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Telecommunications, Geography and

As the production and marketing of goods and services have steadily become more information intensive, technological changes have accelerated and product cycles have shortened. And as a deregulated worldwide market has increased uncertainty and increased the competition among places for investment and jobs, economic activities have become stretched over ever larger distances and the need to transmit information has grown accordingly. As a result, contemporary economic landscapes are closely tied to the deployment and use of telecommunications systems. Telecommunications has been critical to this process for more than 150 years, accelerating the flow of information across distances and bringing places closer to one another in relative space through time– space compression.

Telecommunications is not a new phenomenon. With the invention of the telegraph in 1844, the transmission of information over long distances was made possible and communications became detached from transportation. For decades after the invention of the telephone in 1876, telecommunications was synonymous with simple telephone service. Just as the telegraph was instrumental to the colonization of the American West during the late 19th century, the telephone became critical to the growth of the American city system, allowing firms to centralize their headquarters functions while they “spun off” branch plants to smaller towns. Even today, despite the proliferation of several new technologies, the telephone remains by far the most commonly used form of telecommunications for businesses and households.

During the late 20th century, as the cost of computing capacity dropped and the power increased rapidly with the microelectronics revolution, new technologies, particularly fiber optics and satellites, drastically increased the capacity of telecommunications. With the digitization of information during the late 20th century, telecommunications steadily merged with computers to form integrated networks, most spectacularly through the Internet. New technologies such as fiber optics have complemented, and at times substituted for, telephone lines.

Misconceptions about Telecommunications and Geography

There is considerable confusion about the real and potential impacts of telecommunications, in part due to the long history of exaggerated claims that have been made, particularly by those subscribing to postindustrial theory. Often such views, which are widespread among academics and planners, hinge on a simplistic, utopian technological determinism that ignores the complex, and often contradictory, relations between telecommunications and local economic, social, and political circumstances. For example, proclamations that telecommunications would allow everyone to work at home via telecommuting, dispersing all functions and spelling the obsolescence of cities, have fallen flat in the face of the persistence of growth in dense urbanized places. In fact, telecommunications is generally a poor substitute for face-to-face meetings, the medium through which most sensitive corporate interactions occur, particularly when the information involved is irregular, proprietary, and/or unstandardized in nature. Most managers spend the bulk of their working time engaged in face-to-face contact, and no electronic technology can yet allow for the subtlety and nuances critical to such encounters. For this reason, a century of technological change has left most high-wage, white-collar, administrative command-and-control functions clustered in downtown areas. In contrast, telecommunications is ideally suited for the transmission of routinized standardized forms of data, facilitating the dispersal of functions involved with their processing to low-wage regions. Popular notions that telecommunications will render geography meaningless are simply naive. Although the costs of communications have decreased, other factors have risen in importance, including local regulations, the cost and skills of the local labor force, and infrastructural investments. Economic space, in short, will not evaporate because of the telecommunications revolution.

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