Universal Service

Günter Knieps
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Günter Knieps: University of Freiburg

Chapter 7 in Network Economics, 2015, pp 121-131 from Springer

Abstract: Abstract Universal service includes the obligation on the part of the network operator to provide specific services in the whole area for which the obligation is relevant. In particular, this means general access to the service at politically desirable rates, and guaranteeing a certain minimum quality. In traditional regulatory policy universal service obligations in combination with legal entry barriers as well as market power regulation were applied. In network sectors with free market entry universal service objectives can no longer be financed by means of internal subsidisation (cross subsidisation) and there is no longer only one possible network provider that can supply them. Thus it becomes necessary to realise politically desirable universal service objectives without favouring, or discriminating against, individual market players. A transparent way of solving this problem is a universal service fund, which will be characterised in this chapter.

Keywords: Telecommunication Service; Universal Service; Telecommunication Sector; Price Ceiling; Implicit Taxation (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-3-319-11695-2_7

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