INTERNATIONAL TELECOMMUNICATION UNION
TELECOMMUNICATION DEVELOPMENT BUREAU
Document: 25
GLOBAL SYMPOSIUM FOR REGULATORS
Hong Kong, China, 7 -8 December 2002
PRESENTATION
ITU/CTO MODEL UNIVERSAL SERVICE/ACCESS
POLICIES, REGULATIONS, AND PROCEDURES
PART I: UNIVERSAL SERVICE FUND POLICY AND
IMPLEMENTATION
David N. Townsend
David N. Townsend & Associates
DNTA
ITU/BDT
Global Symposium for Regulators
ITU/CTO Model Universal Service/Access
Policies, Regulations, and Procedures
Part I: Universal Service Fund Policy and Implementation
David N. Townsend
Hong Kong, 7-8 December 2002
Model USF Policy and Implementation
Overview
Part I: USF Policy and Implementation
•
Mission and objectives
•
Authorising and enabling laws and policies
•
Sources of contributions
•
Management and administration
•
Procedures for determining funding allocations
Part II: Basic telephone service auction
mechanism
Part III: Telecentre options and strategies
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Model USF Policy and Implementation
Fund mission, objectives and priorities
•
Overriding mission and vision:
¾ Contribute to national economic
development and social well-being
¾ Promote technological innovation in the
telecommunications sector
¾ Promote competition in the
telecommunications market
¾ Establish efficient, self-sustaining marketoriented businesses
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Model USF Policy and Implementation
Fund mission, objectives and priorities
•
Practical objectives and priorities:
1) Provide universal access to basic
telephone communication
2) Provide access to advanced
communications capabilities
3) Provide support for economic
development and opportunity
4) Provide direct support to public and
community service institutions
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Model USF Policy and Implementation
Authorising and Enabling Laws and Policies
•
All key development programs begin at a high
level of national legislation, Presidential
decrees, or Ministerial policy statements
•
Framework to ensure credibility and
consistency with other national policies
•
Should use general language, to avoid overly
restricting implementation of objectives
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Model USF Policy and Implementation
Authorising and Enabling Laws and Policies
•
Define principles of the right to
communications access
•
Define objectives and obligations for national
telecommunications development
•
Mandate establishment of Universal
Service/Development Fund
•
Define responsibilities for implementing and
administering the Fund
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Model USF Policy and Implementation
Authorising and Enabling Laws and Policies
•
Emphasise market-oriented, nondiscriminatory principles
•
Establish enforcement and dispute resolution
powers
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Model USF Policy and Implementation
Sources of Contributions to the Fund
•
Equitable contribution by all market
participants
•
Fixed percentage of designated revenues
•
Key questions:
¾ Who should contribute?
¾ What revenues should be covered?
¾ Should anyone receive special treatment?
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Model USF Policy and Implementation
Sources of Contributions to the Fund
•
Contribution amounts determined through
appropriate market analysis
¾ Needs assessment
¾ Cost analysis
¾ Revenue/demand forecasts and fee
calculations
•
Limited options for “in-kind” alternatives to
direct financial contributions
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Model USF Policy and Implementation
Management and Administration of the Fund
•
Under control of independent telecom
regulatory authority
•
Management autonomy
•
Independent budget, separate accounting
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Model USF Policy and Implementation
Management and Administration of the Fund
Regulatory
RegulatoryAgency
Agency
Board
BoardofofDirectors
Directors
(Commissioners)
(Commissioners)
Fund
Fund
Advisory
Advisory
Committee
Committee
Universal
Universal
Service
Service
Fund
Fund
Regulatory
Regulatory
Agency
Agency
Management
Management
Fund Director
Assist. Director
Economics
Division
Accounting,
Legal
Project
Managers
Accounting,
Legal
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Model USF Policy and Implementation
Management and Administration of the Fund
Accounting Standards and Procedures:
•
Contributions
•
•
•
Payments, Documentation, Certification,
Audit
Fund accounts and budgets
•
Project Fund
•
Operating Budget
•
Reserve Fund
Project budgets
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Model USF Policy and Implementation
Procedures for determining funding allocations
•
Operating Plan
¾ Intended projects and targets for planning
period (1-2 years)
•
Projects
¾ Activities funded by the USF
•
Concessions
¾ Licenses, grants, awards to individual
applicants to use Fund resources in
fulfillment of a Project
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Model USF Policy and Implementation
Procedures for determining funding allocations
•
Target Objectives
¾ Interim targets for each category of Fund
assistance
¾ Highest priority typically to basic
telephone access
¾ Allocations based on relative degree of
progress toward targets
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Model USF Policy and Implementation
Procedures for determining funding allocations
•
Socioeconomic Priority Criteria:
¾ Locations where economic conditions
inhibit pure market-based solutions
¾ Population with low relative income
¾ Population not integrated with a centre of
development
¾ Scarce and dispersed population
¾ Population with low access to
infrastructure and communications
¾ Historically disadvantaged groups
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Model USF Policy and Implementation
Project Definitions and Criteria
1) Universal Access to basic telephone service
•
See Part II: Minimum Subsidy Auctions
2) Access to advanced telecommunications and
information services
•
See Part III: Telecentre Options and Strategies
3) Economic development and small business
support
4) Public service institution support
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