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Telecommunications

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In return AT&T committed itself to providing telecommunication service to every household in ... Hills History In 1934 AT&T was granted a government protected ... – PowerPoint PPT presentation

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Title: Telecommunications


1
Telecommunications
  • Presentation By Samantha Musil
  • From Rural Development in the United States
    Connecting Theory, Practice, Possibilities By
    William Galston Haren Baehler

2
Telecommunications
  • What is Telecommunications? - Definition
  • History
  • Competition vs. Universal Service Whos job is
    it anyway?
  • What does Telecommunications mean to Rural Areas?
  • Access
  • Future
  • Discussion/Questions

3
What is Telecommunications?
  • Telecommunications is a multibillion dollar
    industry
  • It is both a manufacturer and a service provider

4
Definition
  • Telecommunications functions in 2 ways
  • 1). As an Economic Base that directly generates
    new wealth through development and sales of
    communication products and information services.
  • 2). As a piece of the collective infrastructure
    that all other industries need in order to
    function.

5
Definition (cont.)
  • Telecommunications is the node that links
    production activities with exchange activities
    involving the circulation of goods and with
    information activities that coordinate the
    economic system.
  • - - Hills

6
History
  • In 1934 ATT was granted a government protected
    monopoly over local and long-distance service.
  • In return ATT committed itself to providing
    telecommunication service to every household in
    the United States.

7
History (cont.)
  • In 1946 the Rural Electrification Administration
    charter was expanded to include low-cost loans to
    rural Telephone companies.
  • As a result, over the next 50 years, virtually
    all American households and businesses gained
    basic service and affordability.

8
History (cont.)
  • In 1982 a consent decree broke up ATT and
    replaced the monopoly with competition.

9
Competition vs. Universal Service
  • Competition is attractive as a means of forcing
    greater efficiecy, innovation, and consumer
    choice.

10
Whos job is it anyway?
  • Parker et al. recommends that the proper role of
    government should be to encourage the private
    sector to provide affordable access to
    telecommunications and information services
    comparable to those available in urban areas.

11
Whos job is it anyway? (cont.)
  • Any economic development policies should be
    focused on generating and augmenting demand for
    telecommunication services, not on generating
    infrastructure.
  • - - Gail Garfield Schwartz
  • Schwartz recommends that government make a high
    priority commitment to expanding service in areas
    of public interest education and health care.

12
(No Transcript)
13
What does Telecommunications mean to Rural Areas?
  • Will rural areas share in the new jobs and income
    created by this booming new industry?
  • Will the state-of-the-art products of the
    industry penetrate the rural areas and improve
    the economic competitiveness and quality of life?

14
New Jobs and Income
  • Jobs and income While bringing
    telecommunication can bring in new jobs, these
    job are for the most part not glamorous. They
    are relatively clean and safe, however not very
    dependable. They hire many seasonal and part
    time employees, pay low wages, and provide
    minimal benefits.

15
How Telecommunication Products can Improve
Economic Competitiveness
  • Better price information
  • Lower travel costs
  • Reduced need for inventory
  • Timely delivery of goods
  • Enhanced responsiveness to market demands

16
How Telecommunication Products can Improve
Quality of Life
  • Transportation
  • Health Care
  • Education
  • Social Services
  • Civic participation
  • Cultural activities

17
Access
  • Today 96 of all farms have basic telephone
    service, compared to 35 after WWII.
  • The 4 without service lacks service because they
    cannot afford it, not because it is unavailable.

18
Access (cont.)
  • Income is a far better predictor of whether a
    household will have telephone service than
    urban/rural location.
  • - - Parker et. Al.

19
Access (cont.)
  • Of the 6.8 million households in America without
    telephone service, only about 3 (or 183,000)
    lack service because of geographic location.

20
Future
  • Telecommunications development has the potential
    to make large and lasting changes, not only in
    the ways rural residents do business, but also in
    how they conduct their community affairs.

21
Future (cont.)
  • If telecommunications-based strategies succeed in
    creating adjacency where it does not exist
    spatially, and if these strategies succeed in
    neutralizing the effects of isolation,
    remoteness, and distance, then the decay of
    boundaries will be hastened.

22
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