MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION with other operators and service providers. A Performance Contract between Government and BTC would stipulate among others agreed performance in efficiency, reliability and accessability of services. The contract should be designed and negotiated in consultation with the Regulatory Authority, Ministry of Works, Transport and Communications and Government's Public Enterprise Monitoring Unit. The contract should also include measures to facilitate competition and be of short term nature. The main purpose of the contract is to facilitate the reform process in the industry, but it can also serve as an instrument for the owner to exercise control over BTC and it can of course be terminated if BTC does not perform properly. 8.5 BTC SHOULD BE OBLIGED TO CARRY OUT COMPETITIVE ACTIVITIES SEPARATELY FROM OTHER ACTIVITIES. Justification. To achieve transparency and ensure fair and equitable competition, BTCs competitive business should not be mixed with its role as operator of the national network. Implications. It is important to emphasise the commercial nature of BTC and its operations. BTC should have the possibility of forming alliances and joint ventures on the basis of what is good business; it should be able to raise loans on the open market; it should operate under the same conditions as its competitors; and it should not be, or suspected to be, unduly subsidized. For these reasons there might be a need to increase BTC’s autonomy from Ministry of Works, Transport and Communications. New competitive services, such as the introduction of mobile telephone services, should be carried out by BTC in a separate subsidiary company. The BTC Act should be amended to the effect that BTC’s allowed to form such subsidiaries. As far as already established activities are concerned, Government should instruct BTC, for instance in a performance contract, to make an accounting separation of BTC's operations into three parts: 1. network operations and maintenance 2. services that are expected to remain sub-economic for a considerable time 25 TELECOMMUNICATIONS POLICY FOR BOTSWANA