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Regulatory Governance and the Implementation of Universal Service: A Comparative Study of the US and Japan
Unformatted Document Text:  Tracking Number: ICA-1-11804 Regulatory Governance and Universal Service 2 Regulatory Governance and the Implementation of Universal Service: A Comparative Study of the US and Japan ABSTRACT With a worldwide trend of regulatory reform through liberalization, the goal of universal service might be threatened because the trend would undermine the cross-subsidy arrangements that have underpinned universal service. The choice among the different financing methods is a fundamental policy issue and is likely to be different in each country, given its own conditions and needs. Furthermore, the role of government and the regulator will vary with the particular method of funding that is chosen. In this context, this study tries to compare the implementation of universal service in the US and Japan focusing on the framework of Levy and Spiller (1996), which emphasizes the importance of institutional structure in policy-making processes. The study uncovers that the decentralized regulatory process and formalized regulation in the US are largely rooted in its institutional governance and have facilitated pro-competitive implementation in universal service. By contrast, in Japan strategic implementation has been possible through a more discretionary institutional system and the strong regulatory incentives for market- conforming intervention.

Authors: Park, Namkee.
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Tracking Number: ICA-1-11804 Regulatory Governance and Universal Service 2
Regulatory Governance and the Implementation of Universal Service:
A Comparative Study of the US and Japan
ABSTRACT

With a worldwide trend of regulatory reform through liberalization, the goal of universal service
might be threatened because the trend would undermine the cross-subsidy arrangements that have
underpinned universal service. The choice among the different financing methods is a
fundamental policy issue and is likely to be different in each country, given its own conditions
and needs. Furthermore, the role of government and the regulator will vary with the particular
method of funding that is chosen. In this context, this study tries to compare the implementation
of universal service in the US and Japan focusing on the framework of Levy and Spiller (1996),
which emphasizes the importance of institutional structure in policy-making processes. The
study uncovers that the decentralized regulatory process and formalized regulation in the US are
largely rooted in its institutional governance and have facilitated pro-competitive implementation
in universal service. By contrast, in Japan strategic implementation has been possible through a
more discretionary institutional system and the strong regulatory incentives for market-
conforming intervention.


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