Telecom Technology and American Rural Development in the 21st Century

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

10. Conclusion

This review of telecommunications has several lingering implications for those concerned with rural and regional development. The new technologies of "the messenger" and "the thinker" are powerful forces of change that have been neglected by the research of most location and development analysts. In several ways, regional considerations are downplayed in comparison to, for example, regulatory issues. There is much we do not know about how telecommunications varies from place to place and how it has affected locational choices and constraints. The effect, despite greater mobility, seems to be something other than a world of completely footloose firms.

Second, rural areas will not suddenly become ideal locations for economic activity because they acquire state-of-the-art telecommunications facilities. The hard fact remains that no rural area has been first to obtain such a system, lagging years behind the large urban areas where such new technologies inevitably locate first. A variety of technologies rather than a single solution will be needed, depending on the particular situation (OTA 1991; Wright 1995).

Third, technological and industrial changes make it increasingly difficult to assume that rural areas will be able to keep the telecommunication-based activities that they have acquired, as the same capabilities are found in much lower-wage locations overseas. The best hope for the economies and societies of rural areas is home-grown manufacturing and service firms that address the needs of the new flexible economy, producing custom and high-quality products for many customers with turnaround times that offshore competitors are unable to beat. These firms will require modern and high-quality, if not quite state-of-the-art, telecommunications systems. Links to global networks are possible essential for successful firms anywhere. Telematics permits these links, but telematics alone is not enough to assure successful development in rural regions.

Specific users with specific needs, such as tourism providers, will be able to indeed, will be forced to take advantage of telecommunications in order to remain competitive (Poon 1993). But, overall, it is unrealistic to expect universal service to continue to mean a ubiquitous and flexible network for all users. Mansell (1993: 192) posits several characteristics of the emerging telecommunications network:

fragmented networks
reduced ubiquity in service diffusion
a supply-led industry, under pressure from multinational users
weak stimuli for competition in most submarkets
less transparent network access

Overall, deregulation and competition are likely to lead to less, rather than more, access for most rural users. A few, sophisticated users the lone eagles will be early adopters of new technologies, such as wireless connections. Others, such as large farmers, will continue to utilize satellite links for their specific needs. The ordinary rural citizen, employee, and businessperson, however, may be dependent on policy initiatives that will come about in some places and not in others. As in most areas of rural development, it is the places with strong visionary leaders and institutional thickness that will succeed. Telecommunications is much like other challenges facing rural America. It is not easy to fix, and takes the effort of many participants (Rowley and Porterfield 1993).

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