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The Effects of Telecommunications Regulation and Deregulation in the Rural Western United States and Canada

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The Effects of Telecommunications Regulation and Deregulation in the Rural Western United States and Canada UNIVERSITY OF CALIFORNIA, SAN DIEGO On the Last Mile: The Effects of Telecommunications Regulation and Deregulation in the Rural Western United States and Canada A Dissertation submitted in partial satisfaction of the requirements for degree Doctor of Philosophy in Communication (Science Studies) by Nadine Irène Kozak Committee in charge: Professor Robert Horwitz, Chair Professor Kelly Gates Professor Hugh Mehan Professor Michael Schudson Professor Robert Westman 2010 Copyright Nadine Irène Kozak, 2010 All rights reserved. The Dissertation of Nadine Irène Kozak is approved, and it is acceptable in quality and form for publication on microfilm and electronically: ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ Chair University of California, San Diego 2010 iii DEDICATION For my parents, Irène and Thomas Kozak iv TABLE OF CONTENTS DEDICATION ............................................................................................................................................ IV TABLE OF CONTENTS ............................................................................................................................. V LIST OF TABLES .................................................................................................................................... VII PREFACE ................................................................................................................................................ VIII ACKNOWLEDGEMENTS ......................................................................................................................... X VITA ......................................................................................................................................................... XIII ABSTRACT OF THE DISSERTATION .............................................................................................. XIV CHAPTER ONE ............................................................................................................................................ 1 INTRODUCTION : UTOPIAN VISIONS AND RURAL REALITIES .................................................................... 1 The History of Telecommunications Development in the U.S. and Canada ........................................... 7 The Deregulation of Telecommunications in the U.S. and Canada ...................................................... 14 Broadband Capacity in Canada and the U.S........................................................................................ 24 Correcting the Inequities of Access: Public and Private Broadband Initiatives .................................. 29 CHAPTER TWO ......................................................................................................................................... 52 “O NE OF THE MOST BRILLIANT GOVERNMENT INNOVATIONS ”: .......................................................... 52 OVERCOMING THE DIGITAL DIVIDE IN ALBERTA , CANADA .................................................................. 52 Privatization and Deregulation in Alberta ........................................................................................... 55 Imagining the SuperNet ........................................................................................................................ 58 Contract versus Policy .......................................................................................................................... 77 Various Visions ................................................................................................................................... 107 From Innovation to Efficiency ............................................................................................................ 119 CHAPTER THREE .................................................................................................................................. 123 “I T’S HERE BUT IT ISN ’T REALLY AVAILABLE TO EVERYBODY ”: CONNECTING TO THE HIGH SPEED NETWORK AND HIGH SPEED INTERNET IN RURAL ALBERTA .............................................................. 123 Rural Organizations and the SuperNet ............................................................................................... 129 Major Challenge One: Lack of Communication ............................................................................................. 132 Major Challenge Two: Pricing Structure ........................................................................................................ 147 Major Challenge Three: Internet Service Provision ........................................................................................ 160 Local Solutions to the Paucity of Internet Service Providers ............................................................. 170 Rural Dwellers and High-Speed Internet ........................................................................................... 187 Evaluations of the SuperNet ............................................................................................................... 201 Conclusion .......................................................................................................................................... 207 CHAPTER FOUR ..................................................................................................................................... 209 “I F YOU BUILD IT , THEY WILL COME ”: ............................................................................................... 209 HIGH -SPEED INTERNET IN EAST -CENTRAL WYOMING ....................................................................... 209 Incentives for Construction of the Grid .............................................................................................. 217 The Visionary Mayor ..................................................................................................................................... 218 Unhappiness with the Incumbent Cable Provider ........................................................................................... 220 v Economic Development ................................................................................................................................. 223 Neglect of Rural America by Private Providers .............................................................................................. 228 A Partner to Build the Middle Mile ................................................................................................................ 233 Technological Optimism ................................................................................................................................ 237 Reasons for the Failure of the Town’s Grid System ........................................................................... 242 No Money Available to Provide Municipal Services ..................................................................................... 243 Changes in Municipal Government ................................................................................................................ 243 No “Intelligent Application” of the System to Town Life .............................................................................. 245 A Resistance to Attracting Big Businesses to Town ....................................................................................... 259 Sale of the Telecommunication System .......................................................................................................... 263 High-Speed Internet in Eastern Wyoming .......................................................................................... 265 CHAPTER FIVE ....................................................................................................................................... 271 IT “IS EXPENSIVE IN MY ESTIMATION ”: ............................................................................................... 271 CONNECTING TO HIGH -SPEED INTERNET IN RURAL WYOMING ......................................................... 271 Rural Organizations and High-Speed Internet ................................................................................... 278 Local Government .......................................................................................................................................... 280 Rural Health Care ........................................................................................................................................... 281 Library ............................................................................................................................................................ 284 Community Learning ...................................................................................................................................... 285 Schools ........................................................................................................................................................... 286 Rural Residents and Businesses and High-Speed Internet ................................................................. 290 Satellite Television Service ............................................................................................................................ 291 Cellular Phone Service ..................................................................................................................................
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