No. 34 Communications (2) The Authority may designate several licensees to handle various components and to cover various coverage areas. 75 (3) For purposes of subsections (1) and (2), the Authority shall select a licensee after a tendering process based on technical and financial conditions, and if applicable, the net cost of service provision and based on principles of fair and equitable selection process. (4) Notwithstanding subsection (3), the Authority may, where it fails to select a licensee, designate, with the approval of the concerned licensees, one or more licensees to implement the universal services. 165.__(1) The Authority shall specify obligations for licensees selected to implement the universal service. (2) The obligations under subsection (1) shall__ (a) specify appropriate equipment, goods or services to be supplied; (b) specify the manner in which the licensee shall fulfil its universal service obligations; and (c) set out appropriate conditions for supplying universal services in various selected areas. 166.__(1) A licensee selected to implement the universal services shall__ (a) keep books and accounts and maintain proper records of its operations in accordance with accepted accounting standards; and (b) on an annual basis and in any case within six months after the end of the government's financial year, submit a report on the accounts and targets reached as stated in the specific conditions of the licence, and shall, in particular, provide__ (i) a copy of the report to the Universal Service Fund Committee on the performance audit carried out during the financial year; and (ii) information on the implementation of the universal services. (2) The Authority shall require a licensee selected to implement the universal services to have its accounts audited annually by an independent auditor. (3) A licensee who fails to comply with its obligations in terms of universal service implementation commits an offence and shall, upon conviction, be liable to a fine of k1,000,000. Obligations of licensees in relation to universal service licence Accounting and reporting obligations for universal service licensees