Universal Basic Principles of Universal Service Obligations

Universal Service Obligations

Seminar on Costs and Tariffs for Member Countries of the TAF Group

Niamey (NIGER), 23-25 April 2001

Basic Principles of Universal Service Obligations

Pape Gorgui TOURE E-mail: pape-gorgui.toure@itu.int

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Universal Service Obligations

Universal Service Obligations?

? USOs are an exclusive prerogative of the public authorities

? Decisions taken independently by an operator can under no circumstances be considered as ? Obligations ?; in this case the operator alone bears the costs.

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Universal Service Obligations

Multi-operator competitive environment

? The key policy objectives for development of a telecommunication industry are:

? maximizing utilization of telecommunication installations;

? encouraging investment in telecommunication infrastructures;

? making competition more of a reality.

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Universal Service Obligations

? A common feature of the telecommunication marketplace is the existence of an incumbent operator holding a dominant position and with different commercial objectives from new entrants

? Competition means that the decision to enter the marketplace will be profit-led; thus, with market liberalization universal service obligations will have to be managed differently from the way they were in a monopoly framework.

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Universal Service Obligations

Developed and developing markets

? Developed markets: high teledensity (>25 fixed lines per 100 inhabitants and residential penetration >80%)

? Developing markets: teledensity (population) ................
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