Net cost of universal service

Working with regulators and operators around the world to measure the net cost of a universal service obligation (USO).

Examples of recent projects completed by our regulation include the following. 

  • For an alternative operator in a central European country, we considered whether the net cost of USO was an 'unfair burden'. We suggested and supported an economic test to assess this.
  • For a Western European regulator, we undertook a ground-breaking project to estimate the costs of the incumbent's USO. This was the first study of its kind and the methodology used became the benchmark.
  • For an Australian operator, we provided support in the industry consultation process for determining a methodology to estimate the net costs of providing universal service, as well as for establishing a mechanism to fund its provision.
  • For a Western European fixed operator, we conducted an audit of the calculation of the net cost of universal service that the incumbent prepared for the regulator.
  • For the Dutch ministry, we determined the costs of universal service provision, both now and in the future, based on detailed data supplied by the incumbent.
  • For the Swedish telecoms regulator, we calculated the cost of universal service in Sweden, including precise estimates of the net cost for a range of service components.

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