Universal Service

Effective June 1, 1998, The MIT Press no longer distributes titles for the AEI Press. Orders for this book should be placed with: AEI Press c/o Publishers Resources, Inc. 1224 Heil Quaker Blvd. P.O. Box 7001 La Vergne, TN 37086-7001

The idea that healthcare and education should be provided as universal public services to all who need them is widely accepted. But why leave it there? Why not expand it to more of life’s essentials? In their bold new book, Anna Coote and Andrew Percy argue that this transformational new policy – Universal Basic Services – is exactly what we need to save our societies and our planet. The old argument that free markets and individual choice are the best way to solve pressing problems of poverty, inequality and environmental degradation has led us to catastrophe, and must be abandoned. The authors show that expanding the principle of collective universal service provision to everyday essentials like transport, childcare and housing is not only the best way of tackling many of the biggest problems facing the contemporary world: it’s also efficient, practical and affordable. Anyone who cares about fighting for a fairer, greener and more democratic world should read this book.

The Universal Service Desk (USD) – Implementing, controlling and improving service delivery defines what a USD is, why it is valuable to an organisation and how to build and implement one. It also discusses the evolution of the USD as part of integrated workplace management.

This book is the outgrowth of shared interests between the editors and the contributing authors to provide a multidisciplinary perspective in evaluating universal service policy and recommending policy changes to accommodate a more competitive telecommunications environment. The book is interdisciplinary in nature to reflect the extremely complex context in which universal service policy is formed. The chapter authors represent a broad cross-section of disciplinary training, professional positions, and relationships in the telecommunications industry. Academic disciplines represented include law, economics, anthropology, communication, and business. This book's purpose is to significantly enhance the development of effective telecommunications universal service policy among policymakers, industry members, and stakeholders in the United States. Universal service policy has been, and will continue to be, both enabled and constrained by the simultaneous interaction of social, political, technological, and economic forces in the environment in which it is formed. A more effective process for policy design is to seek agreement on how entitlements embedded in universal service policy should be modified as circumstances invariably change over time. Therefore, the volume reflects recent significant developments in U.S. universal service policy--the implementation of which continues to unfold.

The telecommunications industry has evolved into a very competitive industry since 1980. Aggressive competition is the norm in the long distance, equipment, operator services and many other segments of the industry. The remaining segment of the market without widespread meaningful competition is the "last-mile" wireline service to the customer premise. Incumbent local exchange carriers enjoy a monopoly to serve nearly all residences and most business customers, collecting over 99% of all local exchange service revenues. Using their monopoly status, incumbents have developed a cross-subsidy system which uses the rates paid by some customers to lower the rates paid by others to support a policy known as "universal service." This policy has resulted in telephone service reaching 94% of America's households. Carriers claim that this policy cost them $20 billion annually, potential entrants claim the true cost is as low as $4 billion and the rest is profit. In the Telecommunications Act of 1996, Congress ordered the end of the local exchange monopoly and opened the local markets to competition. Congress also specified the continuation of universal service, specified that telephone penetration should be increased and specified that the universal service concept will be applied to America's schools, libraries and rural health centers. Congress also specified that, unlike today, all carriers will contribute fairly and equitably fairly to the universal service fund and that all carriers providing local service, including new competitors, will be eligible to receive support from the fund. The cost to meet these requirements in a competitive environment totals $7.2 billion, or 5.1% of net carrier revenue. This thesis addresses the definition of universal service and the services that should be eligible for support, the new competitive environment, how to collect the universal service support fund, and how to best distribute the funds to customers targeted to receive support from the system: those in high-cost areas, low-income consumers, and schools and libraries for advanced communications services.