Lesotho - Telecoms, Mobile and Broadband

Executive summary

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, at around 30%, mobile market penetration is still below the African average. Vodacom is the market leader with a market share of around 80%

Econet also controls the national fixed-line operator, Telecom Lesotho (TL). Fixed-line teledensity is low, but the network gained more value when ADSL broadband technology was deployed in 2007. In parallel, TL 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 arrival of several new submarine fibre optic cables to the African east and west coasts will bring in 2010 and 2011.

Key highlights:

• 2010 estimates for mobile, fixed-line and Internet market;
  
• Profiles of major players in all market sectors;
  
• Broadband pricing trends 2008-2009;
  
• Strong mobile data revenue growth;
  
• Second 3G mobile network set to launch;
  
• New fibre link with South Africa;
  
• Lower international bandwidth prices expected from 2010.
  

Telecom Lesotho ADSL pricing – 2009

(Source: BuddeComm based on company data)

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;
  
• Regulatory environment and structural reform;
  
• Major players (fixed, mobile and broadband);
  
• Infrastructure development;
  
• Mobile voice and data markets, including 3G;
  
• Average Revenue per User (ARPU);
  
• Internet and broadband development and pricing;
  
• Convergence (voice/data, fixed/wireless/mobile).
  

For those needing high level strategic information and objective analysis on the telecommunications sector in Lesotho, this report is essential reading and gives further information on:

• Government policies affecting the telecoms industry;
  
• Market liberalisation and regulatory issues;
  
• The impact of the global economic crisis;
  
• Telecoms operators – privatisation, acquisitions, new licences;
  
• Internet and broadband development and growth, including 3G mobile;
  
• Broadband and mobile data services and pricing trends;
  
• Mobile Average Revenue per User (ARPU).
  

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 Licensing and 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 LEO
      
    • 7.2.2 Comnet
      
• 8. Broadband market
  
  • 8.1 Overview
    
  • 8.2 Asymmetric Digital Subscriber Line (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 – 2010
• Table 2 – Fixed-line network statistics – March 2010
• Table 3 – Internet provider statistics – 2010
• Table 4 – Internet user statistics – March 2010
• Table 5 – Mobile statistics – 2010
• Table 6 – National telecommunications authority
• Table 7 – Licences issued by category – 2000 - 2008
• Table 8 – Fixed lines in service and teledensity – 1997 - 2010
• Table 9 – Internet users and penetration rate – 1997 - 2010
• Table 10 – Telecom Lesotho ADSL pricing – 2009
• Table 11 – Mobile subscribers and penetration rate – 1997 - 2010
• Table 12 – Mobile subscribers by operator, technology, annual change – March 2009
• Table 13 – Vodacom Lesotho ARPU and churn rate – 2002 - 2009

• Exhibit 1 – Chart of fixed-line, mobile subscriber and Internet user growth – 1999 - 2010
• Exhibit 2 – Map of Lesotho
• Exhibit 3 – Eskom’s licence dispute
• Exhibit 4 – Vodacom Lesotho GSM/GPRS/EDGE, 3G, WiMAX coverage map – 2009
• Exhibit 5 – Vodacom Lesotho financial results 2008/2009