Pulaski, located in the area Tennesseans describe as the southern middle region of the state, has a fiber network other communities covet. When we contacted Wes Kelley, one of the people instrumental in establishing the network, he told us that the community always wanted to be more than "just Mayberry." Rather than settle for the sleepy, quaint, character of the fictional TV town, local leaders in Pulaski chose to invest in fiber infrastructure for businesses and residents.

A Legacy That Lives On

The county seat of Giles County, Pulaski has a long history of municipal utility service. The electric system was founded in 1891, and is the oldest in the state. The city also provides municipal water, sewer, and natural gas service. The electric utility, Pulaski Electric System (PES), serves most of Giles County, which amounts to approximately 15,000 customers. PES receives power from the Tennessee Valley Authority (TVA) and then distributes it throughout the county.

Pulaski is now known for its Fiber-to-the-Home (FTTH) network, PES Energize, but the city's first adventure in providing municipal Internet access began in 1993. The city developed dial-up service and within five years, 1,500 homes were using the service. The city abandoned the dial-up service to offer Wi-Fi but then sold that system to a private company.

Preparing PES

Leaders in Pulaski had their sights on connectivity beyond the limits of Wi-Fi. In 2002, Mayor Dan Speer and Dan Holcomb, the New CEO of PES, began exploring a publicly owned fiber network. Holcomb had previously lead a Michigan utility that offered cable TV and so used his experience to help establish the PES Energize network. AT&T (BellSouth at the time) provided DSL service and Charter offered cable Internet access but neither company performed to the satisfaction of the community. In fact, Pulaski had always suffered through poor quality service from its incumbents.

A growing number of electric coops are providing Internet access to residents and businesses in areas of the country where big providers don't offer services. It’s not a big leap because many electric coops already use fiber for communication between electric substations. Expanding in order to offer high quality Internet access is a logical next step.

In Nevada, the Valley Electric Association (VEA) is bringing Fiber-to-the-Home (FTTH) to members in 2016 and helping create new jobs in Pahrump and Fish Lake Valley. The coop's subsidiary Valley Communications Association (VCA), will operate the network.

Details on speeds and rates are yet to be determined, but the coop plans to offer Internet access up to 1 gigabit.

Community Job Creators

Currently, VEA employs 107 full-time staff and has 31 new job openings; they intend to add a total of 38 positions over the next year. The subsidiary VCA employs 10 full time and contract employees and anticipates adding another 50 employees by the end of 2016.

Municipal networks draw in new businesses and bring new life to communities. For instance, the network in Chanute, Kansas, helped draw in a new manufacturing facility with 150 jobs from Spirit AeroSystems in 2012. And in Thomasville, Georgia, the municipal network revitalized the downtown bringing more than 200 jobs to Main Street. With the addition of high-speed Internet access, this community in Nevada is well positioned for economic development.

From Small Coop to Big Dreams

In 1965, the VEA started off as a small rural coop, but now it has expanded to serve over 45,000 people across 6,800 square-miles of service area. Tom Husted, VEA's CEO, expressed his expectations for the new fiber network: 

“It’s going to add jobs, enhance communications and revolutionize Internet service in our territory.”

In Hudson, Ohio, local businesses prepare for the expansion of the municipal fiber network, Velocity Broadband, and a large business relocates its headquarters to take better advantage of the fiber connectivity.

Excitement from Local Businesses

Thanks in large part to Hudson’s fiber network, a leading provider of recovery management services has moved within the small town to a new state-of-the-art headquarters. The Millennium Capital and Recovery Corporation provides recovery management services nationwide and depends on fast, reliable connectivity in order to meet clients’ needs. The new headquarters location provides for future growth and is equipped to utilize the city’s fiber connectivity. This is just one local business  benefiting from Velocity Broadband.

On January 27th, the city hosted an open house for business leaders to come and learn about the opportunities available through the gigabit fiber network. More than 40 businesses participated and received information on the current plans for Velocity Broadband in the downtown area. The Hudson Hub Times features an exclusive map of the downtown area where the service will soon be available. City Office Manager Maureen Reich described the elation for the high-speed service at the open house: 

“They [local businesses] are very excited… They ask 'when is it coming?' and 'how much does it cost?'"

Velocity Broadband Next Phase: Spring 2016 

Since mid-2014, the city of Hudson, Ohio, has investigated ways to support the connectivity needs of the community and boost economic development. After trying to partner with private providers, the city decided to build out its institutional network fiber which connected municipal buildings and anchor institutions. Throughout 2015, city leaders developed plans to launch Velocity Broadband to bring affordable, reliable connectivity to local businesses. City leaders expect work on the next phase to begin in spring 2016 with several customers connected in May.

It’s getting to be a sad, repetitive tale: crappy Internet for rural populations. Minnesota public officials hope to change that. At both state and federal levels, they’re advocating for greater funding for rural high-speed Internet. 

They’ve proposed several ideas to fund rural connectivity. At the state level, Governor Mark Dayton is pushing to use $100 million of the Minnesota government budget surplus for rural broadband projects. In D.C., Congressman Rick Nolan has introduced a bill to provide funding for regional solutions, and Senator Amy Klobuchar is working on a bill for coordinating broadband installation and highway construction. Will any of these ideas work?

Minnesota Budget Surplus

Minnesota’s state government expects a $1.9 billion budget surplus, which presents an opportunity to fund large, one-time investments. The Star Tribune notes that such one-time investments in infrastructure, “especially when infrastructure is defined broadly to include roads, transit, public buildings and broadband capacity,” could prove a welcome idea. Fiber networks have high, up-front construction costs, but they offer next-generation, high-speed connectivity. Depending on what state leaders do, those high construction costs may no longer be a barrier.

With the news of the budget surplus, Governor Dayton renewed his call for $100 million (just 5% of the budget surplus) to improve broadband in rural Minnesota. Last spring, however, state legislators only approved about a tenth of that amount - around $10 million. The year before that, they had only put in $20 million. The money funds competitive grants in which companies and local governments match state dollars to build networks. Promising a “border to border broadband” approach, Dayton continues to push for funding for rural projects, but it is up to state legislators to determine what to do.

Ideas for Regional Solutions from D.C. 

In Traverse City, Michigan, big plans are underway. The local electric utility is considering constructing a Fiber-to-the-Home (FTTH) network for next-generation high-speed Internet access.

About 10,000 people call the "Cherry Capital of the World" home. The area primarily relies on tourism and high-speed Internet access can help diversify the local economy. At the moment, Traverse City Light & Power (TCLP) is holding planning meetings with community stakeholders to discuss how to build a network to meet the needs of the community.

An Opportunity for Connectivity

The city has been mulling over the possibility of general connectivity for a while - especially citywide Wi-Fi. In 2007, TCLP had just finished installing fiber optic cables to connect electrical substations. They leased some lines to large nonprofit institutions, such as school systems and health facilities, but they still had spare capacity. TCLP realized that they had the potential to expand to residents.

They partnered with the Downtown Development Authority to create a downtown Wi-Fi zone in 2014. The zone automated parking meters and connected tourists, but the Wi-Fi's technological limitations, such as signal strength, soon became apparent. TCLP concluded that citywide Wi-Fi would not be the best option for Traverse City.

Now community leaders are considering using existing fiber, which is already planted throughout the community. TCLP, city and county officials, and other stakeholders have discussed how to develop fiber assets for a FTTH network. The city has several options: a phased approach (connecting the city section by section), a pre-subscriber approach (connecting neighborhoods where people pre-subscribe in great number), an incremental build (slow and steady), or an immediate citywide build (all at once). They also still have to figure out exactly how to cover the costs. 

Economic Development and Community Vitality

The Knoxville News Sentinel published this op-ed about Tennessee's restrictive broadband law on January 9, 2016.

Christopher Mitchell: Next-Generation Networks Needed

Four words in Tennessee law are denying an important element of Tennessee's proud heritage and restricting choices for Internet access across the state.

When private firms would not electrify Tennessee, public power came to the rescue. In the same spirit, some local governments have built their own next-generation Internet access networks because companies like AT&T refused to invest in modern technology. These municipal networks have created competition, dramatic consumer savings and a better business climate in each of their communities.

The four words at issue prevent municipal electric utilities from expanding their successful fiber optic Internet networks to their neighbors, a rejection of the public investment that built the modern economy Tennessee relies upon.

Current law allows a municipal utility to offer telephone service anywhere in the state, but Internet access is available only "within its service area." This limit on local authority protects big firms like AT&T and Comcast from needed competition, and they have long lobbied to protect their de facto monopolies. To thrive, Tennessee should encourage both public and private investment in needed infrastructure.

These municipal systems have already shown they can bring the highest-quality Internet services to their communities. Chattanooga's utility agency, EPB, built one of the best Internet networks in the nation. Municipal fiber networks in Tullahoma, Morristown and more have delivered benefits far in excess of their costs while giving residents and local businesses a real choice in providers.

Many of these networks are willing to connect their neighbors — people and businesses living just outside the electric utility boundary. If Chattanooga wants to expand its incredible EPB Fiber into Bradley County with the consent of all parties, why should the state get in the way?

As the Sixth Circuit Court of Appeals reviews the FCC's February decision to scale back state anti-muni laws in Tennessee, at least two munis in the Volunteer State are giving back by saving dollars. Networks are also contributing substantially to  public coffers via Payment in Lieu of Taxes.

Clarksville, Tennessee, Network Becomes Revenue Positive in 2015

As of June 2015, the city’s utility provider CDE Lightband paid off all outstanding expenses related to their fiber optic network. General manager Brian Taylor described how the network has improved the city’s utility services and overall economic picture:

Our fiber project has proven to be an investment that benefits the electric system, the customers and the community. It has allowed us to enhance our distribution system and improve our system reliability; provide customer choice in video, Internet and telephone services and offer another tool in economic development. Every year access to high speed Internet becomes more critical in the recruitment of new business. We are proud to be an integral part of the growth and development of our community.

In a recent press release, CDE Lightband said their 1,200 mile fiber optic network saves the City of Clarksville a total of $4.5 million annually through technological upgrades that have improved the overall safety, reliability, and speed of electrical maintenance and service. The city has also seen 27% growth in broadband service customers over the past year. The network’s cost savings, along with direct revenues from electrical and broadband services, spell major dividends for CDE Lightband coupled with continued optimism for future growth.

As the people of Tennessee wait for the court to determine their broadband future, state and local leaders in Nashville are hearing municipal network advocates and foes.

The bipartisan Tennessee Advisory Commission on Intergovernmental Relations, anticipating state legislation aimed at removing state anti-muni laws next session, recently heard from advocates of municipal networks. Those in favor of keeping state barriers in place also took a seat at the table. The Commission includes state legislators and local community leaders. The Sixth Circuit Court of Appeals is now considering Tennessee's petition to vacate FCC's February decision to overturn state laws against local authority.

The Same Old Argument

The Tennessee Cable Association (TCA), representing large incumbent cable providers, repeated the same misinformation we have heard before - that municipal networks are "failures." Their lawyer pointed to debt as proof-positive that "these communities that have gone into this business have done very poorly," reported the Johnson City Press.

Chattanooga's EPB President Harold DePriest summed up the weakness of that statement when he said, “It’s the same reason you have a 30-year mortgage on your house, instead of a 5-year mortgage.” It's about long-term vision and planning.

A number of representatives from Tennessee communities served by municipal networks attended the meeting and presented the facts. Chattanooga's world-famous fiber network is often in the limelight, but smaller Tennessee towns with networks like Erwin and Jackson have benefitted from their investments and other communities, such as Cleveland, have plans to follow suit.

Erwin Making Strides