BestandWorstPractices

inUniversalServiceFunding--

AUnitedStatesCaseStudy

APresentationattheInternationalTelecommunicationsUnionTelecomWorld2006HongKong,China4-8December2006

RobFrieden,PioneersChairandProfessorofTelecommunications

PennStateUniversity

rmf5@web:/faculty/r/m/rmf5/UniversalServiceFunding:AFlawed$6.5BillionAnnualMission

USFintheU.S.subsidizesspecifiedservicesoflocalexchangecarriersoperatinginhighcostareas,andtheratespaidbyresidentsinruralareasandIndianreservations,thepoor,schools,libraries,ruralhospitalsandclinics. TheUSFmissionhasincludedsuchulteriormotivesaspreservingtheBellSystemmonopoly,transferringfundsfromurbantoruralcarriersandfromlongdistancecallerstolocalservicesubscribers,subsidizingserviceevenforconsumersquiteabletoaffordthefullprice,andmakingitpossibleforregulatorstoshowcaseextraordinarilycheaplocalcallingrates. USFavoidancetechnologiesandstrategies,e.g.,VoIPandcallingcards,coupledwithconsumerdiscontentwitha10.5%“tax”threatenthesustainabilityofthecurrentregime. Regulatorydecisions,withsomejudicialapproval,createaneverexpandinginformationprocessing“safeharbor”exemptfromUSFliability.USFFailures

Themissionasstructuredwillneverachieveitscoregoals,ortheexpandedmissionestablishedbytheTelecommunicationsActof1996. TheUSFmechanismbenefitspoliticiansandcarriersfirstandconsumerslast. SubsidymechanismsdistortmarketforcesandtheUSFmechanismprovidesunnecessarybenefitstosomepeoplewhileimposingexcessiveburdensonothers. Shouldmonthly“lifeline”PlainOldTelephoneService(“POTS”)costlessthanacaseofbeer,or2packsofcigarettes? USFemphasizescarrier-specifiedcostsandrecurringservicechargeswithlittleregardfornewtechnologicaloptions,theneedtopromotecomputer/digitalliteracy andtheimportanceofadvancedbroadbandaccessinlieuofPOTS. TheUSFmechanismcreatesanunwieldy

bureaucracyandprocesspronetoabuseandgaming.

Macro-LevelProblems

WiththeCurrentSystemMarketplaceDistortion—USFcreatesartificialpricingsignalsbyunder-andover-pricingservice;telcosoperatinginhighcostareasbenefitwithoutregardtowhethertheirsubscribersneedsubsidies;compassionfatigueleadstoUSFavoidancestrategies.PoorCalibrationofBenefitsandBurdens--Thecurrent10.5%surchargepaidbyalldialuplongdistancetelephoneusersplacesacomparativelyhigherburdenonheavyusers,includingindividualswithincomesjustabovethelocalservicesubsidyqualifyinglevel.Inflexibility—USFappliestospecified(primarilynarrowbandPOTS)carrierserviceswithnooptionfortargetingqualifyingnon-subscriberswithalternatives.Micro-LevelProblems

WiththeCurrentSystemStatusQuoServestheInterestsofSeveralPowerfulConstituencies--Electedofficialsperceiveabenefitinhelpingtomaintainbelowcosttelephoneserviceforsomeconstituents.TheUniversalServiceAdministrativeCompany(“USAC”)haseveryincentivetomakeitselfindispensableeventhoughitsprimarydutyliesintheseeminglystraightforwardtaskofcollectinganddispensingUSFfunds.AcottageindustryofUSFconsultantshelpschoolsmaneuveraninscrutablemaze.AcceptsCostsWithFewAuditingSafeguards—theFCChasconductedfewauditsandonlyrecentlydiscoveredmassivefraudandabuse.EmphasisonServiceSubscriptions—USFprimarilysubsidizesrecurringcarriercostsandservicesratherthanpartiallyunderwriteequipmentpurchaseshavinglittlerecurringcosts.PotentialforSubstantialFutureDeficitsinUSFFunding—migratingtelecomtoinformationserviceincreasestheburdenon“lateadopter,”dialupcustomerswhodon’tpursueorcallingplanorVoiceovertheInternetProtocol(“VoIP”)options.ApplicantspostrequestsforservicestoSLDwebsiteusingForm470.Applicantswait28dayswhileserviceproviderssubmitbidstoapplicants.ApplicantssigncontractsonorafterAllowableContractDate(29thcalendardayafter470isposted).Applicantssubmit471torequestdiscountstoSLDduring471window.SLD’sPIATeamreviewseveryapplicationandcallsapplicantsforverifications.SLDmailsapplicantandserviceprovideraBEARapprovalletter.Applicantssubmit486toSLDforeachfundingrequestto“turn-onfunding”andcertifyCIPAcompliance,normallybyOct.28Copyalsoismailedtoserviceproviderslistedon471.SLDmailsapplicantsandserviceprovidersfundingcommitmentletters(FCDL)thatindicateapproval/denialofrequests.Ifapplicantdisagreeswithafundingdecision,theyappealtotheSLDorFCCwithin60daysofdateonFCDL.ReimbursementMethodApplicantspaybillsinfullandsubmitForm472BEARquarterly,semi-annually,orannuallytoSLD.DiscountedBillsApplicantsbeginreceivingdiscountedbills.SLDmailsapplicants470ReceiptNotificationLetter.SLDmailsapplicantsReceiptAcknowledgementLetterforeach471received.ApplicantssubmitForm500toreleaseanyunusedfunds.SLDmailsapplicantandserviceprovidera486approvalletter.E-rateFlowchartSource:MichiganDeptofEducation,/mde/0,1607,7-140-6530_21417---,00.htmlBestPracticesinUSF

Truetechnologyneutralitycoupledwithawillingnesstofundwellarticulatedandcommunity-supportedprojectsratherthanlimitsupporttoafixedlistofexistingcarrierservices;Cappinggovernmentprojectfundingtoapercentageoftotalcosttherebyrequiringprojectadvocatestoseekfinancialsupportfromothergrantors,orfrombankloans;Creatingincentivesfordemandaggregationamonggovernmentandprivateusers,particularlyforbroadbandanddataservices;Emphasizingonetimeprojectfundingratherthanrecurringdiscounts;Promotinginnovationandcreativityinprojects,includingtechnologiesthatprovidergreaterefficiencyandlowerrecurringcosts;Encouragingcompetitionamonguniversalserviceprovidersbyauctioningoffsubsidyaccess;andBlendinggovernmentstewardshipandvisionwithincentivesforprivatestakeholderstopursueinfrastructureinvestments.BestPracticesinICTDevelopment—

GovernmentRolesSuccessfulICTdevelopmentrequiresagovernmentroleasincubator,steward,partialunderwriterandanchortenantwithoutbeingcentralmanager;theUSGpursuedthisrouteforInternetdevelopment.Governmentdevelopsavisionandexecutesamulti-facetedstrategytoachievearticulatedgoals.Governmentpartiallyfundsspecificprojects,butemphasizesprivateenterpriseandfacilities-basedcompetition.Fundingreachesavarietyofdifferentgrantseekersandsupportsdigitalliteracyandnotjusttheequipmentinstallation.Createsincentivesforinvestmentanddisincentivesforlitigationandotherdelaytactics.InitialgovernmentservicesofferedviaICTincludehealthcare,education,accesstoinformationandlicensing.Governmentrevisesandreformssafeguardstopromotetrust,security,privacyandconsumerprotectioninICTservices,especiallye-commerce.BestPracticesinICTDevelopment—

Non-GovernmentRolesEntrepreneurialanddevelopmenthotbedssuchasSiliconValleyshowthattheU.S.venturescansuccessfullyincubateICT.Academiaandcommercialventurescancollaborateandexploitfavorableandtransparentrulesofthegame,i.e.,ameritocracythatrewardstalentandabilitycoupledwithlawsandregulationsthatsupportaccesstocapital,researchanddevelopment,risktakingandevenfailure.Acriticalmassoccurswhenatalentedworkforceandentrepreneurialrisktakersgravitatetothesameregionthatopenlywelcomesinnovation.ICTdevelopmentrequiresaspecializedbusinessinfrastructureservicedbyconsultants,lawyers,venturecapitalistsandexecutiverecruiters.Despitetrafficcongestion,highcostsandarelentlesspacehotbedsprovideahighqualityoflife.TheDisconnectsinPromoting

UniversalServiceandICTInsteadofpromotingpureandappliedresearchanddevelopmentinsolvingaccessissues,universalservicefundingflowstoonlyasmallsetofstakeholderswhoreceived“tiedaid,”i.e.,fundstiedtopurchasinganarrowsetofexistingservicesprimarilyfromincumbents.Insteadofpromotingeaseofaccesstoventurecapital,e.g.,throughtaxcredits,theUSFcomesfromcompulsorysubsidiesthatsurelookandfeellikeatax.Insteadofpromotingafairandtransparentbusinessenvironment,theUSFrewardsskillinworkingthee-ratesystemandtheexistingincumbentcarriervoicenetwork.InsteadoffundingdigitalliteracytheUSFunderwritesthepurchaseofequipmentandservices.Broadbandemphasizedfore-ratebeneficiariesonly.BestPracticesinOtherNationsPromotingneartermavailabilityofnearlyubiquitousbroadbandinfrastructuredoesnotrequire“heavyhanded”“commandandcontrol”centralizedmanagementbythefederalgovernment.Itrequiresacohesive“top-down”visioncoupledwith“bottom-up”communitychampionprojectsthataggregatesupplyofservicesanddemandforthem.Itdenieslaggardsexclusiveuniversalserviceterritoriesandallows“eligible”replacementstooffernewandbettertechnologicaloptions,e.g.,wireless.Itdoesnotallowincumbentstoleveragepossiblefutureinvestmentinbroadbandwithevenmoreregulatoryforbearance.Itcoordinatesmanypossiblefundingstrategiesincludingdirectunderwriting,loans,favorabletaxtreatment,financialsupportforresearch,developmentandtechnologydemonstrationprojects(aswasdonewithNSFnet).IttrainspeopletobecomesuppliersandconsumersofICT-mediatedservices.ALimitedandStrategicRoleforGovernment

Governmentshouldnotusurpprivateenterpriseandinitiative,norshoulditrespondtoeverydemandforincentives,subsidiesandrightsoffirstrefusal. RatherthanlimitUSFandICTdevelopmentfundingtoaclosedandspecificgroupofconstituencies,governmentshouldofferseveraltypesoffinancialsupport,e.g.,loanguarantees,grantsandtaxcredits,toanyapplicantthatproposeseffective,efficientandinnovativewaystostimulateICTliteracyandtheprovisionofdesirableservices. Bottom-up,userinitiativesbetterserviceUSFmissionsthantop-downgovernment,orcarrierstrategies.ReshapingtheMissionInfrastructure--thescopeandnatureofnetworksthatprovideuserswithaccesstobasicandadvancedtelecommunicationsandinformationservices;Services--areviseddeterminationofwhatconstitutesbasic“life-line”servicesandwhatotherservices,includingbroadband,thattheFCCshouldincludeinanexpandeduniversalservicegoal;Cost--whoshouldsupportuniversalserviceobjectivesandwhocouldqualifyforuniversalservicesubsidizationofbasicandadvancedservices;andMaintenanceandUpgrades--whatincentivesmustregulatorscreatetoensurethatuniversalserviceprovidersmaintainandupgradetheirnetworks,butdonotobjecttoinnovations,includinguseroperatedtelecommunicationsnetworks,thatachievescale,efficiencyandcostsavings.ConclusionsandRecommendationsRegardlessofthetelecom/informationservicesregulatorydichotomyapplyUSFresponsibilitytoanyserviceprovideraccessingthePSTNandassigningsubscribersatelephonenumber;chargeonthebasisofconnectionsorlines,notminutesofuse.AuctionoffUSFsubsidyaccess,ratherthanincreasetheburdenwhenacompeting“eligibletelecommunicationscarrier”seeksfunding;thiswoulddeterminewhetherwirelesscarriersactuallycanoffercheaperandubiquitousservice,ratherthancherry-pick.Increaseaudits,createsmallercostarea,simplythefundingprocessandrethinktheneedfortheUSACbureaucracy.EventuallyreplacethepredominatePOTSorientationwithemphasisonbroadbandandapplicationslikeVoIP.百萬客戶大拜訪16一、課程目的

1、持續推動主顧300（讓業務員有機會做）

2、每天完成7+3拜訪（讓業務員愿意做）

3、熟練掌握拜訪技巧（讓業務員會做）二、過程：三、內容1、理念篇--知道和不知道？2、拜訪篇--心動不如行動3、話術篇--完美的拜訪是設計出來的17

理念篇知道和不知道？18猜中彩19人類最大的恐懼來自于未知世界的無知不知道是一種危機，一種威脅，一種恐懼。理念之一：

20不知道的兩種表現形式？？21（1）你曾拜訪過的客戶中，是否有各種不同的客戶性格類型？（2）你是否經常變換不同的推銷策略？（3）你的推銷模式的成交率是多少？（4）失敗的原因是客戶？你？還是推銷方式？你知道還是不知道？業務員的不知道22愛人同志23理念之二：

不知道是客觀存在的，是認識事物的開始24

生活中對待不知道的幾種態度：（1）不知道等于不存在；（沒市場，沒客戶）（2）不知道等于無所謂；（沒問題，沒關系，沒辦法）（3）不知道等于想知道，好奇并積極的探索！25理念之三：

人的進步就在于不斷的減少不知道業務員的進步就在于將自己和對客戶的不知道變成知道26

理念之四：

傭金的兌現來自于拜訪27理念之五心動不如行動28結論：除非你去做拜訪，否則永遠你都處在不知道的狀態當中煩惱、恐懼和壓力皆因此而生。29

拜訪篇心動不如行動30丑媳婦怕見公婆一、沒信心（1）對自己沒信心信心是拜訪出來的恐懼來自動作的陌生，而不是來自動作的難度（2）對新條款沒信心不好的條款在我心里，而不是在客戶眼中（3）對公司沒信心事實勝于雄辯二、懶惰31推銷員必備四大素質1