The Effect of Institutional Constraints on the Success Of Universal Service Policies: A Comparison between Latin America and the World

Abstract

The purpose of this paper is to determine the effectiveness of universal service programs. The statistical results, which compare the world with Latin America, indicate that universal service funds have not led to increases in the number of fixed telephone lines but they show a positive relationship with the number of public phones. Of the institutional variables that were included, the presence of the regulator as well as its number of employees has a positive relationship with the payphone infrastructure. Overall the research suggests that these programs have positive effects for universal access and governments are encouraged to continue them.

Keywords: telecommunications, universal service, regulation, Latin America

JEL Classification: H42, H54, K23, L96, N46