Megarom/Megarom Macintosh CD Software (Quantum Leap)(1992).iso/TEXT/RURAL Text.NET

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 RURAL AMERICA AT THE CROSSROADS:
 Networking for the Future

 Economic, education, and health indicators show
 rural America to lag behind its urban neighbors.
 Two forces make its economic prospects even more
 troubling: First, today's global economy forces rural
 communities to compete in the international mar-
 ketplace; second, telecommunication and comput-
 ers are indispensable tools of business, and rural
 communities lag behind metropolitan areas in being
 able to access and use them.

 Roads and transportation arteries linking rural
 regions with urban centers were once considered
 vital to sustaining rural life. In the emerging infor-
 mation age, modern telecommunications and in-
 formation technology are just as vital as roads. They
 are the modem roads and byways of commerce.
 Rural development programs must use them fully.
 Yet rural telecommunications and computer sys-
 tems designed solely for business purposes--
 without concern for improving education, health
 care, and social services--will still miss the mark.

 Just when modern telecommunication and infor-
 mation technologies are playing an increasingly
 important role in business, the regulatory structure
 that once provided rural areas equal access to them
 is coming unraveled. The breakup of the Bell system
 and the shift toward deregulated services have
 undermined the system of subsidies that once
 supported rural services. If rural areas are not to
 suffer further decline, new concepts and designs for
 rural telecommunication systems must be found.
 OTA believes this to be possible.

 Before divestiture of the Bell system, network
 designs and regulatory models were the sole prov-
 ince of AT&T and Federal/State regulators. This is
 no longer the case. Technological innovation and
 regulatory flexibility now allow mixing and match-
 ing of network design and business relationships to
 fit the needs of the users. This is particularly
 important to rural areas, which have been forced in
 the past to accept network designs, services and
 regulations based on a universal design.

 Rural communities, with low population density
 and long distances, must overcome the cost of
 bringing in modern telecommunication services.
 The key is to combine the demand for services from
 different users in the community, creating sufficient
 economic clout to justify the deployment of modern
 technologies and services. One might conceive of
 this as a "Rural Area Network" or RAN.

 <figure of RAN showing metropole linked to
 communities in which the industries, residences,
 government offices, and schools are part of the
 network.>

 A RAN would link many users in a community,
 including small businesses, educational institutions,
 libraries, health services, and government services.
 For many rural communities, this combined de-
 mand would equal that of a modest corporation or
 large business and thus make it economically feasi-
 ble to utilize technologies such as fiber optics. RAN's
 could also become networks within networks by
 linking them statewide through State educational
 and/or State government networks that already
 exist or are planned. (See box)

 -----------------------------------------
 Here Is What Rural Area Networks Can Do

 --They allow the economic deployment of ad-
 vanced technology to rural areas through econ-
 omies of scale and scope.

 --By sharing the needs of business, education,
 health and government, they could foster coopera-
 tion and community ties.

 --The broad range of participation among shared
 users would link the technology directly to
 economic and community development strategies.

 -- They would overcome limitations of technical
 telecommunications expertise found prevalent in
 rural areas by focusing on the design of one
 system.

 --They would induce communication providers to
 be responsive to rural needs as a result of the
 combined market power.
 ------------------------------------------------

 A number of obstacles must be overcome to
 develop rural area networks and to integrate them
 into development programs and strategies. Regula-
 tors base their action on conditions of the present
 and have difficulty in projecting the needs for the
 future. They are unaccustomed to considering com-
 munications in the context of economic develop-
 ment and generally oppose proactive policies for
 technology deployment. Regulators focus on the
 needs of individual subscribers on a service-by-
 service basis, and, because of antitrust concerns, are
 uneasy about allowing the collaboration among
 communication vendors and users needed for com-
 prehensive rural development. Federal/State juris-
 dictional conflicts create an uncertain regulatory
 environment that can stifle innovative approaches
 to serving rural needs.

 Rural citizens are disadvantaged in using new
 communication technologies for economic develop-
 ment. They lack adequate infrastructure and the
 necessary skills and experience. This contrasts sharply
 with urban areas where there is a critical mass of
 both technology and sophisticated users that stimu-
 lates new applications and expanded use. To over-
 come the rural disadvantage will require a major
 commitment on the part of individuals, businesses,
 educators, libraries, health care providers, and local,
 State, and Federal Governments. Substantial risk is
 involved, but being too cautious could lead to
 failure.

 Notwithstanding the opportunities that new com-
 munication and information technologies offer, tech-
 nology alone cannot level the playing field for rural
 areas in meeting the challenges of urban and global
 competitors. Many other barriers to economic devel-
 opment exist that are more crucial and immediate.
 These include social problems such as low educa-
 tional attainment, poverty, and poor health. Solu-
 tions to these problems are difficult because of
 inadequate physical infrastructure and lack of finan-
 cial capital. If economic development is to be
 self-sustaining, these problems must be attacked
 through comprehensive community development
 programs that indude economic development as
 one goal, but attack social problems as well. Com-
 munications technologies may prove key to deliver-
 ing educational, health, and social services to rural
 communities, and may be crucial to stemming
 further economic decline for rural America.

 Means must be found to bring together the
 interests and energy of a wide array of institutions
 and individuals to focus on mutual goals through a
 common strategy. The actors must include institu-
 tions (e.g., schools, libraries, and hospitals, commu-
 nications providers (e.g., Bell operating companies,
 independent telephone companies, cable television
 and satellite companies), and agents of change (e.g.,
 regional and local colleges, universities and educa-
 tional institutions, Federal and State Governments,
 and the business community).

 Such a comprehensive approach to economic and
 community development may seem threatening to
 entrenched interests. New alliances may threaten
 established government agencies. Communications
 providers may fear that efforts to pool the demand
 of users might lead to bypassing the existing
 communications systems. The cooperation required
 for rural economic and community development
 based on a shared communication network (RAN)
 will not occur unless petty jealousies are set aside for
 a common vision and a spirit of cooperation.

 If this is to happen, the Federal Government must
 provide leadership backed up by organizational and
 financial resources to see it through. While the Rural
 Development Act is a step in the right direction, the
 Federal Government could contribute to its success
 by taking a more active and visionary approach in
 the future.

 Copies of the report for non-congressional use can be ordered
 from the Superintendent of Documents, U.S. Government
 Printing Office,Washington, DC 20402-9325 [phone].
 The GPO stock number for the OTA report, "Rural America at
 the Crossroads: Networking for the Future," is 052-003-01228-
 6. The price is $9.50. The GPO stock number for the summary
 is 052-003-01230-8. The price is $2.00.

 For further information contact OTA's Publications Office.
 Address: OTA, U.S. Congress, Washington, DC 20510-8025
 (202) 2248996.