1. Integrating Telecommunications & Rural Policy Rural Telecon – October 17, 2007 Presented by Sheila S. Sager Coauthors: Theodore R. Alter, Jeffrey C. Bridger & William C. Shuffstall Department of Agricultural Economics and Rural Sociology The Pennsylvania State University

2. Overview  No coherent policy for rural America at the federal level  Need for an integrated and holistic rural policy  Lack of a national broadband policy Critical Communication Infrastructure Critical Communication Infrastructure  Critical communication infrastructure must be part of any rural policy

3. What is Rural?  U.S. Census Definition Rural places are those not defined as urban  Policies reflect this concept, rural isn’t easily defined and isn’t usually a top policy priority

6. Manufacturing Dependent counties

7. Current policies are sector specific Federal Policies Healthcare Emergency Services Education State Policies Education Economic Development Courts Rural places struggle to fit into these policies which often work against each other. Need policies flexible enough to allow and encourage regional collaboration.

8. Recent study in Pennsylvania  Strengthening Rural Pennsylvania: An Integrated Approach to a Prosperous Commonwealth  5 listening sessions asked: Issues most important to prosperity of community Issues most important to prosperity of community Assets and opportunities available Assets and opportunities available Policies that would enable residents to take advantage of assets and opportunities Policies that would enable residents to take advantage of assets and opportunities  http://www3.brookings.edu/metro/pubs/ruralpa.pdf http://www3.brookings.edu/metro/pubs/ruralpa.pdf

9. Common Rural Issues  Limited inter-municipal cooperation and coordination  Changing employment base and lack of living wage jobs  Out-migration of young people  Aging population  Need for workforce development  Inequitable local tax structure

10. Common Policy Themes  Need funding for local and regional development  State policies that encourage municipal cooperation  Emphasis on rural economic development  Critical workforce and infrastructure investment  Examine all policies for their rural implications

11. Placed Based Development  Healthy communities require policies and actions that that strengthen the social, economic, political, and environmental dimensions of local life.  This means that we must recognize and develop connections between seemingly disparate activities such as broadband provision, economic development, workforce development, homeland security, education, health care, and government.

12. US no longer global leader  Country Rankings 2006-2007 1. Denmark 2. Sweden 3. Singapore 4. Finland 5. Switzerland 6. Netherlands 7. United States 8. Iceland 9. UK 10. Norway Source: World Economic Forum, 2007

13. Need for a National Broadband Policy  "A national broadband policy is an essential part of the formula. A central component of this policy must drive us toward universal access to broadband. High speed Internet access is not a luxury, but should be considered a necessity for members of a developed country. We need ubiquitous broadband penetration in the United States if we intend to claim leadership in the next Internet age.“ (Micheal Kleeman, San Francisco Chronicle, 2007)

14. Rural Critical Communication Infrastructure Issues  Rural areas will continue to lose population, jobs, and income unless policy changes are made to ensure that rural communities have the same access to infrastructure services as their urban counterparts.  Low population densities decrease the return on investment to private sector companies offering critical communication infrastructures in rural areas.

15. Rural Infrastructure Issues  Current policy helps to create and enforce industry “silos” for critical communication infrastructure access. Open access networks will help boost competition for services by separating network ownership from service delivery and will enhance the availability of broadband access and service in rural areas.  Infrastructure policy needs to ensure local advanced communication infrastructure is open to competitive service providers.  Infrastructure policy needs to be an integral part of a holistic, integrated, place-based development policy strategy for rural areas.

16. Critical Communication Infrastructure Policy Suggestions  Recognition that affordable business-class infrastructure deployment and access is an important and necessary condition for rural development;  Strategies that encourage and enable aggregation of business-class broadband across the private (business and industry) and public (government, education, healthcare, homeland security) sectors in rural communities;  Creation of open access networks through public-private partnerships and provision of grants and loans to support their development;  Aligning federal and state telecommunications policies with rural development policies to support comprehensive place-based development in rural areas.

17. What can we do?

18. Integrating Telecommunications and Rural Policy Presented by Sheila S. Sager sss2@psu.edu 814-863-6816