This text aims to show that subsidised residential telephone access has little effect on telephone subscriptions in America while it has harmful consequences on the overall value of services. The authors argue that the universal sevice subsidy will have to change as a result of the 1996 Telecommunications Act: subsidies should be paid from intrastate taxes on telecom services and paid directly to carriers or subscribers.
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Book Description
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About the Author
Robert W. Crandall is a senior fellow in Economic Studies at the Brookings Institution. Leonard Waverman is a visiting professor at the London Business School, on leave from the University of Toronto. They are coauthors of Talk Is Cheap: The Promise of Regulatory Reform in North American Telecommunications (Brookings, 1995).
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