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Auctions for universal service obligations

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  • Weller, Dennis

Abstract

This paper proposes the use of auctions for determining which carriers should undertake a universal service obligation, and what compensation they should receive for performing this function. From the regulator's perspective the auction would reveal carriers' valuations of the USO, determine the number of USO providers endogenously, and provide an alternative to traditional cost-of-service regulation. Since bidding is a voluntary action by the firms, auctions would serve also to discipline the regulator. While auctions are compatible with competitive local service markets, they can also serve as a transition to competitive markets.

Suggested Citation

  • Weller, Dennis, 1999. "Auctions for universal service obligations," Telecommunications Policy, Elsevier, vol. 23(9), pages 645-674, October.
    • Handle: RePEc:eee:telpol:v:23:y:1999:i:9:p:645-674
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    Cited by:

    1. Madden, Gary & Savage, Scott J. & Coble-Neal, Grant & Bloxham, Paul, 2000. "Advanced communications policy and adoption in rural Western Australia," Telecommunications Policy, Elsevier, vol. 24(4), pages 291-304, May.
    2. Andrés Gomez-Lobo & Marcela Meléndez, 2006. "La política social de las telecomunicaciones en Colombia," Cuadernos de Fedesarrollo 12707, Fedesarrollo.
    3. Carlos Costa, 2012. "On the Use of Reverse Auctions to Designate Universal Postal Service Providers," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Multi-Modal Competition and the Future of Mail, chapter 21, Edward Elgar Publishing.

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