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Rural Digital Economy: Policy

Contents
 

Federal policy aims to facilitate the development, adoption, and use of new communication and information services while addressing the universal availability of communication technology. The primary policy vehicle is the Telecommunications Act of 1996 (the 1996 Act), which was the first comprehensive rewrite of the Communications Act of 1934 (the 1934 Act). The 1996 Act modified previous legislation, including the 1934 Act and the 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 1996 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 1996 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, job creation, and increased productivity
  • To further advance universal service to help deliver educational, health care, and other social services.

Government policy further addresses economic equity in Internet access and use through a number of programs and provisions, including:

  • Telemedicine. 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 1996 Act provides funding through its universal service program provisions.
  • Distance learning. There are a number of Federal, State, and local programs designed to aid in the provision of distance learning programs. For rural communities, the goal is to improve education programs by increasing the breadth and depth of course curricula. USDA provides small loans and grants to rural community education providers. The 1996 Act provides funding through its universal service program provisions.
  • 2008 Farm Act. The 2008 Farm Act continued support for rural communication and information programs. The legislation renewed USDA's Rural Utilities Programs in telemedicine and distance learning, created in earlier Farm Acts, including providing loans for companies bringing broadband facilities to rural communities. The 2008 Farm Act also directed the Secretary of Agriculture to develop a national rural broadband strategy.
  • The American Recovery and Reinvestment Act of 2009. The 2009 Act includes $7.2 billion for broadband deployment in unserved and underserved areas of the country. The funds are administered by the Department of Agriculture's Rural Utilities Service (RUS) and the Department of Commerce's National Telecommunications Information Administration (NTIA). The 2009 Act also authorizes the creation of the National Broadband Plan by the Federal Communications Commission, to "ensure that all people of the United States have access to broadband capability and...establish benchmarks for meeting that goal."

 

For more information, contact: Peter Stenberg

Web administration: webadmin@ers.usda.gov

Updated date: August 13, 2009