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Mobile Telephony as a Universal Service

Mobile Telephony as a Universal Service
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Author(s): Ofir Turel (California State University Fullerton, USA)and Alexander Serenko (Lakehead University, Canada)
Copyright: 2010
Pages: 7
Source title: Encyclopedia of E-Business Development and Management in the Global Economy
Source Author(s)/Editor(s): In Lee (Western Illinois University, USA)
DOI: 10.4018/978-1-61520-611-7.ch085

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Abstract

The opening quote nicely conceptualizes one of the most difficult challenges managers and regulators in the telecommunications sector face. While such individuals are not, for the most part, concerned with world-safety, they do need to address similar diversity issues in order to be profitable and to provide true universal services (i.e., reasonably priced, high quality telecommunication services to everyone who wishes to use them). Similarly to John F. Kennedy, managers and regulators understand that one-service or set of regulations that fits all may not be a wise strategy. Rather, their offerings and regulatory mechanisms are always flexible, and they cater to a heterogonous subscriber market. While wireless service providers do try to cater to different market segments by offering a variety of service packages, regulators often employ a single set of regulations that serve the entire market. On the one hand, organizations offering mobile services to individuals attempt to segment the market to maximize various performance factors, such as usage airtime, revenues, and customer base. On the other hand, policies should be in place to avoid the discrimination of specific less profitable customer categories. In fact, in the 21st century, mobile telephony has become so critical for the well-being of millions of people that it is vital to ensure the fairness of mobile services delivery.

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