The myth of universal service: hermeneutic considerations and political recommendations

Abstract

The liberalization of the telecommunications sector provoked renewed attention to the concept of universal service. This has led to popular misconceptions of the underlying historical rationale for universal service that blur academic discussions on the topic and are often misused by policy makers for ideological purposes. The hermeneutic approach of this article consists of a critical investigation of the meaning of the concept of universal service in the light of historical evidence and economic theory. This `restoration' of the meaning of universal service transcends the political part of this article. It is argued that the universal service provision is largely unproblematic in `mature' telecommunication markets. However, in a socalled information economy, other problems arise that require new regulatory and political approaches. The basic tenets of such an alternative policy are outlined in the conclusion.