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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“l(fā)ifeline”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“l(fā)ateadopter,”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“l(fā)ife-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(xù)推動主顧300(讓業(yè)務(wù)員有機會做)

2、每天完成7+3拜訪(讓業(yè)務(wù)員愿意做)

3、熟練掌握拜訪技巧(讓業(yè)務(wù)員會做)二、過程:三、內(nèi)容1、理念篇--知道和不知道?2、拜訪篇--心動不如行動3、話術(shù)篇--完美的拜訪是設(shè)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(xiàn)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(jīng)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(yè)務(wù)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(tài)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(guān)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(yè)務(wù)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(xiàn)來自于拜訪27理念之五心動不如行動28結(jié)論:除非你去做拜訪,否則永遠你都處在不知道的狀態(tài)當(dāng)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(zhì)1

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