Summary
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One of the consequences of this approach would be to extend interconnect obligations to alternative of network operators such as cable TV companies, satellite operators, large ISPs, backbone providers and public utilities). A policy of this nature would be
particularly important for the development of the Internet. Few countries in the Americas region are currently considering regulatory reform of this nature. In fact some regulatory agencies, such as the FCC of the United States, have adopted a position that differs considerably from this approach, rejecting recent petitions that would have forced cable TV operators to lease capacity to ISPs to serve their subscribers.
Most developing countries are faced with two universal service challenges. The first is to increase the availability of telephone service. Though the region has made major strides in this area, there is still considerable work to be done. Interim strategies are also needed for providing easy and affordable access to those without a telephone in their home. The second challenge is to look at ways in which the existing infrastructure can be better managed to extend the reach of services. The broadening of the universal service paradigm, however, poses new dilemmas related to the scope of the concept; that is, which services should be included and which should be kept on hold for a future time?
Financing universal service programs remains a considerable barrier despite significant reductions in the cost of equipment and services and the increase in economies of scale of most markets around the world. Universal service has been, until recently,
generally financed through cross-subsidies. In most of these cases, the obligation to fulfil universal service targets was imposed on the incumbent operator. To overcome potential distortions generated by a non-transparent system, an increasing number of nations in the Americas are moving towards mechanisms by which subsidies, if required, are provided by competitive tendering basis to carriers interested in taking up the business opportunity. Chile, Colombia, Guatemala, and Peru are among the countries in the region that have adopted this approach. |
An increasing number of nations in the Americas are moving towards
competitive tendering for niversal service subsidies |
