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Local telephone rate structure and telephone penetration: A universal service perspective

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  • Zolnierek, James
  • Clausen, Torsten

Abstract

This article analyzes the relationships between local telephone rates, demographic factors and telephone penetration rates in rural Illinois. The results of the analysis suggest that monthly rate reductions increase telephone penetration rates more in areas with high poverty rates than in areas with lower poverty rates. These findings suggest that universal service programs designed to produce uniform telephone rates will be less effective in increasing penetration rates than will programs targeted at reducing monthly telephone rates in areas of high poverty.

Suggested Citation

  • Zolnierek, James & Clausen, Torsten, 2010. "Local telephone rate structure and telephone penetration: A universal service perspective," Information Economics and Policy, Elsevier, vol. 22(2), pages 153-163, May.
    • Handle: RePEc:eee:iepoli:v:22:y:2010:i:2:p:153-163
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    References listed on IDEAS

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    1. Garbacz, Christopher & Thompson, Herbert G, 2002. "Estimating Telephone Demand with State Decennial Census Data from 1970-1990," Journal of Regulatory Economics, Springer, vol. 21(3), pages 317-329, May.
    2. Milton L. Mueller, 1997. "Universal Service," Books, American Enterprise Institute, number 53006, September.
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    Cited by:

    1. Berg, Sanford V. & Jiang, Liangliang & Lin, Chen, 2011. "Incentives for cost shifting and misreporting: US rural universal service subsidies, 1991–2002," Information Economics and Policy, Elsevier, vol. 23(3), pages 287-295.
    2. 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.
    3. Holt, Lynne & Galligan, Mary, 2013. "Mapping the field: Retrospective of the federal universal service programs," Telecommunications Policy, Elsevier, vol. 37(9), pages 773-793.

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