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GOVERNMENT APPROVES THE PRIVATIZATION OF TELE-COM LESOTHO
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| MASERU
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The Lesotho Privatization Unit announced today that the Government of Lesotho has approved the sale of 70% shareholding in Tele-Com Lesotho to Mountain Kingdom Communications, a group formed by Mauritius Telecom Eskom Enterprises and Econet Wireless International. The sale was approved following a competitive tender process run by the Privatization Unit assisted by Price Waterhouse Coopers. Mountain Kingdom Communications will offer 5% of its 70"/o shareholding to an Employee Share Participation Scheme, and the Government of Lesotho is retaining 30% stake iii Tele-Com Lesotho in trust for eventual sale to Basotho nationals,Mountain Kingdom Communications combines a very wide range of telecommunications expertise that promises to bring modernization of and increased access to telecommunications services in Lesotho). Mauritius Telecom is the emerging regional leader in telecommunications and internet services with the highest tele-density rate in Africa of 26 telephone lines per 1.00 inhabitants. Eskoni Enterprises has a telecommunications asset base worth US$20 million and is an international leader in modern construction techniques for rapid roll out of optical fiber networks through the use of power line. Econet Wireless is the largest cellular operator in Zimbabwe, with over 100,000 subscribers and is a shareholder in one of the largest cellular service providers in Botswana. The privatised Tele-Com Lesotho will be operating under the laws, rules and regulations Set Out under the Lesotho Telecommunications Authority Act 2000. The Lesotho Telecommunications Authority, as regulator of the telecommunications services will issue a license to the privatised TCL will grant the company a five year exclusivity for the provision of fixed-line telecommunication services. The license will prescribe, among others, the company's service expansion requirements, tariff regulations and quality of service requirements to ensure the protection of and optimal service provision to the consumers. TCL will also be granted the right to the second cellular license in Lesotho commencing in June 2001 to promote competition in the cellular services market.Government is currently finalising the arrangements for signature of the Sale Agreements with Mountain Kingdom Communications. |