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Potential Insights for US USO from Recent Federal Communication Commission’s Broadband Auctions

In: The Changing Postal Environment

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  • Victor Glass

    (Rutgers Business School)

Abstract

Last year, based on my telecom experience, I offered a roadmap for building new types of internal incentives and potentially privatizing the Postal Service’s last mile delivery. One feature of the proposal was to introduce a universal service fund and use it to auction service territories in high-cost areas. In 2018, the FCC used universal service funds to stimulate broadband network buildouts in rural, high-cost unserved areas. The results indicate that new entrants offered to build networks at roughly 1/3 the price offered to incumbent broadband providers. This may be an indication that a more politically palatable way to fund traditional mail is not to raise prices or lower service quality, but instead to use a universal service fund to assure reasonably similar national prices and service levels. This paper will summarize the CAF-II auction results and connect them to last year’s proposal. It will also refer to the Trump Administration Task Force’s strategic plan.

Suggested Citation

  • Victor Glass, 2020. "Potential Insights for US USO from Recent Federal Communication Commission’s Broadband Auctions," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), The Changing Postal Environment, pages 13-21, Springer.
  • Handle: RePEc:spr:topchp:978-3-030-34532-7_2
    DOI: 10.1007/978-3-030-34532-7_2
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