MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION of disputes in the market and rules for fair competition. Type approval procedures for liberalised terminal equipment, management of the radio frequency spectrum and licensing schemes for competing providers of mobile or value added services are other examples. There is also a need to regulate and oversee the interconnection arrangements between BTC and newcomers in the market. The extent of regulation will, of course, be dependent on the number and variety of market actors, but it is obvious that development of the regulatory capacity is vital for the success of the restructuring process. Given the size of the telecommunications market and associated cost to regulate it, and bearing in mind the short supply of experienced professionals, the regulatory authority should be a small entity contracting out as much as possible of the regulatory tasks and functions to other public and private institutions, while keeping the ultimate responsibility in accordance with proposed new legislation. Furthermore, regulatory measures which are simple to implement and supervise and which reduce the workload and political burden on the regulator should be developed. Price cap models, standardised license conditions and uniform reporting systems would facilitate the regulator's work. The cost of regulating the industry should as much as possible be borne by the industry itself by levying fees and charges for licensing of operators and equipment that reflect the real cost of producing the services. Considering the new regulatory functions to be carried out in a liberalised market, it is expected that the cost of regulating the industry will be somewhat higher than the present costs incurred by BTC to perform the regulatory tasks. Work on administrative measures, including detailed costing, for implementation of the new policy is in progress, but it is presently assumed that the cost of regulating the industry will amount to about one per cent of the turnover of the industry. 8.8 THE LEGAL FRAMEWORK FOR RESTRUCTURING OF THE TELECOMMUNICATIONS INDUSTRY IS DEVELOPED. Justification. Reforms in the telecommunications industry require a legislative base along which structural changes can take place. Implications. The far reaching structural reforms in the telecommunications industry outlined in this paper require clear mandates to be successful. A critical issue relating to the policy level of functions is the relationship between the Ministry (MWTC) and the Regulatory 27 TELECOMMUNICATIONS POLICY FOR BOTSWANA