The Churchill Community Network (CCNet) provides a case study example of the challenges and benefits associated with using information technology in rural and northern areas. CCNet is a small group of citizens from Churchill who started their own community-based Internet business. Initially, the incentive for the community members to start the Internet service provider was to reduce the fees associated with long distance phone and service charges. Now,CCNet’s core group of volunteers are feeling frustrated. Although Internet connectivity has brought new opportunities for economic competitiveness and social development, providing broadband services on a sustainable basis to a remote location such as Churchill is a challenge. As a community economic development strategy, CCNet is faltering. This report explores the difficulties faced by community-based businesses in attempting to participate in the New Economy.