Applications of telecommunications technologies in rural businesses, schools, health care institutions, and government agencies can help make these institutions more efficient and effective, overcome problems of rural isolation, and diversify rural economies. This report considers some of the issues surrounding these possibilities and discusses the challenges raised by two requirements for such benefits to accrue: the need for a rural public telecommunications infrastructure that is capable of supporting advanced equipment and services at reasonable prices; and the need for communities to make informed decisions about the planning, purchase, implementation, and evaluation of new information technologies. Four primary goals are recommended: (1) a rural service delivery system comparable to the urban infrastructure in quality, availability, and cost; (2) adequate preparation of rural communities to plan for, implement, and evaluate new services and equipment; (3) access by rural communities to adequate capital financing and other sources of funding for equipment and services; and (4) telecommunications-related development strategies that are integrated with the larger economic development strategies of the community and region. More specific suggestions are also delineated. The report calls for a coordinated effort by telecommunications policy makers, the telecommunications industry, and economic development professionals to help achieve these goals. (RAH)