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Briefing Rooms

Rural Telecommunications: Rural Telecommunication Policy

Contents
 

Telecommunication policy includes virtually everything that an information society uses to convey facts and ideas—one reason why the more inclusive term "communication and information" services is becoming more commonly used than the term "telecommunication" services. Telecommunication policy enshrined in the Telecommunications Act of 1996 covers telephones, wireless telephony, ham radios, cable TV, computers, the Internet, broadcast radio, broadcast TV, distance learning, telemedicine, satellite communications, interstate trade, public morality over the airwaves, cross-ownership of media, telecommunication equipment manufacturing, and many other communication and information economic activities partially or in their entirety.

Federal policy addresses economic efficiency and equity. The policy intends to facilitate the development and adoption of new communication and information technology while addressing the universal availability of communication services. The primary policy vehicle is the Telecommunications Act of 1996, which was the first comprehensive rewrite of the Communications Act of 1934. The Act modified previous legislation, such as the 1934 Communications Act, Cable Act of 1992, and judicial actions, such as the early 1982 consent decree in the breakup of Ma Bell (AT&T).

The provisions of the 1996 Act fall primarily into five major areas:

  • Telephone service delivery
  • Telecommunications equipment manufacture
  • Cable television service delivery
  • Radio and television broadcasting
  • Internet and online computer service delivery

In each of these areas the Act relaxed concentration and merger rules for telecommunication companies, eliminated cross-market entry barriers, and assigned new implementation obligations to the Federal Communications Commission (FCC). The Act was created to achieve the following goals:

  • To carry out the transition of the telecommunications industry from a heavily regulated market to one based on competition
  • To improve the telecommunications network so that consumers are able to send and receive voice, data, images, and video at affordable rates
  • To promote economic growth, creating jobs, and increasing productivity
  • To further advance universal service to help deliver educational, health care, and other social services

Government policy further addresses economic equity by a number of means, including:

  • Telemedicine provisions. These provisions are covered in a number of different Federal and State programs. USDA's program provides small loans and grants to rural health service providers. The program aims to improve telemedicine communication and infrastructure for rural communities. The Telecommunications Act of 1996 provides funding through its universal service program provisions.
  • Distance learning provisions. There are a number of Federal, State, and local programs designed to aid in the provision of distance learning programs. For rural communities, the programs' goals are the improvement of education programs by increasing the breadth and depth of course curricula. USDA is one of the Federal Departments active in this area. USDA provides small loans and grants to rural community education providers. The Telecommunications Act of 1996 provides funding through its universal service program provisions.
  • 2002 Farm Bill provisions. The 2002 Farm Bill's Rural Development Title, (Rural Development Title IV) provided for a number of telecommunication programs. The legislation renewed the USDA Rural Utilities Programs in the telemedicine and distance learning program that were created in earlier Farm Bills. In addition, a pilot program for providing loans for companies bringing broadband facilities to rural communities became a full-fledged program. The program is designed to improve access to broadband services. Funding for the Launching Our Communities' Access to Local Television Act (of 2000), designed to facilitate local television access in rural communities, was also included. Two new programs, rural telework and rural e-commerce extension, were established by the 2002 Farm Bill.

 

For more information, contact: Peter L. Stenberg

Web administration: webadmin@ers.usda.gov

Updated date: February 9, 2006