1. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 1 of 9 FURTHER LIBERALISATION OF THE TELECOMMUNICATIONS INDUSTRY IN BOTSWANA Claes Rosvall rosvall@cats-net.com

2. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 2 of 9 FURTHER LIBERALISATION OF THE TELECOMMUNICATIONS INDUSTRY IN BOTSWANA AGENDA BOTSWANA’S TELCOMMUNICATIONS POLICY OF 1995 BOTSWANA’S TELCOMMUNICATIONS POLICY OF 1995 SETTING UP OF BTA SETTING UP OF BTA POLICY REVIEW POLICY REVIEW EXPERIENCE FROM OTHER COUNTRIES EXPERIENCE FROM OTHER COUNTRIES CONCLUSIONS CONCLUSIONS

3. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 3 of 9 BOTSWANA’S TELECOMMUNICATIONS POLICY OF 1995 Country wide consultations Outcome of the consultations Rejection of phased liberalisation Rejection of phased liberalisation Rejection of development fund Rejection of development fund

4. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 4 of 9 SETTING UP OF BTA Why do we need a regulator? Imbalance between stakeholders Imbalance between stakeholders Strong mandate a prerequisite

5. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 5 of 9 POLICY REVIEW Introduction of CompetitionPARTIALLY Expansion and diversification of servicesYES Participation of the private sectorYES Transparency in decision makingYES Protection of consumersPARTIALLY Prediction of market developmentNO Reduction of tariffsPARTIALLY

6. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 6 of 9 POLICY REVIEW – cont. 19952005Estimated Fixed lines45 000120 000140 000 Mobile0500 000+ 90 000 ISP010+0

7. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 7 of 9 EXPERIENCE FROM OTHER COUNTRIES Tanzania Privatisation of incumbent (TTCL) in 2001 Privatisation of incumbent (TTCL) in 2001 Exclusivity period of 4 years Exclusivity period of 4 years Roll out obligations 800 000+ Roll out obligations 800 000+ Strategic investor bought 35% for USD 120M Strategic investor bought 35% for USD 120M Mobile licence Mobile licence2005 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+

8. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 8 of 9 CONCLUSIONS No substitute for competition No substitute for competition Political interference detrimental to the industry Political interference detrimental to the industry Promotion vs. Policing Promotion vs. Policing Prediction of market development futile Prediction of market development futile Strengthening of consumers Strengthening of consumers Universal access Universal access

9. 31 January 2005 Claes Rosvall – rosvall@cats-net.com 9 of 9 THANK YOU! Claes Rosvall rosvall@cats-net.com