overview
In the last decade, telecommunication policy has evolved from a basic telephone service to a more encompassing framework, including the Internet and corresponding economic policies. The economics of service provision for the new telecommunications, however, has not changed from that of basic telephone service. Communities still need sufficient demand to receive the advanced telecommunication services. A critical mass of demand will not exist, however, without the availability of advanced telecommunication services. Moreover, availability of advanced telecommunication services, such as high-speed Internet service, is viewed as a necessary condition for future economic growth, though the availability by itself is not sufficient for economic growth. More overview...

contents

• Distribution of services
• Demand for service delivery
• Rural telecommunication policy
• Practicability for rural regions

features
The 2002 Farm Bill's Rural Development Title included provisions for a number of telecommunication programs—The legislation renewed the telemedicine and distance learning program. In addition, further funding was authorized for two programs established since the last Farm Bill. These two programs are designed to improve access to broadband services and facilitate access to local television stations in rural communities. Two new programs, rural telework and rural e-commerce extension, are established by the 2002 Farm Bill.

Wage Premiums for On-the-Job Computer Use: A Metro and Nonmetro Analysis—Analysis shows that on-the-job computer use is more common in metro areas than in nonmetro areas. A wage premium, about 10 percent, is associated with using a computer on the job, even after other job and worker characteristics are taken into account. However, this wage premium accounts for only a small proportion of the wage differences between metro and nonmetro areas. In nonmetro areas, the computer-use wage premium is only about 6 percent. See also the related Amber Waves article, "Digital Divide" Not to Blame for Rural Earnings Shortfall.

recommended readings
Telecommunications in Rural Economic Development: Issues for Latinos and Other Communities—This paper discusses current telecommunication policy and its effect on the Latino community.

Rural Development Perspectives—This issue of RDP features a special section on telecommunications in rural areas. Feature articles examine strategic planning for rural telecommunications, telemedicine in rural communities, and rural telecommunications access for those with disabilities.

Rural Areas in the New Telecommunications Era—in Rural Development Perspectives (1997). The Telecommunications Act, enacted in 1996, was the first comprehensive rewrite of the Communications Act of 1934 that had ushered in an era of universal phone service for rural areas. The 1996 Act's provisions fall into five major areas: telephone service, telecommunications equipment manufacturing, cable television, radio and television broadcasting, and the Internet and online computer services. All these provisions affect rural areas, but universal service is the most critical. Without the universal service provision, rural areas may rapidly fall behind urban areas.

See all recommended readings…

recent research developments
Communications and the Internet in Rural America in Agricultural Outlook, June-July 2002—Beginning with the telephone, communication and information service innovations have penetrated rural America in fits and starts. The marked decline in investment in telecommunications since the dot-com bust in the late 1990s will slow the diffusion of Internet and other new services, but demand for these services is likely to continue growing. Availability and affordability of new services will be determined by four factors: public policy, economic feasibility, technological limits, and market incentives.

related briefing rooms

• Infrastucture and rural development policy
• Rural income, poverty, and welfare
• Rural industry
• Rural labor and education

USDA's Rural Utility Services Telecommunications Program—provides many programs for financing rural America's telecommunications infrastructure.

USDA's Rural Utility Services Distance Learning and Telemedicine Program—Through loans, grants, and loan and grant combinations for advanced telecommunications technologies, the agency provides enhanced learning and health care opportunities for rural residents.

U.S. Department of Commerce, National Telecommunications and Information Administration—The agency works to spur innovation, encourage competition, and provide consumers with more choices in telecommunication services.

Federal Communications Commission—An independent U.S. Government agency charged with regulating interstate and international communications by radio, television, wire, satellite, and cable.

for more information, contact: Peter L. Stenberg
web administration: webadmin@ers.usda.gov
page updated: August 26, 2003