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Redefining Universal Service: The Cost of Mandating the Deployment of New Technology in Rural Areas

 

July 1994

 

Subject:

 

Costs, Markets (Rural), Technology, Universal Service

 

Full Paper          Executive Summary          Broadband Model

 

Overview:

Part of a series on universal service, The Cost of Mandating Technology, upholds a technology-neutral approach to universal service definitions by showing the cost of mandating a technology before it is widely deployed.  This paper uses the deployment of broadband technology in rural areas as an example.


The Cost of Mandating Technology explains how two forces accelerated the debate over mandating a specific technology for universal service: (1) the transition from monopoly to competitive environment and (2) industry convergence.  Simple charts based on an early version of the New Technology Deployment Model show the impact of speeding up broadband deployment in terms of cost per telephone line.


This paper provides a solution for when to revise the universal service definition:  "When a service becomes part of what's required to conduct daily business or personal activities."
 

 

 

 

Copyright 2006, Converging Industries Research Foundation and Carol Weinhaus, Cambridge, MA.  All Rights Reserved.

 

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