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How to Create a More Efficient Broadband Universal Service Program by Incorporating Demand and Cost-Effectiveness Analysis

The existing high-cost fund suffers from two inherent flaws: it does not incorporate how much consumers value the services being subsidized, and does not measure the incremental, rather than average, effects of the program. This paper proposes a way to incorporate those factors into the Connect America Fund�the proposed high-cost broadband support program�to enable it to operate more efficiently than the existing high-cost program ever could.

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