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Universal Service a new look at an old concept: Broadband access as a universal service

Universal Service a new look at an old concept: Broadband access as a universal service. Nico van Eijk Berlin, 7 September 2004. Universal service. Specified service Available to everyone/everywhere Against non-discriminatory conditions And with an affordable price

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Universal Service a new look at an old concept: Broadband access as a universal service

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  1. Universal Servicea new look at an old concept:Broadband access as a universal service Nico van Eijk Berlin, 7 September 2004

  2. Universal service • Specified service • Available to everyone/everywhere • Against non-discriminatory conditions • And with an affordable price • Choices are primarily policy driven

  3. European Liberalization • Green paper 1987 and ONP framework (1992-1995) • Universal service seen as an obstacle for liberalization • However, main responsibility remains at the level of the member states

  4. National Implementation • Gradual reduction of the universal service, originally composed of services such as: • Fixed and mobile voice telephony • Telex • Telegraph • Paging • Data transport

  5. New European Framework (1) • Universal Service Directive (2002/22/EC) • Universal service = fixed voice telephony • Financing by universal service fund or public means allowed • Evaluation in 2005

  6. New European Framework (2) • Criteria for the extension of universal service: • Acceptable level of cross subsidization • Wide availability of the service • Not raising the entry barrier for newcomers • Not technology risk • Not forbidden to extend universal service, but without the use of a universal service fund

  7. Broadband Access • Broadband Access (ADSL and broadband access on cable television networks). • ‘Increasing awareness (‘information society’) • Rapid development of the market (roll out and consumer acceptance) • Mature product offered in a wide range of variations

  8. Development of the market: availability • United Kingdom : 99,6% of all households by 2005 (ADSL) • Netherlands: 90% of all households by 2004 (ADSL); 85% of all households by 2005 (Cable television) • Germany: 74% of the households (ADSL) and 22% of the households by 2004

  9. Other relevant factors • Sufficient safeguards against potential abuse by incumbants • Changed market perspective • Diminishing importance of fixed voice (mobile, VoIP), and therefore erosion of the financial basis

  10. Conclusions • Predominant ‘abuse by incumbants’-approach • Mix up of legal and general interest definition of universal service • Changing political environment • In several countries broadband complies with universal service criteria • Implementation of broadband as a universal service in 2005 • Or a new policy….

  11. Prof. Dr. N.A.N.M. van Eijk Institute for Information Law (IViR) University of Amsterdam vaneijk@ivir.nl www.ivir.nl

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