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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“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.百万客户大拜访16一、课程目的

1、持续推动主顾300(让业务员有机会做)

2、每天完成7+3拜访(让业务员愿意做)

3、熟练掌握拜访技巧(让业务员会做)二、过程:三、内容1、理念篇--知道和不知道?2、拜访篇--心动不如行动3、话术篇--完美的拜访是设计出来的17

理念篇知道和不知道?18猜中彩19人类最大的恐惧来自于未知世界的无知不知道是一种危机,一种威胁,一种恐惧。理念之一:

20不知道的两种表现形式??21(1)你曾拜访过的客户中,是否有各种不同的客户性格类型?(2)你是否经常变换不同的推销策略?(3)你的推销模式的成交率是多少?(4)失败的原因是客户?你?还是推销方式?你知道还是不知道?业务员的不知道22爱人同志23理念之二:

不知道是客观存在的,是认识事物的开始24

生活中对待不知道的几种态度:(1)不知道等于不存在;(没市场,没客户)(2)不知道等于无所谓;(没问题,没关系,没办法)(3)不知道等于想知道,好奇并积极的探索!25理念之三:

人的进步就在于不断的减少不知道业务员的进步就在于将自己和对客户的不知道变成知道26

理念之四:

佣金的兑现来自于拜访27理念之五心动不如行动28结论:除非你去做拜访,否则永远你都处在不知道的状态当中烦恼、恐惧和压力皆因此而生。29

拜访篇心动不如行动30丑媳妇怕见公婆一、没信心(1)对自己没信心信心是拜访出来的恐惧来自动作的陌生,而不是来自动作的难度(2)对新条款没信心不好的条款在我心里,而不是在客户眼中(3)对公司没信心事实胜于雄辩二、懒惰31推销员必备四大素质1

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