Universal Service Obligations in a Competitive Telecommunications Environment (Information Computer Communications Policy)

Will the liberalization of the telecommunications market jeopardize the provision of universal service? This report examines the situation and argues that competition can produce positive and significant benefits to users and complement the provision of universal telecommunications service. Once appropriate targeted mechanisms have been set in place, universal service can be achieved more effectively and at lower cost within a competitive environment than in the present systems which are based on cross subsidies.