The potential for rural areas to benefit from telecommunications technology is a persistent question. This article examines data for the USA concerning the "digital divide" and access of residences and businesses, which tend to suggest that all is (or will soon be) well. The article also presents data on aspects of digital infrastructure in rural America, including points of presence and digital telephone switches, which suggest that there are major shortcomings in most rural communities. Demand aggregation is a possible solution, but more serious pitfalls are those related to shortages of human capital. These might be resolved in some rural places, where immigration and return migration bring needed cerebral inputs to rural areas. A final set of improvements concerns how businesses use the Internet and e-commerce. In the end, telecommunications is not a "quick fix" solution for rural development, and the desired improvements will be limited to a fraction of rural places.
Using econometric models for Internet subscription and use, the authors found that estimation results indicating that price reduction will have a positive influence among existing Internet subscribers. "A model of Internet subscription itself, however, suggests that demand for access is derivative of education and work requirements." Survey data suggest that "isolation has little impact on Internet subscription, except the local isolation of Farms from their nearest town."
