Telecommunications and Economic Development: The State and Local Role

The telecommunications infrastructure of the U.S. is becoming an increasingly important component of the economy. In many industries, fast and efficient telecommunications is essential for survival in a competitive environment. The relation between telecommunications and economic development is not well understood, at least in terms of the actual or potential effect of public policy on this relationship. Furthermore, federal deregulation of telecommunications has placed greater policy responsibility on state and local governments. A better understanding of the telecommunications industry is important as state and local governments attempt to use telecommunications policy as a tool for economic development. This article serves three purposes: (1) to identify the forces of change in telecommunications policy, (2) to describe the linkages between telecommunications and economic development, and (3) to examine the policy making environment and public policy issues faced by state and local governments.