Ways to Raise Universal Service Fund in China Telecom Business

Because of cream-picking and anti-competition characteristic of cross-subsidization in telecom industry, the old universal service policy collapses when competition is introduced. Therefore, it is necessary to adopt a new method to raise universal fund. This paper examines the effect of different kinds of tax on economic efficiency with the relevant theories of cameralistics and economics, according to the market structure of telecom services. Thus opened up is a new way to raise universal service fund suited to our realities.