The economic viability of wireless local loop and its impact on universal service

Terrence P McGarty

Telecommunications Policy, 1997, vol. 21, issue 5, 387-410

Abstract: This paper presents an overview of the economics of wireless transport focusing on Personal Communications Service (PCS) and Local Multipoint Distribution Service (LMDS) as compared with the existing incumbent local exchange carriers, namely the I-LECs. The paper also addresses the issues of universal service and presents an analysis of how wireless may be aviable player in that environment. The paper combines the approaches from several different fields and demonstrates that wireless has applications as a provider of universal services in certain niche areas but it is not a clear universal application. The paper also develops several policy issues as to how best to deal with the issue of universal services and also addresses the issue of how far that social demand should be extended.

Date: 1997
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