Ellig Vo Ip And Telecom Regulation 2004

VoIP and Telecom Regulation Jerry Ellig Senior Research Fellow

Outline ,[object Object],[object Object],[object Object],[object Object]

What is “VoIP”? ,[object Object],[object Object],[object Object],[object Object]

Regulatory conflicts ,[object Object],[object Object],[object Object],[object Object],[object Object]

Big policy questions ,[object Object],[object Object],[object Object]

When can economic regulation benefit consumers? ,[object Object],[object Object],[object Object],[object Object]

Interstate access charges ,[object Object],[object Object],[object Object],[object Object],[object Object]

Meanwhile, in the background… ,[object Object],[object Object],[object Object]

Universal service funding ,[object Object],[object Object],[object Object]

What’s the intended outcome? ,[object Object],[object Object],[object Object],[object Object]

Subsidies and subscription ,[object Object],[object Object],[object Object]

Lifeline/Link-up subsidies ,[object Object],[object Object],[object Object]

Why are people phoneless? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Cost per successful outcome (Expenditures per additional subscriber attributable to the program) $20,000 All high-cost support $11,000 High-cost loop support $5,155 High-cost switching support $1,899 Lifeline/Linkup

Effective redistribution? Targeted to low-income users Lifeline/Linkup $700 million Lower for wealthier locations Internet discounts for schools/libraries $1.7 billion Not targeted based on income Subsidy to high-cost phone companies $3.3 billion Not targeted based on income Access charge subsidy $3.2 billion

Schools & libraries program ,[object Object],[object Object]

3 effects of mandated price increases ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Hidden costs of inflated LD and wireless charges “ Excess burden” of $739 million Wireless universal service contributions “ Excess burden” of $1.8-2.2 billion Interstate long-distance universal service contributions Reduce consumer welfare by $2.5- 7 billion Interstate long-distance access charges

So what’s this have to do with VoIP? ,[object Object],[object Object],[object Object]

Ellig Vo Ip And Telecom Regulation 2004

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Ellig Vo Ip And Telecom Regulation 2004