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Is Universal Service Justified By The Public Interest? From The Early Days To The Digital Age

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  • Dmitrii Trubnikov
  • Ekaterina Trubnikova

Abstract

It is commonly accepted that universal service is clearly justified by reference to the public interest, and this understanding stems from the natural monopoly paradigm. However, telecommunications monopolies have never been ‘natural’, and the alternative to regulation has always been a competitive marketplace. The liberalisation movement had a chance to create a genuinely competitive industry but failed to do so. This article argues that the universal service dogma has played a significant role in the formation of the ordered competition regime of modern telecommunications, and explains this phenomenon in terms of public choice theory.

Suggested Citation

  • Dmitrii Trubnikov & Ekaterina Trubnikova, 2018. "Is Universal Service Justified By The Public Interest? From The Early Days To The Digital Age," Economic Affairs, Wiley Blackwell, vol. 38(2), pages 185-196, June.
    • Handle: RePEc:bla:ecaffa:v:38:y:2018:i:2:p:185-196
    DOI: 10.1111/ecaf.12290
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    References listed on IDEAS

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    Cited by:

    1. Dmitrii Trubnikov, 2020. "The Russian Telecommunications Experience: a Positive Outcome of the Competitive Order in the Industry," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 35-58, March.
    2. Edward J. Oughton & Ashutosh Jha, 2021. "Supportive 5G Infrastructure Policies are Essential for Universal 6G: Assessment using an Open-source Techno-economic Simulation Model utilizing Remote Sensing," Papers 2102.08086, arXiv.org, revised Jun 2021.

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