Peter Cramton's response to a telecommunications journalist on February 12, 2025, outlines a market-based approach to achieving universal service in the global communications market. He critiques traditional methods, such as buildout obligations or administratively allocated subsidies, and advocates for competitive procurement auctions, a system proven effective in the U.S. under the FCC’s Rural Digital Opportunity Fund (RDOF).

Cramton’s approach involves three key steps: (1) defining standard mobile and fixed broadband services (e.g., $50/month for mobile service with 10 Mbps speed and 15GB data), (2) identifying noneconomic areas where market forces fail to provide these services, and (3) conducting annual descending clock auctions to select the least-cost providers for three-year contracts. This ensures efficient resource allocation, re ...