Enabling Mobile Communications for the Needy: Affordability Methodology, and Approaches to Requalify Universal Service Measures

Louis Pau

Informatica Economica, 2009, vol. 13, issue 2, 128-135

Abstract: This paper links communications and media usage to social and household economics boundaries. It highlights that in present day society, communications and media are a necessity, but not always affordable, and that they furthermore open up for addictive behaviors which raise additional financial and social risks. A simple and efficient methodology compatible with state-of-the-art social and communications business statistics is developed, which produces the residual communications and media affordability budget and ultimately the value-at-risk in terms of usage and tariffs. Sensitivity analysis provides precious information on bottom-up communications and media adoption on the basis of affordability. This approach differs from the regulated but often ineffective Universal service obligation, which instead of catering for individual needs mostly addresses macro-measures helping geographical access coverage (e.g. in rural areas). It is proposed to requalify the Universal service obligations on operators into concrete measures, allowing, with unchanged funding, the needy to adopt mobile services based on their affordability constraints by bridging the gap to a standard tariff. Case data are surveyed from various countries. ICT policy recommendations are made to support widespread and socially responsible communications access.

Keywords: Affordability; Mobile communications; Media usage; Addiction; Residual budget; Social and communications regulations; Social tariffs (search for similar items in EconPapers)
Date: 2009
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