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

 

October 1994

 

Subject:

 

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

 

Full Paper          Executive Summary

 

Overview:

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.

 

 

 

 

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

 

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