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Universal service obligations: the role of subsidization schemes and the consequences of accounting separation

Author

Listed:
  • François MIRABEL
  • Jean-Christophe POUDOU
  • Michel ROLAND

Abstract

This paper (i) highlights the role that unit subsidies can play in the compensation scheme of a Universal Service Obligation (USO), and (ii) shows that welfare may be reduced when regulation requires accounting separation of network activities for vertically integrated USO providers. This suggests that accounting separation should be avoided when a USO is implemented.

Suggested Citation

  • François MIRABEL & Jean-Christophe POUDOU & Michel ROLAND, 2007. "Universal service obligations: the role of subsidization schemes and the consequences of accounting separation," Cahiers du CREDEN (CREDEN Working Papers) 07.01.67, CREDEN (Centre de Recherche en Economie et Droit de l'Energie), Faculty of Economics, University of Montpellier 1.
    • Handle: RePEc:mop:credwp:07.01.67
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    File URL: http://www.creden.univ-montp1.fr/downloads/cahiers/CC-07-01-67.pdf
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    More about this item

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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