The myth of universal service: hermeneutic considerations and political recommendations

The liberalization of the telecommunications sector provoked renewed attent ion to the concept of universal service. This has led to popular misconcept ions of the underlying historical rationale for universal service that blur academic discussions on the topic and are often misused by policy makers f or ideological purposes. The hermeneutic approach of this article consists of a critical investigation of the meaning of the concept of universal serv ice in the light of historical evidence and economic theory. This 'restorat ion' of the meaning of universal service transcends the political part of t his article. It is argued that the universal service provision is largely u nproblematic in 'mature' telecommunication markets. However, in a so-called information economy, other problems arise that require new regulatory and political approaches. The basic tenets of such an alternative policy are ou tlined in the conclusion.