Beyond liberalization III: Reforming universal service

Eli M Noam

Telecommunications Policy, 1994, vol. 18, issue 9, 687-704

Abstract: At present, transfer within a telecommunications monopoly from some users to others support universal service. With the onset of competition in the USA, a complex system of contributory access charges, revenue pools and other devices has been added. Yet these arrangements are not suitable in a competitive environment. This article therefore develops an alternative system for the financing of universal service that is compatible with a multi-provider world. The proposal is for an accounting system that would debit a carrier's added value and credit its transfers to universal service schemes. It creates a fund to support portable vouchers for the benefited users and credits for low-density areas. It operates on the premise of competitive neutrality - equal rights and equal burdens to all carriers, and customer choice.

Date: 1994
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