Thursday 4 July 2013

A Discussion on Tariff Discounts for USF Supported Services

2 comments :

  1. David Rogerson5 July 2013 at 07:40

    The key to establishing the appropriate level of subsidy is the availability of dis-aggregated data on income levels and (subsequently) penetration rates. I wonder if this data is collected in most countries and whether it is updated on a regular basis?

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  2. Thanks for the comment Roger. I am guessing that most countries would have some amount/level of dis-aggregated data on income and penetration levels which is regularly updated. Subsidy modeling is a complex exercise and is invariably based on assumptions. As an example,while modeling subsidy benchmarks for mobile services in uncovered rural areas in India,we relied on the rural per-capita incomes of respective districts, but assumed that the potential subscriber base would be only 60% the area's population. (At that time about 41% of the population was below poverty line (BPL) and thus was not expected to subscribe to mobile services.)

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