Providing special assistance to specific groups that are considered to be in need of support, is typically related to universal service (US), not to universal access (UA). UA aims to make a service available and affordable in poorly served areas, and uses public, community or shared access. Often the rural and remote areas requiring assistance can be identified by examining wireline and wireless coverage.
All subsidies for US should be focused. This view accords with both economic theory and common sense; subsidising a large population group will always subsidise some people who do not need help, and thereby reduce the amount that is available for people who do need help. However, focusing subsidies has costs as well as benefits, and it may be desirable to avoid formal eligibility tests that may effectively exclude many people that the subsidies are intended to help. Also, providing individual end-user subsidies comes with administrative costs.
Subsidies focused on specific groups of people are intended to make a service accessible and affordable, particularly to citizens with low incomes. When focussing subsidies, policymakers and regulators need to ask the question, “Which group is likely to justify special assistance through subsidies?” The answer to this question is those who are in need, but what does this mean?
In many countries, elderly people or those with disabilities are thought to justify special assistance. Other populations sometimes thought to justify special assistance include:
- Women, who, in some developing countries, often have lower incomes and social obstacles which exclude full use of communications;
- Ethnic communities who have traditionally suffered from discrimination or neglect. When these people live in poorly served areas, these areas may get extra priority for UA;
- Unemployed people, for whom Internet access can provide new skills, networking capabilities, or knowledge leading to employment;
- Young people, who usually have low or no income but who are often early adaptors of new technologies and can easily learn to make the most of them for the wider benefit of their families and eventually society; and
- War veterans or others felt to deserve recognition of national service. Veterans are often singled out in former Communist economies.
Each country must decide which, if any, groups justify assistance and for which services. Again, the decision needs to be guided by current service penetration, by financial resources necessary, and by financial sustainability. It is recommended that most countries should probably not provide assistance to particular people for a service until the service has achieved reasonable take-up (e.g., over 75 per cent) among the greater population.