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(wàn)客戶大拜訪16一、課程目的

1、持續(xù)推動(dòng)主顧300（讓業(yè)務(wù)員有機(jī)會(huì)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(huì)做）二、過(guò)程：三、內(nèi)容1、理念篇--知道和不知道？2、拜訪篇--心動(dòng)不如行動(dòng)3、話術(shù)篇--完美的拜訪是設(shè)計(jì)出來(lái)的17

理念篇知道和不知道？18猜中彩19人類最大的恐懼來(lái)自于未知世界的無(wú)知不知道是一種危機(jī)，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(guò)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(ài)人同志23理念之二：

不知道是客觀存在的，是認(rèn)識(shí)事物的開始24

生活中對(duì)待不知道的幾種態(tài)度：（1）不知道等于不存在；（沒(méi)市場(chǎng)，沒(méi)客戶）（2）不知道等于無(wú)所謂；（沒(méi)問(wèn)題，沒(méi)關(guān)系，沒(méi)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(jìn)步就在于不斷的減少不知道業(yè)務(wù)員的進(jìn)步就在于將自己和對(duì)客戶的不知道變成知道26

理念之四：

傭金的兌現(xiàn)來(lái)自于拜訪27理念之五心動(dòng)不如行動(dòng)28結(jié)論：除非你去做拜訪，否則永遠(yuǎn)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(dòng)不如行動(dòng)30丑媳婦怕見(jiàn)公婆一、沒(méi)信心（1）對(duì)自己沒(méi)信心信心是拜訪出來(lái)的恐懼來(lái)自動(dòng)作的陌生，而不是來(lái)自動(dòng)作的難度（2）對(duì)新條款沒(méi)信心不好的條款在我心里，而不是在客戶眼中（3）對(duì)公司沒(méi)信心事實(shí)勝于雄辯二、懶惰31推銷員必備四大素質(zhì)1