MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION network capacity is used, the easier it becomes to justify and fund further expansion of the network. This must be considered in relation to the Performance Contract to be entered into between Government and BTC in which BTC's responsibility for operating, expanding and maintaining the network should be stipulated. BTC should not be relegated to the role of network operator, but should also on competitive terms be a service provider. First of all it is in Government's interest to make sure that unprofitable areas are served, where no competition can reasonably be expected. Secondly, BTC must have a basis for its operations, and thus a geographical exclusivity area will have to be agreed for a certain period of time in the Performance Contract. This can be expressed in an opposite manner, BTC has the responsibility of operating the network and provide services in all areas except those specifically enumerated, in which areas licences will be granted for provision of telecommunications services on the basis of a competitive tendering system. Not more than two licences should be granted in each such area. 8.3.10 In addition to BTC, one more licence for providing international services may be granted by the Regulatory Authority after an open application procedure. The timing of granting the second licence needs to be decided by Government. Justification. An agreed agenda for market reforms will provide the market actors with a stable and predictable environment for their business decisions thus facilitating participation of the private sector. Implications. During the policy formulation process expectations have been raised for rapid and far reaching reforms. A prolonged implementation process might therefore dissipate public support and the momentum gained could be lost. However, it is important to get well functioning policies and regulatory arrangements in place before competition is introduced to avoid a regulatory vacuum. The time table for liberalisation of the industry will be dependent on the pace at which the regulatory capacity can be developed. It is envisaged that the capacity could be developed as follows and thus become the time frame for the liberalisation of the industry. The time table is based on the assumptions that members of the Board of Directors of the Regulatory Authority are nominated and key personnel is recruited within three months of the legal establishment of the Regulatory Authority and that funds are available for its operations. 23 TELECOMMUNICATIONS POLICY FOR BOTSWANA