MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION 3. other services. The Government should decide on the allocation of services between the latter two categories. The assets and liabilities as well as the personnel of BTC will have to be accounted for separately between the three parts of the operations. In the longer term perspective, all BTC activities which are provided under actual or potential competition should be carried out in a separately established company. This would be important to demonstrate that Government does not give any subsidies or undue preferences to BTC in relation to other competitors. 8.6 MANDATORY AND MUTUAL OBLIGATION IS INTRODUCED. INTERCONNECTION Justification. In order to rationalise the use of present network and to avoid duplication of infrastructure all new and present networks should be interconnected for national economic benefit as well as for the benefit of consumers. Implications. A mandatory requirement will ensure the integrity of the national network and avoid fragmentation. Experience shows, however, that interconnection arrangements between operators in a liberalised market have been a long and frustrating process to work out. The former monopolist will most likely try to make life difficult for prospective competitors by being moderately interested in coming to an agreement about charges and tariffs for the use of the network. Clear and precise formulas need to be worked out if introduction of competition really is going to succeed. 8.7 REGULATORY FUNCTIONS ARE SEPARATED FROM OPERATIONAL FUNCTIONS AND A REGULATORY AUTHORITY IS ESTABLISHED. Justification. Regulation of the industry becomes much more complicated when there is more than one operator in the market and the incumbent operator (BTC) cannot be a player and referee at the same time. Implications. With introduction of competition there are many new regulatory functions that need to be addressed. Examples of regulations in this area include licensing of private operators, supervision and handling 26 TELECOMMUNICATIONS POLICY FOR BOTSWANA