Tag: "tennessee"

Posted August 20, 2015 by lgonzalez

In the center of Tennessee sits Murfreesboro, the fastest growing city in the state with 108,000 people and one of the fastest growing cities in the U.S. (Just 10 years ago there were only 68,000 residents.) Murfreesboro is also one of the next communities to show an interest in a publicly owned fiber network to improve connectivity.

In an August press release [PDF], Murfreesboro Electric Department (MED) described their existing 19-mile fiber infrastructure, used for communication and control purposes for the electricity distribution system. The fiber was deployed in 2008, says MED General Manager Steve Sax, and the utility is now making plans to use spare fibers for Internet connectivity. MED is in the process of expanding its network by an additional 20 miles.

Sax also stated that MED is working with Middle Tennessee State University to develop a fiber optics pilot project but did not offer details other than it is "very similar to what Google is doing in Nashville."

MED and the Middle Tennessee Electric Membership Cooperative (MTEMC) recently entered into negotiations for MTEMC to acquire the MED. The city of Murfreesboro is in the center of the MTEMC service area and the two have been duplicating efforts in some areas. The city and cooperative signed a memo of understanding in June and the process is moving forward slowly. MTEMC serves over 200,000 cooperative members in a four county service territory; the MED provides electricity to approximately 56,000 customers.

MTEMC does not offer telecommunications services at this time but according to a Daily News Journal article, the cooperative is investing in fiber:

"We have been working with an enterprise ... on a fiber network," said [Brad Gibson, MTEMC chief business officer] about the utility that covers Rutherford, Wilson, Williamson and Cannon counties.

MTEMC has contracted with a private company to install and manage its fiber network but the utility is also researching the possibility of developing its own network, he said.

"We are dedicated to fiber," Gibson said.

The ownership of the public electric utility...

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Posted August 6, 2015 by lgonzalez

After a feasibility study on the possibility of a municipal triple-play fiber network left Cleveland Utilities feeling "…not overly optimistic…" community leaders have decided to rethink their strategy. The utility board recently voted 5-0 to look deeper at a network that would offer only Internet and voice services.

Rather than study the feasibility of serving the entire community, CU wants to first try their hand at working on a limited area with a pilot project. The next step is to work with a consultant that will conduct a more focused feasibility study and develop a business plan.

In June, CU CEO Ken Webb told the board:

"I will go ahead and tell you that it's not overly optimistic about us being able to provide 'triple play' [Internet, television and phone] services," Webb said. "The capital requirements are extensive, and the startup cost could present issues."

"There is a possibility of offering services that are not full-blown services," Webb said. "There are a lot of decisions yet to be made, and a lot of review has yet to take place."

After more review of the study, Webb asked the board at the July meeting to consider further consideration for the pilot project, much like the process in Erwin, Tennessee. The Times Free Press covered the meeting where Webb reported that Erwin expected to break even on its pilot project once it took on 180 customers. After recently commencing the project, it quickly signed up 150 subscribers.

As municipalities are considering how to improve their local connectivity, subscriber interest in video services continues to drop. The associated expenses such as head end equipment and the rising cost of content lead a number of them to offer only Internet access and voice. Longmont, Colorado, and Sandy, Oregon, are two recent networks that have decided not to...

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Posted August 4, 2015 by ternste

According to a recent report in the Jackson Sun, the city of Jackson, Tennessee is now the seventh “Gig City” in the state of Tennessee. Jackson Energy Authority (JEA), Jackson’s municipal utility received the special recognition at a January business summit.  The Sun focuses on several existing and expected economic benefits that accompany municipal gigabit connectivity.

“These ultra-fast Internet speeds will help to assure innovation as it relates to the next generation of education, medical care, public safety and economic development,” JEA CEO John Ferrell said.

Ferrell also noted that ultra-fast Internet connectivity benefitted businesses in the Jackson community by allowing them to avoid excess inventory while still being able to provide customers with fast access to physical products when they need them.

"A good example is where an automotive supply company produces a part for a car at one plant — such as an interior headliner — and ships that part to the assembly plant to be installed in the car," Ferrell said. "Many times, this part is produced on the same day at one plant that it is installed at another plant."

Community leaders in Jackson hope their new Gig City status can help them to gain the same kind of economic development benefits that have come to places like Chattanooga, Tullahoma, and Morristown over the past several years. EPB told the Sun:

"The economic impact has been huge," J. Ed. Marston, vice president of the Electric Power Board in Chattanooga, said. "New companies have moved to Chattanooga, and a lot of investors, outside investors, are looking at Chattanooga."

Our report, Broadband at the Speed of Light: How Three Communities Built Next-Generation Networks, delves into Chattanooga’s story. Where communities invest in municipal networks, economic development almost always follows. Check out our Municipal Networks and Economic Development page for more examples.

The State of Tennessee now has nearly 200 data and call centers with more than 34,000 employees. A...

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Posted July 31, 2015 by phineas

As of this January, the FCC defines broadband as 25 Mbps downstream and 3 Mbps upstream, but in some rural areas in the United States, people are still struggling to access DSL speeds of 768 kbps. In a few extreme cases, individuals who rely on the Internet for their jobs and livelihoods have been denied access completely. 

The sad state of affairs for many Americans who subscribe to the major Internet service providers like AT&T and CenturyLink was recently chronicled in an article on Ars Technica that examined AT&T’s stunning combination of poor customer service, insufficient infrastructure, and empty promises to subscribers. It tells the unfortunately common story of the little guy being systematically overlooked by a massive corporation focused solely on short-term profit maximization. 

Mark Lewis of Winterville, Georgia, and Matthew Abernathy of Smyrna, Tennessee, are two examples of AT&T subscribers who, upon moving into new homes, found that not only were they unable to access basic DSL speeds, but that they had no Internet access whatsoever. Alternatively citing a lack of DSL ports and insufficient bandwidth, AT&T failed to provide Lewis Internet access over the course of nearly two years. As for Abernathy, the corporation strung him along for 9 months without providing DSL, forcing him and his wife to rely on a much more expensive Verizon cellular network to go online. 

The struggle that Lewis and Abernathy, as well as others cited in the article, face speaks to the larger problem of individuals relying on large, absentee corporations for their Internet access. Though AT&T has claimed that it intends to expand broadband access to rural and underserved communities, it hasn’t lived up to that promise. Ars Technica estimates that even if AT&T’s merger with DirecTV is approved, which the company says would facilitate the construction of new copper lines in underserved regions, 17 million subscribers would be stuck...

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Posted July 10, 2015 by phineas

The city of Morristown, Tennessee received more positive economic news recently when Sykes Enterprises, a global company that operates in more than 20 countries, announced plans to open a call center in an abandoned big-box store and connect to the city’s municipal network, FiberNet. Sykes estimates that the call center will employ up to 500 workers over the next three years, the large majority of which will come from the Morristown community. 

In Morristown, Sykes will join Oddello Industries, a furniture manufacturer, and the Molecular Pathology Laboratory Network, a personalized health firm – other companies that have cited the fiber network as an important part of their decision to locate facilities in the city of 30,000 people. 

According to the president of the Morristown Chamber of Commerce, Marshall Ramsey, the existence of FiberNet played a role in attracting the 50,000-plus employee firm to Tennessee: 

For Morristown to be able to have a local provider and a secondary provider in AT&T with a gig gives us that redundancy that most companies can’t get elsewhere in the country. 

FiberNet is operated by Morristown Utility Systems, the publicly owned electric and water utility. It began offering gigabit Internet speeds in 2012, though it has served local businesses since 2006. 

This is the second time in two months WBIR – Morristown’s NBC network – has run a story about FiberNet. In May, the station covered the way in which the municipal fiber network has stimulated economic development by increasing competition between service providers. When FiberNet upgraded its network to provide gigabit speeds, the incumbent telephone company in Morristown, AT&T, responded with some upgrades of its own. Morristown is one of a select few cities to have multiple gigabit-offerings, along with neighboring Chattanooga, Tennessee.  

Chris interviewed General Manager and CEO of FiberNet, Jody Wigington, in 2013 to discuss the municipal network’s deployment...

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Posted June 29, 2015 by christopher

Following up on our post last week noting the new video from Tennessee Fiber Optic Communities, another video recently posted explains what needs to change in Tennessee law for Chattanooga to expand Internet access beyond the current footprint. EPB Chief Operating Officer David Wade also explains the process the municipal electric distributor will use to connect nearby communities.

Posted June 27, 2015 by christopher

In a video calling for "Broadband Equity," the Tennessee Fiber Optic Communities have released a video explaining why communities must have their local Internet choice restored.

We encourage you to Like and Follow their campaign on Facebook.

Posted June 25, 2015 by phineas

Economic Development and Community Networks

When a community invests in a municipal broadband network, it often does so because it hopes to reap economic benefits from the network. Many people and organizations have explored the positive relationship between municipal Internet networks and economic development, including a White House report published in January 2015. Municipal networks create jobs by ensuring businesses have fast, affordable, and reliable Internet access; the old DSL and cable networks just don't cut it. These networks improve the productivity of existing businesses and attract new businesses to communities, allow individuals to work from home more effectively, support advanced healthcare and security systems, strengthen local housing markets, and represent long term social investments in the form of better-connected schools and libraries. They also create millions of dollars in savings that can be reinvested into local economies. 


"Upgrading to higher speed broadband lets consumers use the Internet in new ways, increases the productivity of American individuals and businesses, and drives innovation throughout the digital ecosystem." - Executive Office of President Obama

When municipalities choose to deploy fiber networks, they introduce Internet services into the community that are not only significantly faster than DSL and cable, but more reliable. With more reliable fiber connections, businesses and individuals are far less likely to experience temporary blackouts that can halt productivity in vexing and expensive ways. And because these networks are locally-owned and operated, business owners do not have to spend hours on the phone with an absentee Internet Service Provider like AT&T in the (albeit unlikely) event of a problem. 

We at the Institute for Local Self-Reliance have catalogued numerous examples of economic development achievements that have occurred as a result of local governments deploying a municipal broadband network. Below, you can find a wide range of articles...

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Posted June 15, 2015 by lgonzalez

Athens, Tennessee, has struck a deal with Chattanooga's EPB and the Volunteer Energy Cooperative (VEC) that could facilitate the city's interest in a municipal fiber network. According to the Times Free Press, the Athens Utility Board (AUB) hammered out the final agreement earlier this month.

AUB is leasing fiber from VEC that carries a gigabit signal from EBP to the AUB system.

According to the article, AUB has explored the prospect of developing their own fiber network as early as November 2013 and now offers Internet access to one business in a local business park. AUB General Manager Eric Newberry told the AUB Board that they plan to approach other local businesses to set up additional commercial accounts. They plan a slow buildout and urge local businesses, many of them clamoring for a reliable connection, to be patient as they take next steps.

Athens is part of the Chattanooga-Cleveland-Dalton area in the southeast corner of the state and home to around 13,500 people. In March, the City Council voted unanimously to pass Resolution 2015-11 supporting local authority for telecommunications. [See the PDF of the Minutes p.1]

Thusfar, the investment has cost $58,258.69 for labor, materials, and equipment. The Board had budgeted $100,000 for the project.

Posted June 9, 2015 by lgonzalez

For the first time in four years, EPB is asking its board of directors to approve a rate increase for electric power charges, reports the Chattanoogan. According to EPB, revenue from the Fiber Optic division has kept electric power prices in check for the past four years.

Price increases are always a frustration for residents and businesses, but this is actually another example of how the entire community, even those who may not subscribe to EPB's fiber network, have beneifted via reduced energy rates. We wrote about this last in 2012.

According to the article, several years of deadly storms have caused damage that have increased the average cost of cleanup from $2 million per year to $6 million per year. Additionally:

Officials said this rate increase "is driven by a continuing trend over several years of higher-than-normal costs associated with the greater frequency of devastating storms and by large peak energy demand charges that EPB pays to TVA for power generation.  These demand charges are not covered by regular power sales during months with extreme fluctuations in temperature, particularly when there are a few days of extreme temperatures and the rest of the month is much milder."

The article also notes that the fiber optic division has made $13.4 million over the past fiscal year. Debt from the investment made to offer telephone services is expected to be paid off this June.

[EPB CEO Harold] DePriest  said it was "the best investment we ever made."

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