Botswana
Botswana notes success in developing telecom market

afrol.com, 4 September - In 1998, the Botswana government sold licenses to operate mobile telephone networks to two competing companies. Now, Botswana has more mobile subscribers than subscribers to regular home phones. Using mobile or cellular phone is ideal for a country this sparsely populated. In Botswana, with its population of only 1,5 million, there is one person for each 400.000 square meter.

As the Botswana Telecommunications Authority asked for tenders to operate mobile networks, it was underlined that a nationwide coverage and national ownership would be of primary consideration. The state owned telephone company did not achieve a license, as it did not offer sufficient coverage in its tender.

The Botswana Telecommunications Authority (BTA) is a young authority, only existing some two years, and was in need of competence building. The BTA thus received substantial foreign aid, mainly from Swedish SIDA (1 millions US$), including consulting aid and aid in building a legal framework for the Botswana telecom market.

- Earlier, SIDA invested big money in constructing infrastructure in developing countries. Now, its more focused on helping existing institutions. Today, poor nations do have access to private capital and investments if the institutional framework exists, such as modern telecom laws, free competition and independently working authorities, Mikael Söderbäck in the department of infrastructure of SIDA says.

Botswana sold its licenses to operate mobile networks to the companies Mascon Wireless and Vista Cellular in 1998. The number of subscribers to mobile phone services in Botswana is currently 147.000, compared to some 128.000 subscribers to regular home telephones.

Source: SIDA

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