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Universal Service and Competition

In both Australia and the Cook Islands the impact of infrastructure competition on mandated geographically uniform pricing is being (or proposed to be) addressed with a levy. The different approaches to measuring costs and setting the levy are contrasted.

The paper proposes that a universal service levy has to be coupled with consistent access pricing to have efficient competition consistent with universal service policy. Interconnection between networks is free in the Cook Islands but the pricing of resold wholesale services should be consistent with the aims of the levy; to ensure universal service and efficient competition.

This the preprint http://deridder.com.au/wp-content/uploads/2021/09/Universal-service-and-competition-.pdf

The final paper appears in the AJTDE Volume 9, Issue 3 at https://doi.org/10.18080/jtde.v9n3.437

SafetyNet

I have had the good fortune to work with Bob James (we developed the TransAct NBN Mark I business case) and Robin Eckermann (the Australian father of FTTN – 10 years ahead of the Commonwealth).

We have developed the idea attached; which could be a game changer for rural and remote customers. The concept is novel but not rocket science. Aceptance and execution will be tricky.

Safetynet-1

Time to test $300m pa for USO?

This one page Economuse draws attention to the $3oom pa paid to Telstra for the “copper continuity obligation”, which maintains fixed copper services outside the NBN fixed network footprint. It suggests that changes to the definition of the USO and the growing availability of mobile services mean that there may be savings possible in a renegotiated contract. See Economuse 2016-07-14