In
addition to the obvious personal benefits, the quick expansion
of a national telecom network has resulted in the rapid
economic development of the United States. It has allowed the
entire country to instantly share its wealth of information.
Companies have not had to wait for days to receive information that
manufacturing depended on or about break throughs in
technology or changes in company direction. The work force can now
instantly get information it needs and even its education as a
result of the national telecommunications network.
Just as with
electrical power, the deployment of telecom infrastructures occurred
rapidly in urban areas where the number of tightly packed
subscribers resulted in a revenue stream that justified the
investment. In rural areas, however, the same economic opportunity
didn't exist and a stimulus was required to insure that
telecommunications services were deployed to the many small towns
and farms that still cover the vast majority of the country.
The Rural Electrification Agency, REA, had been formed under Teddy
Roosevelt's New Deal administration in order to guarantee longer
term loans at lower interest rates to help facilitate the spread of
electrical power to rural areas. In 1949, Congress expanded the
REA's reach into telecommunications allowing the same services to be
used to stimulate the spread of telecom services throughout the
country. The agency is now called the Rural Utility Service,
RUS, and is assisting in the adoption of things like wind
turbines and VOIP.
Rural co-ops sprang up
with the members sharing in the costs, effort, and benefits of the
co-op while installing miles of telephone cable. Some of the
fledgling telephone companies would have as few as 40 customers in
40 square miles. Even today, it's not unusual to find 500 customers
supported with 200 miles of cable. An Iowa farmer, still, also runs
the phone company in his small community of 215 people. He has
managed to install fiber optic cable and provide xDSL services to
the local school and businesses while taking care of his
farm.
The gargantuan
efforts, technological capability, and business skills involved in
this undertaking cannot be overstated. The vast majority of the
1,200 telephone companies in the U.S. have 1,000 customers or less.
While accomplishing the task of providing up-to-date services to
their subscribers, these small TelCos have also managed to be
profitable and always pay their bills as they have negotiated a
myriad of government regulations and rate controls that have been
imposed on them. Their conquest and ongoing struggle, as they
introduce new services like xDSL and VOIP, is very news worthy, but
their contribution never makes the news.
In order for the
nation's telecom backbone to function, the TelCos all must share
their networks with each other equally. Not one of them
wants to be the one that is not shared with and therefore
unable to keep customers happy as they make national and
international calls, surf the web, and share files. Now, however,
the government, based on a lack of knowledge and wild speculation,
is trying to impose net neutrality. This will cause the TelCos to
have to make major investments in their networks just to meet
government requirements with no increase in revenue to cover the
cost. Once again, our communications network is being threatened by
the very people that it serves.
As computer technology
and telecommunications technology have begun to converge, we find a
new range of telecommunications services available. In the next ten
years, assuming that the backbone is not destroyed by the
government, you will be able to choose between the major networks,
movies, college classes, the Internet, emergency services, and video
teleconferencing with your office, friends, and family, all with
your TV remote control. Our televisons will no longer be referred to
as boob tubes.