Geographical variations in telecommunications systems: the implications for location of activities

Telecommunications accommodate the transmission of information at steadily decreasing costs, especially when compared to transport. This is of growing importance as economies move toward increased reliance on information as an economic, social and political resource.A common notion on the spatial impacts of new telecommunications systems is that they will contribute to the elimination of regional inequalities. Specifically, entry by high-tech industries and information-intensive activities is believed to be facilitated by telecommunications, and in turn, foster development.A preliminary question undelying this notion is whether such systems do in fact create an “equal opportunity space”? Evidence from Israel, supported by findings from other countries, demonstrate that the telephone system, still the back-bone of telecommunications systems, does not offer equal access across space. This holds true for both intea-urban and inter-regional scales.The findings suggest that reduced telecommunications costs do not have a major impact on changing the relative weights of location factors. The interplay of demand, supply and government intervention indicates that the disadvantage of distance will persist in the information era.