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From universal service to universal connectivity

Author

Listed:
  • Jeffrey T. Macher

    (Georgetown University)

  • John W. Mayo

    (Georgetown University)

  • Olga Ukhaneva

    (Georgetown University)

  • Glenn A. Woroch

    (University of California)

Abstract

Two features of the century-old policy goal of promoting universal telephone service in the United States have been enduring. Policymakers have focused on (1) wireline telephone (and more recently, fixed-line broadband) services and (2) households. The widespread adoption of mobile telephones compels a fresh examination of this focus. We construct a new measure of universal connectivity which accounts for consumers’ choices of communications technologies and for their geographic mobility over the course of the day. This measure, in turn, compels a conceptual and empirical investigation of the determinants of mobile telephone diffusion within families. Our estimations of intra-household demand for mobile service permit us to develop simulations that estimate the economic impact of modernizing a key element of existing universal service policy (viz., the Lifeline Program) to reflect the goal of improving individual connectivity. We find that a policy expansion from a single subsidy per household to multiple subsidies per eligible household members would increase mobile subscriptions by 2.25 million and Lifeline costs by $250 million.

Suggested Citation

  • Jeffrey T. Macher & John W. Mayo & Olga Ukhaneva & Glenn A. Woroch, 2017. "From universal service to universal connectivity," Journal of Regulatory Economics, Springer, vol. 52(1), pages 77-104, August.
    • Handle: RePEc:kap:regeco:v:52:y:2017:i:1:d:10.1007_s11149-017-9336-8
    DOI: 10.1007/s11149-017-9336-8
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    Cited by:

    1. Glenn A. Woroch, 2020. "Spectrum Concentration and Performance of the U.S. Wireless Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(1), pages 73-105, February.
    2. Edward J. Oughton & Ashutosh Jha, 2021. "Supportive 5G Infrastructure Policies are Essential for Universal 6G: Assessment using an Open-source Techno-economic Simulation Model utilizing Remote Sensing," Papers 2102.08086, arXiv.org, revised Jun 2021.
    3. Oughton, Edward J. & Comini, Niccolò & Foster, Vivien & Hall, Jim W., 2022. "Policy choices can help keep 4G and 5G universal broadband affordable," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    4. Thomas S. Conkling, 2020. "Compliance and competition with heterogeneous service providers: the federal Lifeline program," Journal of Regulatory Economics, Springer, vol. 57(1), pages 74-104, February.
    5. Woroch, Glenn A, 2020. "Spectrum Concentration and Performance of the U.S. Wireless Industry," Department of Economics, Working Paper Series qt8vv381jt, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    6. Glass, Victor & Tardiff, Timothy, 2021. "Reforming funding of universal access to telecommunications and broadband services: Approaches for the new decade," Telecommunications Policy, Elsevier, vol. 45(2).

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    More about this item

    Keywords

    Consumer demand; Universal service; Fixed; Mobile;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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