A positive relationship has been found between access to telecommunications capabilities and improved economic development. However, the deployment of systems that deliver toll-free Internet access favors urban regions. This research examines Internet service providers' (ISP) operations in rural portions of Texas, Iowa, Louisiana, and West Virginia to determine the disparity between urban and rural regions for Internet access and the factors that influence ISPs' operations in rural areas. Findings indicate that, in these states, commercial investment in telecommunications infrastructure has been weak in sparsely populated rural areas. Consequently, rural communities suffer increased communication costs, which make it more difficult to attract businesses and growing families. Several ISPs expressed interest in expanding if the cost structure were more favorable, but their dependence on the local telephone infrastructure defined their pricing structure and service offerings. The 1996 Communications Act exempts incumbent rural telephone companies from the requirement to unbundle their networks to would-be competitors, giving them a virtual monopoly in their areas. States also created exemptions that contradict policies designed to enhance telephone calling areas and Internet access. Competition has been advanced as the mechanism to redress access problems, but deregulatory rulings erode traditional universal service supports, and findings suggest that upgraded rural infrastructure will not be as plentiful from Bell Operating Companies as ISPs would like. Most consumers have seen little competition to date and few of its rewards. (TD)