MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION 6.2 PRIVATE INTERESTS ARE ENCOURAGED TO ASSUME GREATER RESPONSIBILITY FOR DEVELOPMENT OF THE INDUSTRY. Justification. The private sector will provide much needed business expertise, know-how, entrepreneurship and additional funding to the industry. Implications. Barriers to entry into the telecommunications industry have historically been high mainly due to legal obstacles and high initial investment costs. The fact that the industry in Botswana is dominated by a statutory monopolist, and thus a closed market with little outside knowledge and know-how, will make it difficult for new entrants to gain ground in a liberalised market. Recognising the often still dominant role of the previous monopolist once the market is liberalised, many countries have adopted measures to promote competition by making it easier for new players to operate than for the incumbent operator. In order to encourage new entrants and private investments into the market, the market will be liberalized in such market segments as would allow an expansion of the supply of telecommunications services and an improved utilisation of the present telecommunications network at the same time as being commercially attractive. BTC will be encouraged to form partnerships in such markets to have access to additional business expertise and know-how. On the other hand, provisions will be made in the proposed new legislation which would prevent BTC to abuse its present dominant position in the market. New entrants into the market will also enjoy such tax advantages and incentive packages as would normally apply to other industrial investors in Botswana. Participation of citizen owned companies and individual citizens could also be promoted by imposing limits to foreign equity in different market segments and obligations in areas of employment of Batswana. 6.3 A TELECOMMUNICATIONS INDUSTRY CH`9RACTERISED BY TRANSPARENCY IN DECISION MAKING AND DEVELOPMENT. Justification. Transparency will promote confidence in potential investors and is a prerequisite for private sector participation in the industry. 14 TELECOMMUNICATIONS POLICY FOR BOTSWANA