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Baltic IT&T 2006, April 5-7, 2005, Riga. Implementation of the Universal Service Policy in Latvia Irina Klevecka, Dr. Janis Lelis Riga Technical University Telecommunication Association of Latvia. Definition s.
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Baltic IT&T 2006, April 5-7, 2005, Riga Implementation of the Universal Service Policy in Latvia Irina Klevecka, Dr. Janis Lelis Riga Technical University Telecommunication Association of Latvia
Definitions • Universal Service – a minimum level and quality of services, which should be available to all users, irrespectively of their geographical location, and at affordable price • Net Costs – the difference between the operational results (revenues and costs) that would be obtained with and without Universal service obligations • Universal Service Fund – an independently administered fund, the resources of which are collected with the purpose to compensate the net universal service costs
Unsolved Questions In Latvia • Tariff rebalancing • Preliminary evaluation of the uneconomic users and regions • Determination of the acceptable level of universal service tariffs • Elimination of the deficit of access to electronic communications network • Definition of financing sources • Establishment of the Universal service Fund or other financing mechanism
Evaluation of Uneconomic CustomersMonthly Income of Private Households Risk-of-Poverty Threshold 223.00 Euro Source: Central Statistical Bureau of Latvia, 2004
Evaluation of Uneconomic RegionsPenetration Rate of Fixed Lines per 100Population, Lattelekom Source: Lattelekom, 2005
Affordable Level of Universal Service Tariffs Source: Central Statistical Bureau of Latvia, 2004
Affordable Level of Universal Service Tariffs • The residential monthly rental does not have to exceed 2% of the average monthly expenditure of households belonging to the 1st quintile group • Affordable level of tariffs for fixed telephony services has still not been defined Source: Lattelekom, 2004 Central Statistical Bureau of Latvia, 2004
Determination of the Net Costs of USOFinancing of USO • Financing via Public Funds that means funding from general government budgets including other public financing sources such as state lotteries • Distribution of the initial net costs of USO between providers of electronic communications networks and services
Thank you for attention! Irina Klevecka, klevecka@inbox.lv, Ph.: (+371) 6006970 Janis Lelis, jlelis@latnet.lv, Ph.: (+371) 9556340, 7227840 This work is partly supported by the European Social Fund