Chingraliang Archives — LIRNEasia


The Study of India’s Universal Service Instruments by LIRNEasia researchers  Payal Malik & Harsha De Silva, critiqued the  Indian government’s policy that made only fixed line operators eligible for USO funds: As of today, the government is giving USO fund support to only the fixed line operators offering services in the rural areas. The over defining terms in the law is a bad idea in a rapidly evolving technology environment, though this correction has been suggested it is quite possible that the previous auctions have left huge amounts of rents that have been appropriated by the incumbent. In an industry that manifests the potential for rapid technological change and innovation, such as telecom, an economic analysis of a problem should not focus too narrowly or exclusively on the best use of society’s resources from the standpoint of today’s technology and resource availability i.e. static economic efficiency but should be viewed from a dynamic perspective.