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Practical Approaches to USO Costing and Financing


Author Info

  • Christian Jaag


  • John Lisle
  • Navin Waghe
  • Erik van der Merwe
  • Urs Trinkner



In this paper we set out a holistic approach that incorporates recent developments in assessing the net cost of the USO and presents a robust methodology for practical implementation. We analyse the issues relating to assessing the net costs of the USO with particular focus on the benefits associated with USO and current empirical approaches to calculating the net costs. We then present an overview of approaches that have been applied in various countries and highlight their strengths and shortcomings in light of the necessarily theoretical aspects discussed in the first part of the paper. Finally, we present a practical approach that we believe assesses robustly the net cost of the USO.

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Bibliographic Info

Paper provided by Swiss Economics in its series Working Papers with number 0021.

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Date of creation: Jul 2010
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Publication status: Published in Competition and Regulation in Network Industries, 12(2):108-129
Handle: RePEc:chc:wpaper:0021

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Keywords: Regulation; Post; Universal service obligation; Financing;

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