17. 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
18. 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
19.
20.
21. 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