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Who Pays Whom? Cash Flow for Some Support Mechanisms and Potential Modeling of Alternative Telecommunications Policies


November 1992




Costs, Interconnection, Low-Income, Markets (Rural, Urban, Residential, Business), Prices, Revenues, Services, Universal Service, Technology


Full Paper          Executive Summary



Part of a series on universal service, Who Pays Whom, provided the first clear policy information subsidies for rural high-cost areas and for low-income households: who pays them and who receives them.


This paper defines subsides and support mechanisms in the traditional telecommunications industries that remain at issue as industries converge.  These include rate and cost averaging, financial assistance, obligation to serve, and cost allocation.


Simple flow charts track 1989 dollars associated with various mechanisms from revenues collected on customer bills to payments to the eligible companies.  Mechanisms include access charges (including assistance to keep state rates low), assistance to rural areas, and assistance to low-income households.  Who Pays Whom defines issues (including universal service, new technology deployment, and interconnection) and raises questions that need to be answered, setting the framework for the research that follows.





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


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