Gregory Rosston of Stanford University and Scott Wallsten of the Technology Policy Institute argue that the switch from voice to broadband services provides a rare opportunity to reform universal service programs. Rossten and Wallsten offer an alternative design to deliver services in an efficient and politically-palatable manner.
Broadband
High-speed data connections, or broadband, are critical to the economy. Our work on broadband covers a wide range of topics, including the digital divide, wireline and wireless provision, spectrum, net neutrality, competition, and more.
Over Half of USF High-Cost Fund used for “General Expenses”
Over half of subsidies, or $.59 of every dollar, paid through the High-Cost Universal Service Fund go to general expenses of firms, not to directly providing support to high-cost lines, finds Scott Wallsten in “The Universal Service Fund: What Do High-Cost Subsides Subsidize?,” released today by the Technology Policy Institute. This research underscores the inefficiency in the current universal service subsidies program and, in particular, the high-cost fund. Policymakers should use the push to include broadband as part of USF to implement radical reforms.
U.S. Broadband Prices Have Remained Stable
Residential broadband prices in the U.S. remained fairly stable over the past few years, while the price of business plans in the U.S. has decreased, show Scott Wallsten and James Riso in “Residential and Business Broadband Prices, Part 2: International Comparisons,” released today by the Technology Policy Institute. The authors’ analysis also shows that the price for standalone broadband in the U.S. is in the middle range of prices in OECD countries. The paper is the second part of a comprehensive study on broadband pricing.