Targeted Price Subsidization of Access to the Telecommunications Network

Vinson Snowberger

Journal of Regulatory Economics, 1990, vol. 2, issue 4, 415-31

Abstract: The goals of income redistribution and universal service both suggest the possibility of subsidizing the non-usage-sensitive charges associated with subscription to the telecommunications system for either low-income households or households facing extraordinary terminal equipment expenses due to the presence of telephone-related disabilities. Conditions defining optimal levels of subsidization are derived and analyzed for the case in which the subsidy takes the form of lower access or terminal equipment charges for targeted households and is paid for by general ratepayers. Copyright 1990 by Kluwer Academic Publishers

Date: 1990
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