Tag: "tennessee"

Posted April 17, 2014 by lgonzalez

In a recent New York Times article, reporter Kate Murphy shined a light on fiber's increasing role in economic development. Murphy discussed several of the same networks we have followed: Wilson, NC; Chattanooga, TN; Lafayette, LA; and Mount Vernon, WA.

Murphy acknowledged that successful companies are moving from major metropolitan areas to less populated communities out of necessity:

These digital carpetbaggers aren’t just leaving behind jittery Netflix streams and aggravating waits for Twitter feeds to refresh. They are positioning themselves to be more globally competitive and connected.

Murphy notes that countries where governments have invested in critical infrastructure offer more choice, better services, and lower rates. She also points to successful local initiatives, often in less populated communities where large private interests have not invested:

Stepping into the void have been a smattering of municipalities that have public rather than private utility infrastructures. Muninetworks.org has a map that pinpoints many of these communities. They are primarily rural towns that were ignored when the nation’s electrical infrastructure was installed 100 years ago and had to build their own.

Murphy spoke with several business owners that moved from large metropolitan areas to smaller communities because they needed fiber. For a growing number of establishments, fiber networks are the only kind that offer the capacity needed for day-to-day operations. Information security firm, Blank Law and Technology, moved to Mount Vernon to take advantage of its open access fiber network. It helps when customer service representatives live in your neighborhood:

“We investigate computer malfeasance and have to sift through terabytes of data for a single case,” Mr. Blank...

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Posted March 24, 2014 by lgonzalez

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 "...

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Posted February 13, 2014 by lgonzalez

EPB in Chattanooga offers a service to business clients that offers a good reminder that local service providers have to be able to offer a variety of business services because different businesses have vastly different wants and needs. In 2012, the publicly owned utility began offering telephone service with cloud characteristics.

The service saves money by limiting the need of small businesses to commit to capital investment and personnel costs while offering the capabilities that larger firms with larger IT staffs have. A TimesFreePress article on the service from 2012 reported:

"We looked at an average business that had nine sets and eight lines, and it comes to about $320 per month, instead of thousands of dollars in up-front costs," [Katie] Espeseth [EPB's head of product development] said.

When businesses install them on their own, the systems and devices require employees to maintain, at a time when many companies are looking to streamline their IT departments.

"It really takes the burden of installing and maintaining your telephone equipment off your own employees and puts it with our company," said Espeseth. "In Chattanooga, if a small business can take the capital they were going to spend on a new phone system and invest it in their business, it makes sense to spread that cost out over time."

EPB did their homework and now provides a service that small businesses need at affordable rates. Understanding the needs of local businesses and offering a range of options is key to the success of local providers.

Posted December 19, 2013 by lgonzalez

Tullahoma Utilities Board's triple-play FTTH LightTUBe, began serving Tullahoma in 2009. The fiber network utility is paying off its city bond debt on schedule reports the Tullahoma News.

The network's income during the first four months of fiscal year 2014 is a positive $58,939. General Manager Brian Skelton spoke with Chris Mitchell in July 2013 and expressed confidence that that network will continue to operate in the black. The News reported on our podcast interview with Skelton and provided some recent updates:

With an estimated potential customer base of 9,000 in the TUB service area, LightTUBe services 3,201 fiber customers. That number is slightly ahead of goal (3,186) and represents nearly 36 percent market penetration against primary competitor Charter Communications.

Tullahoma deployed its network to encourage economic development. In 2011, we reported on J2 Software Solutions. The company located its headquarters in Tullahoma because LightTUBe offered fast, reliable, affordable service. 

According to the News article, expenditures on Internet service remain consistent while subscriptions grow. The Tullahoma Utilities Board (TUB) only recently approved a $7 rate increase for video service due to an increase in the cost of television content. When content rates rose in the past, TUB chose to absorb the increase but the cost of content continues to increase for all providers. Since 2009, TUB increased Internet service speeds five times without increasing prices. From the article:

”LightTUBe is in a very comfortable position from a financial perspective. Our biggest concern at this point is the unreasonable price increases that we (and others in the video business) are seeing from many of our channel providers,” said Skelton.

That comfortable financial position appears to rest largely on the shoulders of LightTUBe’s Internet service.

While video and telephone services together generate enough income to offset the system’s net maintenance and depreciation costs, Internet services generate enough income to offset...

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Posted September 18, 2013 by christopher

Chattanooga's EPB Fiber, a municipal FTTH system owned by the city's electric power board, has dramatically lowered its prices for the gigabit connection and increased all Internet speed tiers.

The slowest connection you can get from EPB Fiber is 100 Mbps symmetrical - and it comes at the same price that most cable tiers start at for much slower connections - $58/month. Want a gig? That is now $70/month. Here is the announcement:

Video streaming by Ustream

The Washington Post covered the story, including several quotes from me.

DePriest tells me that EPB's fiber network is "a great profit center." In the four years the service has been active, the utility company has increased its mid-tier speeds three times — from 15 Mbps to 30 Mbps, from 30 Mbps to 50 Mbps and now from 50 Mbps to 100 Mbps. About 2,500 elite users will enjoy 1-gig speeds by the beginning of October.

Phil Dampier has more coverage at StoptheCap.com, including an analysis of AT&T and Comcast competition.

AT&T charges $65 a month for 24/3Mbps service — its fastest — with a 250GB monthly usage cap, currently not enforced. For $5 more, EPB customers get 1,000/1,000Mbps with no usage limits or overlimit fees.

A recent article in the Chattanoogan noted that Chattanooga had surpassed 50,000 subscribers and was on path to surpass Comcast in subscriber base locally.

Mr. DePriest said Comcast had some 122,000 customers on the EPB grid when EPB launched its rival program. He said Comcast is down to around 75,000 and will likely drop to around 60,000 next year....

Posted August 29, 2013 by dcollado

Located in the northeast corner of Tennessee, Morristown Utility Systems (MUS) offers gigabit broadband throughout a region that covers 30,000 residents and businesses. I recently spoke with MUS General Manager and CEO, Jody Wigington, about FiberNET’s progress and he had much to report, starting with over $5 million in cost savings for local businesses, residents, and the local government itself.

Asked about cost savings to Morristown’s city government, Wigington pointed to $840,000 in total savings from a smart meter program - a combination of lower annual power consumption and operational efficiencies. Another $20,000 in annual savings is due to the county not having to pay out-of-town IT contractors to maintain its network because the required expertise can now be found locally thanks to MUS’s dedicated network specialists.

Morristown businesses and residents are also saving, to the tune of $3.4-million annually thanks to FiberNET’s introduction of lower prices in the local broadband market. That’s $3.4-million, every year, which can be spent locally rather than being siphoned out of the community to corporate shareholders.

In terms of revenue, FiberNET generated $8.6-million during the most recent fiscal year and is projected to generate $8.8-million during the current one. FiberNET's solid financials have translated into increases in MUS’s payments in lieu of taxes (PILOT) to the city, which now amount to $350,000 per year, up from $150,000 in 2010. FiberNET’s strong financial performance resulted in MUS becoming cash flow positive just two years after launch, and net income positive after five years. Both of these key milestones were reached significantly quicker than initially projected.

MUS FiberNET’s impact on economic development is also notable. Oddello Industries, a contract furniture manufacturer that relies on FiberNET for its communications, recently announced a $4-million expansion in Morristown, resulting in 228 new jobs. Oddello CEO, Tom Roberts, cited “reliable utilities” among the reasons for investing in Morristown. This growth is part of a larger trend for Oddello, which has grown its Morristown presence from 35 to 415 employees in just the past year. 

Another sign of FiberNET’s impact on economic development is the recent decision by Molecular...

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Posted August 13, 2013 by christopher

Chattanooga's EPB Fiber is the highest profile community network in the U.S. It was the first network in the nation to offer a symmetrical gigabit tier to every last address in the community. On today's Community Broadband Bits podcast, Danna Bailey joins us to discuss the network.

Danna Bailey is EPB's Vice President of Corporate Communications and has long helped behind the scenes to keep our site informed of Chattanooga's progress. We talk about why Chattanooga built the network and the role of the stimulus award for smart grid in expediting the build out long after the project had started.

We also talk about job growth - both large firms and small entreprenurs locating in Chattanooga while citing the community fiber network as a big part of the reason.

The conversation updates the Chattanooga case study we published last year. Chattanooga remains far ahead of its business plan and is doing very well financially. Read all the stories we have published about Chattanooga here.

Read the transcript from this episode.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 25 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Break the Bans for the music, licensed using Creative Commons.

Posted July 27, 2013 by lgonzalez

Tullahoma's network, LighTUBe, continues to bring new services to residents and business customers, including smart metering and gig service. LighTUBe has increased Internet speeds without raising rates five times since 2008. Now, LighTUBe offers 'TV Everywhere' to subscribers.

The Tullahoma New reports:

TV Everywhere allows customers to watch content on mobile devices such as iPads and smartphones, according to communications specialist Chelsea Adams.

“What’s even better is that there is no additional cost to LightTUBe customers for using this service,” she said.

To sign up for the TV Everywhere option, LightTUBe customers should log into the TV Everywhere website at www.watchtveverywhere.com, register as a user with information provided on their monthly LightTUBe statement, and an activation link will be emailed to them.

Additionally, LightTUBe customers can register up to four user accounts to use with their TV Everywhere accounts, according to Adams.

You can listen to the story behind LighTUBe in Episode #54 of the Community Broadband Bits podcast. Chris interviewed Brian Skelton, General Manager of the Tullahoma Utilities Board, about the network and the benefits it brings to the community.

Posted July 9, 2013 by christopher

For our 54th episode of the Community Broadband Bits podcast, we are back in Tennessee to interview Brian Skelton, General Manager of the Tullahoma Utilities Board. They built the network in 2008 and have weathered the tough economy, meeting the business plan while greatly benefiting the community.

This is a particularly content-rich interview, covering the importance of non-gimmick pricing, benefits to schools, local programming, and why they decided to become a gigabit community.

They haven't increased prices of the Internet or telephone service even though they have increased speeds five times for subscribers and added new telephone features. Despite facing tough competition and deep discount pricing, Tullahoma has experienced extremely low churn, which itself is a sign of how valued the service is. You can read our historic coverage of Tullahoma here.

Read the transcript from this show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Eat at Joe's for the music, licensed using Creative Commons.

Posted July 1, 2013 by lgonzalez

Knoxville Metro Pulse reporter Paige Hunton published a story last month about a common complaint from downtown residents and businesses - "Downtown Knoxville's Internet Access Kinda Sucks. Can It Be Fixed?" The problem worked its way from local talk to twitter and city leaders have met with residents and business owners to publicly discuss options.

This is a perfect example of what happens to a community that refuses to take responsibility for ensuring local businesses and residents have access to the essential infrastructure they need. Knoxville's approach to improving its Internet access is akin to crossing one's fingers and hoping really hard for the best.

Hunton' describes modern day disaster in the downtown area comprised of an inconsistent patchwork of AT&T DSL, Comcast, and a very limited amount of private provider fiber optics. Some areas have no access, others have no choices. While the city tries to encourage downtown commerce with tax credits for developers and a new entrepreneur center critical high-speed connections are missing.

City officials say the downtown area has a limited amount of aging conduit, discouraging private providers and cost prohibitive to expand. Likewise, old buildings with substandard internal wiring discourage investment from private companies.

Hunton tells the story of Ian Blackburn, a former colleague that now works for a downtown employer impacted by the lack of high-speed broadband downtown. After outgrowing its T1, the company went with 6 Mbps through AT&T DSL. AC Entertainment soon outgrew DSL:

"On one occasion in our DSL days, we had to download a video spot from an artist management site, make a few edits, burn it to disc, and get it to FedEx that day. The browser was estimating over an hour remaining for the download, which would miss the FedEx cutoff point. I remotely logged into a server in my living room, started the download, jumped on my bike, pedaled home, burned the file to a DVD, and was back in the office inside of 20 minutes,” he says. “The problem got solved, but that’s a ridiculous way for a company to have to operate. You can’t do business if you can outrun your Internet on a bicycle.”

...

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