Universal service in post-divestiture USA

Despite concerns that divestiture of AT&T would destroy the traditional commitment to universal service in the USA, telephone penetration has continued to grow. This article uses the most recent data available from the Federal Communications Commission to examine penetration among low-income families in terms of changes in basic rates, involuntary disconnections and access to service. It is found that federal and state telephone assistance programmes have contributed significantly to penetration growth. However, we need a much better understanding of how socioeconomic, cultural and geographical factors affect telephone habits.