Our own Scott Wallsten participated in a Heartland InfoTech and Telecom News podcast to discuss his recent paper, “The Universal Service Fund: What Do High-Cost Subsidies Subsidize?“ Just how much of of the funds are going to expenses not directly related to providing telecommunications service? According to Scott’s research, 59 cents of every dollar is used for administrative and overhead.
The podcast covers a brief description of the policy goals of the Universal Service Fund, issues with the way the program is funded and distributed, and the incentives resulting from the subsidies for firms to increase costs. In addition to discussing reforms underway to shift the program to subsidize broadband services, Scott also proposed specific reforms, including focusing on low-income assistance and distributing funds directly to consumers.
The podcast, hosted by Bruce Edward Walker, managing editor of Infotech & Telecom News, can be found on the Heartland Institute website.
Amy V. Smorodin was Vice President of Communications and External Relations at the Technology Policy Institute. Prior to joining TPI, she was Vice President of Communications at The Progress & Freedom Foundation. Smorodin also served as a public policy communications specialist at the Computing Technology Industry Association (CompTIA), a global tech industry association. She began her media and public relations career at the National Center for Missing and Exploited Children, where she acted as liaison between families, law enforcement, and the media. Smorodin attended American University in Washington, DC.
