Integrating Integrating Telecommunications & Telecommunications &

Rural PolicyRural PolicyRural Telecon – October 17, 2007Rural Telecon – October 17, 2007

Presented by Sheila S. SagerPresented by Sheila S. Sager

Coauthors: Coauthors: Theodore R. Alter, Jeffrey C. Bridger Theodore R. Alter, Jeffrey C. Bridger

& William C. Shuffstall& William C. ShuffstallDepartment of Agricultural Economics Department of Agricultural Economics

and Rural Sociologyand Rural SociologyThe Pennsylvania State UniversityThe Pennsylvania State University

OverviewOverview

No coherent policy for rural America at the No coherent policy for rural America at the federal levelfederal level

Need for an integrated and holistic rural Need for an integrated and holistic rural policypolicy

Lack of a national broadband policyLack of a national broadband policy Critical Communication InfrastructureCritical Communication Infrastructure

Critical communication infrastructure must Critical communication infrastructure must be part of any rural policybe part of any rural policy

What is Rural?What is Rural?

U.S. Census DefinitionU.S. Census Definition

Rural places are those not defined as Rural places are those not defined as urbanurban

Policies reflect this concept, rural isn’t Policies reflect this concept, rural isn’t easily defined and isn’t usually a top policy easily defined and isn’t usually a top policy priority priority

Manufacturing Dependent countiesManufacturing Dependent counties

Current policies are sector specificCurrent policies are sector specific

Federal Policies

Healthcare Emergency Services Education

State Policies

EducationEconomic

DevelopmentCourts

Rural places struggle to fit into these policies which often work against each other. Need policies flexible enough to allow and encourage regional collaboration.

Recent study in PennsylvaniaRecent study in Pennsylvania

Strengthening Rural Pennsylvania: An Strengthening Rural Pennsylvania: An Integrated Approach to a Prosperous Integrated Approach to a Prosperous CommonwealthCommonwealth

5 listening sessions asked:5 listening sessions asked: Issues most important to prosperity of Issues most important to prosperity of

communitycommunity Assets and opportunities availableAssets and opportunities available Policies that would enable residents to take Policies that would enable residents to take

advantage of assets and opportunitiesadvantage of assets and opportunities http://www3.brookings.edu/metro/pubs/ruralpa.pdfhttp://www3.brookings.edu/metro/pubs/ruralpa.pdf

Common Rural IssuesCommon Rural Issues

Limited inter-municipal cooperation and Limited inter-municipal cooperation and coordinationcoordination

Changing employment base and lack of Changing employment base and lack of living wage jobsliving wage jobs

Out-migration of young peopleOut-migration of young people Aging populationAging population Need for workforce developmentNeed for workforce development Inequitable local tax structureInequitable local tax structure

Common Policy ThemesCommon Policy Themes

Need funding for local and regional Need funding for local and regional developmentdevelopment

State policies that encourage municipal State policies that encourage municipal cooperationcooperation

Emphasis on rural economic developmentEmphasis on rural economic development Critical workforce and infrastructure Critical workforce and infrastructure

investmentinvestment Examine all policies for their rural Examine all policies for their rural

implicationsimplications

Placed Based DevelopmentPlaced Based Development

Healthy communities require policies and Healthy communities require policies and actions that that strengthen the social, actions that that strengthen the social, economic, political, and environmental economic, political, and environmental dimensions of local life. dimensions of local life.

This means that we must recognize and develop This means that we must recognize and develop connections between seemingly disparate connections between seemingly disparate activities such as broadband provision, activities such as broadband provision, economic development, workforce development, economic development, workforce development, homeland security, education, health care, and homeland security, education, health care, and government. government.

US no longer global leaderUS no longer global leader

Country Rankings 2006-2007Country Rankings 2006-20071.1. DenmarkDenmark2.2. SwedenSweden3.3. SingaporeSingapore4.4. FinlandFinland5.5. SwitzerlandSwitzerland6.6. NetherlandsNetherlands7.7. United StatesUnited States8.8. IcelandIceland9.9. UKUK10.10. NorwayNorway

Source: World Economic Forum, 2007

Need for a National Broadband PolicyNeed for a National Broadband Policy

"A national broadband policy is an essential part "A national broadband policy is an essential part of the formula. A central component of this policy of the formula. A central component of this policy must drive us toward universal access to must drive us toward universal access to broadband. High speed Internet access is not a broadband. High speed Internet access is not a luxury, but should be considered a necessity for luxury, but should be considered a necessity for members of a developed country. We need members of a developed country. We need ubiquitous broadband penetration in the United ubiquitous broadband penetration in the United States if we intend to claim leadership in the States if we intend to claim leadership in the next Internet age.“next Internet age.“

(Micheal Kleeman, San Francisco Chronicle, 2007)(Micheal Kleeman, San Francisco Chronicle, 2007)

Rural Critical Communication Rural Critical Communication Infrastructure IssuesInfrastructure Issues

Rural areas will continue to lose population, Rural areas will continue to lose population, jobs, and income unless policy changes are jobs, and income unless policy changes are made to ensure that rural communities have the made to ensure that rural communities have the same access to infrastructure services as their same access to infrastructure services as their urban counterparts.urban counterparts.

Low population densities decrease the return on Low population densities decrease the return on investment to private sector companies offering investment to private sector companies offering critical communication infrastructures in rural critical communication infrastructures in rural areas. areas.

Rural Infrastructure IssuesRural Infrastructure Issues

Current policy helps to create and enforce industry Current policy helps to create and enforce industry “silos” for critical communication infrastructure access. “silos” for critical communication infrastructure access. Open access networks will help boost competition for Open access networks will help boost competition for services by separating network ownership from service services by separating network ownership from service delivery and will enhance the availability of broadband delivery and will enhance the availability of broadband access and service in rural areas.access and service in rural areas.

Infrastructure policy needs to ensure local advanced Infrastructure policy needs to ensure local advanced communication infrastructure is open to competitive communication infrastructure is open to competitive service providers.service providers.

Infrastructure policy needs to be an integral part of a Infrastructure policy needs to be an integral part of a holistic, integrated, place-based development policy holistic, integrated, place-based development policy strategy for rural areas. strategy for rural areas.

Critical Communication Critical Communication Infrastructure Policy SuggestionsInfrastructure Policy Suggestions

Recognition that affordable business-class infrastructure Recognition that affordable business-class infrastructure deployment and access is an important and necessary deployment and access is an important and necessary condition for rural development;condition for rural development;

Strategies that encourage and enable aggregation of Strategies that encourage and enable aggregation of business-class broadband across the private (business business-class broadband across the private (business and industry) and public (government, education, and industry) and public (government, education, healthcare, homeland security) sectors in rural healthcare, homeland security) sectors in rural communities;communities;

Creation of open access networks through public-private Creation of open access networks through public-private partnerships and provision of grants and loans to partnerships and provision of grants and loans to support their development;support their development;

Aligning federal and state telecommunications policies Aligning federal and state telecommunications policies with rural development policies to support with rural development policies to support comprehensive place-based development in rural areas. comprehensive place-based development in rural areas.

What can we do?What can we do?

Integrating Integrating Telecommunications Telecommunications

and and Rural PolicyRural Policy

Presented by Presented by Sheila S. SagerSheila S. Sagersss2@psu.edusss2@psu.edu814-863-6816814-863-6816