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— The LCA will review interconnection agreements between operators with SMP and other
operators, and will approve them, unless they do not meet certain basic requirements. For
example, LCA may also reject agreements that set termination rates at levels that could
facilitate retail price fixing.
— LCA will also have the authority to require operators with significant market power to
adopt a Reference Interconnection Offer (RIO), which would contain a standardized set of
prices, terms, and conditions on which the operator will interconnect, exchange traffic, and
provide access to facilities.
— In the case of interconnection agreements that do not involve an operator with significant
market power, the agreement will become effective once filed at LCA, subject to review
where necessary.
Rate regulation. Retail rate regulation will be imposed on operators with SMP in a market,
where retail tariffs will be subject to a price cap. As a rule, SMP operators will be required to
file tariffs to ensure that the prices are cost-oriented, but LCA will have the authority to
forbear from this requirement, for instance, allowing price decreases without notification.
Quality of service. Operators will be required to meet quality of service parameters and must
file regular reports on their QoS, based on parameters to be determined by the LCA.
Facilities access. LCA will require that operators that have deployed infrastructure that
cannot economically be duplicated provide competitive access at cost-based prices (including
a reasonable return on investment).
New entry. LCA will seek to promote entry of new operators to provide wireless and wireline
services, both in competition with existing operators for voice services and also offering new
services such as WiMAX.
International services. LCA has previously liberalised the provision of international gateway
service, and will encourage operators to share existing facilities, and jointly deploy new
facilities, where appropriate. In addition, LCA will establish a carrier pre-selection regime,
which will enable users to access the international provider of their choice by dialing a
standard international code. Finally, as discussed above, LCA will clearly authorize the
provision of VoIP services.

3.2.2 Broadcast
The broadcast sector is growing, particularly with a number of new commercial and private radio
stations operating. However, competition with the state broadcaster is limited, particularly in areas
outside of Maseru, by the lack of widespread transmission infrastructure. In addition, there is
uncertainty over broadcasting regulations relating to content.

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