Tag: "tennessee"

Posted April 9, 2012 by christopher

We are thrilled to finally unveil our latest white paper: Broadband At the Speed of Light: How Three Communities Built Next-Generation Networks. This report was a joint effort of the Institute for Local Self-Reliance and the Benton Foundation.

We have chronicled how Bristol's BVU Authority, Chattanooga's EPB, and Lafayette's LUS built some of the most impressive broadband networks in the nation. The paper presents three case studies and then draws lessons from their common experiences to offer advice to other communities.

Here is the press release:

The fastest networks in the nation are built by local governments, a new report by the Institute for Local Self-Reliance and Benton Foundation reveals

Chattanooga, Tennessee, is well known for being the first community with citywide access to a “gig,” or the fastest residential connections to the Internet available nationally. Less known are Bristol, Virginia, and Lafayette, Louisiana – both of which now also offer a gigabit throughout the community.

A new report just released by the Institute for Local Self-Reliance (ILSR) and the Benton Foundation explains how these communities have built some of the best broadband networks in the nation. Broadband At the Speed of Light: How Three Communities Built Next-Generation Networks is available here.

“It may surprise people that these cities in Virginia, Tennessee, and Louisiana have faster and lower cost access to the Internet than anyone in San Francisco, Seattle, or any other major city,” says Christopher Mitchell, Director of ILSR’s Telecommunications as Commons Initiative. “These publicly owned networks have each created hundreds of jobs and saved millions of dollars.”

“Communities need 21st century telecommunications infrastructure to compete in the global economy,” said Charles Benton, Chairman & CEO of the Benton Foundation. “Hopefully, this report will resonate with local government officials across the country.”

Mitchell is a national expert on community broadband networks and was recently named a “Top 25 Doer, Dreamer, and Driver” by Government Technology. He also regularly authors articles at MuniNetworks.org.

The new report offers in-depth case studies of BVU Authority’s OptiNet in Bristol, Virginia; EPB Fiber in Chattanooga, Tennessee; and LUS Fiber in Lafayette, Louisiana. Each network was...

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Posted March 27, 2012 by christopher

Alcatel-Lucent, one of the key vendors behind the Chattanooga community fiber network, has produced a video highlighting life in a "smart" city.  

Posted March 8, 2012 by christopher

Chattanooga's EPBFi community fiber network has been one of the most celebrated muni networks in the nation. They were the first to offer a gigabit to anyone in the city and have launched a bounty for geeks that relocate to the "Gig City."

They have connected 35,000 subscribers to the network, blowing away their original goal of 26,000 by the third year. They have attracted thousands of new jobs that would not have materialized if they simply accepted the AT&T/Comcast duopoly for their community.

The Times Free Press reports:

At the current rate, EPB can shave seven years off the time it will take to pay off its telecom debt, becoming virtually debt-free by 2020 instead of 2027 as projected, Eaves [EPB CFO] said.

Even so, the government utility still is spending money to sign up new customers, a process that will increase debt until 2013, Eaves said.

The utility has $51 million in total debt so far, but it only needs 30,000 customers to break even on operational costs, Eaves said.

"We are currently cash- flow positive from an operations standpoint, but still increasing debt to fund the capital associated with signing up new customers," he said.

As we frequently remind our readers, finances are complicated. Even though the network continues to do very well, its debt will increase for a few more years while it continues rapidly acquiring new subscribers. Each subscriber takes years to pay off the debt of connecting them.

Recall that EPB unexpectedly got a Department of Energy stimulus grant to deploy its smart grid much more rapidly than planned for. As the electric division owns much of the fiber fabric, the grant does not impact the finances of the Fiber-Optic division, aside from allowing EPB to roll the network out to more people more rapidly. The changed plan increased their costs and their revenues over the original plan.

Posted January 13, 2012 by christopher

Prior to Chattanooga's gigabit announcement, Amazon had no considered that region as a location for the distribution center they would looking to put in the southeastern U.S. But they saw the announcement, talked to the City and Boom! Over 1,000 jobs.

I've long known of this economic development example but did not fully appreciate how important access to the Internet is for an Amazonian Distribution Center. But this article about its coming expansion (more on that in bit) offers some context.

The distribution center is the size of 17 football fields and hosts 700 Internet access points connected by 7 miles of fiber-optic cables within the facility. So access to the Internet is pretty important for a distribution center of an online retailer.

When Amazon announced its investment in Chattanooga, it predicted some 1400 jobs with additional seasonal employment opportunities. After cutting back seasonal employees with the end of the holiday season, it was still employing 2000 workers.

With its expansion, it will add hundreds of jobs -- hundreds of jobs that would not be in Chattanooga without the community fiber network. Massive national providers like Comcast regularly claim they can deliver any level of service to big customers but the reality is that they are not willing to charge reasonable prices for such services and they are much harder to work with (partially because the bureaucracy at any massive cable corporation is worse than that of any local government).

Posted January 4, 2012 by christopher

The following news report suggests that some in Knoxville, Tennessee, are starting to get a little jealous of the incredible FTTH network built by Chattanooga's publicly owned electric company. A number of Knoxville businesses are finding it more convenient to expand and add jobs in Chattanooga, where access to the Internet is faster and more affordable due to public investments.

The text version of the above video is available here.

Knoxville is located 100 miles northeast of Chattanooga. And 100 miles to the northeast of Knoxville is Bristol, Virginia, which has also been seeing significant job gains as a result of its publicly owned fiber-optic network that stretches into most of southwestern Virginia. In short, Knoxville should start worrying about its future and broadband competitiveness.

Map of Chattanooga and Knoxville

The Chattanooga ...

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Posted December 15, 2011 by christopher

Tullahoma, home to the LightTUBe FTTH network of Tennessee, is starting to roll out smart meters for its electrical and water utilities (owned by the city). They have initiated a series of public meetings to discuss the AMI - Advanced Metering Infrastructure. From a recent press release:

“The meetings are designed to answer any questions the Tullahoma community has about the AMI technology”, said Ernie Hobbs, Communications and Marketing Specialist for TUB. “We want to assure the community that automated meter reading is the next step in providing exceptional customer service. AMI is a step forward for Tullahoma, and it will provide additional opportunities for our customers by allowing them to monitor their own usage of utilities.”

The AMI installation is a replacement of current water and electric meters. The
new meters can transmit usage data through TUB’s secure fiber network. The infrastructure upgrade has been in the planning stage for several years. However, with Tennessee Valley Authority (TVA) moving to Time Of Use (TOU) rates, TUB decided it was time to begin the AMI project to align with the TVA rate change.

A recent newsletter from the utility explains further, noting that the Tennessee Valley Authority (a federal agency that produces the power used by Tullahoma and many other public utilities) is going to start charging time-of-use rates starting in fall of 2013. This is because electricity is more expensive to produce and distribute based on the amount being used - time of use pricing will encourage people to use more power when it is cheaper to produce and less when it is expensive.

This time-of-use pricing is one component of a "smart-grid." Unfortunately, some investor-owned utilities have used time-of-use pricing to increase their revenues without substantially benefiting ratepayers -- which is one reason many are suspicious of the entire concept. Hence the public meetings.

Because Tullahoma has its publicly owned network already connecting much of the community, it is better positioned to deal with TVA's changing rates than other communities.

Posted December 14, 2011 by christopher

One month after the Johnson City Power Board (Tennessee) approved a fiber-optic network, they have issued a request for qualifications to identify potential partners that would provide broadband services over the publicly owned fiber-optic backbone.

Johnson City lies between Chattanooga and Bristol (Virginia), two communities with advanced next-generation networks that have created significant economic development.

According to a feasibility study by the utility, the third-party vendor approach would give the JCPB the best return on investment, balancing low risk with possible profits. The Power Board would provide the “backbone,” while the vendor, working under JCPB’s brand, would provide the “last mile” services and equipment to the commercial customers. The utility’s telecommunications division would be self-sustaining, and have absolutely no effect on electric rates.

This seems similar to the approach of Lafayette, Louisiana almost 10 years ago. Lafayette eventually decided to build out the network to residents and all businesses when the ISPs using its network were not able to use the backbone to expand to serve everyone (the economics of building last mile fiber-to-the-home connections rarely coincide with private sector goals of maximizing short term returns).

Judging from their projections, Johnson City does not need to hit particularly ambitious targets:

To reach its revenue and return on investment projections, the JCPB would need to capture about 20 percent of the area’s total market for data services, about 15 percent of the market in phone services, and about 5 percent of private data services over five years, based on a market of 3,000 commercial users.

However, even those modest goals will be difficult unless they find a good, trusted partner. Most public power utilities have the trust of residents or businesses -- that trust may not extend to whoever they work with.

Posted November 29, 2011 by christopher

This video is no longer available.

Posted November 21, 2011 by christopher

There are definitely times when you learn of a business practice where you think, "Wow, my opinion of AT&T could not go any lower." And then, BOOM. You find out that AT&T was intentionally underfunding a 9-11 call center in order to undercut its competitors in bids.

Yikes.

Did we mention that this is not an isolated case? AT&T has been busted in several jurisdictions for this practice.

Hat tip to Stop the Cap! for bringing my attention to a lawsuit brought by Hamilton County against AT&T for its practice of under-reporting the number of business lines it provides.

This practice allows it to undercut all competitors in the market, including the community fiber network run by Chattanooga's Electric Power Board. From the Times Free Press article:

The lawsuit claims that, since at least July 2001, AT&T has filed monthly and annual reports listing fewer business phone lines than they actually provide. Under Tennessee law, phone companies must pay $3 per month per line to pay for 911 access.

...

In a March phone service bid proposal for Hamilton County, AT&T stated it would not collect the $3 rate and instead collect $2 per line per month. That allowed the company to underbid the next lowest bidder by 69 cents per line per month, “unlawfully increasing its profits at the expense of revenue to support the critical emergency services that” 911 provided, according to court records.

A difference of $.69 may not seem like much, until you consider they may be providing 1,000 lines - which is a difference of $690/month or $8,280/year.

911.gif

It is an incredible racket. AT&T gets more high-margin customers, pays less in fees than competitors, and the only people who get hurt are those who depend on 9-11.

Just when you think AT&T is brilliantly evil (an accusation I tend not to make against many corporations no matter how much I disapprove of their...

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Posted November 3, 2011 by christopher

Two years ago, we first wrote about the Johnson City Power Board considering using its fiber-optic network to encourage economic development and create more broadband competition. Last year, we again saw them examining their options, with a recognition that DSL and cable are not enough for economic development when Chattanooga and Bristol are so close by, as well as other publicly owned FTTH networks.

The JCPB has decided to move forward with a public-private partnership approach that will focus first on serving commercial clients and may later expand to offering residential services.

The decision on the third-party vendor approach stems from a feasibility study by Kersey Consulting, a firm that offers broadband consulting to municipalities and public utilities. The study began in July, and examined three models the JCPB could use to offer the services: having the JCPB be the retailer; leasing the extra fiber capacity to another company; or bringing in a third-party operator to provide the network access electronics, customer support, billing services, etc.

Working with a third-party vendor gives the JCPB the best return on its investment, balancing low risk with possible profits, said JCPB spokesman Robert White. The Power Board would provide the “backbone,” while the vendor, working under JCPB’s brand, would provide the “last mile” services and equipment to the commercial customers.

This approach could be somewhat similiar to the Opelika, Alabama, partnership with Knology, except Knology is clearly going after both residential and commercial customers right away.

The article uses these numbers, but they don't seem to make a lot of sense to me on first glance:

Initially, according to the feasibility study, the Power Board would most likely make a capital investment of $1.5 million over five years, which could include installing more of a fiber backbone to reach businesses if needed. On the flip side, revenues from the extra service could reach $1.3 million over 10 years, depending on...

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