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Assessing the Impact of FCC Lifeline and Link-Up Programs on Telephone Penetration

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  • Garbacz, Christopher
  • Thompson, Herbert G, Jr

Abstract

Lifeline programs sponsored by the Federal Communications Commission (FCC) in cooperation with the states and Local Exchange Companies (LECs) area authorized to increase telephone penetration. Estimates of a variant of Perl's (1983) economic model with 1990 Consensus Data broken to the state level indicate that expenditures on these programs have a positive statistical effect on telephone penetration in most models. However, program elasticities are extremely small, suggesting that very large expenditure increases per poor household would have little effect on telephone penetration. Importantly, there is no relationship between the size of the state program elasticity and the level of state income or the magnitude of state poverty. We also demonstrate that the 1990 Census Data is superior to the Current Population Survey as a data base. Copyright 1997 by Kluwer Academic Publishers

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  • Garbacz, Christopher & Thompson, Herbert G, Jr, 1997. "Assessing the Impact of FCC Lifeline and Link-Up Programs on Telephone Penetration," Journal of Regulatory Economics, Springer, vol. 11(1), pages 67-78, January.
    • Handle: RePEc:kap:regeco:v:11:y:1997:i:1:p:67-78
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    Cited by:

    1. Ward, Michael R., 2007. "Rural Telecommunications Subsidies Do Not Help," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(1), pages 1-3.
    2. Biancini, Sara, 2011. "Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market," Telecommunications Policy, Elsevier, vol. 35(3), pages 238-249, April.
    3. Björkegren, Daniel & Karaca, Burak Ceyhun, 2022. "Network adoption subsidies: A digital evaluation of a rural mobile phone program in Rwanda," Journal of Development Economics, Elsevier, vol. 154(C).
    4. Jayakar, Krishna & Park, Eun-A, 2019. "Reforming the lifeline program: Regulatory federalism in action?," Telecommunications Policy, Elsevier, vol. 43(1), pages 67-75.
    5. Garbacz, Christopher & Thompson, Herbert Jr., 2005. "Universal telecommunication service: A world perspective," Information Economics and Policy, Elsevier, vol. 17(4), pages 495-512, October.
    6. Janice A. Hauge & Mark A. Jamison & R. Todd Jewell, 2007. "Participation in Social Programs by Consumers and Companies," Public Finance Review, , vol. 35(5), pages 606-625, September.
    7. Hauge, Janice A. & Jamison, Mark A. & Todd Jewell, R., 2008. "Discounting telephone service: An examination of participation in the Lifeline Assistance Program using panel data," Information Economics and Policy, Elsevier, vol. 20(2), pages 135-149, June.
    8. Ward, Michael R. & Woroch, Glenn A., 2010. "The effect of prices on fixed and mobile telephone penetration: Using price subsidies as natural experiments," Information Economics and Policy, Elsevier, vol. 22(1), pages 18-32, March.
    9. Ford, George S., 2021. "Subsidies and substitution: An empirical study of the lifeline program," Telecommunications Policy, Elsevier, vol. 45(1).

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