The Interplay between Regulation and Competition: The Case of Universal Service Obligations

20 Pages Posted: 13 May 2002

See all articles by Steffen Hoernig

Steffen Hoernig

Nova School of Business and Economics

Tommaso M. Valletti

Imperial College Business School; Centre for Economic Policy Research (CEPR)

Date Written: March 2002

Abstract

Regulators have long been aware of the social aspects of communication. In the past, regulated monopolists have provided Universal Service Obligations, typically funded via a system of cross-subsidies. In this paper, we first review the rationale for imposing Universal Service Obligations, based both on theoretical arguments and empirical results. We then address some of the new questions raised by the ongoing liberalisation process. Regulators now face the challenging problem of organising the provision and financing of universal service in a competitive environment.

Keywords: Universal Service Obligations, Regulation, Competition

JEL Classification: L43, L51, IL2

Suggested Citation

Hoernig, Steffen and Valletti, Tommaso M., The Interplay between Regulation and Competition: The Case of Universal Service Obligations (March 2002). CESifo Working Paper Series No. 682. Available at SSRN: https://ssrn.com/abstract=306281

Steffen Hoernig

Nova School of Business and Economics ( email )

Universidade Nova de Lisboa
Campus de Campolide
Lisboa, 1099-032
Portugal
+351-213801600 (Phone)

HOME PAGE: http://docentes.fe.unl.pt/~shoernig/

Tommaso M. Valletti (Contact Author)

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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