earticle

영어

This paper compares various fund raising and distribution methods for subsidies to compensate service providers' losses incurred in universal service for broadband internet access, and derives some results about their efficiencies. We employ two models for the analysis. In the first model, we analyze the case in which network externality exists. In the second model, we analyze the case in which the government subsidizes low income class to subscribe broadband internet. We find that in both models, it is efficient to subsidize subscribers rather than providers and keep regional price differential reflecting the cost differential. Moreover, we find that setting uniform price and/or subsidizing providers instead of subscribers are inefficient regardless of fund raising method.