Telecommunications and the Internet

Why telecommunications?

Most economic development experts now recognize the importance of telecommunications and broadband as a tool for a new world economy. Communities that don't adopt and utilize such technologies may soon find themselves left out. Paraphasing one noted economist, "E-commerce is screaming ahead, faster than the bureaucracy can keep up with it." It represents the new engine of economic growth, for the new industries relate not to traditional products but to information and the use of information.

Telecommunications and economic development in rural areas

Small communities and rural areas are not well positioned to succeed in the Internet economy. Many broadband facilities are not available in nonmetropolitan areas, simply because of the dispursed customer base and lack of government mandate to provide such services. Over time, and as more new services come online, this gap in service between urban and rural areas is actually increasing.

For remote small towns and rural areas hoping to take better advantage of the economic potential of broadband technologies, there are four basic approaches:

Pooling users in a rural area network, allowing a single point of connection for users on the network and making it more cost-efficient for a provider to bring service to the area.
"Piggybacking" unto an existing urban network, if in close enough proximity.
Using wireless technology (microwave or radio), eliminating the need for installing a wireline system. This may be the most logical solution for many areas, but can be expensive to install, requiring towers and satellite transmission.
Working with alternative providers, such as phone, cable or other utility companies.

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