Non-Commercial Services Obligations and Liberalisation
AbstractUniversal service obligations are common in many of the infrastructure sectors. The obligations are often cited as a justification for limiting entry of new providers because the new providers would cherry-pick the highprofit customers who provide the basis for subsidization of another group of customers. When obligations are beneficial, there are a number of policy traps that can be encountered: Obligations are often poorly defined and not well-focused on the customers who are meant to receive help; Obligations are frequently defined narrowly in ways that disfavour new technologies and cause extensive waste; and financing for the noncommercial obligations can often be raised in more efficient ways than through cross-subsidies and can often be spent on multiple service providers rather than one preferred provider. Falling into these traps can create incentives for over-investment in certain infrastructure technology and under-investment in other technology. This paper provides guidance on the competition problems that can arise from universal service obligations and on some ways to limit these problems. This OECD Competition Committee roundtable was held in October 2003.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by OECD Publishing in its journal OECD Journal: Competition Law and Policy.
Volume (Year): 7 (2005)
Issue (Month): 1 ()
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: ().
If references are entirely missing, you can add them using this form.