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eBook Who Pays for Universal Service?: When Telephone Subsidies Become Transparent ePub

eBook Who Pays for Universal Service?: When Telephone Subsidies Become Transparent ePub

by Robert W. Crandall

  • ISBN: 0815716125
  • Category: Politics and Government
  • Subcategory: Politics
  • Author: Robert W. Crandall
  • Language: English
  • Publisher: Brookings Institution Press (June 1, 2000)
  • Pages: 199
  • ePub book: 1441 kb
  • Fb2 book: 1340 kb
  • Other: mobi lit docx lrf
  • Rating: 4.3
  • Votes: 689

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Request PDF On Jun 1, 2001, Heather E Hudson and others published Who pays for universal service? .

This paper goes on to discuss whether the identified costs should be financed in any way by the universal service obligations funded by the telecommunications umers (sector specific) or a general governmental budget (educational budget).

Crandall and Waverman show that an intrastate tax designed to pay for each state's subsidized subscriptions is far less costly to the economy than an interstate tax. Robert W. Crandall is a senior fellow in Economic Studies at the Brookings Institution. Leonard Waverman is a visiting professor at the London Business School, on leave from the University of Toronto. They are coauthors of Talk Is Cheap: The Promise of Regulatory Reform in North American Telecommunications (Brookings, 1995).

As local telephone service competition develops in the wake of the 1996 Telecommunications Act, the universal-service . About the Author Robert W.

As local telephone service competition develops in the wake of the 1996 Telecommunications Act, the universal-service subsidy system will have to change. Crandall and Waverman show that an intrastate tax designed to pay for each state's subsidized subscriptions is far less costly to the economy than an interstate tax.

Who Pays for Universal Service? : When Telephone Subsidies Become Transparent. by Robert W. Crandall and Leonard Waverman. This pricing practice is widely defended as necessary to promote "universal service," but Crandall and Waverman show that it has little effect on telephone subscriptions while it has major harmful effects on the value of all telephone service.

Robert W. Crandall and Leonard Waverman show that such universal policies are inefficient and unnecessary Save.

When Telephone Subsidies Become Transparent. Brookings Institution Press. Crew, Michael . and Paul R. Kleindorfer. Regulatory Economics: Twenty Years of Progress?

When Telephone Subsidies Become Transparent. Regulatory Economics: Twenty Years of Progress? Journal of Regulatory Economics, 21(1): 5–22. Cubbin, John, and Jon Stern. The Impact of Regulatory Governance and Privatization on Elec- tricity Industry Generation Capacity in Developing Economies. Dal Bó, Ernesto, and Martin A. Rossi.

When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:12:y:2000:i:4:p:417-421. More services and features. See general information about how to correct material in RePEc. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu).

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Crandall and Waverman (C&W) judge them against economic theory, empirical evidence, and best practice. Telephone Rates in the New Economy. They then examine the funding mechanisms for their efficacy in meeting the goal and the efficacy of the mechanism itself. All are found wanting.

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In virtually every country, the price of residential access to the telephone network is kept low and cross-subsidized by business services, long distance calling, and various other telephone services. This pricing practice is widely defended as necessary to promote "universal service," but Crandall and Waverman show that it has little effect on telephone subscriptions while it has major harmful effects on the value of all telephone service. The higher prices for long distance calls reduce calling, shift the burden of paying for the network to those whose social networks are widely dispersed. Therefore, many poor and rural households--the intended beneficiaries of the pricing strategy--are forced to pay far more for telephone service than they would if prices reflected the cost of service. Despite these burdens, Congress has extended the subsidies to advanced services for schools, libraries, and rural health facilities. Crandall and Waverman show that other regulated utilities are not burdened with similarly inefficient cross-subsidy schemes, yet universality of water, natural gas, and electricity service is achieved. As local telephone service competition develops in the wake of the 1996 Telecommunications Act, the universal-service subsidy system will have to change. Subsidies will have to be paid from taxes on telecom services and paid directly to carriers or subscribers. Crandall and Waverman show that an intrastate tax designed to pay for each state's subsidized subscriptions is far less costly to the economy than an interstate tax. Robert W. Crandall is a senior fellow in Economic Studies at the Brookings Institution. Leonard Waverman is a visiting professor at the London Business School, on leave from the University of Toronto. They are coauthors of Talk Is Cheap: The Promise of Regulatory Reform in North American Telecommunications (Brookings, 1995).