Tag: "tennessee"

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."

Posted May 27, 2015 by lgonzalez

In an effort to extend the benefits of its gigabit network to lower income Chattanooga school kids, Mayor Andy Berke announced that the EPB will soon offer the "Netbridge Student Program." 

WDEF reports that children will qualify for the program if they are enrolled in Hamilton County schools and are currently enrolled in the free or reduced price lunch program. Comcast's Internet Essentials uses the same eligibility criteria. Households that qualify will be able to sign up for 100 Mbps service for $26.99 per month. Details are still being discussed.

Last year, Hamilton County schools replaced a number of textbooks with iPads in an attempt to take advantage of Chattanooga's fiber asset to improve student performance. The move revealed a grim reality - that many students' access to that incredible gigabit network (or any network) stopped when they walked out of the school. Educators found that children with Internet access at home made significant strides while those without fell behind. From a December 2014 article on Internet and Chattanooga students:

In the downtown area, for example, only 7 percent of potential customers subscribe to high-speed broadband Internet. In economically depressed areas such as Alton Park and East Lake, only 15 percent of residents have high-speed Internet, according to EPB.

We spoke with Danna Bailey, Vice President of Corporate Communications from EPB, to get some details on the plan and she confirmed that the program is still in its infancy; officials at EPB plan to have it ready for students by the fall. She told is that the rate of $26.99 is what EPB must pay to bring 100 Mbps to a customer when it is unbundled. The regular rate is $57.99. 

Note that the slowest speed anyone can get on the EPB Fiber network is 100 Mbps symmetrical. Unlike other providers, EPB is not offering a much slower tier to low income households. We haven't been able to verify, but we suspect that EPB is limited by state law on its pricing. State laws that prohibit municipalities from offering services below cost may be uniquely hurting low income households -- yet another reason that states should allow communities to make these decisions...

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Posted May 19, 2015 by lgonzalez

In a recent report, WBIR Knoxville shined the spotlight on Morristown. The article and video discuss how FiberNET has improved its telecommunications landscape by inspiring competition, offered better connectivity to the region, and how state law prevents other towns from reaping similar benefits. We encourage you to watch both of the videos below.

Morristown's utility head describes how it considers high-speed Internet access to be a necessary utility:

"You had railroads, you had interstates, and this is the new infrastructure cities need to have," said Jody Wigington, CEO of Morristown Utility Systems (MUS). "To us, this really is as essential to economic development as having electricity or water."

Morristown began offering gigabit service via its FTTH network in 2012. It began serving residents and businesses in 2006 because the community was fed up with poor service from incumbents. Since then, FiberNET has stimulated economic development, saved public dollars, and boosted competition from private providers. 

Prices for Internet access are considerably lower in Morristown than similar communities. From the article:

Morristown's Internet service is more expensive than Chattanooga, but much faster than the rest of the region at a comparable price. A 100 Mbps synchronous connection is $75 per month. Advertised rates for Comcast in Knoxville show a price of almost $80 per month for a 50 Mbps connection with much slower upload speeds. A 50 Mbps connection in Morristown costs $40 per month. The cable Internet option in Morristown is Charter, with an advertised price of 35 Mbps for $40 a month.

As we have seen time and again, the presence of a municipal network (nay, just the rumor of one!) inspires private providers to improve their services. AT&T offers gigabit service in Morristown and Comcast has announced it plans on offering 2 gigabit service in Chattanooga.

"Without a major disruptor like we've seen in Chattanooga and in Morristown, there's really no reason for these guys [private companies] to go out of their way to make a big spend to make bandwidth faster. It just simply doesn't make good business sense," said [Dan] Thompson...

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Posted April 10, 2015 by lgonzalez

Senator Janice Bowling and Representative Kevin Brooks have decided to table their legislative efforts to remove state restrictions in Tennessee. While backing for SB 1134 and HB 1303 was growing beyond the walls of the state Capitol, the sponsors decided to shore up stronger legislative support rather than risk derailing the bill entirely. 

Brooks told the Tennessean:

"We have had a lot of good progress, and we don't want to throw it all away," Brooks said. The votes were not there in the Senate, and he and co-sponsor state Sen. Janice Bowling, R-Tullahoma, have asked to roll the bill to the beginning of the 2016 calendar, giving them more time to garner support from their colleagues.

"We have pressed the pause button to keep it alive," Brooks said.

Communities around the state, including Bristol, went on record in support of the bill. The Tennessee Farm Bureau, representing 600,000 members, also backed the legislation

Energized by the recent FCC decision nullifying state laws restricting Chattanooga from expanding, Bowling, Brooks, and other local leaders thought the time was right to once again try to eliminate state barriers. The FCC decision has already been formerly challenged by Tennessee's Attorney General with the support of the Governor. Rather than depend on federal intervention to establish an environment that will encourage connectivity, SB 1134 and/or its companion HB 1303 would have solved the problem on the home front.

Economic development has been stifled by state barriers preventing municipal network expansions in the state but many constituents are plagued by lack of personal access. Incumbents who have spent millions lobbying to keep these restrictions in place...

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