Econet Telecom Lesotho

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In 2001, Telecom Lesotho, the national public telecommunications operator, sold a 70% stake and management rights for US$17 million to Mountain Kingdom Communications (MKC), a consortium involving Eskom (South Africa), Econet Wireless (Zimbabwe), and Mauritius Telecom. The consortium was to have a five-year monopoly on fixed line services in Lesotho and had the right to launch a second mobile phone network in the country in June 2001. In the terms of the sale of shares agreement, MKC committed, by way of a guarantee, R380 million (US$56 million, estimated at the then prevailing exchange rate), to a three-year capital expansion programme. The Telecom Lesotho operating licence issued by the Lesotho Telecommunications Authority (LTA) stipulated system expansion targets and to the extent that these targets were not met, penalties were payable to the LTA. This commitment had been fulfilled at the end of 2004, as the amount expended exceeded the original commitment by MKC. By 2003, Eskom owned 71% of the Mountain Kingdom Communications consortium and Econet had a 28% shareholding. In turn the consortium owned 70% of the fixed-line network of Telecom Lesotho, which in turn owned 100% of the mobile network Ezi-cell Lesotho. African telecommunications company, Ericsson Market Unit Southern, won a contract - worth US$7.6 million in the first phase alone - to roll out a full GSM wireless infrastructure and value-added services for Telecom Lesotho in May 2002. A wireless local loop network, constructed by Siemens, went live in the country in 2002 as well. Siemens rolled out the network under the terms of a US$20 million contract with Telecom Lesotho. Sixteen base stations were to be installed, covering the projected 24,000 subscriber capacity. By mid 2004, Ezi-cell, the brand name of the mobile subsidiary, had about 42,000 subscribers, 50% more than than in June of the previous year. At the end of 2004, Telecom Lesotho had about 58,000 subscribers. By the end of 2005, Telecom Lesotho reported about 91,000 subscribers. Econet became a majority shareholder when Eskom Enterprises sold its Mountain Communications shares. The government of Lesotho remained with 30%. This transaction was finalized on April 1, 2008. Econet Ezi Cel Lesotho, established as a subsidiary of Telecom Lesotho offering exclusively mobile services, had a similar shareholding as Mountain Communications but the two merged in July 2008 to form Econet Telecom Lesotho (ETL). See Eskom's Annual Reports: http://www.eskom.co.za/live/content.php?Category_ID=79 --> not exist anymore. http://www.econetwireless.com/ [April 5 2006] ECONET Ezi-Cel Lesotho is investing US$2 million to double its network capacity and install new equipment that will enable the company to introduce new upgraded products and value-added services. It is the first significant upgrade the company has undertaken in nearly four years.Econet Ezi-Cel Lesotho was established in May 2002 and is part of the Econet Wireless Group. Update 2007-2011 # of subscribers via Wireless Intelligence. No investment figures available for 2011. Checked in June 2012.