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Ellig Spectrum Misallocation Francisco Marroquin Conference June 2005
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2. $11.1 billion Unbundled network elements $1.7 billion Local number portability $1.2 billion Enhanced 911 Unknown Satellite regulation $21 million Resale of incumbent’s local service $800 million Number pooling and CALEA $3.6 billion Long-distance access charges $4.5 billion Broadband regulatory uncertainty $4.4 billion Universal service $77 billion+ Spectrum management $105 billion annual consumer cost
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6. How do the costs compare? $120 billion Total cost to society (If wealth transfer is wasted) $41 billion “ Excess burden” $105 billion Total cost to consumers (Assumes wealth transfer is wasted or goes to firms) $25 billion Forgone consumer surplus $75 billion Wealth transferred