Universal service, quality caps and net neutrality

Abstract

In the actual network configuration, content providers are not involved in the universal service programs with a corresponding participation being taxes, funds or compensations. We propose a regulated Internet contract with a free or very small economic participation to access into a limited version of the service with content providers financing participation to broadcast their high bandwidth content. We study a minimum quality of a service as a strategy of public policy over a broadband telecommunication services to create better absorption of technological benefits as a welfare measure for the users. As results we show a positive effect to propose universal service by quality as complement of universal service obligation, the conditions to determine the prices have to be ruled ex-ante by authorities and finally the best market scenario for welfare superior is determined by competition.