Its been a long time since I wrote. An invitation to speak at a Conference on Universal Service in India in the context of India’s broadband plan gave me the opportunity to put together some thoughts on Universal Service Regulation in India. The use of Universal Service funding is in theory market friendly and complements liberalisation and competition. However, in practice, particularly in the context of roll out of national broadband networks, the design of USF interventions can do much harm to telecommunications sector by creating winners and losers, creating/exacerbating barriers to entry and distorting the competitive scenario. In the long run this would impede dynamic efficiency and harm the very objective of universal service.
Please see the slides here