MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION
with other operators and service providers. A Performance Contract
between Government and BTC would stipulate among others agreed
performance in efficiency, reliability and accessability of services.
The contract should be designed and negotiated in consultation with the
Regulatory Authority, Ministry of Works, Transport and
Communications and Government's Public Enterprise Monitoring Unit.
The contract should also include measures to facilitate competition and be
of short term nature. The main purpose of the contract is to facilitate the
reform process in the industry, but it can also serve as an instrument for
the owner to exercise control over BTC and it can of course be
terminated if BTC does not perform properly.
8.5 BTC SHOULD BE OBLIGED TO CARRY OUT
COMPETITIVE ACTIVITIES SEPARATELY FROM OTHER
ACTIVITIES.
Justification. To achieve transparency and ensure fair and equitable
competition, BTCs competitive business should not be mixed with its
role as operator of the national network.
Implications. It is important to emphasise the commercial nature of BTC
and its operations. BTC should have the possibility of forming alliances
and joint ventures on the basis of what is good business; it should be able
to raise loans on the open market; it should operate under the same
conditions as its competitors; and it should not be, or suspected to be,
unduly subsidized. For these reasons there might be a need to increase
BTC’s autonomy from Ministry of Works, Transport and
Communications.
New competitive services, such as the introduction of mobile telephone
services, should be carried out by BTC in a separate subsidiary company.
The BTC Act should be amended to the effect that BTC’s allowed to
form such subsidiaries. As far as already established activities are
concerned, Government should instruct BTC, for instance in a
performance contract, to make an accounting separation of BTC's
operations into three parts:
1. network operations and maintenance
2. services that are expected to remain sub-economic for a considerable
time
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TELECOMMUNICATIONS POLICY FOR BOTSWANA