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A layered United States Universal Service Fund for an everything-over-IP world

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  • Jordan, Scott

Abstract

Support through the United States Federal Universal Service Fund for high-cost areas has been principally defined in terms of telephone service. Fund growth due to increases in wireless lines and implicit support for broadband infrastructure has created an untenable situation, and fundamental reform is expected. The cause underlying this growth is convergence between the telephone network, wireless networks, the Internet, and cable networks. This convergence will pose additional serious long-term challenges to the fund. This paper proposes a restructuring of the high-cost funds based on a layered model. Both contributions and distributions are focused on network infrastructure, without distinction between voice and broadband. The proposal uses a new definition of communication services to guarantee technology neutrality, and includes service area reform and cost efficiency measures. This layered approach repositions the fund for future converged networks.

Suggested Citation

  • Jordan, Scott, 0. "A layered United States Universal Service Fund for an everything-over-IP world," Telecommunications Policy, Elsevier, vol. 33(3-4), pages 111-128, April.
    • Handle: RePEc:eee:telpol:v:33:y::i:3-4:p:111-128
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    Cited by:

    1. Daeho Lee & Junseok Hwang, 2011. "The Effect of Network Neutrality on the Incentive to Discriminate, Invest and Innovate: A Literature Review," TEMEP Discussion Papers 201184, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2011.
    2. Batura, Olga, 2016. "Can a revision of the universal service scope result in substantive change? An analysis of the EU׳s universal service review mechanism," Telecommunications Policy, Elsevier, vol. 40(1), pages 14-21.
    3. Xia, Jun, 2016. "Universal service policy in China (I): Institutional elements and ecosystem," Telecommunications Policy, Elsevier, vol. 40(2), pages 242-252.

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