Provision of public telecommunications services
The European Commission's Information Society Project Office (ISPO) has recently published the report of a study on the provision of telecommunications services in the context of open network provision (ONP). The study, carried out by independent consultants on behalf of the Commission, was completed between December 1995 and December 1996. The study was based on interviews with interested parties, followed by possible demand scenario modelling for technologies which could be considered for inclusion in universal service in the future. Interviews were conducted with organizations in the EU and beyond which have an interest in the development of the telecommunications sector. These include regulatory authorities, incumbent and new telecoms operators, consumer organizations, user associations and trade unions. In addition, the survey included organizations from other sectors such as electricity, water and postal services, where universal service is an issue. These interviews resulted in the identification of a number of fundamental principles for the development of universal service. The technology demand scenario modelling focused on the possibility that the market penetration of mobile telephony and ISDN services might be such in the future that universal service should be extended to cover these. The study suggested that mobile telephony is likely to reach 75% of the residential market by 2005, and that it ought therefore to be considered for inclusion in universal service. ISDN, on the other hand, is unlikely to reach such high levels of penetration and should not be considered for inclusion in universal service. There is some political demand for ISDN services to be made available to all schools, hospitals, and other public institutions, although the study concludes that this is a separate issue to universal service. It estimates that provision of ISDN access to these institutions was likely to be at significant cost, although did not take account of the revenue likely to be generated. The study concludes with 14 recommendations on the future development of universal service. These address questions such as the nature of universal service, technological, regulatory and requirements for customers' payments.