31 January 2005 Claes Rosvall – rosvall@cats-net.com 1 of 9

FURTHER LIBERALISATION OF THE FURTHER LIBERALISATION OF THE TELECOMMUNICATIONS INDUSTRY TELECOMMUNICATIONS INDUSTRY IN BOTSWANAIN BOTSWANA

Claes RosvallClaes Rosvall

rosvall@cats-net.comrosvall@cats-net.com

31 January 2005 Claes Rosvall – rosvall@cats-net.com 2 of 9

FURTHER LIBERALISATION OF THE FURTHER LIBERALISATION OF THE TELECOMMUNICATIONS INDUSTRY TELECOMMUNICATIONS INDUSTRY IN BOTSWANAIN BOTSWANA

AGENDAAGENDA• BOTSWANA’S TELCOMMUNICATIONS POLICY OF BOTSWANA’S TELCOMMUNICATIONS POLICY OF

19951995• SETTING UP OF BTASETTING UP OF BTA• POLICY REVIEWPOLICY REVIEW• EXPERIENCE FROM OTHER COUNTRIESEXPERIENCE FROM OTHER COUNTRIES• CONCLUSIONSCONCLUSIONS

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BOTSWANA’S BOTSWANA’S TELECOMMUNICATIONS POLICY OF TELECOMMUNICATIONS POLICY OF 19951995

Country wide consultationsCountry wide consultations

Outcome of the consultations Outcome of the consultations • Rejection of phased liberalisationRejection of phased liberalisation• Rejection of development fundRejection of development fund

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SETTING UP OF BTASETTING UP OF BTA

Why do we need a regulator?Why do we need a regulator?• Imbalance between stakeholdersImbalance between stakeholders

Strong mandate a prerequisiteStrong mandate a prerequisite

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POLICY REVIEWPOLICY REVIEW

Introduction of CompetitionIntroduction of Competition PARTIALLYPARTIALLY

Expansion and diversification of servicesExpansion and diversification of services YESYES

Participation of the private sectorParticipation of the private sector YESYES

Transparency in decision makingTransparency in decision making YESYES

Protection of consumersProtection of consumers PARTIALLY PARTIALLY

Prediction of market developmentPrediction of market development NONO

Reduction of tariffsReduction of tariffs PARTIALLYPARTIALLY

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POLICY REVIEW – cont.POLICY REVIEW – cont.

19951995 20052005 EstimatedEstimated

Fixed linesFixed lines 45 00045 000 120 000120 000 140 000140 000

MobileMobile 00 500 000+500 000+ 90 000 90 000

ISPISP 00 10+10+ 0 0

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EXPERIENCE FROM OTHER EXPERIENCE FROM OTHER COUNTRIESCOUNTRIES

TanzaniaTanzania• Privatisation of incumbent (TTCL) in 2001Privatisation of incumbent (TTCL) in 2001• Exclusivity period of 4 yearsExclusivity period of 4 years• Roll out obligations 800 000+Roll out obligations 800 000+• Strategic investor bought 35% for USD 120MStrategic investor bought 35% for USD 120M• Mobile licence Mobile licence

20052005• 150 000 lines (down from 250 000 year 2001)150 000 lines (down from 250 000 year 2001)• Mobile operations 500 000+Mobile operations 500 000+

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CONCLUSIONSCONCLUSIONS

No substitute for competitionNo substitute for competition

Political interference detrimental to the Political interference detrimental to the industryindustry

Promotion vs. PolicingPromotion vs. Policing

Prediction of market development futilePrediction of market development futile

Strengthening of consumersStrengthening of consumers

Universal accessUniversal access

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THANK YOU!THANK YOU!

Claes RosvallClaes Rosvall

rosvall@cats-net.comrosvall@cats-net.com