Ellig Rural Universal Service August 2008
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Ellig Rural Universal Service August 2008
- 1. Rural Universal Service Jerry Ellig Senior Research Fellow [email_address]
- 22. Effect of a 1% price change > 1.0% Wireless minutes 0.57% Wireless subscription 0.7% Long-Distance minutes 0.01-0.026% (0.05% for low-income) Wireline subscription
- 23. Explicit + Hidden Costs Source: Jerry Ellig, “Costs and Consequences of Federal Telecommunications Regulation,” 58 Federal Communications Law Journal 37 (Jan. 2006). $2.7 billion $978 million $1.76 billion Wireless 2004 $3.86 billion $1.16 billion $2.7 billion Long Distance 2002 Total Cost Hidden Cost (DW loss) U Service Revenue
- 24. Hidden Cost as a % of Revenues Raised Source: Jerry Ellig, “Costs and Consequences of Federal Telecommunications Regulation,” 58 Federal Communications Law Journal 37 (Jan. 2006). 25-40% (OMB “rule of thumb” – 25%) General Taxation 56% Wireless USF Contributions 43% Long-Distance USF Contributions
- 25. Costliest Federal Telecom Regulations Source: Jerry Ellig, “Costs and Consequences of Federal Telecommunications Regulation,” 58 Federal Communications Law Journal 37 (Jan. 2006). $568 million 5. Wireless number portability $693 million 4. Wireless E-911 $1.5 billion 3. L-D Access Charges $2.14 billion 2. USF Contributions $30 billion 1. Spectrum Allocation Annual Hidden Cost
- 27. Interim cap and “identical support”