I 2 2 Background Telecomm imicatiom The Lesotho Telecommunications Policy of 1999 was adopted to facilitate the process of liberalization of the telecommunications sector in Lesotho. The Telecommunications Policy provided for the establishment of the Lesotho Telecommunications Authority (LTA), subsequently renamed the Lesotho Communications Authority (LCA), and defined the powers of the LTA in the regulation of telecommunications. This policy was implemented in the LTA Act. Many of the objectives of the Lesotho Telecommunications Policy have been met, with the establishment of the LTA, the privatization of the Lesotho Telecommunications Corporation, and the liberalization of all telecommunications markets. During this time period, the percentage of Basotho with access to telecommunications services has grown significantly. Nonetheless, challenges remain. The level of access to fixed, wireless, and Internet services remain too low, particularly in areas of the country where population density is low. Moreover, despite the liberalization of the telecommunications sector, little competition has emerged in network services, even in Maseru. In addition, the growth of convergence has brought both regulatory challenges and opportunities. For example, the increasing availability of Voice over IP (VoIP) services has raised difficult regulatory questions for LCA, but has doubtlessly increased the ability of consumers to make affordable international calls. Broadcasting In recent years, the broadcasting sector has been growing. However, full development of this sector has been hampered both by limited availability of transmission infrastructure - especially outside of the lowlands areas - as well as by the lack of a clear and appropriate regulatory regime. Postal In contrast to the telecommunications and broadcasting sectors, the postal sector has not developed. Indeed, in recent years, mail volumes and revenues of the Lesotho Post Office (LPO) have been decreasing, both as a result of competition and a perceived lack in service quality. This decline is likely to continue in future, especially as telephone service and email become more accessible. To remedy this problem, the postal sector must be fundamentally restructured.