Some of our best friends are at in the Association for Progressive Communication (APC), but still warms our hearts when they quote our writing, especially when we go out of our way to wave the red flag before those who still believe in the benevolent state. In a submission to the UN Group on the Information Society, they frankly debate the wisdom of continuing with universal service funds, among other things, quoting us: Rohan Samarajiva of LIRNEasia suggests in a recent paper that explores the success of the ‘budget telecom network model’ in South Asia that ‘the idea of making universal service transparent by creating universal service funds …was a good idea in its time ..but experience suggests that it is an idea that has run its course’. He identifies two problems: Billions of dollars of universal levies lie unspent in government accounts.
As part of the international telecom services liberalization of 2003, the government started collecting a levy from international calls for universal service. The intention was to reduce the amounts every year and also to give out the money as quickly as possible. What happened was different. The percentage was not reduced and money was not disbursed. Finally, it has started to flow out.
I had the opportunity of chairing a panel of seven persons from various parts of Asia at the Forum at ITU Telecom Asia 2008 in Bangkok. After we got around the inane title of Manga for the masses, we had a decent discussion, focussing on the aspects of connecting the unconnected, assuring adequate quality to the connected, and content. My overview slides setting the frame are here. Contrary to expectation, the Chairman of the Bangladesh Telecom Regulatory Commission, representing perhaps one of the least connected of the countries of Asia, talked about using universal service funds to develop content. Several people referred to the counter-productive nature of universal service taxes, wherein poor people were being taxed to provide services to poor people, yet those taxes were not being utilized, wisely or otherwise.