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Universal service: A new definition?

Author

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  • Alleman, James
  • Rappoport, Paul
  • Banerjee, Aniruddha

Abstract

The concept of "universal service obligation" (USO) has been around for decades; however, its definition continues to change. The notion that the last mile of fixed-line access should be subsidized has spread around the world, despite well reasoned arguments and empirical evidence that the policy is and was a failure. It created artificial competition. Now the concept is becoming bifurcated. Should wireless and/or broadband services be included in the definition of universal services? The purpose of the paper is to demonstrate why the definition should be expanded, although a definitive prescription is not offered. This paper is in two parts: What should constitute USO definitions and how, if at all, it should be implemented? Many consumers are "cutting-the-cord" and moving directly to alternative services. In this ubiquitous communications environment the whole set of possible communications methods should be considered when defining "universal connectivity." Second, no one service or technology should be relied on to support subsidies. The second part of the paper addresses the policy question: How should this connectivity be achieved?

Suggested Citation

  • Alleman, James & Rappoport, Paul & Banerjee, Aniruddha, 0. "Universal service: A new definition?," Telecommunications Policy, Elsevier, vol. 34(1-2), pages 86-91, February.
    • Handle: RePEc:eee:telpol:v:34:y::i:1-2:p:86-91
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    Citations

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    Cited by:

    1. Rendon Schneir, Juan & Xiong, Yupeng, 2016. "A cost study of fixed broadband access networks for rural areas," Telecommunications Policy, Elsevier, vol. 40(8), pages 755-773.
    2. Thai, Do Manh & Falch, Morten, 2018. "Universal service in Vietnam: An institutional approach," Telecommunications Policy, Elsevier, vol. 42(4), pages 323-332.
    3. Lee, Hyeongjik & Jeong, Seonkoo & Lee, Kwanghee, 2020. "Developing the Method for Estimating the Costs of Providing Broadband Universal Service: Korean Case," ITS Conference, Online Event 2020 224865, International Telecommunications Society (ITS).
    4. Ogiemwonyi Arakpogun, Emmanuel & Wanjiru, Roseline & Whalley, Jason, 2017. "Impediments to the implementation of universal service funds in Africa – A cross-country comparative analysis," Telecommunications Policy, Elsevier, vol. 41(7), pages 617-630.
    5. Srinuan, Chalita, 2014. "Uncertainty of public pay phone in Thailand: Implications for the universal service obligation," Telecommunications Policy, Elsevier, vol. 38(8), pages 730-740.
    6. Nucciarelli, Alberto & Sadowski, Bert M. & Ruhle, Ernst-Olav, 2012. "Should next generation access networks fall within the scope of universal service? A EU 27 perspective," 23rd European Regional ITS Conference, Vienna 2012 60393, International Telecommunications Society (ITS).
    7. Poudou, Jean-Christophe & Roland, Michel, 2014. "Efficiency of uniform pricing in universal service obligations," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 141-152.
    8. Gautier Axel & Poudou Jean-Christophe, 2014. "Reforming the Postal Universal Service," Review of Network Economics, De Gruyter, vol. 13(4), pages 453-477, December.
    9. Ting, Carol & Yi, Famin, 2013. "ICT policy for the “socialist new countryside”—A case study of rural informatization in Guangdong, China," Telecommunications Policy, Elsevier, vol. 37(8), pages 626-638.
    10. Symeou, Pavlos C. & Pollitt, Michael G., 2014. "Fixed voice telephony in economies of different sizes: When industry policy meets technological change," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 273-286.
    11. Nakamura, Akihiro, 2013. "Retaining telecommunication services when universal service is defined by functionality: Japanese consumers' willingness-to-pay," Telecommunications Policy, Elsevier, vol. 37(8), pages 662-672.
    12. Loo, Becky P.Y. & Ngan, Y.L., 2012. "Developing mobile telecommunications to narrow digital divide in developing countries? Some lessons from China," Telecommunications Policy, Elsevier, vol. 36(10), pages 888-900.
    13. Leurcharusmee, Supanika & Sirisrisakulchai, Jirakom & Suriya, Komsan & Keesookpun, Chutipong & Srinuan, Pratompong, 2017. "Fixed-to-Mobile Substitution: Effects of Mobile Broadband Subscription on Fixed Broadband Termination," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168513, International Telecommunications Society (ITS).
    14. Michael Thacker & Wesley Wilson, 2015. "Telephony choices and the evolution of cell phones," Journal of Regulatory Economics, Springer, vol. 48(1), pages 1-25, August.
    15. Xia, Jun, 2016. "Universal service policy in China (I): Institutional elements and ecosystem," Telecommunications Policy, Elsevier, vol. 40(2), pages 242-252.
    16. Lee, Hyeongjik & Jeong, Seonkoo & Lee, Kwanghee, 2021. "Estimating the deployment costs of broadband universal service via fiber networks in Korea," Telecommunications Policy, Elsevier, vol. 45(4).
    17. Holt, Lynne & Galligan, Mary, 2013. "Mapping the field: Retrospective of the federal universal service programs," Telecommunications Policy, Elsevier, vol. 37(9), pages 773-793.
    18. Hasbi, Maude, 2015. "Universal service obligations and public payphone use: Is regulation still necessary in the era of mobile telephony?," Telecommunications Policy, Elsevier, vol. 39(5), pages 421-435.

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