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Payers and Receivers: Various Proposals for the High Cost Fund


March 1998; revised April 1998




Costs, Markets (Rural), Revenues, Prices, Universal Service


Full Paper          Executive Summary



Part of a series on universal service, Payers and Receivers, was produced in response to a request from regulatory commissioners to facilitate a nationwide dialog among federal regulators, state regulators, and the telecommunications industry on options for support to rural areas for telephone service (universal service).


This paper models six options plus variations for the federal high cost fund (HCF), focusing on support for high-cost, non-rural companies.  Each option demonstrates the effect on customers and states, showing which states are net payers and receivers.  Payers and Receivers includes questions that should be answered to determine if the new fund meets the requirements of the Telecommunications Act of 1996.  Cash flow charts show current and new subsidies.





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


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