ECONOMIC AND SOCIAL BENEFITSOF RURAL TELECOMMUNICATIONS:

A REPORT TO THE WORLD BANK

by

Professor Heather E. HudsonDirector

Telecommunications Management and Policy ProgramMcLaren School of BusinessUniversity of San Francisco

June 1995

ECONOMIC AND SOCIAL BENEFITSOF RURAL TELECOMMUNICATIONS:

A REPORT TO THE WORLD BANK

Table of Contents

Executive Summary iii

1. Purpose of the Study 1

2. Methodology of the Study 2

3. The Changing Rural Context 5

3.1. The Socio-Economic Context 5

3.2. The Technological Context 6

4. The Role of Telecommunications in Development: An Overview 8

4.1. The Importance of Information 8

4.2. Telecommunications and Development: Macro-level Studies 10

5. Telecommunications and Rural Development 14

5.1. Regional Analyses and Case Studies 14

5.2. Rural Telecommunications Users 16

5.3. Benefits Related to Distance and Density 17

5.4. Social Benefits 18

5.5. Rural Projects in Industrialized Countries 19

6. Telecommunications and Rural Sectors 22

6.1. Agriculture 22

6.2. Education 24

6.3. Health Care 29

6.4. Employment and Entrepreneurship 32

6.5. Travel, Transportation, and Energy 34

6.6. Studies on Women and Rural Telecommunications 35

7. Implications for Planning 36

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7.1. Findings from the Research 36

7.2. The Need for Integrated Planning 37

7.3. New Demands and Opportunities 38

7.4. Universal Access 38

8. Recommendations to the World Bank 39

8.1. Support for Rural Telecommunications 39

8.2. Access to Telecommunications 39

8.3. Socio-Economic Research 40

8.4. Evaluation 41

8.5. Dissemination of Findings 44

Appendix A: Sources Consulted 45

Appendix B: A Telecommunications Development Report Card 47

Telecommunications and Development: Selected Bibliography 49

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EXECUTIVE SUMMARY

The purpose of this report is to set the stage for a re-examination of investmentpriorities and strategies in rural telecommunications by synthesizing what we knowabout the role of telecommunications in the development process. The report provides anoverview of the evidence to date of the economic and social benefits of ruraltelecommunications (RT).

The report reviews key studies and identifies theory and research findings that areparticularly relevant to rural regions of developing countries. It emphasizes research ondeveloping countries, but also includes research conducted in industrialized countriesthat appears particularly relevant for rural regions of the developing world.

The analysis is accompanied by an extensive bibliography arranged according tothe themes of the report. This bibliography is by design illustrative rather thanexhaustive, as the literature on some telecommunications in some sectors such aseducation and health care is very extensive.

The report and bibliography are arranged thematically, to address the followingtopics and research approaches:

! telecommunications and development: general! telecommunications and rural/regional development! case studies! development sectors:

" agriculture, forestry, fisheries" education and training" health and disaster communications" business, industry, entrepreneurship" transportation, travel, and energy" women and telecommunications.

1. Key Findings from the Research

Findings from research and pilot projects in rural and developing regions showthat telecommunications can contribute to social and economic development. There hasbeen progress in developing models that can predict quantitative financial benefits ofinvestment in rural telecommunications, typically based on the theoretical underpinningsof the role of information in economic activities. There is also substantial evidence onbenefits that result from specific applications of telecommunications in various sectorssuch as distance education, medical consultation, administrative support, and transportsubstitution. Some studies also conclude that benefits are proportionately greater in areas

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of low teledensity, but it is not clear whether this is because each added increment oftelecommunications is a greater percentage of the installed base than in high teledensityareas.

Many authors also note that telecommunications should not be seen as a panacea.A more positive statement of this conclusion is that telecommunications is necessary butnot sufficient for development. Other forms of infrastructure including transportation,water, and electrification are important, as may be other factors such as labor costs, skillsand reliability; tax or other concessions or incentives; and proximity to major markets.

Thus, there is no simple formula that can safely predict quantifiable benefits ofinvesting in telecommunications in a specific rural area, because many factors mayinfluence the extent of the impact of better access to information. They include:

! existing and planned economic initiatives;! well organized public services and or private sector activities;! existence of other essential infrastructure;! participation of users in planning location and features of

telecommunications facilities to eliminate cultural, linguistic, or gender-based barriers;

! administrative systems for development activities emphasizing supervisionand feedback;

! employee training where telecommunications facilities are installed tosupport sector activities;

! accessibility of telecommunications facilities for personal use.

2. The Changing Socio-Economic and Technical Contexts

Throughout the developing world, rural as well as urban industries arebeing drawn into the global economy. To stay internationally competitive, farmers alsomust resort to increased specialization, and react to shifts in consumer demand.Historically, rural development took place where there was geographic advantage in theform of arable land or natural resources. Increasingly, new economic developmentdepends on human resources, and economic diversification. Thus, basic education ofchildren and adults as well as specific training are important, yet rural regions worldwidecontinue to face a shortage of teachers and educational facilities. Typically, rural residentsalso have much more limited access to health care than their urban counterparts, resultingin lower life expectancy and higher infant mortality rates in rural than in urban areas.

The technological context is defined by several major trends in telecommunicationsincluding:

! Capacity: Satellites and optical fiber have enormous capacity to carry

5

information, ranging from thousands of telephone calls, to financial andscientific data, to motion video for distance education and highly detailedimages for remote medical diagnosis.

! Digitization: Any type of information, including voice and video, may besent as a stream of bits.

! Convergence: The convergence of telecommunications, data processing,and imaging technologies is ushering in the era of multimedia, in whichvoice, data, and images may be combined according to the needs of users.

! Ubiquity: Advances in wireless technology ranging from satellites tocellular radio make it possible to provide reliable communications virtuallyanywhere.

Among the recent technological innovations that can make rural service morereliable and cheaper to provide are:

! Wireless technologies: such as cellular radio and rural radio subscribersystems;

! VSATs (very small aperture satellite terminals);! Digital compression: e.g. for digital voice and video conferencing;! Store-and-forward data: e.g. using low earth orbiting (LEO) satellites;! Voice Messaging: e.g. to provide "virtual telephone service" for people still

without individual telephone service.

3. The Role of Telecommunications in Development: An Overview

If information is critical to development, then telecommunications, as a means ofsharing information, is not simply a connection between people, but a link in the chain ofthe development process itself. The role of telecommunications in transmittinginformation can be particularly significant in rural areas where alternative means ofobtaining and conveying information such as personal contact, transport, and postalservices are likely to be less accessible.

In the 1970s, several studies noted a high correlation between economic growthand telecommunications investment. However, these studies did not answer the chicken-and-egg question: Did telecommunications investment contribute to economic growth,and/or did economic growth result in increased telecommunications investment?

The first major study to address the causality issue underlying the correlationbetween telecommunications investment and economic growth found thattelecommunications investment did increase as economies grew, but there was also asmall but significant contribution of telecommunications to economic development. Theimplication was that early investment in telecommunications could contribute to

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economic growth.

Using the same methodology, it was estimated that the benefits of the U.S. RuralElectrification Administration (REA) telephone loan program were 6 to 7 times higherthan costs to the government in interest subsidies. A further analysis showed not onlythat increases in output or GNP level lead to increases in investment intelecommunications, but that the converse is also true: increases in telecommunicationsinvestment stimulate overall economic growth. Findings from a 1993 study suggest thatinvestment in telecommunications infrastructure is causally related to the national totalfactor productivity and that contributions to aggregate and sector productivity growthrates from telecommunications advancements are both quantifiable and substantial.

Benefits of telecommunications may be grouped under several categories, e.g.:! market information for buying and selling;! transport efficiency and regional development;! isolation and emergency security;! coordination of international activity, including business, tourism

and international organization.To summarize, instantaneous communication can help improve:

! efficiency, or the ratio of output to cost;! effectiveness, or the quality of products and services; and! equity, or the distribution of benefits throughout the society.

4. Telecommunications and Rural Development

4.1. Regional Analyses and Case Studies

Several studies from western Europe and North America support thresholdtheories that telecommunications is a complement in the development process, i.e.generally, certain levels of other basic infrastructure as well as organizational activity arerequired for the indirect benefits of telecommunications to be realized. In other words,telecommunications is a necessary but not sufficient condition for rural economicdevelopment.

Telecommunications may also serve as a catalyst at certain stages of the ruraldevelopment process, becoming particularly important when other innovations areintroduced such as improved farming practices, lines of credit, incentives fordecentralization and diversification of the rural economic base.

Several studies indicate that economic benefits of telecommunications are relatedto distance and density, so that benefits are proportionately greater where telephone

7

density is low and alternatives to communicate are expensive and/or time consuming.Field research from developing countries cites examples of rural residents keeping intouch with family members who have gone to the city or overseas to seek work, familiescontacting relatives scattered in many rural communities, and field staff such as nursesand teachers in rural posts keeping in touch with colleagues and family members. Itappears that telecommunications is one of several factors that may tend to reduce staffturnover, with other benefits such as pay bonuses, travel and continuing education alsobeing important.

4.2. Telecommunications Users

Several studies indicate that the most frequent users of rural telecommunicationsare better educated than average rural residents, and may have higher incomes or beengaged in progressive agriculture or other employment where access to information isimportant. Some studies show that better educated users call farther afield; others indicatethat the most common characteristic of telecommunications users is that they are"information seekers" regardless of education or income source.

One study found that residential telephones appear to contribute more toeconomic development than business telephones. The reason may be that in manydeveloping countries, residential phones are often used for business activities, and areavailable 24 hours per day, whereas business phones are available only during workhours.

4.3. Rural Projects in Industrialized Countries

Industrialized countries in Europe and North America have supported ruraltelecommunications pilot projects and trials, but little evaluative information has beenreleased. Major European Union projects include STAR (Special TelecommunicationsAction for the Regions) and ORA (Opportunities for Rural Areas), which are intended tocreate a solid basis of knowledge and expertise for subsequent implementation of suitabletelematic systems in specific rural areas.

Another European-initiated application is telecottages, which originated inScandinavia. These are typically small buildings or rooms in rural communities equippedwith a few personal computers, printers, modems and a fax machine. Although there hasnot been a systematic evaluation of costs and benefits, one consistent finding is that animportant element is the resource person who provides training and other guidance. Itappears that other factors are needed for the project to go beyond the awareness andtraining phase, such as local entrepreneurs, business experience, and contacts withpotential contractors for rural information services such as data entry and telemarketing.

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Canada has supported rural telecommunications projects for distance education,telemedicine and teleworking, many of them using Canadian domestic satellites to linkisolated and remote areas. In the U.S., the Rural Utilities Service (formerly RuralElectrification Administration) has established a Distance Learning and Medical GrantProgram. The U.S. Department of Education supports distance education through its StarSchools Program, the National Telecommunications and Information Administration(NTIA) has awarded infrastructure grants for the planning and construction oftelecommunications networks for educational, health, library and other social services.Some U.S. states are combining high quality infrastructure with attractive rural settings toattract "footloose" entrepreneurs such as consultants, architects, and software developerswho appreciate the quality of rural life.

4.4. Telecommunications and Rural Sectors

C Agriculture

In the U.S., access to computerized databases has helped farmers to get higherprices for their crops and to enter foreign markets. Examples of profitable use of marketinformation in developing regions range from Brazilian coffee growers contacting theChicago futures exchange, to farmers in the Nile Delta taking orders from merchants inAlexandria by telephone, to Sri Lankan farmers obtaining market information fromColombo.

C Education

Today, radio is still used extensively for distance education in many developingcountries, while televised courses are more often found in industrialized countries.However, the major change has been in the growth of interactive applications, rangingfrom audio tutorials and student interaction to computer conferencing and in somelimited applications, fully interactive video. Corporate trainers have estimated thatdistance learning can cut training costs in half, while one study estimates that the U.S.education sector saved $76.1 billion dollars through use of telecommunications from 1963to 1991.

Four basic models have been developed to use telecommunications in education:! curriculum-sharing: links schools so that courses available at one school

can be taught to students at another location, typically using microwave oroptical fiber;

! outside expert: delivers courses not available in rural schools, typically viasatellite, using phone lines for voice or computer interaction with students;

! virtual classroom: content is delivered to students in the workplace or at

9

home; technologies range from satellite video to interactive audio andcomputer conferencing;

! educational broker: seminars and courses from a variety of sources aremade available, typically via satellite.

C Health Care

Telecommunications is used for several different functions in support of healthcare delivery:

! consultation: to give advice to rural health workers, or directly to isolatedpatients;

! data collection and record keeping;! training: of health care workers;! education: of target populations including expectant mothers, mothers of

young children, groups susceptible to contagious diseases, etc.

Emergency communications are often cited as critically important; such social benefitsmay precede economic benefits in less developed areas. For both education and healthcare, incentives are often critical for sector adoption.

C Employment and Entrepreneurship

Rural businesses in the U.S. are increasingly using telecommunications networksfor competitive advantage. Information-intensive businesses such as "back offices,"telemarketing, customer support and reservation systems have relocated to rural areaswith high quality and affordable telecommunications. However, other highly rankedrelocation factors include access to airports and highways, labor costs and skills, andproximity to major markets. While developing countries do not have the range of ruraleconomic activities found in industrialized countries, there is evidence that reliabletelecommunications can help attract data entry businesses and support tourism.

C Travel, Transportation and Energy

Telecommunications offers important benefits in overcoming the distance penaltythat hampers business activities and service providers in rural and remote areas. Researchthat focuses on travel/transport substitution measures benefits in terms of time saved,sometimes converted to monetary amounts; another approach is to estimate the value ofenergy saved if the number of trips could be reduced. The time value is most dramaticwhen money is directly involved, for example, in timing transfers of funds betweenbanks.

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C Women and Rural Telecommunications

In many parts of the developing world, women do much of the agricultural work.In such cases, the benefits of telecommunications in getting information about prices andmarkets, and getting expert advice from extension agents should apply to women. Whilestudies on direct benefits to women are few, it appears that women do benefit either asparticipants (teachers, health care workers, farmers, etc.) or indirectly throughinformation that benefits them as mothers, entrepreneurs, employees, communityresidents, etc.

5. Implications for Planning

The general conclusion for planning that emerges from this review is thattelecommunications planning cannot be done in isolation if the intent is to derivemaximum benefits for rural development. Planning must be integrated across sectors; i.e.it is necessary to involve several agencies in addition to telecommunications, representingsectors such as education, health and social services, agriculture, and economicdevelopment. To summarize, for coordinated communications planning to occur:

! telecommunications administrations must be informed about nationalpriorities and development plans;

! national planners must be made aware of the importance oftelecommunications infrastructure to national development;

! resources for extension and improvement of facilities must be allocated tothe telecommunications sector, and resources for training and utilization offacilities must be included in the sector budgets;

! potential users must be made aware of the services available and how theycould benefit from them.

6. Recommendations for the World Bank

6.1. Support for Rural Telecommunications

The Bank should ensure that:! every telecommunications loan includes a requirement for

telecommunications investment in rural areas;! every loan requires an external evaluation.

Steps the Bank could take to help developing countries achieve this goal include:! recommend that countries adopt a definition of access;! include investment in rural telecommunications as part of any

telecommunications loan package;

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! encourage use of technologies particularly appropriate for ruralapplications.

6.2. Socio-Economic Research

To fill in the gaps in existing research, the Bank should support the following typesof research using data from developing countries:

! macrolevel economic studies! macrolevel social impact studies! a policy paper that addresses:! "take-off" indicators for other sectors! planning techniques! strategies to involve other sectors.! research methodologies for field studies! evaluation of recent projects! appropriate technologies for rural telecommunications! pricing models! impact of rural telecommunications on women.

The Bank could also sponsor rural telecommunications research awards fortechnology design and socio-economic research. The results of this research could bedisseminated through publications as well as regional and intersectoral workshops andconferences.

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ECONOMIC AND SOCIAL BENEFITS OF RURAL TELECOMMUNICATIONS:

A REPORT TO THE WORLD BANK

by

Professor Heather E. Hudson1

1. Purpose of the Study

Telecommunications is a tool for the conveyance of information, and thus can be

critical to the development process. By providing information links between urban and

rural areas and among rural residents, telecommunications can overcome distance

barriers which hamper rural development. Access to information is key to many

development activities, including agriculture, industry, shipping, education, health and

social services.

Yet telecommunications is a "missing link" in much of the developing world, as the

Maitland Commission noted (International Commission, 1985). While there has been

progress in the past decade, access to telecommunications remains limited in much of the

developing world, and virtually non existent in many rural regions (ITU, 1994)

Why should these issues matter to development planners and funding agencies?

Because as rural economies are changing, there is even greater need for information.

There are also new opportunities. As shown below, many new technologies offer

considerable promise to extend access to telecommunications at lower cost than was

previously projected. And the movement to restructure the telecommunications sector in

many countries also offers new opportunities to create incentives to serve rural areas. Yet

without an understanding of the importance of the role of telecommunications in rural

development, these opportunities may be overlooked, and the information gap between

1 Margaret Arnold, MBA candidate at the University of San Francisco, served as a researchassistant for this project.

2

urban and rural areas may widen, with consequences far beyond lost revenues for the

telecommunications operators.

The purpose of this report, therefore, is to set the stage for a re-examination of

investment priorities and strategies in rural telecommunications by synthesizing what we

know about the role of telecommunications in the development process. The report

provides an overview of the evidence to date of the economic and social benefits of rural

telecommunications (RT).

The report reviews key studies and identifies theory and research findings that are

particularly relevant to rural regions of developing countries. It emphasizes research on

developing countries, but also includes research conducted in industrialized countries

that appears particularly relevant for rural regions of the developing world.

The analysis is accompanied by an extensive bibliography arranged according to

the themes of the report. This bibliography is by design illustrative rather than

exhaustive, as the literature on some telecommunications in some sectors such as

education and health care is very extensive.

The report and bibliography are arranged thematically, to address the following

topics and research approaches:

! telecommunications and development: general

! telecommunications and rural/regional development

! case studies

! development sectors:

" agriculture, forestry, fisheries

" education and training

" health and disaster communications

" business, industry, entrepreneurship

" transportation, travel, and energy

! women and telecommunications.

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2. Methodology of the Study

The synthesis of research presented below is based on an extensive review of the

literature on telecommunications and rural development. To conduct the search, it was

first necessary to define the scope of the study, and then to identify sources of

information.

Telecommunications was considered to include interactive communications

services such as two-way radio, telephone, facsimile, teleconferencing, etc., and

technologies that deliver these services such as HF radio, other radio technologies, and

satellites. Broadcasting services such as radio and television, and other forms of mass

media were excluded. However, materials which include information on both interactive

and mass media (such as reports on satellite projects) were included. Studies of

applications using technologies that are highly unlikely to be available in rural

developing areas in the foreseeable future, such as switched broadband networks used for

medical imaging, were excluded.

In general, the search was limited to materials on development and developing

countries. However, studies of the impact of telecommunications on rural development in

industrialized countries were included if they appeared to shed light on the role of

telecommunications in the development process. Research on the role of

telecommunications in various sectors related to rural development was also reviewed,

including education, health and social services, agriculture, transportation, and other

economic activities. Again, the primary focus was on experience from developing

countries, but studies that appeared illustrative in terms of applications or findings that

could be relevant to developing countries were also included.

The bibliography focuses on works published since 1980, with an emphasis on

more recent reports and studies. Publications from before 1980 are included that are

considered particularly important in presenting theory or analysis of critical issues and

applications.

Numerous sources of information were used to prepare the literature review. They

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included:

Data Bases and Bibliographies:

Several databases were searched that cover telecommunications, as well as development

topics. The search covered the years 1980 to the present. Databases searched included:

! ABI/Inform

! CAB

! Econ Lit

! ERIC

! Social Sciences Index

U.S. Government Printing Office.

Specialized bibliographies consulted included:

! CAB International. Rural Women: Annotated Bibliography, 1992

! Hudson, A Bibliography on Telecommunications and Socio-Economic

Development, 1988.

Development Agencies and International Organizations:

! information from sources provided by development agencies such as

USAID and CIDA, and international organizations such as the ITU

and UNESCO;

! information from NGOs working on rural development projects or

using telecommunications to support services in rural areas.

U.S. Federal and State Agencies:

! information on rural telecommunications projects including results

of field trials and cost-benefit studies in the U.S. was also compiled

through the author's previous research and contacts with U.S. federal

and state agencies.

Additional Sources:

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! materials available to the author including reports on and papers

from conferences and workshops, etc. on rural telecommunications

that are not cited in data bases (so called "fugitive literature").

The bibliography is organized according to several categories. It begins with

references on telecommunications and development in general. It then lists sources

specifically on telecommunications and rural development, including studies concerning

both developing countries and rural regions of industrialized countries. The third section

includes case studies on developing countries and rural regions. The final section includes

illustrative studies on the role of telecommunications in various sectors associated with

rural development, including agriculture, education and training, health care and disaster

communication, transportation and energy, business and entrepreneurship, and women

in development. As noted above, these documents were selected to be illustrative of the

types of studies available rather than exhaustive, as complete bibliographies on each

sector would be extremely lengthy.

3. The Changing Rural Context

It is important to place this synthesis of the role of telecommunications in rural

development within context, as there have been significant changes in many rural

economies as well as in telecommunications and information technologies within the past

decade.

3.1. The Socio-Economic Context

The structure of urban economies is changing, with services now the most rapidly

growing sector. This structural shift is mirrored in rural economies in industrialized

countries, where public and private services now generally dwarf agriculture and

manufacturing. Yet the shift to services is only part of the change. Information-based

activities account for the largest part of the growth in services, and other sectors are

becoming increasingly information intensive.

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While this shift may not yet be evident in rural economies of many developing

countries, throughout the world, urban and rural activities are being drawn more and

more into the global economy. Manufacturers must now be able to respond to changes in

demand; suppliers must be able to produce small orders for quick delivery; merchants

must be able to update inventory and accounts records instantly. To stay internationally

competitive, farmers also must resort to increased specialization, and react to shifts in

consumer demand.

Historically, rural development took place where there was geographic advantage

in the form of arable land or natural resources. Increasingly, new economic development

depends on human resources, and economic diversification. Thus, basic education of

children and adults as well as specific training are increasingly important. Yet, rural

regions worldwide continue to face a shortage of teachers and educational facilities.

Typically, rural residents also have much more limited access to health care than their

urban counterparts because of a lack of health care providers and medical supplies and

clinics. The results are lower literacy levels, lower life expectancy, and higher infant

mortality rates in rural than in urban areas.

3.2. The Technological Context

Several major trends in telecommunications result from the development of new

transmission technologies and advances in the speed of microprocessors and the capacity

of electronic storage devices. The most significant of these trends include:

! Capacity: Technologies such as satellites and optical fiber have enormous

capacity to carry information, ranging from thousands of telephone calls to

financial and scientific data to motion video for distance education to highly

detailed images for remote medical diagnosis.

! Digitization: Telecommunications networks are becoming totally digital.

This means that any type of information, including voice and video, may be

sent as a stream of bits.

7

! Convergence: The convergence of telecommunications, data processing,

and imaging technologies is ushering in the era of multimedia, in which

voice, data, and images may be combined according to the needs of users

for instruction, collaboration, and research.

! Ubiquity: Advances in wireless technology ranging from satellites to

cellular radio make it possible to provide reliable communications virtually

anywhere.

Among the recent technological innovations driving the above trends are many that can

make rural service more reliable and cheaper to provide such as:

! Wireless technologies: Advances in radio technology such as cellular radio

and rural radio subscriber systems offer affordable means of reaching less

isolated rural customers. These technologies make it possible to serve rural

communities without laying cable or stringing copper wire.

! VSATs: Small satellite earth stations are proliferating in developing regions,

usually for distribution of television signals. However, VSATs can also be

used for interactive voice and data, and for data broadcasting. Examples

include bank networks in remote parts of Brazil and India's NICNET for

governmentdata services.

! Digital compression: Compression algorithms can be used to "compress"

digital voice signals, so that 8 or more conversations can be carried on a 64

kbit "voice channel, thus reducing transmission costs. Compressed digital

video can be used to transmit motion video over as few as 2 telephone lines

(128 kbps), offering the possibility of relatively low cost video for distance

education and training.

! Store-and-forward data: Development organizations seeking cheap ways to

communicate with field projects are using single satellite LEO systems for

electronic messaging. For example, SatelLife uses a "microsatellite" known

as HealthSat for store-and-forward data communications to small terminals

8

in Africa.

! Voice Messaging: Voice mail systems can be used to provide "virtual

telephone service" to people who are still without individual telephone

service. Callers can leave messages in rented voice mail boxes, which the

subscribers can retrieve from a pay phone. For example, TeleBahia in

northeastern Brazil is using voice messaging technology to serve small

businesses owners and a similar approach has been used in some US

homeless shelters to enable jobseekers to be contacted by prospective

employers.

These new technologies make possible a range of new services such as

teleconferencing (audio, video, and/or computer conferencing), electronic mail, and

access to remote databases. They also provide new options for delivering both radio and

television signals, which, combined with audio and video cassette recorders, offer both

real time and on-demand access to programs. Applications of teleconferencing for

education and training and data communications for administration, data collection, and

access to databases are referenced below. The literature on mass media applications for

development, particularly for education, is extensive, and not reviewed here. In general, it

has been found that mass media can be effective for both formal and nonformal

education, but that many other factors may influence success such as well-designed and

relevant programs, active participation by learners, and participation by teachers and

other field staff in project planning and implementation (see, for example, Schramm, 1977;

Block et al., 1985; Gwyn, 1983).

One of the important advantages of new telecommunications technologies is that a

variety of services can be delivered using the same transmission systems. For example,

satellites can be used for telephone service, as well as radio and television distribution.

Audio teleconferencing requires very modest incremental investment once telephone

links are installed. With digitized networks, voice, data, and compressed video can all be

carried using very limited bandwidth.

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4. The Role of Telecommunications in Development: An Overview

4.1. The Importance of Information

The theoretical underpinning to research on the role of telecommunications in

development in general is that information is critical to the social and economic activities

that comprise the development process. Information is obviously central to education, but

also to health services, where providers need training as well as advice on diagnosis and

treatment of cases beyond their level of expertise or the capacity of local facilities. But

information is also critical to economic activities, ranging from agriculture to

manufacturing and services.

If information is critical to development, then telecommunications, as a means of

sharing information, is not simply a connection between people, but a link in the chain of

the development process itself. The role of telecommunications in transmitting

information can be particularly significant in rural areas where alternative means of

obtaining and conveying information such as personal contact, transport, and postal

services are likely to be less accessible.

Distance represents time, in an increasingly time-conscious world. In economies

that depend heavily upon agriculture or the extraction of resources (lumber and

minerals), distance from urban markets has traditionally been alleviated only with the

installation of improved transportation facilities, typically roads. Yet transportation links

leave industries without the access to information which is becoming increasingly

important for production and marketing of their commodities.

Another disadvantage faced by many developing countries is economic

specialization. As they strive to diversify their economies, timely access to information

becomes even more critical. In the provision of physical goods and services, rural areas

could only compete across barriers of distance and geography if they had a natural

resource advantage. Telecommunications is also vital to the emerging information sectors

in developing regions. In the provision of information goods and services, reliable

10

telecommunications infrastructure can make geography and distance irrelevant. For

example, the National Research Council points out that for Africa, where populations and

economic activities remain largely rural-based, sharing information is vital if Africans are

to contribute to finding solutions to their own development problems:

"Economic development in Africa will depend heavily on the developmentof the information sector. Countries will need the ability to communicateefficiently with local and overseas markets to determine where they manyhave comparative advantages for supplying their products to consumers orto purchase essential imports, based on current prices and services. Many ofthe economic development problems facing African countries have scientificand technological components that will require solutions to be developed inAfrica by African scientists.... Lack of information is a critical constraint"(National Research Council, 1990).

During the past decade, the role of telecommunications in the development

process has received considerable attention. The ITU carried out a series of studies

beginning with a literature review (Hudson, 1979), followed by a series of case studies on

various developmental applications of telecommunications, which were summarized in

Telecommunications for Development (1983). Further case studies were compiled in

Information, Telecommunications, and Development (1986). The ITU's Maitland Commission

pointed out the importance of telecommunications to development and documented the

gaps in access to telecommunications in the developing world in its 1985 report The

Missing Link. Several studies have identified the social and economic benefits of

telecommunications, such as When Telephones Reach the Village (Hudson, 1984),

Telecommunications and Economic Development (World Bank, 1983, 1994), and Electronic

Byways (Parker and Hudson, 1992).

Wellenius (1984) summarizes and classifies studies on telecommunications and the

economy according to type of analysis and methodology. This classification can also be

applied to research undertaken in the past decade. The approach used here is to examine

general development studies first, followed by broad studies on telecommunications and

11

rural development, and then case and sector studies. The methodologies used are

discussed in the review and analysis.

4.2. Telecommunications and Development: Macro-level Studies

This section considers macro-level studies that examine the role of information and

telecommunications technology on development in general. Although these studies

consider the role of telecommunications in development in general, many include

findings and cite examples relevant for rural development.

In the 1970s, several studies noted a high correlation between economic growth

and telecommunications investment, typically measured in GDP per capita and telephone

sets or lines per 100 population. However, these studies did not answer the chicken-and-

egg question: Did telecommunications investment contribute to economic growth, and/or

did economic growth result in increased telecommunications investment?

In the past fifteen years, there has been considerable interest in the role of

telecommunications in the development process, sparked perhaps by the heightened

visibility of the sector, as technological change and competition have fostered new

facilities and services. Researchers with technical, economic and other social science

backgrounds have attempted to understand and quantify the role of information in

economies. They have been joined by rural development specialists who are asking

whether investment in information infrastructure can contribute to rural economic

growth and diversification.

The first major study to address the causality issue underlying the correlation

between telecommunications investment and economic growth (typically measured by

telephone lines per 100 population and per capita GNP or GDP was by Hardy (1980).

Data from 60 nations over a 13 year period (1960 to 1973) were analyzed using path

analysis and cross-lagged correlation techniques, with time-lagged offsets on one year.

Hardy found that the causal relationship ran in both directions, at a level significantly

higher than could be expected by chance. Of course, telecommunications investment did

12

increase as economies grew, but there was also a small but significant contribution of

telecommunications to economic development. The implication was that early investment

in telecommunications could contribute to economic growth. A causal relationship did

not hold for radios per 1000 as a contributor to per capita GDP growth; it was therefore

postulated that the organizational impact of telecommunications contributed to economic

growth. The study also found that the economic impact of adding telephone lines was

greatest in countries with low teledensity (telephone lines per 100 population).

Hudson, Hardy and Parker applied the Hardy methodology to estimate the

economic impact of installing small satellite earth stations in three groups of developing

countries and a hypothetical rural region. A logarithmic relationship between telephone

density and impact on GDP per earth station was found, so that impact per earth station

increased with lower telephone densities. They suggested that the model could be used to

estimate the impact on national GDP of installing telephone lines and/or thin route

satellite stations in regions of low telephone density (Hudson, Hardy and Parker, 1982).

Parker (1983) also applied these findings to estimate benefits of the U.S. REA

(Rural Electrification Administration) telephone loan program, which provides low cost

loans to rural telephone companies to install and upgrade their networks. Estimating the

economic value per telephone line based on Hardy's findings, he calculated the

consequent reduction to U.S. GDP if these lines had not been installed. He estimated that

the benefits were 6 to 7 times higher than costs to government in interest subsidies.

In 1991, Cronin and colleagues published a study using similar methodology to

address the question: "How does the strong relationship between telecommunications

and economic development occur?" (Cronin et al., 1991, p. 529). Their analysis of 31 years

of US data shows not only that increases in output or GNP level lead to increases in

investment in telecommunications, but that the converse is also true: increases in

telecommunications investment stimulate overall economic growth.

A 1993 study by Cronin and colleagues investigated how telecommunications

contributes to national productivity. It showed that incorporation of telecommunication

13

technology and services into production processes has statistically significant impact in

almost all industries. (Cronin, 1993, p. 690). The analysis includes manufacturing, private

non-farm, and total private business sectors. The findings suggest that investment in

telecommunications infrastructure is causally related to the national total factor

productivity and that contributions to aggregate and sector productivity growth rates

from telecommunications advancements are both quantifiable and substantial (Cronin et

al., 1993, p. 677). They conclude that since 1978, about 25 percent of total direct and

indirect aggregate productivity gains in the U.S. economy resulted from advances in

telecommunications production and enhanced consumption possibilities for end-user

industries.

Some researchers have attempted to identify and quantify the externalities

associated with telecommunications utilization. Leff (1984) analyzed the welfare effects of

investment in telecommunications facilities in developing countries, focusing on their

high information and transaction costs. He notes that lower transaction costs and reduced

uncertainty can increase the efficiency of both markets and administrative organizations.

He concludes from a social benefit-cost analysis that telecommunications projects can

produce significant external economies, and that the welfare consequences of

telecommunications expansion include public-good effects, "notably in a country's

capacity for responding to new problems and opportunities" (Leff, 1984, p. 271).

A 1986 ITU study identified two types of externalities. Subscriber-related

externalities are benefits and costs that accrue to existing subscribers from expansion of

the system, and accrue to all subscribers. The ITU study notes that a property of

telecommunications investments is that each subscriber's welfare rises with the number of

subscribers who have access to the network. Call-related externalities are benefits and

costs that accrue to caller and anyone contacted (ITU, 1986).

Some researchers have attempted to summarize these benefits of

telecommunications investment as found in macro-level and case studies. Saunders,

Warford, and Wellenius (1994) group benefits under 4 categories:

14

! market information for buying and selling;

! transport efficiency and regional development;

! isolation and emergency security;

! coordination of international activity, including business, tourism and

international organization.

Hudson (1984) summarizes the role of telecommunications in socio-economic

development, stating that instantaneous communication can help improve:

! efficiency, or the ratio of output to cost;

! effectiveness, or the quality of products and services; and

! equity, or the distribution of benefits throughout the society.

She lists the following benefits of telecommunications for improving efficiency and

productivity:

! Price information: Producers such as farmers and fishermen can compare

prices in various markets, allowing them to get the highest prices for their

produce, to eliminate dependency on local middlemen, and/or to modify

their products (types of crops raised or fish caught, etc.) to respond to

market demand.

! Reduction of downtime: Timely ordering of spare parts and immediate contact

with technicians can reduce time lost due to broken machinery such as

pumps, tractors, generators, etc.

! Reduction of inventory: Businesses can reduce the inventories they need to

keep on hand if replacements can be ordered and delivered as needed.

! Timely delivery of products to market: Contact between producers and shippers

to arrange scheduling for delivery of products to market can result in

reduced spoilage (for example, of fish or fresh fruit), more efficient

processing and higher prices for produce.

! Reduction of travel costs: In some circumstances,

15

telecommunications may be substituted for travel, resulting in

significant savings in personnel time and travel costs.

! Energy savings: Telecommunications can be used to maximize the efficiency

of shipping so that trips are not wasted and consumption of fuel is

minimized.

! Decentralization: Availability of telecommunications can help to attract

industries to rural areas, and allow decentralization of economic activities

away from major urban areas.

5. Telecommunications and Rural Development

In this section we review literature that focuses specifically on rural areas and rural

development, including aggregate data analysis, field research and case studies.

5.1. Regional Analyses and Case Studies

Using advanced econometric modeling techniques, Hansen et al. (1990) find that

substantial aggregate employment gains are likely to result from investments in

telecommunications and information technologies in Europe's rural economies. They

conclude that the ability of regions to benefit from new investment in telecommunications

varies with rurality, with higher benefits over costs estimated for more rural areas than

for less rural areas. However, it appears that this benefit is reduced for extremely rural

areas, possibly because of their lack of general infrastructure other than

telecommunications and information technologies. This conclusion supports threshold

theories that sustained income take-off will not occur without some minimum level of

development.

Also analyzing EC rural telecommunications projects, Martin and McKeown state

that "... neither EC intervention nor application of ITT is sufficient to address problems of

rural areas without adherence to principles of integrated rural development." (Martin and

McKeown, 1993, p. 145) They explain that integrated rural development is essentially

16

interventionist in nature, and incorporates the following elements:

! a multisectoral approach to development, with measures to promote

sectors other than agriculture;

! economic measures to be paralleled by initiatives in education, health,

training and physical infrastructure investment;

! an attempt to target the most disadvantaged groups in rural areas;

! a requirement for people to become actively involved, not only in

identifying needs and opportunities for development, but also in the

implementation of projects;

! a demand for institutional reform expressed mainly as the devolution of

powers from the national to regional and local levels of administration" (p.

147).

Martin and McKeown cite the example of Donegal, where investment in a digital

network in 1979 has not stimulated any notable economic development. They also note

trends toward centralization of ITT rather than distance-independent decentralization.

"Even where decentralization occurs, the bulk of the jobs, control and decisionmaking,

value added, and expertise remain at head office or in core area locations." They conclude:

"Unless there is minimal infrastructure development in transport, education, health, and

social and cultural facilities, it is unlikely that investments from ITT alone will enable

rural areas to cross the threshold from decline to growth" (p. 151).

This conclusion is echoed by other researchers including Parker and Hudson

(1992), who conclude that telecommunications is a complement in the development

process, i.e. generally, certain levels of other basic infrastructure as well as organizational

activity are required for the indirect benefits of telecommunications to be realized. For

example, Hudson postulates, a well managed decentralized organization such as a

manufacturing enterprise, a tourist development, or a health service will derive more

benefits from telecommunications than a poorly managed or understaffed operation.

Schmandt and colleagues summarize this view: "Telecommunications is a necessary but

17

not sufficient condition for rural economic development." (Schmandt et al., 1990, p. 168)

Parker and Hudson (1992) note that telecommunications may also serve as a

catalyst at certain stages of the rural development process, becoming particularly

important when other innovations are introduced such as improved farming practices,

lines of credit, incentives for decentralization and diversification of the rural economic

base. Examples cited in Electronic Byways (Parker and Hudson, 1992) include the tax

incentives South Dakota used to lure Citibank's credit card operations from New York,

the low wages and tax structures of some Midwest states that have fostered the growth of

telemarketing services there, and pollution controls for Los Angeles that are likely to

stimulate the growth of telecommuting.

Case studies provide much of the evidence on the benefits of telecommunications

in rural development. ITU reports published in 1983 and 1986 summarize the findings of

ITU-supported case studies on the role of telecommunications in agriculture, fisheries,

transport, marketing, and other economic activities. However, methodologies vary, and it

is difficult to extract quantified benefits that could be generalized to other contexts.

Some field studies have analyzed the purposes of calls. Chu and colleagues (1985)

carried out a survey of rural telephone users in Indonesia and Thailand, and found that

residents of villages and semi-rural towns had pressing needs to communicate with

people outside their own surroundings to perform work-related duties, conduct business

transactions, deal with government offices, and reach family members working away

from home. The available telephones were used extensively; three quarters of calls were

long distance. The alternative was to travel long distances to deliver messages.

Kaul (1978) used estimates of costs of transportation alternatives and time lost to

estimate the value of telephone calls in rural India. Mayo and colleagues used similar

methodologies to estimate the value of telephone calls made over a rural satellite network

in Peru. They note that businesses generated about one-third of the calls made over the

network, and that business users estimated that each call saved them about $7.30

compared to alternative means of communication (Mayo et al. 1992, p. 78). The USAID-

18

sponsored Rural Communication Services Project linked seven rural communities, three

via satellite, and four via VHF radio and then via satellite to the national network.

Extensive data were collected and analyzed on the use of the network for telephone calls

and for audio teleconferencing. More than 650 audio teleconferences concerning

agriculture, education, and health were carried out during the project (Mayo et al., 1987).

They estimate that face-to-face training seminars would have cost about twice as much

(Mayo et al, 1992, p. 79).

5.2. Rural Telecommunications Users

Hudson (1992) cites evidence from field interviews in northern Canada, China, the

South Pacific, and Africa that rural telecommunications users can often articulate

precisely the benefits and/or savings in time and effort derived from access to a

telephone. Hudson notes that people who need to communicate quickly or frequently for

their work include entrepreneurs, project managers, and health care providers. In Egypt,

it was found that better educated individuals were more likely to make calls to major

cities and administrative centers, whereas those with little education tended to call only to

nearby villages and towns (Pierce and Jequier, 1983), and in the U.S., Schmandt et al.

(1990) suggest that large farmers and agribusiness benefit most from online agriculture

data. Saunders et al. (1994) cite several studies examining characteristics of telephone

users and purposes of use. For example, a Costa Rican study of rural public call offices

(PCOs) found that villages that benefitted most from the PCOs tended to be larger and

better off economically, with relatively better educated populations engaged in more

progressive agricultural techniques. The PCO users themselves tended to be employed,

but their incomes were not higher than average. In fact, telephone users included a

substantial number of low income residents, although the most frequent callers had

higher than average incomes.

Hudson (1992) states that the most important characteristic of telephone users is

thirst for information. She cites examples from northern Canada of village chiefs without

19

formal education may use the telephone to talk to other chiefs, and villagers who do not

speak the national language or have limited education may rely on intermediaries to

obtain information, such as an extension agent, cooperative manager, or other official who

in turn will use the telephone to obtain the information they need. Thus, Hudson

concludes, although telephone users tend to be better educated and more involved in the

market economy than non-users, literacy and "modernity" are not prerequisites for

telecommunications use. Information seekers may be traditional people concerned about

their families, their work, or problems in their community. They are likely to use

whatever tools are available -- from two-way radios to satellite circuits -- to find the

information they need.

In developing countries, Hardy (1980) found that residential telephones appear to

contribute more to economic development than business telephones. The reason may be

that residential phones are often used for business activities, and are available 24 hours

per day, whereas business phones are available only during work hours. There may also

be a difference between public and private sector use, with many businesses using their

proprietors' home telephones.

5.3. Benefits Related to Distance and Density

Models such as those developed by Hansen (1990) and Hardy (1980) as well as

field research, indicate that economic benefits of telecommunications are related to

distance and density, so that benefits are proportionately greater where telephone density

is low and alternatives to communicate are expensive and/or time consuming.

Where telecommunications services are available, rural people often use them

more heavily and spend more of their disposable income on telecommunications than do

city dwellers. Telecommunications operators frequently find that demand in rural and

remote areas is greater than forecasts based on population alone would indicate. In

northern Canada, Hudson (1984) notes that Indians and Inuit (Eskimos) spend more than

three times as much as their urban counterparts on long distance telephone calls, even

20

though their average income is generally much lower than that of urban Canadians. The

number of long distance calls in some villages in northern Canada increased by as much

as 800 per cent after satellite earth stations replaced high frequency radios. In Alaska, the

installation of small satellite earth stations in villages also sparked tremendous growth in

telephone use. When local telephone exchanges were installed in some villages, long

distance telephone traffic spurted again by up to 350 percent (Hudson, 1990).

5.4. Social Benefits

Many researchers note that there are obvious social benefits of

telecommunications, particularly in rural and isolated areas where other forms of

interaction with distant family members, friends, and colleagues may be infrequent and

time-consuming. The most comprehensive review of these findings is the collection edited

by Pool (1977), although its focus is on industrialized countries. Field research from

developing countries cites examples of rural residents keeping in touch with family

members who have gone to the city or overseas to seek work (such as Egyptians and

Indians to the Arab Peninsula, or South Pacific islanders to New Zealand); families

contacting relatives scattered in many rural communities; and field staff such as nurses

and teachers in rural posts using two-way radios or satellite links to keep in touch with

colleagues and family members.

Moyal describes the social role of the telephone among isolated families in the

Australian Outback: "The role of the telephone [for Australian women] has hence changed

... from an important facility for expediting daily life and transforming the problem of

distance, to an arena where the claims of feeling, care giving, and social support are

explicitly acknowledged" (Moyal, 1992, p. 58). Some researchers refer to social calls

among friends and family as "intrinsic" use, as opposed to "instrumental" use for business

purposes.

Researchers have hypothesized that reducing isolation can help to reduce

personnel turnover. While causal data are difficult to obtain, it appears that

21

communication is at least an important factor. For example, better communications is

cited as one of several factors encouraging reversal of the medical braindrain in

Navrongo, Ghana (SatelLife, February 1994). There is anecdotal evidence from northern

Canada, Alaska, and Outback Australia that the ability to stay in touch with family and

friends makes isolated postings more tolerable, and may contribute to reducing turnover

among field staff. Urban-trained field staff from developing countries have expressed

similar views on the importance of telecommunications in coping with isolation (Hudson,

1984; 1992). It appears that telecommunications is one of several factors that may tend to

reduce staff turnover, with other benefits such as pay bonuses, travel and continuing

education also being important.

5.5. Rural Projects in Industrialized Countries

Several articles review government-sponsored projects designed to extend services

to rural or remote areas, or to demonstrate applications of telecommunications for

development-related activities. The weakness of these reviews is that they are generally

descriptive rather than analytical, and lack data that could contribute to a better

understanding of costs and benefits. A few are mentioned here to show the types of rural

telecommunications projects that have been supported in industrialized countries.

Kerr and Blevis (1984) summarize Canadian satellite projects and demonstrations

on CTS and ANIK B. The purpose of government sponsorship was to contribute to

regional development in health and education using satellite technology which itself was

funded by the Canadian government. Little evaluative information is provided. However,

one pragmatic way of assessing the value of such projects is to determine which were

continued. In fact, several projects which originated during this era are now operational

programs using commercially available satellites and terrestrial networks. They include

Memorial University's telemedicine service in Newfoundland; the Knowledge Network

in western Canada, a radio network run by Cree and Ojibway people in northern Ontario,

and a television network run by Inuit Broadcasting Corporation in the Arctic.

22

In western Europe, the European Community has supported several rural

telecommunications initiatives. STAR (Special Telecommunications Action for the

Regions), is aimed at peripheral regions, to create conditions and provide incentives for

extension of telecommunication services to smaller regions. A major criticism of the

STAR initiative is its bias toward infrastructure, which accounted for about 80 percent of

total expenditure of the program (Martin and McKeown, p. 150). The Telematique

program is designed to promote use of advanced telecommunication services in the

Objective 1 regions (where development is lagging behind the rest of the Community). It

aims to complement the STAR initiative by providing additional support for promotion

of services. The ORA initiative (Opportunities for Rural Areas) is a research and

development initiative aimed to identify the potential opportunities offered by the

application of telematic systems in rural areas, and to identify the technologies and

services required throughout the rural areas of the EC to realize these opportunities. Its

intention is to create a solid basis of knowledge and expertise for subsequent

implementation of suitable telematic systems in specific rural areas (Martin and

McKeown, p. 150).

Taylor and Williams (1990) describe a Scottish project designed to integrate

telecommunication policy with regional development policy through upgrading British

Telecom's network with digital switching and ISDN capability. The Highlands and

Islands Initiative targeted not only existing areas of high economic activity, but also those

locations associated with other development activities. It acts as one of a range of

incentives encouraging relocations into the Highlands and Islands. However, although

there are anecdotal stories of telecommuters working from home, including consultants,

architects and telephone operators, no evaluative study has apparently been released to

date.

Another European-initiated application is telecottages, which originated in

Scandinavia (primarily Denmark and Sweden). These are typically small buildings or

rooms in rural communities equipped with a few personal computers, printers, modems

23

and a fax machine. There are two main variants. Community telecottages provide a range

of services on a nonprofit basis, and are intended to benefit the local community by

providing help to local businesses and farmers. The second type is business telecottages

that resemble city-based business bureaus and provide a range of services on profit-

making basis. Services commonly available at Nordic telecottages are information

retrieval from libraries and data bases; consultancy and ITT training; and access to

teleworking facilities for local people (Qvortrup, 1989). Again, there does not appear to

have been a systematic evaluation of costs and benefits. However, one consistent finding

is that an important element is the resource person who provides training and other

guidance. It appears that other factors are needed for the project to go beyond the

awareness and training phase, such as local entrepreneurs, business experience, and

contacts with potential contractors for rural information services such as data entry and

telemarketing.

In the U.S., the 1990s have seen a resurgence of funding of pilot projects, although

on a much more limited scale than in the 1970s, when NASA, the National Library of

Medicine, and the then Department of Health, Education, and Welfare, among others,

funded numerous projects using telecommunications, particularly experimental satellites,

for rural health and education. The Rural Electrification Administration (REA), now

renamed the Rural Utilities Service, in the Department of Agriculture (USDA) has

established a Distance Learning and Medical Grant Program. The medical projects include

interactive video links, teleradiology, laboratory support, and medical tele-education. The

U.S. Department of Education has allocated more than $80 million to date for distance

education through its Star Schools Program. It supports projects such as the Satellite

Educational Resources Consortium (SERC) that includes school districts, departments of

education, and university educators in 23 states, a statewide interactive video network in

Iowa, and innovative projects to develop and deliver educational programs in inner cities

and rural areas. In 1994, the National Telecommunications and Information

Administration (NTIA) allocated $26 million for infrastructure grants for the planning

24

and construction of telecommunications networks educational, health, library and other

social services. This limited amount is to be stretched by requiring applicants to obtain

matching funds from other sources.

Some states are combining high quality infrastructure with attractive rural settings

to attract "footloose" entrepreneurs such as consultants, architects, and software

developers who appreciate the quality of rural life. (In Colorado, these people are called

"lone eagles"; in Montana, they are known as "modem cowboys.") The Colorado

Advanced Technology Institute (CATI) is providing seed money to selected rural

communities that have proposed using telecommunications as part of their economic

development strategies, and has funded rural gateways to its statewide computer

network, which also provides Internet access (Richardson, 1993).

The U.S. federally-funded projects all require evaluation, and therefore should

provide valuable information on the benefits of rural telecommunications for social

services, and the elements required for successful implementation. However, U.S.

evaluation research in the past has been weak on cost-benefit analysis, focussing more on

usage data.

6. Telecommunications and Rural Sectors

The following is a summary of findings from research on applications of

telecommunications for rural sectoral activities including education, health care, business

and entrepreneurship, and transportation. Impacts specifically related to rural women are

also examined.

6.1. Agriculture

As noted above, access to current market information can enable farmers and

fishermen to get higher prices for their produce than may be available from local

middlemen. Market information is now available electronically in the U.S. The

USDA's Agriculture Marketing Service (AMS) collects and disseminates price and

25

shipping information for agricultural commodities from field offices nationwide via

telephone line and satellite. It disseminates reports based on this information via a VSAT

network. Farmers can access the information on line using a modem, dial toll-free 800

numbers for voice reports, and/or look for summaries redistributed by the mass media.

The primary beneficiaries of this service are thought to be small and medium- sized

farming operations. PRONET and AGRICOLA are private information services that

benefit larger farmers and agribusiness which can afford the access fees (Schmandt et al,

1990).

These types of information services may help farmers negotiate higher prices with

resulting higher revenues than previously. For example, information on market

opportunities apparently resulted in $3 million in additional revenue for watermelon

growers in Florida (Schmandt et al., 1990). Parker et al. (1989) also reported examples of

farmers adjusting production and finding overseas markets as a result of consulting

online databases.

The USDA also operates CIDS (Computerized Information Delivery Service),

which makes available USDA information and state extension service information on line

to individuals with modems as well as to extension services and libraries. However, AMS

and CIDS are underutilized, possibly because they are difficult to use, and some farmers

are resistant to the technology (Schmandt et al, 1990).

In addition to price and user resistance to computer technology, other factors may

be relevant in developing regions such as social or economic constraints prohibiting

farmers from putting information to use. For example, in many parts of Latin America,

peasants have little choice but to sell their crops to local middlemen, even if they know

they would get better prices at regional markets. Also, if rural farmers have no access to

credit, they may not be able to buy improved seeds or fertilizers that they have learned

about from extension agents or other sources (McAnany, 1981). However, there are

examples of profitable use of market information in developing regions ranging from

Brazilian coffee growers contacting the Chicago futures exchange, to farmers in the Nile

26

Delta taking orders from merchants in Alexandria by telephone to Sri Lankan farmers

obtaining market information from Colombo (Hudson, 1992; Saunders et al. 1994).

Logistics can also be important in agriculture and fisheries, where perishable

goods must reach the market before they spoil. Hudson (1984) states that in the Cook

Islands, two-way radio was used to arrange the itinerary of ships dispatched to pick up

fruit so that crops already picked would not be overripe, thereby fetching much lower

prices. In northern Canada, Hudson also notes that Indian lake fishermen use radios to

alert float plane operators when their catch is ready to be flown to urban markets. In the

past, pre-arranged flights were wasted if the catch was too small or the fish were no

longer fresh.

6.2. Education

Perhaps the greatest experience in using telecommunications for development is in

the field of education. Educators were among the first to apply mass media to extend the

range of education, using radio in the 1950s and 1960s for non formal education such as

basic literacy for adults, and for formal education, either by teaching children directly in

classrooms where teachers were unqualified, or by instructing the teachers themselves, so

that they could better teach the students. In the 1970s, educators also began to use

television in countries where it was available, such as American Samoa, India, and Cote

d'Ivoire (Schramm, 1977).

The advent of satellite technology offered an opportunity to distribute educational

programs over an entire country or region. Satellites also provided a reliable means of

interactive communication to link locations that previously had only HF radio or no

telecommunications services at all. The potential of satellites and experiences in North

America with experimental satellites (ATS-1 and ATS-6 in the US, and CTS in the US and

Canada), led distance education specialists to propose projects that would use satellites

for education in developing countries (for an analysis of the North American experience

with experimental satellites in the 1970s, see Hudson, 1990). The two major development

27

activities using satellites for development in the 1980s were the AID rural satellite

program (Tietjen, 1989; Hudson, 1990) and INTELSAT's Project SHARE (Hudson, 1990).

Today, radio is still used extensively for distance education in many developing

countries; while televised courses are more often found in industrialized countries.

However, the major change has been in the growth of interactive applications, ranging

from audio tutorials and student interaction to computer conferencing and in some

limited applications, fully interactive video, typically using video compression. Most of

these applications require very limited bandwidth; even video adequate for some

instructional purposes can use as few as two 64 kbit telephone lines.

Research Findings:

Most research on educational applications of technologies focuses on comparative

effectiveness with face-to-face instruction. Effectiveness of the use of telecommunications

technologies for secondary and post-secondary education is fairly well documented.

Students studying at a distance tend to score about the same as counterparts in face to

face classes. In many cases, they perform better than students in traditional classes.

Witherspoon (1993) suggests two reasons for this result: offsite students are typically

older and more motivated than students on campus; and classes taught using technology

are frequently designed more systematically to create a successful learning experience.

However, Schramm's conclusion in the 1970's that motivated students can learn from

anything from chalkboards to television (Schramm 1977), appears to hold also for more

recent applications such as videoconferencing, multimedia, and computer networking.

Research on the actual costs and benefits of educational technology is much more

limited. Some data comes from corporate users of training networks. For example,

Hewlett Packard's Information Technology Network (ITE-Net) provides interactive voice

and data communication with employees in more than 100 classrooms worldwide. HP

estimates that its Distance Learning System delivers training at one-half the cost of

traditional classes (Portway, 1993).

28

A recent study by Cronin and colleagues addresses the question: "What cost

savings associated with the education sector's usage of telecommunications can be

expected?" Using a translog cost model, Cronin et al. (1994) calculate cost savings in the

U.S. educational services sector due to advances in telecommunications production and

education's consumption of telecommunications for each year from 1963 to 1991.

Cumulative cost savings totaled $76.7 billion in 1991 dollars for U.S. applications.

However, the authors suggest that the full potential of telecommunications as a substitute

for more expensive inputs and processes has not been realized, as education's real usage

of telecommunications has increased by only 1.8 percent per year, less than half the

annual national rate of 3 percent (Cronin et al, 1994, p. 53). They conclude: "Through

distance learning programs, telecommunications may efficiently promote a more

equitable distribution of educational and informational resources among the relatively

resource poor" (Cronin et al., 1994, p. 74).

Four Organizational Models:

At first glance, it may appear that educational needs in the U.S. and other

industrialized countries have little in common with developing countries, which typically

have high illiteracy rates, particularly in rural areas, and shortages of teachers and

facilities. However, in opening hearings on telecommunications in education, U.S.

Congressman David Markey stated: "The need for change in our education system is

evident: massive illiteracy, low SAT scores and an acute shortage of teachers in rural

areas" (U.S. Congress, 1993).

In the U.S., four basic models have been developed to use telecommunications in

education. The curriculum-sharing model links schools so that courses available at one

school can be taught to students at another location. This approach typically connects

students in a local area or county using microwave and now more commonly fiber optic

links between the schools.

The second model may be called the outside expert model; it involves identifying

29

course content that is not available in many rural schools, developing specialized

instructional programming, and delivering the programs to the schools. These projects

are typically regional or national in scope; many use satellites to transmit the courses to

the schools and phone lines for interaction with students.

In the virtual classroom model, content is delivered to students in the workplace

or at home; technologies range from satellite video to interactive audio and computer

conferencing. Examples in the U.S. include the National Technological University (NTU)

which delivers graduate technical courses via satellite to engineers at their workplaces

throughout the country, Mind Extension University, which delivers courses via cable TV,

and the University of Phoenix, which uses online computer conferencing.

A fourth model is the educational broker, which delivers seminars and courses via

satellite from a wide variety of sources. An example is NUTN, the National University

Teleconferencing Network, based in Oklahoma. NUTN offers a wide range of adult and

continuing education programs from many sources (Hudson, 1992a).

Examples of Applications:

The following are additional examples of telecommunications applications for

education and training, emphasizing distance education. The University of the South

Pacific uses a satellite-based audio conferencing network to provide tutorials to

correspondence students scattered in ten island nations of the South Pacific. The

University of the West Indies also offers instruction to students at extension centers

throughout the Caribbean using a combination of satellite and terrestrial audio links

(Hudson, 1990).

Alaska has been a pioneer in using telecommunications for education since the

installation of satellite facilities for telephone service and television distribution in the

1970s. An early activity involved distribution of educational video programs via satellite.

With a limited budget, the state could not afford to produce many video courses.

However, based on teacher requests for supplementary material, it obtained rights to a

30

diverse collection of video programs which were transmitted at night via satellite.

Teachers could set the timers on the school's VCR to tape the programs and use them in

the classroom where appropriate. While this approach does not overcome the problem of

developing appropriate content for different cultures and language groups, it offers a

very low cost way of greatly expanding the educational resources available to village

schools.

Alaska now uses audio and computer conferencing for school administration and

interaction between classes in different communities, interactive digital graphics for

multipoint conferencing, compressed video conferencing on the North Slope, and satellite

video courses with interactive audio from SERC and other sources.

In northern Canada, the Wawatay Native Communications Society has set up an

audio conferencing network enabling Cree and Ojibway people in the villages to talk to

teachers and other students, so that they can complete high school via correspondence,

rather than having to leave their communities to attend regional high schools. Canadian

Inuit have established the Inuit Broadcasting Corporation which transmits TV programs

via satellite across the North, including programs using puppets to teach Inuit children in

their own language about health, hygiene, and northern living; and programs for teens

and adults on Inuit culture and skills for survival in a changing world.

In Australia, the School of the Air now uses computer conferencing as well as voice

via digital microwave and HF radio to reach children studying by correspondence on

isolated homesteads. The Tanami Network, a satellite-based videoconferencing network

using 128 kbit compressed video, links four aboriginal communities with each other and

with Alice Springs and Darwin. The aboriginal operators hope to cover costs by selling

time to government agencies for distance education, training, and consultation with rural

communities to save the time and expense of transport for field visits and meetings

(Catlin, 1992).

Other applications of telecommunications supplement classroom instruction. The

Buddy System in Indiana uses computer conferencing to enable students at home to

31

access online services, and to communicate with each other and with their teachers.

BigSky Telegraph, based in Montana, enables students and teachers to exchange

information and download course modules over an electronic mail network. North

American students now interact through the Internet with counterparts in eastern Europe

and Russia, as well industrialized countries including Australia, New Zealand, western

European countries, and Japan.

Using voice messaging and voice response technology, some U.S. students can find

out about homework assignments and school information, parents can be contacted about

student absences, and families can be notified about school activities, meetings, and

emergencies. Voice mail distribution lists enable PTA committees to update members and

students to organize events (Wilson, 1992).

Educators are using telecommunications to reach adult students. The Open

University model pioneered in the United Kingdom has been replicated in various forms

for correspondence learning in many countries (Commonwealth of Learning, 1993) In the

U.S., the Mind Extension University (ME/U) cable TV network reaches more than 21

million subscribers with college-level programs. The University of Phoenix Online (UOP)

offers computer-mediated instruction in business courses, with a degree program offered

completely online.

6.3. Health Care

Telecommunications is used for three different functions in support of health care

delivery:

! consultation: to give advice to rural health workers, or directly to isolated

patients;

! training: of health care workers;

! education: of target populations including expectant mothers, mothers of

young children, groups susceptible to contagious diseases, etc.

32

Consultation:

Telecommunications has been used since the early days of HF radio to support

health care delivery. For example, Australians originated the Flying Doctors, a medical

service which operated an HF network to give advice to isolated homesteaders in the

Outback. The Australian Royal Flying Doctor Service still operates a telecommunications

support network using public telephone service and a dedicated HF radio network. The

model of combining telecommunications with transportation to provide health services in

isolated areas has been emulated by flying doctor services in East Africa, for example, in

Kenya, Tanzania, and Malawi.

Two-way radio networks are used in many developing countries to support

isolated paraprofessional health workers (Hudson, 1983). More reliable networks relying

on terrestrial systems or satellites are also used for medical consultation in developing

regions. An audio conferencing satellite network is used in Alaska for daily consultation

between village health workers and physicians in regional hospitals, on dedicated

channels of Alascom's commercial Aurora satellite, which is also used for public

telephone service and broadcasting distribution in Alaska (Hudson, 1990). The

conferencing network was designed to enable health workers to listen in on the daily

"Doctor Call," as it was found during experiments using NASA satellites in the 1970s, that

health workers learned and applied information gained from the shared audio channel

(Hudson and Parker, 1973).

Training:

Telecommunications networks can also be used for training and continuing

education of health workers. The Peru Rural Communications Services Project sponsored

by USAID connected health workers in the eastern jungle of San Martin to Lima via VHF

radio and satellite links (Hudson, 1990; Tietjen, 1989). The Alaska satellite network is also

used for continuing education of village health workers. In Guyana, HF radio has been

used for grand rounds presentations from Georgetown and other hospital locations

33

(Hudson, 1983).

Education:

Numerous projects have used communication technology in support of health

education, much of which is targeted to women as expectant mothers, mothers of small

children, and community residents. Successful campaigns have used a variety of media

from posters to radio and television, depending on the message and the resources

available (cf. Black, 1985; Clift, 1986). Interactive communication is less common, but may

be used for administrative support and for follow up with health workers and project

staff.

In general, it has been found that mass media messages plus interpersonal

communication are needed to effect changes in behavior as well as attitude, for example

in oral rehydration therapy, in which the mother is taught to feed a mixture of clean

water, salt and sugar to children with diarrhea (Meyer, Foote and Smith, 1983). Similar

strategies are now being used for AIDS prevention.

Administrative and Professional Support:

To the above categories can be added supported provided by interactive networks

for administrative functions, such as ordering of medical supplies and scheduling field

visits; data collection from the field; and access to medical journals for research and

reference. For example, SatelLife of Cambridge, Massachusetts, operates 2 store-and-

forward satellites, Healthnet I and Healthnet II, with 16 stations licensed in Africa. Field

reports from the Gambia cited improve efficiency of collecting epidemiological data from

vaccine trials using Healthnet instead of a person from the Ministry of Health traveling

500 km every week to pick up data. Similarly, in Cameroon, Healthnet is used for logistics

coordination, administration and communication, instead of someone traveling from

province to province (SatelLife News, May 94).

34

North American Research:

The health care environment in the rural U.S. would at first glance appear to differ

dramatically from conditions in the developing world. However, a 1990 Office of

Technology Assessment (OTA) study cited three problems specific to residents of U.S.

rural areas:

! health indicators: a disproportionate number of rural people suffer from

chronic illnesses; the infant mortality rate is higher than in urban areas; the

number of deaths from injuries is dramatically higher;

! distance from care: lack of transportation and few local providers make it

difficult to reach health care facilities;

! poverty: poverty is higher in rural areas than in the nation as a whole

(quoted in Witherspoon, p. i, 1990).

These factors have contributed to U.S. initiatives to use telecommunications in

rural health care. Generically, these applications are referred to as "telemedicine,"

although some researchers and practitioners prefer to use that term to refer to

consultative uses, and the term "telehealth" to refer to applications for medical education

and administration. Although diagnostic applications have the most visibility,

administrative tasks such as claims processing may yield the greatest cost savings. New

services offer the possibility of enabling pharmacies, hospitals, physicians and dentists to

exchange data electronically with claims processors using regular telephone lines and

public packet-switching networks (Stewart, 1994b).

There is little evaluative material on the effectiveness of telemedicine as a means of

providing care -- both in terms of clinical effectiveness and cost-effectiveness.

Witherspoon (1993) suggests the reasons are partly that most telemedicine projects are

fairly recent, and the current emphasis in medicine is on outcomes research, including

quality, appropriateness, and cost-effectiveness of care is also recent. For example, the

U.S. Public Health Service Medical Treatment Effectiveness Program was established only

in 1989.

35

However, there is evidence of many successful projects in the 1970s and 1980s; yet

despite the fact that, in general, the technology used achieved its purpose of diagnosis,

consultation or education, there is still no widespread implementation (Rockoff, 1975;

Higgins et al. 1984). Several factors are cited by various authors:

! resistance from doctors who feel threatened by alternative approaches;

! the initial expense of setting up some telemedicine systems is high, and

costs are hard to justify;

! reimbursement issues: insurers may not reimburse remote providers;

! legal liability issues;

! many cost savings cited by telemedicine advocates accrue to patients only --

e.g. avoiding transportation and hotel expenses, lost days of work, etc.

Escalating medical costs and the shortage of rural physicians are creating

incentives for the health care sector to resolve some of the issues that have hindered

telemedicine implementation. For example, criteria have been developed in several states

to determine when reimbursement should be authorized (Telemedicine, 1994). Some issues

such as whether physicians will be paid for consultation are important in a fee- for-service

system, but in a government operated system this may not be an issue. However, there

may be another problem: savings in personnel time may not be an important issue if the

system is in the public sector, and there are not effective incentives for cost control.

6.4. Employment and Entrepreneurship

Much of the research on the role of telecommunications in development has

focused on the benefits to businesses in terms of improved efficiency and access to market

information (see above). There are also numerous professional and academic publications

on the role of telecommunications and information technology in improving business

productivity in general that will not be reviewed here. Recent studies on rural

telecommunications policy in the U.S. present examples and case studies of rural business

applications and benefits. Schmandt et al. (1990) and Parker and Hudson (1992) examine

36

rural firms in manufacturing, retail trade, and telecommunications-intensive services such

as software support, consulting, catalog operations and telemarketing.

Rural businesses in the U.S. are increasingly using telecommunications networks

for competitive advantage. In manufacturing, telecommunication is used for inventory

and management systems; in retailing, telecommunications networks link information

systems to track inventory, monitor sales, and link branches. For example, Walmart, the

world's biggest retailer, which is largely rural-based, uses a network of 1600 VSATs to

link its branches with headquarters in Arkansas and with suppliers and distribution

centers, as well as for training and updating personnel.

Credit card companies provide data bases and customer support from small towns

in the Midwest, as do hotel and car rental reservation systems. Catalog companies such as

Land's End and Cabela's also use telecommunications to operate from rural communities

in the Midwest. Mrs. Field's Cookies links it operations in several countries to its global

headquarters in Park City, Utah. Rural tourism industries such as ski resorts and fishing

lodges depend on telecommunications-based reservation systems to bring them business.

The California State Parks use a computerized reservation system accessible by telephone

to allocate campsites (Parker and Hudson, 1992).

The significance of telecommunications in attracting rural businesses is of interest

to rural development planners in North America and Europe. Hepworth (1990) notes that

firms are becoming more flexible in their location and production as they become more

information intensive. He stresses the importance of the communicability of information

capital in his study of the geography of information. Several recent U.S. studies have

examined criteria for business location. In a Deloitte and Touche study, executives of

relocation companies ranked availability of high quality telecommunications fourth in

New Jersey and sixth nationwide among more than 20 relocation criteria. Other highly

ranked factors were access to airports and highways, labor costs, and proximity to major

markets (quoted in Parker and Hudson, 1992). Schmandt et al. (1990) also cite

transportation costs, an adequate labor force and adequate infrastructure including water,

37

power, and telecommunications among frequently cited location criteria.

While developing countries do not have the range of rural economic activities

found in industrialized countries, there is evidence that reliable telecommunications for

reservations can be important for rural tourism such as game parks in Africa, trekking in

Nepal, and beach resorts in the Caribbean and South Pacific.

6.5. Travel, Transportation and Energy

As noted above, telecommunications offers important benefits in overcoming the

distance penalty that hampers business activities and service providers in rural and

remote areas. Research on this topic generally focuses on travel/transport substitution,

i.e. the ability to obtain or transmit information electronically, rather than through

personal travel or through the postal service. Benefits are measured in terms of time

saved, and sometimes converted to monetary amounts using estimates of the value of

time in terms of wage estimates. Another approach is to estimate the value of energy

saved if the number of trips could be reduced.2 (This methodology is commonly used in

studies of telecommuting trials in industrialized countries.)

For example, the ITU funded studies which examined potential energy savings in

developing countries if telecommunications could be used to coordinate logistics, so that

trips would not be wasted (cited in Pierce and Jequier, 1983; ITU, 1986; ITU, 1988). Other

case studies such as those by Chu et al. (1985) and Mayo et al. (1992) estimate time saved

by rural telephone users compared to other modes of communication. Hudson (1992)

found that rural users also took into consideration time wasted by lack of information,

such as shopkeepers and pharmacists making trips to town for supplies, only to find that

the goods were not available, or field workers finding that rural clients such as health

aides or farmers were not there when they arrived.

Of course, benefits of saving time can extend beyond wage estimates. In health and

2. Some of the references in this section are found in different sections of thebibliography, as transportation trade-offs or substitution is only one of the issues they address.

38

disaster communications, time savings can translate into saving lives by getting expert

advice or requesting evacuation, as noted in the Maitland report (1984). Users of

HealthNet note the benefits of using satellite communications rather than personnel to

collect field data, but do not estimate the benefits to the health care delivery system

beyond savings in personnel and fuel costs (SatelLife, May 1994). Time savings may also

enable rural businesses to compete in regional or national markets, as evidenced by some

of the Nordic telecottage successes and examples of rural businesses cited by Parker et al.

(1989), Schmandt et al. (1990), and Parker and Hudson (1992).

The value of time is perhaps most easily measured when money is directly

involved. Hudson and York used the time value of money to estimate what benefits could

accrue to developing country financial institutions by joining the SWIFT network. Here

the comparison was not with physical movement of money, but with telex transfer. Using

data from Brazil, the study showed that by using the faster and more reliable SWIFT

network, a bank could recover its costs of SWIFT usage in a very short time by being able

to precisely time its transactions of currency transfers to foreign banks (Hudson and York,

1988).

6.6. Studies on Women and Rural Telecommunications

In many parts of the developing world, women do much of the agricultural work.

If crops are sold, they may also take the crops to market, or negotiate the price for their

crops or livestock with merchants. In such cases, the benefits of telecommunications in

getting information about prices and markets, and getting expert advice from extension

agents should apply to women. Mass media, such as farm radio forums, which were

developed in Canada, and then adopted in India and other developing countries, have

reached women as well as men with agricultural information (cf. Atkins, 1990).

Meerbach (1991) suggests that some rural women are using public telephones in

Senegal, but that access means more than availability of a telephone in the village.

Women may not have identified business contacts to call, may not be able to afford to call,

39

and may not even know how to place a telephone call. Meerbach emphasizes that before

implementing a telecommunications system, it is imperative to understand the economic,

social, and psychological background of the target group, as well the power relationships

within that setting.

A study by Lebeau (1990) examines payphone use in four rural villages in

Botswana. It was determined that the vast majority of payphone users (72 percent) were

women. The report concluded that telecommunications provision can affect men and

women differently, and that usage patterns differed between male and female. For the

four Botswana villages, women made and received more calls than men, but spent less

per call. Men were more likely to choose an alternative to payphone use that involved

travel, and was more costly. On average, female telephone users were younger than

males, and appeared to have different communities of interest.

The authors point out that this research was based on secondary analysis, which

limited the study and the implications that could be drawn from it on benefits to women

and constraints, such as access to transportation. They suggest that "gender sensitive"

research techniques be used in future, such as inclusion of more detailed categories on

purpose of call, realistic alternatives to phone use, occupation categories that apply to

women, etc.

While studies on direct benefits to women are few, it appears that women do

benefit either as participants (teachers, health care workers, farmers, etc.) or indirectly

through information that benefits them as mothers, entrepreneurs, employees,

community residents, etc.

7. Implications for Planning

7.1. Findings from the Research

Findings from research and pilot projects in rural and developing regions show

that telecommunications can contribute to social and economic development. There has

been progress in developing models that can predict quantitative financial benefits of

40

investment in rural telecommunications, typically based on the theoretical underpinnings

of the role of information in economic activities. There is also substantial evidence on

benefits that result from specific applications of telecommunications in various sectors

such as some forms of distance education, medical consultation, administrative support,

and transport substitution. Some studies also conclude that benefits are proportionately

greater in areas of low teledensity, but it is not clear whether this is because each added

increment of telecommunications is a greater percentage of the installed base than in high

teledensity areas.

Many authors also note that telecommunications should not be seen as a panacea.

A more positive statement of this conclusion is that telecommunications is necessary but

not sufficient for development. Other forms of infrastructure including transportation,

water, and electrification are important, as may be other factors such as labor costs, skills

and reliability; tax or other concessions or incentives; and proximity to major markets.

Thus, there is no simple formula that can safely predict quantifiable benefits of

investing in telecommunications in a specific rural area, because many factors may

influence the extent of the impact of better access to information. They include:

! existing and planned economic initiatives;

! well organized public services and or private sector activities;

! existence of other essential infrastructure;

! participation of users in planning location and features of

telecommunications facilities to eliminate cultural, linguistic, or gender-

based barriers;

! administrative systems for development activities emphasizing supervision

and feedback;

! employee training where telecommunications facilities are installed to

support sector activities;

! accessibility of telecommunications facilities for personal use.

41

7.2. The Need for Integrated Planning

The general conclusion for planning that emerges from this review is that

telecommunications planning cannot be done in isolation if the intent is to derive

maximum benefits for rural development. Planning must be integrated across sectors; i.e.

it is necessary to involve several agencies in addition to telecommunications, representing

sectors such as education, health and social services, agriculture, and economic

development. This may not be an easy task because technical planners and development

planners do not often intersect, and probably think they have little to say to each other.

However, there are numerous examples of such integrated planning activities in North

America that may serve as useful models (see Parker and Hudson, 1992).

To summarize, for coordinated communications planning to occur:

! telecommunications administrations must be informed about national

priorities and development plans;

! national planners must be made aware of the importance of

telecommunications infrastructure to national development;

! resources for extension and improvement of facilities must be allocated to

the telecommunications sector, and resources for training and utilization of

facilities must be included in the sector budgets;

! potential users must be made aware of the services available and how they

could benefit from them.

7.3. New Demands and Opportunities

The examples of applications reviewed above and the availability of new

technologies and services imply that planners of telecommunications for rural areas of

developing countries will need to respond to demands for services beyond simple voice

telephony, although it is likely to remain the first priority. Among the implications are:

! Urban and Rural: The availability of relatively low cost radio and satellite

technologies for serving rural areas makes it possible to reach even the most

42

remote locations, and to base priorities for service on need rather than

proximity to the terrestrial network.

! Voice and Data: While basic voice communication is still the first priority,

many users now have requirements for data communications as well,

particularly facsimile and relatively low speed data communications. Thus

transmission channels must be reliable enough to handle data as well as

voice traffic.

! Video: There is growing demand for video for distance education and

training purposes. The availability of compressed video may make this

option much less costly than when full bandwidth was required.

7.4. Universal Access

Universal access to telecommunications in developing countries may be measured

in terms of availability in all settlements above a certain population threshold; availability

within a certain distance of all residents; or minimal time required to reach a telephone. It

is not necessary to adopt one standard for all rural regions. However, access criteria and

facilities can be adjusted depending on demand and technological innovation.

In order to ensure that telecommunications technologies and services can be put to

optimal use for rural development, the basic goal should be to provide in rural and

remote areas affordable access to telecommunications and information services comparable

to those available in urban areas. The underlying rationale, as found in the literature

reviewed in this report, is that universal access to information is critical to the

development process. It should be noted that this goal is in effect a "moving target": it

does not specify a particular technology, but assumes that as facilities and services

become widely available in urban areas, they should also be extended to rural areas.

43

8. Recommendations to the World Bank

8.1. Support for Rural Telecommunications

Based on the evidence presented in this study, the Bank should make rural

telecommunications a priority in the telecommunications sector. The Bank should ensure

that:

! every telecommunications loan includes a requirement for

telecommunications investment in rural areas;

! every loan requires an external evaluation (i.e. by researchers who are not

employed by the telecommunications administration) of the socio-economic

impact of the rural project(s). (For research guidelines, see below.)

8.2. Access to Telecommunications

The studies reviewed in this report present convincing evidence that

telecommunications contributes to socio-economic development. Based on this evidence,

the Bank should encourage developing countries to adopt a goal of universal access to

telecommunications.

Steps the Bank could take to help developing countries achieve this goal include:

a. recommend that countries adopt a definition of access. Access may be defined

using a variety of criteria such as:

! population: e.g. a telephone for every permanent settlement with a

minimum population;

! distance: e.g. a telephone within x kilometers of all rural residents;

! time: e.g. a telephone within an hour's walk or bicycle ride of all rural

residents.

b. include investment in rural telecommunications as part of any

telecommunications loan package (see above);

c. encourage use of technologies particularly appropriate for rural applications

44

because of design and/or cost in any rural project. Examples include:

! wireless local loops;

! PC-based and other small digital switching systems;

! small satellite terminals;

! voice messaging systems for virtual telephone service;

! low cost videoconferencing such as ISDN-based systems for education and

training;

! renewable energy sources such as solar power and wind power.

d. propose a "report card" that countries could use to gauge their own progress

toward these goals, and could be used for comparison across countries. A draft of

such a report card is included as Appendix B.

8.3. Socio-Economic Research

8.3.1 Macrolevel Economic Studies

This literature review examines studies conducted to date on the role of

telecommunications in the development process. While these studies do provide useful

insights, in general, they do not focus on either developing countries or rural regions.

The Bank should fund a study that specifically addresses the contribution of

telecommunications to economic development in countries or regions:

! below a certain threshold of economic development (e.g. Upper Middle

Income and below, using Bank indicators);

! with a high percentage of population in rural or remote areas (e.g. with

more than 50 percent of the population in non-urban areas).

8.3.2 Macrolevel Social Impact Studies

Existing macrolevel studies focus on economic impacts of telecommunications

investment. However, case studies show strong evidence of the impact of

telecommunications on education and social services. The Bank should fund a study that

45

develops a model for developing countries for forecasting the impact of access to

telecommunications on:

! education including instruction at various levels (primary through higher

education) and various populations (e.g. children and adults);

! training to improve work skills or teach new skills;

! health care delivery;

! emergency services such as natural disaster relief, epidemics, etc.

8.3.3. Telecommunications as a Complement in the Development Process

Several authors have argued that telecommunications investment alone will not

contribute to socio-economic development. This finding is important not only in assessing

projects but in providing guidance to telecommunications planners who need to know

what priority to give to telecommunications, and what conditions are necessary in other

sectors for telecommunications to contribute to development.

The Bank should fund a policy paper that addresses:

! "take-off" indicators for other sectors such as agriculture, entrepreneurial

activity, education, health services, that are required before

telecommunications is likely to make a significant contribution to rural

development;

! planning techniques that can be used to prioritize regions or sectors for

telecommunications investment;

! strategies for involving representatives of these sectors in the

telecommunications planning process.

8.4 Evaluation

8.4.1 Methodology

This report reviews a selection of the numerous case studies that have been carried

out since 1980 on the role of telecommunications in a particular project or region.

46

However, it is very difficult to generalize from these studies because the research

methodologies they use are so diverse. Field research obviously poses problems in

imposing a research design on an existing activity, limited availability of data, limited

resources to collect data or train field researchers, etc. However, there are methodologies

for research design and data collection that could be applied more systematically to field

research in telecommunications.

The Bank should fund a study which presents research methodologies for field

studies including:

! research design

! types of data to be collected

! methods of data collection

! data analysis techniques.

The study should include examples of how these methodologies can be applied in

field settings, drawing from existing cases where possible.

8.4.2 Evaluation of Recent Projects

Several factors are contributing to increased investment in rural

telecommunications in many countries. As discussed in the introduction to this paper,

these factors include:

! technological changes that are reducing costs of rural networks;

! structural changes in the telecommunications sector that are providing

incentives for telecommunications investment;

! recognition that telecommunications and information technologies can play

a significant role in development (e.g. "information infrastructure"

initiatives).

Yet we know very little about the impact of this recent investment, or of recent

sector-specific telecommunications projects. The Bank should therefore fund a series of

evaluation studies on selected recent projects to evaluate the impact of the projects on a

47

particular sector or on rural socio-economic development. The evaluation studies should:

! apply the methodologies identified above;

! determine specific quantifiable benefits of the projects;

! identify factors which contributed to the achievement of benefits or

hindered the project from achieving such benefits;

! identify findings that appear generalizable to other applications in the same

sector or in similar geographic or demographic settings.

8.4.3 Additional Research Topics

There are several additional research topics on rural telecommunications that merit

investigation. The Bank could support studies on the following:

a. Appropriate technologies:

Research on appropriate technologies for developing country communications, such as:

! reducing the capital cost of solar power for telecommunications

! designing effective backup systems

! designs that can withstand harsh environments such as extremes of

temperature, lack of air conditioning, humidity, dust

! inexpensive modular equipment for distance education

! remote polling for billing and monitoring outages.

b. Pricing models:

Models that are designed to recover costs of rural capital and operating costs, but meet

important social criteria for access Examples include:

! free emergency service

! off peak pricing

! pricing based on communities of interest.

48

c. Impact on Women in Development

Development agencies have identified the role of women in development as an

important priority. To date, there is little research on the impact of telecommunications,

particularly on women in rural regions of developing countries. (Existing studies are

reviewed in section 6.6). Additional research is needed on telecommunications usage by

rural women in different cultures, and factors that appear to affect both usage by women

and the indirect benefits of telecommunications for rural women in general, for example,

in terms of improved maternal and child care, education and opportunities, and market

prices for rural products.

A particular priority for countries is improving female literacy. The Bank could

fund research on applications of telecommunications for rural literacy, either through

direct instruction of rural girls and women, or through teacher training and other support

for female literacy campaigns.

8.5 Dissemination of Findings

8.5.1 Publications

This combined set of studies, including macrolevel studies, a guide on field

research methodology, and case studies on recent projects could be compiled into a book

which would be a companion volume to Telecommunications and Economic Development. It

would make a valuable contribution to the field, and could be an important resource for

telecommunications planners, rural and economic development planners, and funding

agencies and investors.

8.5.2 Workshops and Presentations

The content of these studies could be presented at conferences and other

professional meetings of the constituencies identified above, namely telecommunications

planners, rural and economic development planners, and funding agencies and investors.

49

The Bank could also sponsor regional workshops, possibly in collaboration ith

regional organizations or professional associations, to present the findings of the research.

8.5.3. Rural Telecommunications Research Awards

! Technology Design:

The Bank and the ITU could sponsor a design competition, with awards for

technology designs that address the need for low capital cost, high reliability in

harsh conditions, flexibility (to allow upgrades in capacity with increased

demand), and ease of maintenance.

! Research and Evaluation:

The Bank could sponsor annual awards for the best research paper that addresses

theory, methodology, or field research on the role of telecommunications in socio-

economic development. The studies would have to focus on developing countries.

Results could be published and disseminated as described above.

50

APPENDIX A: SOURCES CONSULTED

Sources consulted for the literature review included:

! Data Bases: Searched for period 1983-present

ABI/Inform

CAB Abstracts

Economic Literature (Econ Lit)

ERIC (Educational Research Information Clearinghouse)

Social Sciences Index

U.S. Government Printing Office

! Development Agencies, Research Institutions and Non-GovernmentalOrganizations :

Academy for Educational Development, Washington, DC

CIDA (Canadian International Development Agency)

CIRCIT (Centre for Research on Communication and Information

Technology), Melbourne, Australia

Clearinghouse on Development Communication, Washington, DC

Commonwealth of Learning, Vancouver, Canada

East-West Center Communications Institute, Honolulu, HI

Institute for International Research, Washington, DC

International Development Research Centre, Ottawa

International Telecommunication Union, Geneva

International Institute of Communications, London

United Nations:

UNESCO, Paris

United Nations Economic and Social Commission for Asia

and the Pacific (ESCAP)

United Nations Economic Commission for Africa (UNECA)

51

United Nations Economic Commission for Latin America and

the Caribbean (ECLAC)

U.S. Agency for International Development, Washington, DC

U.S. Department of Agriculture

U.S. Department of Commerce: National Telecommunications and Information

Administration

U.S. Office of Technology Assessment

World Bank, Washington, DC

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APPENDIX B:

A TELECOMMUNICATIONS DEVELOPMENT REPORT CARD

To achieve universal access to telecommunications, we need to agree upon targets

and monitor progress toward achieving them. We might borrow an approach from the

health care community. For example, the World Health Organization (WHO) has set

goals for the eradication of certain diseases, and collects and publishes annual data on the

number of cases of these diseases in each country. The World Bank, possibly in

conjunction with the ITU, could publish a similar "report card", with the goal of achieving

universal access to telecommunications (or eradicating isolation) by the year 2000.

Proposed indicators to monitor for the report card include:

Availability of Service:

! national teledensity: While imperfect, these data are routinely available from

telecommunications administrations. To provide a better estimate of

urban/rural access without thrashing out a universal definition of rural

(rural India and China are very different from rural Papua New Guinea or

Sudan), these data could be disaggregated to show:

! teledensity in cities over x million population (or largest city where there is only

one major urban center in the country);

! teledensity in the rest of the country (While this figure will overestimate rural

teledensity because it will include major towns, its advantage is that data

are likely to be available to make this calculation3).

Quality of Service:

! average length of time to obtain service: urban and non-urban;

3 The ITU's World Telecommunication Development Report includes data on the largestcity and rest of country. These data are themselves quite striking in revealing disparities inaccess, but it would be useful to remove cities completely to get a better estimate of ruralcommunications, particularly in countries such as India and China which have many largecities.

53

! average time to repair service: urban and non-urban;

! percentage of lines connected to digital switches;

! percentage of lines with direct dial service (subscriber trunk dialing): national

and international;

! percentage of multiparty lines: urban and nonurban.

Price:

Here the relevant variable is not absolute cost of access but cost relative to the income of

the users. For example, if a line costs more to install than a family's annual income,

telecommunications cannot really be considered accessible.

! Price of installation: as percentage of annual average per capita income;

! Monthly connection charge: as percentage of monthly average per capita

income;

! price of 3 minute 100 km. domestic daytime call: as percentage of monthly

average per capita income;

! price of 3 minute 500 km. domestic daytime call as percentage of monthly

average per capita income.

Mobile communications:

! percentage of land area covered by mobile services;

! percentage of population in areas covered by mobile services.

Internet access:

! number of Internet gateways: per million population;

! percentage of universities with Internet connection.

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TELECOMMUNICATIONS AND RURAL DEVELOPMENT:

SELECTED BIBLIOGRAPHY

This bibliography is organized according to several categories. It begins withreferences on telecommunications and development in general. It then lists sourcesspecifically on telecommunications and rural development, including studies concerningboth developing countries and rural regions of industrialized countries. The third sectionincludes case studies on developing countries and rural regions. The final section includesillustrative studies on the role of telecommunications in various sectors associated withrural development, including agriculture; education and training; health care anddisaster communication; business, employment and entrepreneurship; travel, transportation and energy; and women in development.

The bibliography consists primarily of works published since 1980, with anemphasis on more recent reports and studies. Publications from before 1980 are includedthat are considered particularly important in presenting theory or analysis of criticalissues and applications. 1. Telecommunications and Development: General

Antonelli, Christiano. "The Diffusion of Advanced Telecommunications in DevelopingCountries." Paris: OECD, 1991.

Ayish, Muhammad I. "International Communication in the 1990s: Implications for theThird World." International Affairs, Vol. 68, July 1992, pp. 487-510.

Black, Maggie ed. "On the People's Wavelength: Communications for Social Change."Unicef News, Issue 114, No. 4, 1982.

"Brother Can You Spare a Line?" The Economist, vol. 289, December 17, 1983, pp. 78-79.

Casey-Stahmer, Anna, et. al. Critical Aspects of the Establishment and Utilization of SatelliteServices for Africa. A Report for the Academy for Educational Development, April 1984.

Childers, Erskine B. "The New Age of Information -- What Kind of Participation?"Development, Vol. 2, 1990, pp. 11-16.

Chowdary, T.H. "Telecommunications Restructuring in Developing Countries."Telecommunications Policy, Vol. 16, No. 9, December 1992, pp. 699-704.

Cronin, Francis J., Elisabeth K. Colleran, Paul L. Herbert, and Steven Lewitzky.

55

"Telecommunications and Growth: The Contribution of TelecommunicationsInfrastructure Investment to Aggregate and Sectoral Productivity." TelecommunicationsPolicy, Vol. 17, No. 9, December 1993a, pp. 677-690.

Cronin, Francis J., Edwin B. Parker, Elisabeth K. Colleran, and Mark A. Gold."Telecommunications Infrastructure and Economic Development." TelecommunicationsPolicy, Vol. 17, No. 6, August 1993b, pp. 415-430.

Cronin, Francis J., Edwin B. Parker, Elisabeth K. Colleran, and Mark A. Gold."Telecommunications Infrastructure and Economic Growth: An Analysis of Causality."Telecommunications Policy, Vol. 15, No. 6, December 1991, pp. 529-535.

Development Communication Report, Vol. 3, No. 62, 1988.

Development Communication Report. Vol. 1, No. 64, 1989.

Development Communication Report. Vol. 3, No. 70, 1990.

Development Communication Report. No. 72-75, 1991.

Gupta, P.P. "Application of Information Technology for Development in India."Development, Vol. 2, 1990, pp. 66-69.

Hardy, Andrew P. "The Role of the Telephone in Economic Development."Telecommunications Policy, Vol. 4, No. 4, December 1980, pp. 278-286.

Hudson, Heather E., Douglas Goldschmidt, Edwin B. Parker and Andrew P. Hardy. TheRole of Telecommunications in Socio-Economic Development: A Review of the Literature withGuidelines for Further Investigations. Geneva: International Telecommunication Union,1979.

Hudson, Heather E. A Bibliography on Telecommunications and Socio-Economic Development.Norwood, MA: Artech, 1988.

Hudson, Heather E. Communication Satellites: Their Development and Impact. New York:Free Press, 1990.

Hudson, Heather E. "Developing Countries' Communications: Overcoming the Barriers ofDistance." Froehlich/Kent Encyclopedia of Telecommunications, Vol. 4, 1992, pp. 351-368.

Hudson, Heather E., Andrew P. Hardy and Edwin B. Parker. "Impact of Telephone andSatellite Earth Station Installation on GDP." Telecommunications Policy, Vol. 6, No. 4,

56

December 1982, pp. 300-307.

Hudson, Heather E. and Lynn York. "Generating Foreign Exchange in DevelopingCountries: The Potential of Telecommunications Investments." Telecommunications Policy,September 1988.

International Development Research Centre. Sharing Knowledge for Development: IDRC'sInformation Strategy for Africa. Ottawa: IDRC, 1989.

International Telecommunication Union. Information, Telecommunications, and Development.Geneva: ITU, 1986.

International Telecommunication Union. World Telecommunication Development Report.Geneva: ITU, March 1994.

Jussawalla, Meheroo and Donald M. Lamberton, eds. Communication Economics andDevelopment. Elmsford, NY: Pergamon, 1982.

Jussawalla, Meheroo, Donald Lamberton, and Neil Karunaratne, eds. The Cost of Thinking:Information Economies of Ten Pacific Countries. Norwood, NJ: Ablex, 1988.

Kelsey, Mark. "A Catalyst for Economic Growth." Communications International, Vol. 20,No. 11, November 1993, pp. 42-44.

Leff, Nathaniel H. "Externalities, Information Cost, and Social Benefit-Cost Analysis forEconomic Development: An Example for Telecommunications." Economic Development andCultural Change, Vol. 32, January 1984, pp. 255-76.

MacBride Commission. Many Voices, One World. Paris: UNESCO, 1981.

Maitland Commission. The Missing Link. Geneva: International TelecommunicationUnion, 1985.

McLellan, Iain. Television for Development: The African Experience, IDRC ManuscriptReport, International Development Research Centre, Ottawa, Ontario, 1986.

Morant, Adrian. "Closing the Gap." Telecom World, December 1991, pp. 56-57.

Moyo, M. "Development Through Radio." Communication Development Journal, Vol. 26,Issue 3, 1991, pp. 227-232.

57

National Research Council, Board on Science and Technology for InternationalDevelopment. Science and Technology Information Services and Systems in Africa.Washington, D.C., National Academy Press, 1990.

National Telecommunications and Information Administration. "Telecommunicationsand Information Infrastructure Assistance Program: Guidelines for PreparingApplications." Washington, DC, February 1994.

Oeffinger, John C. "Merging Computers and Communications: A Case Study in LatinAmerica." Telematics and Informatics, Vol. 4, No. 3, 1987, pp. 195-210.

Parker, Edwin B. "Economic and Social Benefits of the Rural ElectrificationAdministration (REA) Telephone Loan Program." Geneva: InternationalTelecommunication Union, June 1983.

Parker, Edwin B. and Heather E. Hudson. Electronic Byways: State Policies for RuralDevelopment through Telecommunications. Boulder, CO: Westview, 1992.

Parker, Edwin B., Heather E. Hudson, Don A. Dillman, and Andrew D. Roscoe. RuralAmerica in the Information Age: Telecommunications Policy for Rural Development. Lanham,MD: University Press of America, 1989.

Pierce, William B. and Nicolas Jequier. Telecommunications for Development. Geneva:International Telecommunication Union. 1983.

Pool, Ithiel de Sola, ed. The Social Impact of the Telephone. Cambridge, MA: MIT Press, 1977.

Pool, Ithiel de Sola and Peter M. Steven. "Appropriate Telecommunications for RuralDevelopment." In Indu B. Singh, ed., Telecommunications in the Year 2000: National andInternational Perspectives. Norwood, NJ: Ablex, 1983.

"Poor Connection", The Economist, Vol. 294, January 26, 1985, p. 26.

Preece, Robert S. "The Role of Telecommunications in Economic Growth and IncomeDistribution." Proceedings of the World Telecommunications Forum. Geneva: ITU, 1987.

Samarajiva, Rohan and Shields, Peter. "Integration, Telecommunication andDevelopment: Power in the Paradigms", Journal of Communication, Vol. 40, Summer 1990,pp. 84-105.

Saunders, Robert, Jeremy Warford, and Bjorn Wellenius. Telecommunications and EconomicDevelopment, 2nd edition. Baltimore: Johns Hopkins University Press, 1994.

58

Sawhney, Harmeet. "The Public Telephone Network: Stages in InfrastructureDevelopment." Telecommunications Policy, September/October 1992, pp. 538-552.

Schmandt, Jurgen, Frederick Williams and Robert H. Wilson. Telecommunications Policyand Economic Development: The New State Role. University of Texas at Austin, 1988.

Stephens, Guy M. "Funding Telecoms in the Developing World." Satellite Communications,October 1990, pp. 14-16.

Stephens, Guy M. "The Third World Leaping Telecommunications Hurdles." SatelliteCommunications, May 1990, pp. 14-16.

Stover, William J. Information Technology in the Third World: Can I.T. Lead to HumaneInternational Development? Boulder, CO: Westview, 1984.

Warwick. Martyn. "Out of Africa." Communications International, Vol. 21, No. 1, January1994, pp. 58-62.

Wellenius, Bjorn. "On the Role of Telecommunications in Development."Telecommunications Policy, March 1984, pp. 59-66.

Wellenius, Bjorn. "Telecommunications in Developing Countries." Finance & Development,Vol. 21, September 1984, pp. 33-6.

2. Telecommunications and Rural/Regional Development

Anonymous. "Interview: FCC Common Carrier Bureau Chief Cheryll Tritt." RuralTelecommunications, Vol. 11, No. 6, November-December 1992, pp. 30-32.

Allen, John C., Johnson, Bruce B., Leistritz, F. Larry. "Rural Economic Development usingInformation Age Technology: Some Directions for Practitioners." Economic DevelopmentReview, Vol. 11, No. 4, Fall 1993, pp. 30-33.

Analysys, Ltd. A Study of the Economic Implications of Stimulating Applications of IT&T inRural Areas. Final report prepared for the Commission of the European Communities, DGXIII, ORA Programme. Cambridge, UK, 1989.

Block, Clifford B. " Satellite Linkages and Rural Development." In Hudson, Heather E., ed.New Directions in Satellite Communications: Challenges for North and South. Norwood, MA:Artech, 1985.

59

Block, C., D. Goldschmidt, A. Hafid, G. Lalor and A. Velasquez. "SatelliteTelecommunications in Development: The AID Rural Satellite Program and its PilotProjects in Indonesia, Peru and the Caribbean." Proceedings of the Pacific TelecommunicationsConference, Honolulu, January 1984.

Bradshaw, Ted K. "Rural Development and Telecommunications Potential and Policy."Working Paper No. 524. Berkeley: Institute of Urban and Regional Development,University of California, October 1990.

CAB International. Rural Development Abstracts. Vol. 15, No.2, June 1992.

Coulter, Kristin. "The Telco in Rural Development." OPASTCO Roundtable, spring 1990.

Davidson, William H., Anne C. Dibble, and Sandra H. Dom. Telecommunications and RuralEconomic Development. Redondo Beach, CA: MESA Inc., October 1990.

Dillman, Don A. "The Social Impacts of Information Technologies in Rural NorthAmerica." Rural Sociology, Vol. 50, No. 1, 1985, pp. 1-26.

Dillman, Don A. and Donald M. Beck. "Information Technologies and Rural Developmentin the 1990s." Journal of State Government, Vol. 61, No. 1, January/February 1988.

Egan, Bruce L. "Bringing Advanced Technology to Rural America: The Cost ofTechnology Adoption." Telecommunications Policy, Vol. 16, No. 1, January-February 1992,pp. 27-45.

Estabrooks, Maurice F. and Rodolphe H. Lamarche, eds. Telecommunications: A StrategicPerspective on Regional, Economic and Business Development. Moncton, Canada: CanadianInstitute for Research on Regional Development, 1986.

Gallottini, Giovanna T. "Infrastructure: The Rural Difference." TelecommunicationsEngineering and Management. Vol. 95, No. 1, January 1, 1991, pp. 48-50.

Giaoutzi, M. and P. Nijkamp, eds. Informatics and Regional Development. Aldershot, UK:Avebury, 1988.

Hansen, Suella, et al. "Telecommunications in Rural Europe: Economic Implications."Telecommunications Policy, June 1990, pp. 207-222.

Hepworth, Mark. Geography of the Information Economy. New York: Guilford Press, 1990.

Hudson, Heather E. "Demand and Need: Problems in Planning Rural

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Telecommunications."Telematics and Informatics, Vol. 2, No. 3, Fall 1985, pp. 251-258.

Hudson, Heather E. "Ending the Tyranny of Distance: The Impact of NewCommunications Technologies in Rural North America." In Competing Visions, ComplexRealities: Social Aspects of the Information Society, ed Jorge Schement and Leah Lievrouw.Norwood, NJ: Ablex, 1988.

Hudson, Heather E. "Satellite Communications and Development: From Conjecture toReality." Space Communications, Vol. 3, No. 4, 1985, pp. 289-295.

Hudson, Heather E. Telecommunications Policies for Rural Development. Melbourne,Australia: Centre for International Research on Communication and InformationTechnologies (CIRCIT), September 1992.

Hudson, Heather E. "Universal Service: The Rural Challenge." Paper presented at theBenton Foundation Conference on Universal Service, Washington, DC, October 1993.

Hudson, Heather E. When Telephones Reach the Village: The Role of Telecommunications inRural Development. Norwood, NJ: Ablex, 1984.

Hudson, Heather E. and Martin Burch. "Information and the Farm." Center for Researchon Communication Technology and Society, University of Texas at Austin, January 1988.

Kamal, Dr. S.S. "Advanced Telecommunication for Rural Applications." SatelliteCommunications, October 1990, pp. 21-23.

Kaul, S.N. "Benefits of Rural Telecommunications in Developing Countries." Paris, OECD,1978.

Kerr, W. T. and Blevis, B.C. "Telecommunication Services for Rural and Remote Areas." Telematics and Informatics, Vol. 1, No. 1, 1984, pp. 37-46.

Lehner, J. Christopher. "Toward Rural Revival: The Telco-Community Partnership." RuralTelecommunications, summer 1990.

Lloyd, Ann. "The Rural (Radio) Connection." Rural Telecommunications, fall 1988.

McAnany, Emile G., ed. Communications in the Rural Third World. New York: Praeger,1981.

Mansell, Robin. "The Role of Information and Telecommunication Technologies inRegional Development." Science, Technology, Industry Review, OECD, No. 3, April 1988, pp.

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135-173.

Martin, William J. and Sean F. McKeown. "The Potential of Information andTelecommunications Technologies for Rural Development." Information Society, Vol. 9, No.2, April-June 1993, pp. 145-156.

Pye, Roger and Gillian Lauder. "Regional Aid for Telecommunications in Europe: A Forcefor Economic Development." Telecommunications Policy, June 1987, pp. 99-113.

Stuart, Sara. "Video in the Village." Development Communication Report, Spring 1986, pp. 7-8.

Taylor, John and Howard Williams. "The Scottish Highlands and Islands Initiative: AnAlternative Model for Economic Development." Telecommunications Policy, Vol. 14, No. 3,June 1990, pp. 189-192.

Tietjen, Karen. AID Rural Satellite Program: An Overview. Washington, DC: Academy forEducational Development, 1989.

U.S. Congress, House of Representatives. Bringing the Information Age to Rural America.Hearings before the Government Information, Justice, and Agriculture Subcommittee ofthe Committee on Government Operations. Washington, DC: U.S. Government PrintingOffice, 1991.

U.S. Congress, Office of Technology Assessment. Rural America at the Crossroads: Networking for the Future, OTA-TCT-471. U.S. Government Printing Office, WashingtonDC, April 1991.

von der Weid, Denis. "Rural Telecommunications in Developing Countries." LabourEducation, No. 28, 1992, pp. 28-32.

Warwick, Martyn. "Rural Communications: Wishful Thinking vs. Reality."Communications International, Vol. 20, No. 7, July 1993, pp. 44-45.

3. Case Studies

Booz, Allen and Hamilton. "A Microeconomic Study of the Benefits of ImprovedTelephone Service in Selected Areas of the Philippines, 1984." London, 1984.

Booz, Allen and Hamilton. "Study of the Economic Benefits of New TelecommunicationsServices in Costa Rica, 1986." London, 1986.

62

Chu, Godwin C., Alfian C. Srivisal, and Boonlert Supadhiloke. "RuralTelecommunications in Indonesia and Thailand." Telecommunications Policy, June 1985, pp.159-169.

Gwyn, R.J. "Rural Radio in Bolivia: A Case Study." Journal of Communication, Vol. 33, No.2, Spring 1983, pp. 79-87.

International Telecommunication Union. "Contribution of Telecommunications to theEarnings/Savings of Foreign Exchange in Developing Countries: Case Studies of 20Kenyan Firms." Geneva: ITU, 1988.

International Telecommunication Union. "Socio-Economic Benefits of ImprovedTelecommunications in Developing Countries: Results of a Research Study in Vanuatu."Geneva: ITU, 1988.

Kojina, Mitsuhiro, Junichiro Hoken, and Masaru Saito. "Report: The Use of Telephones inSri Lanka." Telecommunications Policy, December 1984, pp. 335-338.

Lalor, Eamon. "Action for Telecommunications Development: STAR: A EuropeanCommunity Program." Telecommunications Policy, Vol. 11, No. 2, June 1987.

Malgavkar, P.D. and V.K. Chebbi. "The Impact of Telecommunications Facilities on RuralDevelopment in India." In Wedemeyer, Dan J. and M.R. Ogden, eds. Telecommunicationsand Pacific Development: Alternatives for the Next Decade. New York: Elsevier and NorthHolland, 1988.

Mayo, John K., Gary R. Heald, Steven J. Klees. "Commercial Satellite Telecommunicationsand National Development: Lessons from Peru." Telecommunications Policy, Vol. 16, No. 1,January-February 1992, pp. 67-79.

Mayo, John K., G.R. Heald, S.J. Klees, M. Cruz de Yanes. Peru Rural CommunicationServices Project Final Evaluation Report. Washington, DC: Academy for InternationalDevelopment, 1987.

Qvortrup, Lars. "The Nordic Telecottages." Telecommunications Policy, Vol. 13, No. 2, 1989,pp. 59-68.

Shields, Peter, Brenda Dervin, Christopher Richter, and Richard Soller. "Who NeedsPOTS-Plus Services? Comparison of Residential User Needs along the Rural-UrbanContinuum." Telecommunications Policy, Vol. 17, No. 8, November 1993, pp. 563-587.

4. Development Sectors:

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4.1. Agriculture, Forestry, Fisheries

Atkins, George S. "Farm Radio in Developing Countries; A Case Study of the DevelopingCountries Farm Radio Network." Development, Vol. 2, 1990, pp. 108-112.

Purvis, B. M. Information for Women in Agricultural Extension in ACP Countries. Wageningen, Netherlands: Technical Center for Agricultural and Rural Cooperation,1987.

Safilios-Rothschild, C. "Role of Women in Modernizing Agricultural Systems." AIDResearch and Development Abstracts, Vol. 11, Issue 3/4, 1984, p. 5.

4.2. Education and Training

Baldwin, Lionel V. "The National Technological University." Educational MediaInternational, Vol. 30, No. 1, March 1993, pp. 40-41.

Buttedahl, Paz G. "Communications Technology and Adult Education: Can Participationbe Encouraged?" Lifelong Learning: The Adult Years, Vol. 6, No. 10, June 1983, pp. 4-6.

Catlin, Jamie. "New Telecommunication Developments: The Tanami Network."Melbourne: CIRCIT Newsletter, Vol. 4, No. 4, June 1992.

Cooperman, William, Lori Mukaida, and Donald M. Topping. "The Return ofPEACESAT." Honolulu: Proceedings of the Pacific Telecommunications Conference, January1991.

Cronin, Francis J., Gold, Mark A., Mace, Beth B., and Sigalos, John I. "Telecommunicationsand Cost Savings in Educational Services." Information, Economics and Policy, Vol. 6, No. 1,March 1994, pp. 53-75.

Cruise, R.J. "Success Factors Relating to Alternative Delivery of Education and TrainingPrograms." Education in Rural Australia, Vol. 3, No. 1, 1993, pp. 19-23.

Developing Distance Education. Papers submitted to the 14th World Conference of theInternational Council for Distance Education Oslo, Norway, August 9-16, 1988.

Education and Development: Evidence for New Priorities. World Bank Discussion Papers, No.95, 1990.

European Association of Distance Teaching Universities. "Open Distance Learning in the

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European Community." Heerlen, Netherlands, 1992.

Filep, R.T and Pelton, J. N. "Education and Communication Satellites: Opportunities forOutreach." 34th Congress of the International Aeronautics Federation, Budapest,Hungary, October 1983.

Finchman, A. G., Desai, P., Halliwell, J., et. al. The Use of Radio for the In-service ContinuingEducation of Rural Primary Health Care Personnel in Jamaica. Kingston, Jamaica: UnitedCooperative Printer Ltd., 1984.

Gallagher, Lynne and Dale Hatfield. Distance Learning: Opportunities in TelecommunicationsPolicy and Technology. Washington, DC: Annenberg Washington Program ofNorthwestern University, May 1989.

Hudson, Heather E. Applications of New Technologies in Distance Education:Telecommunications Policy Issues and Options. Melbourne, Australia: Centre forInternational Research on Communication and Information Technologies (CIRCIT), July1992.

INTELECON. "Opportunities for Distance Education in Commonwealth AfricanCountries." Vancouver: Commonwealth of Learning, 1991.

Jamison, Dean T. Basic Education and Extension Costs, Effects, and Alternatives. WorldBank, Washington DC, 1982.

Jordahl, Gregory. "Communications Satellites: A Rural Response to the Tyranny ofDistance." Educational Technology, Vol. 29, No. 2, February 1989, pp. 34-38.

Kinyanjui, Peter and Augusta Morton. "The Role of Teleconferencing in Support ofDistance Education: The Case for Developing Countries." Paper presented at the AnnualMeeting of the International Conference on Distance Education, Bangkok, November1992.

Lange, James C. "Educational and Cultural Satellite Exchange in Micronesia." PacificCommunications Journal, Vol. 12, No. 2, 1983, pp. 130-146.

Lauffer, Sandra and Anna Casey-Stahmer. Telecommunications Systems for Education andTraining. Washington, DC: Academy for Educational Development, 1983.

Lewis, Chad T. and Terri Hedegaard. "Online Education: Issues and Some Answers."T.H.E. Journal, Vol. 30, No. 9, April 1993, pp. 68-71.

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Lockheed, Marlaine E., John Middleton, and Greta Nettleton, eds. "Education andTechnology: Sustainable and Effective Use." PHREE Background Paper 91/32.Washington, DC: World Bank, 1991.

McAnany, Emile G. et. al. Distance Education for Developing Countries. London: Pergamon,1983.

McIsaac, Marina S. "The Global Classroom: An International Perspective." Proceedings ofthe Association for Educational Communications and Technology, January 1993.

Moore, Michael G. "Telecommunications, Internationalism, and Distance Education."American Journal of Distance Education, Vol. 2, No.1, 1988, pp. 1-7.

Open Learning Agency. "Quick Facts: 1992-1993." Vancouver, BC, 1993.

Peraton, Hilary, ed. "Distance Education: An Economic and Educational Assessment of ItsPotential for Africa." Education and Training Series Report No. EDT 43. Washington, DC:World Bank, December 1986.

Portway, Patrick. "How Corporate America Trains by Telecommunications."Communications News, February 1993, pp. 23-24.

Sharma, Motilal. "Educational Broadcasting and Distance Education as a Strategy forRevitalizing Education of the Disadvantaged." Paper presented at the Symposium onEducational Broadcasting for More Effective Distance Education of the Disadvantaged inthe 1990s: Strategies and Approaches, Manila, Philippines, March 28-30, 1990.

Schramm, Wilbur. Big Media, Little Media. Beverly Hills, CA: Sage, 1977.

Sukow, Randy. "Government or Business: The Developing Battle over Who Takes theLead in Distance Learning." Broadcasting, November 30, 1992, pp. 42-47.

Tkal, Lucy, ed. Technology Survey Report: Educational Technologies 1994. Redfern, Australia:Open Training and Education Network, 1994.

U.S. Congress. Hearing on Communication Benefits to Education and Finance before theSubcommittee on Communications of the Committee on Commerce, Science andTransportation. Washington, DC: United States Senate, March 31, 1993.

U.S. Congress. Hearing on Telecommunications and Education before the Subcommitteeon Communications of the Committee on Commerce, Science and Transportation.Washington, DC: United States Senate, July 29, 1992.

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U.S. Congress, Office of Technology Assessment. Linking for Learning: A New Course forEducation, OTA-SET-430. Washington, DC: Government Printing Office, November 1989.

Wilson, Carol. "Distance Learning is more than an Extracurricular Activity." Telephony,July 13, 1992, pp. 12-17.

4.3. Health Care and Disaster Communications

Anonymous. "Hurdles to Widespread Use." Hospitals and Health Networks, Vol. 67, No. 20,October 20, 1993, p. 47.

Arthur D. Little, Inc. Telecommunications: Can It Help Solve America's Health Problems?Cambridge, MA: Arthur D. Little, Inc., July 1992.

Bashshur, Rashid. "Technology Serves the People: The Story of a CooperativeTelemedicine Project by NASA, the Indian Health Service and the Papago People." Proceedings of Telecommunication Policy Research Conference. Norwood, NJ: 1983.

Black, Dr. Robert E. "Communications for Improved Health Services." DevelopmentCommunication Report, No. 51, Autumn 1985.

Brauer, G. W. "Telehealth: The Delayed Revolution in Health Care." Medical Progress andTechnology, Vol. 18, No. 3, 1992, pp. 151-163.

Clements, Charles. "HealthNet." Cambridge, MA: SatelLife, May 1991.

Clift, Elayne. "Women, Communication, and Primary Health Care." DevelopmentCommunications Report, Summer 1986.

Dymond, Susan B. and Christopher J. Rankin. "Using Technology to Help Rural Practice."MGM Journal, September/October 1992, pp. 32-36.

Fryer, Michelle, Stanley Burns and Heather Hudson. "Two-Way Radio for Rural HealthCare Delivery." Development Communication Report, Autumn 1985, pp. 5, 16.

Higgins, Chris, Earl Dunn, and David Conrath. "Telemedicine: An Historical Perspective."Telecommunications Policy, Vol. 8, No. 4, December 1984, pp. 307-313.

Hudson, Heather E., Victor Forsythe, and Stanley G. Burns. "Keeping in Touch by Two-Way Radio." World Health Forum, Vol. 4, 1983, pp. 157-161.

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Hudson, Heather E. "Telemedicine: Some Findings from the U.S. Experience."Washington, DC: Academy for Educational Development, 1980.

Hudson, Heather E. and Edwin B. Parker. "Medical Communication in Alaska bySatellite." New England Journal of Medicine, December 1973.

Japsen, Bruce. "Rural Facilities Tap Telemedicine." Modern Healthcare, Vol. 24, No. 6,February 7, 1994, p. 44.

Johnson, Tony. "Microsatellite that Turns Information into Medical Power." The(Manchester) Guardian, April 26, 1991.

Mandex, Inc. "Potential Applications and Impact of Microelectronic andTelecommunications in Health Care Delivery." Report to the Bureau of HealthMaintenance Organizations and Resources Development, Bethesda, MD, 1982.

Mantas, John. "The Application of Advanced Information Technology in Medicine andHealth Care: A European Approach." International Journal of Technology Management, Vol.7, No. 6-8, 1992, pp. 560-571.

Meyer, Anthony, Foote, Dennis, and Smith, William. "Communications Works AcrossCultures: Hard Data on ORT." Development Communication Report, No. 51, Autumn 1985.

Roberts, Anne Marie. "Help is Only a Signal Away." Satellite Communications, May 1990,pp. 27-29.

Rockoff, Maxine L. "The Social Implications of Health Care Communication Systems."IEEE Transactions on Communications, Vol. Com-23, No. 10, October 1975, pp. 1085-88.

SatelLife News, 5th Issue, November 1993

SatelLife News, 6th Issue, February 1994.

SatelLife News, 7th Issue, May 1994.

Smith, W. A., Pareja, R., Booth, E., and Kasmuson, M. Health Communication for ORT inHonduras, Assignment Children. Geneva: Unicef, 1984.

Stewart, Alan. "Diagnosis: Telemedicine." America's Network. Vol. 1, No. 4, April 1, 1994a,pp.36-40.

Stewart, Alan. "Greasing the Wheels of Claims Processing." America's Network. Vol. 1, No.

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4, April 1, 1994b, p. 37.

Swartz, M.R., Chaad, D.C., Evens, F.W., and Dohner C.W. "Satellite in Health Educationand Health Care Provision - The WAMI Experience." Journal of the American MedicalAssociation, Vol. 250, No. 5, 1983, pp. 636-639.

Telemedicine, Vol. 2, No. 6, 1994.

Telemedicine Today. Vol. 2, No. 1, Spring 1994.

U.S. Public Health Service, Office of Rural Health Policy, Rural Telemedicine GrantProgram, Bethesda, MD.

U.S. Department of Agriculture, Rural Electrification Administration, Distance Learningand Medical Link Grant Program.

Witherspoon, John P., Sally M. Johnstone, and Cathy J. Wasem. Rural Telehealth:Telemedicine, Distance Education, and Informatics for Rural Health Care. Boulder, CO: WICHEPublications, 1993.

4.4. Business, Employment, and Entrepreneurship

Beamon, Clarice. "Telecommunications: A Vital Link for Rural Business." OPASTCORoundtable, spring 1990.

Communications Studies and Planning International."The Impact of Telecommunicationson a Sample of Business Enterprises in Kenya." Geneva: International TelecommunicationUnion, 1981.

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