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Tennessee Legislature Considers Four Pro-Muni Bills
Even though there are several publicly owned networks in Tennessee, existing state statutes create barriers discouraging investment. This year, there is a movement at the state Capitol that may change the environment.
The Jolt Digest and CivSource recently reported that four bills aimed at expanding municipal networks in Tennessee have strong support in Nashville. These Tennessee bills are a refreshing change from bills that are pushed by the cable and telephone companies to limit investment in next-generation networks.
However, these bills are often killed quickly in committee or subcommittee due to the tremendous lobbying power of the big cable and telephone companies.
According to the Jolt Digest, two bills are location specific. From the article:
S.B. 2005 and H.B. 1974 would expand the municipal electric system’s provision of broadband service in Clarksville, Tennessee’s fifth largest city, while S.B. 2140 and H.B. 2242 would allow Trousdale County to contract with a rural electric cooperative to provide broadband services.
As the rules stands, municipal electric utilities that offer broadband cannot expand beyond their electric service territory. Clarksville would like to reach out further to offer services to schools, hospitals, and industrial parks. CDE Lightband now provides a gig product that community anchors need. According to Christy Batts at CDE Lightband, the network recently upgraded residential customers without raising rates. The lowest Internet access speed available to new customers is now 50 Mbps for $44.95 per month.
The Jolt Digest describes the remaining bills as intended to redefine the state's current definition of "telecommunications." The change would allow electric cooperatives to use their existing dark fiber to reach customers that are not served by rural telephone cooperatives. The goal is to encourage economic development, education and health care.
As we so often find, these bills have bipartisan support. Though Republicans at the state and federal level tend to support big cable and telephone company positions more often than Democrats, both Republicans and Democrats at the local level overwhelmingly support the decision being made at a local level rather than state or federal preemption.
PDFs of the full text of the bills are available online:
SB2005, HB1974 - Affecting Clarksville
SB1240, HB2242 - Affecting Trousdale County
SB2428, HB2364 - Addressing the definition of "telecommunications"
SB2562, HB2482 - Facilitates the expansion of municipal utilities’ broadband services for economic development, education, and health care.
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Lexington, Tennessee is the latest U.S. city that will soon see the expansion of more affordable fiber thanks to the city-owned utility, Lexington Electric System (LES). LES’ recent $27.49 million state grant award will be the backbone of a new initiative that will both improve the utility’s electrical services, and deliver a long overdue dose of broadband competition to the area. The plan is deploy over 2,100 miles of fiber to bring high-speed Internet access to 22,000 residents across Henderson, Decatur, Benton, Carroll and Hardin counties that already receive electricity service from the utility.