Turning Universal Service Funds into Agents of Change

[Commentary] The Universal Service Fund will play a critical role in bringing Internet connectivity to all, especially high-cost, remote regions and low-income households. There are many challenges in the design of a USF programs today. These include not only the definition of the policy objective -no one should be invested in narrowband networks-, but also the effective collection of funds, the competitive and neutral distribution, issues such as supply vs. demand incentives, and financial debates such as allocating USF to capex vs. opex. USF is one tool of many policies and initiatives required to expand broadband. However it is also crucial that Governments let the market work at its full potential, letting network service providers use and put spectrum to work and removing artificial limitations that inhibit investment. The right policies together with an efficient USF program will transform these programs into powerful agents of change.