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

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Ellig Vo Ip And Telecom Regulation 2004

  • 1. VoIP and Telecom Regulation Jerry Ellig Senior Research Fellow
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  • 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
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  • 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
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