The phoneless in the broadband age: A pilot study in Massachusetts

Questions about universal service continue to evolve as information and communication technology advances, bringing new platforms, services, and business models. Concerns about exclusion remain, particularly in times of transition to new technologies and platforms. While the universal service literature is rich in econometric studies that indicate the drivers of household telephone penetration, without qualitative data directly from those households that experience phonelessness, we cannot understand the causes well enough to design effective policy. This research explores why people are phoneless in the current environment of increased platform and business model choices. Particular focus is placed on understanding the relationship between new technology, platforms and business models and phonelessness. Data is obtained from surveys completed by approximately 100 individuals in Massachusetts who are currently without any voice connection, either landline or mobile, or have been sometime in the past ten years. The survey includes questions about different platforms and communication services in order to learn how they have led to phonelessness. The results of the pilot study show that the vast majority of phoneless households do not choose to be phoneless. The study also shows that the most frequent causes of phonelessness in this population are unemployment and unpredictable bills. Many instances of unpredictable bills leading to phonelessness occur with wireless service or bundled services but are the result of business models for service provision rather than the platforms themselves. Prepaid wireless service is a market-based solution that helps households prevent phonelessness by reducing unpredictability. Universal service policy for voice and broadband can better reduce exclusion with greater attention to business models and practices versus technologies and platforms, and increased emphasis on prepaid service to reduce unpredictability.     

Mapping the field: Retrospective of the federal universal service programs

The Telecommunications Act of 1996 (1996 Act) established the framework for four federal universal service programs: the High-Cost program, the Low-Income program, the Schools and Libraries (E-rate) program, and the Rural Health Care program. During the past 15 years, these programs have been examined from a number of perspectives in an attempt to measure their efficiency and effectiveness, including the funding mechanisms that support them. The Federal Communications Commission is in the process of restructuring the universal service programs to move support to broadband-based technologies. This is an opportune time to examine what is known about whether these programs have met the universal service objectives of the 1996 Act and have efficiently and effectively used universal service funding. To that end, this article surveys both oversight reports by federal government agencies and academic research literature drawn from a variety of sources to identify areas of concern regarding the mission, implementation, and impact of the federal universal service programs and support mechanisms. The article also includes research findings on how the economic incentives created by the federal universal service programs affect corporate investment and deployment decisions and consumer service and technology adoption decisions.     

Uncertainty of public pay phone in Thailand: Implications for the universal service obligation

Public pay telephones are fast becoming technological dinosaurs headed quickly toward extinction. In Thailand, however, the National Broadcasting and Telecommunications Commission (NBTC) has included the public pay phone as part of the Universal Service Obligation (USO) to ensure that all people in the country have reasonable access to a standard telephone service on request, and that payphones are accessible to all people on an equitable basis, wherever they live or carry on business. In spite of this, however, public pay phones and their revenue are also sharply declining due to the ever increasing encroachment of mobile phone technology. The researcher therefore undertook a study to empirically examine the key determinant factors for individual consumers using public payphones. A discrete choice model is employed together with the analysis of data from a 2011 national survey commissioned by the NBTC. Payphone usage is determined by the ownership of fixed phones, mobile phones and income which all play an important role with payphone being a necessary service for low-income people. Hence, NBTC should continue support through the USO fund and reassess the areas and groups of people who need this service in order to ensure that the USO policy is effectively and beneficially implemented.     

Regulating a monopoly with universal service obligations: The role of flexible tariff schemes

This paper's purpose is to study the problem of a utility monopoly's regulator, which has a universal service goal that is binding, in the sense that there is no two-part tariff that can induce efficient consumption, self-finance the firm, and guarantee universal access at the same time.     

Retaining telecommunication services when universal service is defined by functionality: Japanese consumers' willingness-to-pay

This study uses contingent valuation to measure Japanese customers' willingness-to-pay to maintain combinations of five telecommunication services that are considered substitutes if universal service is defined on the basis of functionality. The analysis revealed the following results. First, consumers are more willing to pay to retain voice communication services than data transmission services. Second, customers accept Internet Protocol telephony as a substitute for plain old telephone service (POTS) as a universal service, and they are willing to pay much more than Japan's current Universal Service Fund charge. Third, even when mobile phone service (MOB) is available, consumers will pay to retain fixed-line voice services. Finally, consumers have an equal desire to keep fiber-to-the-home (FTTH) and fixed-line voice services, but it is less than the demand for MOB. Thus, under the present definition of POTS as a universal service, FTTH could be considered as a basic telecommunication service.     

Universal service in Turkey: Recent developments and a critical assessment

The meaning of universal service in telecommunications has changed considerably in the last decade. Technological advances have created the necessity to redefine the legal framework. While the demand for old universal services falls, new and wider services are to be included in the scope of legal obligations such as broadband. In this transformation of public policy toward universal services, political preferences take precedence over economic considerations. Turkey provides a good case in point. In this paper, the authors assess the legal framework of universal services and its institutional structure in Turkey. The tension between enlarging the scope of universal service and pressures on using revenues efficiently is emphasized.     

Local measured telephone service in the USA: A quantitative analysis

The USA has steadfastly held to a flat rate for local telephone service, whereas most other countries are characterized by a user-sensitive (measured service) system of pricing. Economic theory suggests some method of measured service pricing more accurately reflects the true costs of local service. This article seeks to determine how many US consumers could be induced to switch to measured service pricing, and using ordinary least squares, derives a model of the demand for measured service. The factors are identified that will induce the US population to move towards a measured service rate structure. The findings indicate that consumers are quite responsive to both relative price (between a local flat rate and a measured service rate) and advertising.     

Exploring the potential of wireless technologies to accelerate universal Internet access in Ghana

Ghana was one of the first countries in sub-Saharan Africa to be connected to the Internet, yet has very low Internet usage (5.3 users per 100 inhabitants). A qualitative study including in-depth interviews with ISPs explored Internet diffusion in Ghana. Findings suggest that due to Ghana's inefficient and outdated fixed-line infrastructure, universal Internet access goals might not be achievable through fixed-line technologies. Rather, wireless technologies may be more efficient. However, high access costs continue to be a barrier. Policy options to encourage widespread deployment of wireless broadband and cost reduction are presented as suggestions for further research. These include using universal service funds to expand the national backbone with an open access high capacity wireless backbone to reach unserved and underserved areas, reducing license and regulatory fees for the wireless industry to encourage coverage and capacity expansion, and mandatory infrastructure sharing to reduce cost.     

Universal service in Vietnam: An institutional approach

Applying institutional theory to look at the Program 74 (a universal service policy) in Vietnam, this paper concludes that the Vietnamese universal service policy was strongly affected by formal institutional factors (the international agreements and the directives of the Communist Party of Vietnam - CPV), in which the international agreements played a leading role and the CPV's directives played a guarantee role. The formulation and implementation of the universal service policy in Vietnam were mainly concentrated on action at levels 2 and 3 (formal and informal institutional arrangement, and formal institutional environment). The paper recommends that nations favouring a top-down approach not based on a market-oriented regime should deregulate and emphasize the role of provincial governments as well as encourage private sectors/social organizations and rural users to be more involved in the formulation and implementation of universal service policies. Moreover, the government should set up and force the contractual relations between governmental entities and telecom providers.     

Universal service subsidies and cost overstatement: Evidence from the U.S. telecommunications sector

Utility subsidies are often defended as promoting universal service. However, specific support formulas may be poorly targeted and/or designed. The U.S. high-cost loop support (HCLS) program (formerly referred to as the Universal Service Fund (USF)), has been a key component of the FCC's USF program. With proposed initiatives for universal access to broadband, it is useful to critically evaluate how the HCLS creates a moral hazard problem. This study finds that companies receiving HCLS subsidies have an incentive to report high costs to the FCC in order to qualify for still higher support payments. Using data from 1136 rural telecom firms in 50 states (1992-2002), this study shows that some companies respond to current incentives by overstating costs (or incurring higher costs) as they approach the subsidy cutoff points. Compared to the no-subsidy group, companies at the point of greatest subsidy jump appear to overstate costs more due to larger marginal benefits. Such perverse incentives need to be recognized in future universal service initiatives.     

Universal service and disabled people

The EU regulatory framework enacted 25 May 2011 has the objective to provide functionally equal access to telecommunication services for disabled persons. What are the rules, who are the target groups, and what obstacles do they face when using various telecommunication services? And what arrangements do exist in a selected group of six EU Member States to remove these obstacles? Recommendations include the introduction of a more market-oriented approach, independent of specific networks.     

Telecommunications policy and individuals with disabilities: Issues of accessibility and social inclusion in the policy and research agenda

Information and communications technologies have become an integral part of life in an information society, affecting employment, education and many other daily activities. For individuals with disabilities, equal access to telecommunications remains a concern, as many technologies that are developed do not allow for equal access. Law and policy have made significant progress in some nations, but sizeable barriers remain to the social inclusion of individuals with disabilities in telecommunications technologies and services. This paper examines the importance of equal access to telecommunications for individuals with disabilities in both the formulation and the implementation of policy. Analyzing issues of policy and implementation, this paper discusses policy questions and potential areas of research to better understand the relationship of telecommunications policy to access for persons with disabilities.     

Modeling service alliances: an exploratory investigation of spillover effects in service partnerships

The objective of the current study is to provide a preliminary look at the process by which consumers evaluate alliances between service providers. Specifically, the study demonstrates how the service quality of one partner can impact, or ‘spill over’ onto, consumers' evaluations of their transactions with a second partner, and how the performances of partners can have differing effects on customers' intentions to reuse a service partnership. The study tests hypotheses related to the quality, value, and reuse intentions of customers relative to the partnered service through a sample of 334 customers utilizing a seamless service alliance. Our results suggest that spillover effects of service partnerships can either result in beneficial gains for service partners or produce grave consequences when partner providers' service quality is substandard. Copyright © 2007 John Wiley & Sons, Ltd.     

Regional universal telecommunication service provisions in the US: Efficiency versus penetration

Universal service, the long time goal of telecommunications regulation, is under new scrutiny by stakeholders. The Telecommunications Act of 1996 eliminated the barriers to competition implemented in the transitional Modified Final Judgment of 1984. The FCC is now setting up a new universal service plan, which extends its scope to schools, libraries and health care providers. At the same time, however, concerns about the effectiveness of the universal service are increasing. This article reports on a study which first investigates the growth patterns in the number of house-holds by income groups in states, and then examines the effectiveness and efficiency of the universal service policy on low-income households at the state level.     

Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market

The paper analyzes the demand and supply characteristics of the Indian telecommunications market, with the aim of contributing to the debate on the effectiveness of universal access policies in developing countries. The discussion is supported by some empirical evidence derived from a small time-series-cross-section dataset, containing mainly information on the fixed-lines segment of the market. The analysis suggests that the price elasticity of demand for fixed lines might be sensibly higher than the levels usually found in developed countries, while the crucial role of income and other sociodemographic variables seems to be confirmed. The paper also studies the impact of cellular penetration on fixed-lines diffusion. The results suggest the existence of a (positive) network effect in low penetration areas, while substitution (displacement) seems to arise in the most developed ones. Finally, the paper analyzes the supply side of the market, to assess the impact of market competition on investment. Competition seemingly helps stimulating investment in the most developed areas, but does not seem to have a significant impact in the less developed ones.     

ICT policy for the “socialist new countryside”—A case study of rural informatization in Guangdong,China

Providing Information and Communication Technologies (ICT) to rural areas often involves a complex interplay among economic development, bureaucratic systems, technical training and support. Nowhere are these dynamics more pronounced than in China, where a wide range of economic and institutional factors characterize the highly uneven state of informatization² throughout the country.     

物业管理企业的服务层次定位

文章阐述物业管理企业服务层次的概念,如何针对物业所有人与使用者的不同情况,准确地进行服务层次的定位,指出服务层次定位是否准确将是物业管理企业提高收益水平和最大限度地满足业主要求的关键所在。     

The role of mobile handsets in advanced network service evolution: Evidence from Japan

This paper aims at a better understanding of the mechanisms of mobile network service evolution through a closer examination of the context of mobile handsets. It aims first to establish quantitatively that mobile handsets are a determinant of mobile network service evolution patterns, and second, to develop a consistent perspective capable of explaining the evolution of various mobile network services. Despite the fact that mobile handsets are indispensable to users of mobile network services, surprisingly little is known about the role of these handsets in mobile network service evolution. This paper provides quantitative evidence of a positive relationship between intra-network-carrier penetration rates for mobile network service subscribers and mobile handsets designed for these services. The relationship is such that if one network service is diffused more than another, the mobile handsets related to the more diffused service are similarly more widely diffused in the market, and vice versa. The evidence is derived from an analysis of two mobile network services in Japan, mobile Internet and third generation mobile, initiated by NTT DoCoMo and KDDI. There are no existing studies that consistently explain the mechanisms of different mobile network service evolution patterns. Since the positive relationship that emerges from the analysis is consistent for both cases, by examining the mechanisms underlying this relationship, the paper develops an adequate and consistent perspective based on a constituent model reflecting the technological and competition structure of mobile network services. From this perspective, this positive relationship can be explained as the similarity or dissimilarity in essential technology ownership distribution across constituents. This perspective describes mobile network evolution in terms of changes in the distribution of essential technology ownership and, therefore, could be generalised more widely.     

Supply chain integration and service oriented transformation: Evidence from Chinese equipment manufacturers

This study builds a conceptual model to describe the relationships among operational integration and strategic integration of supply chain, product-based and customer action-based service provided by industrial manufacturers, and firm performance. Using sample data from Chinese equipment manufacturers, this study finds that operational integration of supply chain has positive direct effect on product-based service, while strategic integration has positive direct effect on customer action-based service. Furthermore, product-based service is the basic transformation strategy for industrial manufacturing companies and it has not only positive direct effect but also indirect effect through customer action-based service on firm performance.     

Different paths to universal access: The impact of policy and regulation on broadband diffusion in the developed and developing worlds

The authors examine the broadband digital divide by analyzing the impact of policy and regulation on broadband Internet diffusion. Their multiple regression analysis shows factors that determine broadband diffusion in technologically developed countries do not necessarily have the same impact in less developed countries. They show that in technologically developed countries, there is greater broadband diffusion in countries that make a higher financial investment in information and communication technologies (ICTs), have effective governing practices at the national level, have higher levels of education, and are more urban. In technologically developing nations, a competitive telecommunications sector and higher investment in ICTs lead to greater broadband diffusion, with investment having an even larger impact in the developing world than in the developed world. In addition, stronger democratic political institutions, higher levels of national income and lower levels of income inequality increase diffusion, but the presence of a national telecommunications regulatory authority has a negative impact. These results suggest that the path to widespread availability and use of broadband requires different strategies depending on a nation's level of technological development.