Universal Service: Realities and Reforms.

Redistribution strategies that have been implemented to promote universal service in telecommunications subscriptions now face two problems. First, in order to avoid higher prices, customers have moved away from services that bear revenue-providing subsidies that are unrelated to cost. Second, certain subsidy strategies award dollars to recipient companies or end-users in a manner that may discourage efficient cost-management and/or customer choice. This paper considers some options for reform. Copyright 1995 by Oxford University Press.