Universal service obligations: the role of subsidization schemes and the consequences of accounting separation
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.
|Date of creation:||2007|
|Date of revision:|
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