The results of a statewide Tennessee survey on residential and business connectivity are in and they ain't pretty. Thirteen percent of the state - more than 834,000 people - don’t have access to 25 Megabits per second (Mbps) download and 3 Mbps upload, which is the FCC's definition of broadband. Authors of the study make a number of recommendations, the first of which is removing state barriers that stifle Internet infrastructure investment.
"...A More Open Regulatory Environment"
The study, commissioned by the state’s Department of Economic and Community Development (TNECD) earlier this year, includes feedback from more than 23,000 households and businesses.
From page 13 of the report:
The State of Tennessee could consider lifting administrative burdens and restrictions to broadband infrastructure investment to fostering a more open regulatory environment.
In the report, the authors provide detailed reasoning for why the state should embrace an open regulatory environment to encourage competition. They note that state barriers impact electric cooperatives, municipalities that operate electric utilities and cannot expand beyond their own service areas, and municipalities that do not operate electric utilities but can only build telecommunications infrastructure in unserved areas with a private partner.
The FCC came to the same conclusion in February 2015 and rolled back Tennessee state laws in order to encourage competition. Tennessee is leading the charge against the FCC's decision with North Carolina (even though NC's Attorney General criticized the law). The parties have filed briefs, attorneys have presented oral arguments, and now the Sixth Circuit Court of Appeals is considering the case.
The report goes on to recommend other policies, including dig-once, smart conduit rules, and one-touch make ready. Some of these policies have been challenged in other states by the big incumbents, such as the AT&T fight in Louisville against one-touch make ready. It’s no secret that Governor Bill Haslam has been content to let these same corporate gigantaurs effectively run the show in his state for some time now.
Beyond recommendations, findings from the study were also revealing. The press release from the TNECD stated that the study shows fast, affordable, reliable connectivity is especially important to Tennessee’s businesses:
Businesses participating in the assessment reported broadband enabled 43 percent of all net new jobs and 66 percent of revenues. In addition, 34 percent of businesses classified broadband as essential to selecting their location, and 56 percent noted that it was essential to remain in their location. Sixteen percent of economic development agencies reported that businesses frequently chose not to locate in an area due to insufficient broadband. (emphasis ours)
Both business and residential participants cited reliability as the most important factor to them when analyzing their connectivity. Businesses also considered upload speed critical to their use of the Internet.
Urban vs Rural
While the survey determined that 13 percent of people in the state don’t have access to 25 Mbps / 3 Mbps, the “vast majority” were rural folks. According to the survey, 98 percent of urban participants DO have access. Those would include people who live in places such as Chattanooga, Pulaski, and Clarksville - all towns with municipal networks.
The survey found a correlation between access to the Internet and a number of factors, four of which were the most prevalent:
- The economic status of the community
- Number of ISPs (level of competition)
- Type of connection
- Population density
Removing state regulatory barriers would allow a number of these rural areas to partner with municipalities that have already invested in Internet infrastructure. Nowhere else is this situation more apparent than in Bradley County. Cleveland Utilities (CU), the electric, water, and sewer provider in the county would like to partner with nearby Chattanooga EPB Fiber Optics to bring fast affordable, reliable connectivity to customers but state law forbids it. Bradley County and a number of other rural communities have appealed to state lawmakers because it is a matter of economic urgency and educational necessity for their children. They are still waiting.
Bills to eliminate the state barriers have been introduced but while the number of State Legislators supporting them has increased, the movement does not have the force to restore local authority...yet.
Break Down The Barriers
Haslam referred to his administration’s report as “a starting point” and TNED Commissioner Randy Boyd cautioned that, “Not every option included in the report may be the answer for Tennessee, nor is there one simple solution.”
It must be hard to hold the line as expert opinion and evidence chip away at the flawed logic behind Tennessee's state barriers. It's becoming increasingly apparent that the laws do not benefit the people of Tennessee; they are in place strictly for the big cable companies and telcos that operate there.
For the full report, visit the TNECD website.