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Universal Service Tool Kit, Part 2: Beyond Cost Allocations: Benchmark Subsidy Method


October 1994




Competition, Costs, Education (Schools), Low-Income, Markets (Rural, Urban, Residential, Business), Prices, Services, Universal Service


Full Paper          Executive Summary



Part of a series on universal service, Universal Service Tool Kit, Part 2, presents ideas for transitioning from the present subsidy mechanisms to new mechanisms that better fit the changing environment.  This paper combines several of the approaches in Universal Service Tool Kit, Part 1, into a unified approach from a short-term transition to a long-term goal.


Universal Service Tool Kit, Part 2, presents a single subsidy mechanism that applies to all markets, regardless of whether competition exists.  This mechanism allows for both rural and low-income subsidies.





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