cross subsidisation definition
cross subsidisation means the provision of financial support whether direct or indirect by one segment of a Licenced operator to another Licensed operator to improve the competitiveness of the segment receiving the benefit in a specified communications market and includes below-market pricing and preferential treatment.
cross subsidisation means charging artificially low prices in a relevant market and subsidising those prices from high prices in a different market where there is less or no competition;
cross subsidisation means the internal transfer within an undertaking of profits resulting from one line of business to a less profitable line of business;
More Definitions of cross subsidisation
cross subsidisation means that the revenue needed to finance a particular service or product is generated through activities that are distinct from that service or product. For a social enterprise, it is a method of ensuring that the primary beneficiaries of your work do not need to the pay the full cost, if anything at all, for the support that they receive. To make this possible, a social enterprise develops different products or services which can be sold at a profitable price in other markets. Most of the profit (usually more than 50%) is then reinvested in the primary social purpose towards which the enterprise is working. In some cases, the delivery of a public service may be 100% subsidised by trading other goods meaning that beneficiaries are not charged for your support. A simpler model of cross-subsidisation means that the cost of the services you provide varies with the financial standing of the customer. The same services are provided to everyone but the price paid by some is used to subsidise the price paid by others (e.g. the unemployed). This is called an equitable fee structure.
cross subsidisation means an internal transfer within an entity of profits resulting from one line of business to less profitable line of business;