MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION
6. PRINCIPLES TO GUIDE THE
RESCRUTURING PROCESS
The present structure of the telecommunications industry is characterised
by monopoly provision of services by a state owned corporation.
Although a common structure in many countries, this model has been less
successful in satisfying the needs for efficient telecommunication services
in Botswana in the past, and it is even more unlikely to achieve the
stipulated goals for the future. BTC's financial and human resource
constraints have created an imbalance in supply and demand of services
which might have a negative impact on Botswana's economic and social
development. Thus, it is necessary to add resources to the industry to
exploit the potential of telecommunications as a means for national
development. The private sector should be promoted to supply these
additional resources.
The underlying philosophy for transformation of the industry is to give
the market forces a chance to determine supply and demand in a regulated
environment.
6.1 COMPETITION IS INTRODUCED IN THE INDUSTRY AND
THE
MONOPOLY
IN
PROVISION
OF
TELECOMMUNICATIONS SERVICES IS ABOLISHED.
Justification. Considering the huge and growing demand for
telecommunication services it cannot be expected of one operator to
satisfy the demand for an increasing range of telecommunication products
and services in the industry.
Implications. Competition encourages service improvements, innovation
and efficiency and it will also accelerate the speed of market coverage of
telephony. However, competition may be a less effective instrument for
rapid expansion of the network in rural areas. Given the prevailing
situation, with massive investments needed to meet the unsatisfied
demand, market forces alone will not develop the industry in a direction
satisfactory to Government. Although new entrants will increase the
capacity of the industry, investments are likely to concentrate in the most
profitable areas where the rate of return on investments is highest.
Competition will also decrease the margins of service providers and
reduce the possibility of cross-subsidization. In order to secure a balanced
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TELECOMMUNICATIONS POLICY FOR BOTSWANA