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Rural Telecommunications Subsidies Do Not Help

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  • Michael R. Ward

    (Department of Economics, University of Texas at Arlington)

Abstract

The common justifications for government subsidies for rural telecommunications are to promote universal service and to promote economic development. While the case for subsidizing many rural telephone services is stronger than for more urban settings, it is still weak and subsidy implementation has likely been corrupted by rent seeking practices. Because of this and because many newer technologies tend to reduce rural disadvantages, a policy of limiting subsidies is likely efficient.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michael R. Ward, 2006. "Rural Telecommunications Subsidies Do Not Help," Working Papers 0603, University of Texas at Arlington, Department of Economics.
    • Handle: RePEc:txa:wpaper:0603
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    File URL: http://www.uta.edu/faculty/mikeward/JRAP.pdf
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    References listed on IDEAS

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    1. Kaserman, David L & Mayo, John W & Flynn, Joseph E, 1990. "Cross-Subsidization in Telecommunications: Beyond the Universal Service Fairy Tale," Journal of Regulatory Economics, Springer, vol. 2(3), pages 231-249, September.
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    6. Eriksson, Ross C & Kaserman, David L & Mayo, John W, 1998. "Targeted and Untargeted Subsidy Schemes: Evidence from Postdivestiture Efforts to Promote Universal Telephone Service," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 477-502, October.
    7. 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.
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    Cited by:

    1. Casasbuenas, Jaime & de Oliveira, Fernando & Riobó, Alexander, 2014. "Effective subsidies to the demand for fixed broadbandwith an increase in penetration and an undistorted competition landscape: The Colombian case," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106900, International Telecommunications Society (ITS).
    2. Whitacre, Brian E. & Mahasuweerachai, Phumsith, 2008. "“Small” Broadband Providers and Federal Assistance Programs: Solving the Digital Divide?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(3), pages 1-15.

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