TVA Rural Studies

Telecommunications Technology and American Rural Development in the 21st Century

Edward J. Malecki
Department of Geography
University of Florida
Gainesville, FL 32611-7315
July 1996

1. Introduction

Among the "seven wonders of the modern world" listed by The Economist in 1993 were the microprocessor (labeled "the thinker") and the telephone network ("the messenger"). The microprocessor is perhaps the most influential man-made wonder of all, being integrated into machines and into our lives more each day. It also has greatly affected two wonders that have done most to collapse space and time: the jumbo jet and the telephone network. Both of these have made distant places nearer and both have allowed people mobility and rapid interaction not imagined. Jet travel has made global tourism a possibility for many, and links people of different cultures on a scale never seen before this century.

The telephone network is the technological wonder that seems to fit least in this list. It is the oldest, having been invented over a century ago. Yet it has been transformed dramatically in the past generation. Together with the microprocessor, the technologies that fall under the umbrella term telematics have literally brought people closer together, made interactions easier, and opened up possibilities not imagined to our grandparents. Microwave, satellite, and fiber-optic cables continue to transform the telephone, and we now expect it to deliver not only voices, but fax images, data, and pictures.

The earlier telephone network, while still not available outside rich countries, is seen as a basic infrastructure, along with electricity, water, and transportation (World Bank 1995). The rich countries of Europe, North America and the Pacific have progressed beyond plain old telephone service (POTS), and it is in the emergence of these new technologies that we see that the "new information infrastructure" also requires a strong public presence. Without a government commitment to connect all places, it is likely that many of the new technologies will be unavailable to those remote from "adequate-sized markets." Competition will ensure that large, dense markets are the first to obtain new telecommunications technologies. The policy objective of "universal service" is becoming more difficult to attain than when the technologies were fewer and simpler (Office of Technology Assessment 1991; Ypsilanti and Kelly 1994). Added to the complication is a tidal wave of deregulation that imposes competition into often ill-equipped regulatory bodies that were created for much simpler times (Paltridge 1995).

"Instead of a homogeneous market for telematics, we are now witnessing an increasingly segmented and dynamic market in search of specific solutions to specific problems. . . Power is shifting to competing suppliers, to specific user groups, to policy makers, and to local and regional communities themselves" (Millard 1995: 4).

A second issue faces rural areas most severely: the fact that the technologies have become so varied and so technically complicated that only specialists can truly understand them. The new technologies are difficult to learn, and lower densities make learning difficult for rural residents. Rural areas, often short of technical expertise, are likely to lag further behind as the pace of change increases. The demographic character of the new technologies also works against rural areas, where entrepreneurs and a educated, wealthier population are less likely to be found. The impacts of telematics and its potential benefits are closely related to the location of jobs.

In this paper, I sketch briefly the history of telecommunications technologies, including the Internet and business use of telematics. This is followed by a discussion of the Internet and its impact on demand for telecommunications. Next, telecommunications as a factor of production for location of firms is considered, especially knowledge-based activities and the telecommunications-travel tradeoff. The specific problems of rural areas is the focus of the next section. The paper concludes with policy concerns in the light of regional development.

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Contents, (1), 2, 3, 4, 5, 6, 7, 8, 9, 10, Table 1, References

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