What rules for universal service in an IP-enabled NGN Environment? : background paper

With falling revenue (due to increasing competition and declining prices) occurring alongside strong demands for funds to deploy Next Generation Networks (NGN), telecommunications operators are less able to provide universal service sustained by cross-subsidisation. Universal service funds, too, may be under pressure. Also, there is likely to be an uneven migration to NGN since it is likely that NGN will be deployed first in more profitable, densely populated areas and then only later (if at all) in relatively less commercially viable rural/remote areas. This could raise concerns that problems of universal service and the ‘digital divide’ could worsen, especially for some developing countries still struggling to expand infrastructure and penetration of PSTN and mobile service. These developments are necessitating a thorough review of USOs, including their sustainability, scope and funding. [Executive summary