M. Van Wart et al., Economic development and public enterprise: The case of rural Iowa's telecommunications utilities, ECON DEV Q, 14(2), 2000, pp. 131-145
This article examines the creation of public enterprises as a form of econo
mic development for rural American communities. These public enterprises ha
ve a beneficial economic development role to play when there is a private s
ector failure to deliver high-qualify, low-cost services in critical econom
ic areas. The study examines Iowa's advanced telecommunications services in
rural areas. Some rural areas perceive themselves to be well served by the
private sector; but others perceive themselves to be woefully underserved.
When rural Iowa communities believed themselves to be deprived of market-b
ased services, they created public enterprise telecommunications utilities.
Factors necessary for high-quality public enterprise telecommunication sys
tem success (as well as those leading to failure) are discussed. Also discu
ssed are trends showing the importance of the new public enterprise telecom
munications utilities.