satellite mobile
• 10. Related reports

• Table 1 – Country statistics Lesotho – 2011
• Table 2 – Fixed-line network statistics – 2011
• Table 3 – Internet provider statistics – 2011
• Table 4 – Internet user statistics – 2011
• Table 5 – Mobile statistics – 2011
• Table 6 – National telecommunications authority
• Table 7 – Fixed lines in service and teledensity – 1997 - 2012
• Table 8 – Internet users and penetration rate – 1997 - 2012
• Table 9 – Telecom Lesotho ADSL pricing – 2008 - 2010
• Table 10 – Mobile subscribers and penetration rate – 1997 - 2012
• Table 11 – Vodacom Lesotho subscribers, ARPU and churn rate – 2002 - 2011

• Chart 1 – Mobile subscribers and penetration rate – 2002 - 2012

• Exhibit 1 – Map of Lesotho
• Exhibit 2 – Eskom’s licence dispute