Abstract

This paper reviews, from a legal and economic standpoint, the main points to emerge from the experience of evaluating the costs of universal service provision in the telecommunications sector and their financing and considers the factors which determine how costs are quantified. It then describes relevant aspects of the new Community legislation in this regard and the particular features of universal service provision in the Accession Countries. The new framework, aimed at ensuring competitive neutrality while providing regulatory incentives, is designed to strike a balance between the protection of users, the maintenance of competition and the regulation of the sector.