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.

Chattanooga, with the nation's most impressive broadband network (stretching into rural areas even outside the metro), is spending $30 million to put a Wi-Fi wireless network on top of it. At present, it is primarily for municipal uses:

For now, city government plans to retain exclusive use of the network for municipal agencies as it tests it with applications including Navy SEAL-esque head-mounted cameras that feed live video to police headquarters, traffic lights that can be automatically adjusted at rush hour, and even water contamination sensors that call home if there’s a problem beneath the surface of the Tennessee River.

Much of the wireless network is being funded by state and federal grants -- Chattanooga is turning itself into a test bed for the future city, at least for communities that recognize the benefits of owning their own infrastructure. Chattanooga can do what it wants to, it does not have to ask permission from Comcast or AT&T.

The goal for the city’s wireless network is to make the entire city more efficient and sustainable, said David Crockett, director of Chattanooga’s Office of Sustainability.

As Bernie Arnason notes at Telecompetitor, Wi-Fi is increasingly needed by smartphones because the big cellular networks cannot handle the load. The future has wireless components, but without Wi-Fi backhauled by fiber-optics, the future will be extremely slow and unreliable -- traffic jams for smartphones. A more recent story from the Times Free Press notes that Chattanooga is wrestling with how to handle opening the network to residential and business use.

“I want to be innovative,” he said.

Tullahoma's LightTUBe FTTH network, owned and operated by the Tullahoma Utilities Board, has attracted J2 Software Solutions to locate its headquarters in town [PDF]. Its CEO, Jerry Wright offers some background:

Wright said J2, which specializes in providing high-tech software to law enforcement agencies to handle dispatching, records management and other related functions, needed to have the highest speed, most dependable Internet service available. He said TUB, through its LightTUBe broadband communications service, provides exactly what his company needs to thrive and expand. "What LightTUBe has is top of the line," Wright said, adding that normal cable TV service and higher speed digital subscriber line, commonly referred to as DSL, were not adequate to meet the company’s volume and demand.

Sounds like confirmation of the story we we just wrote about AT&T's CEO admitting DSL is obsolete. Congratulations to Tullahoma for making smart investments in its own future.

As we continue to report on depressing campaigns to deny people fast, affordable, and reliable access to the Internet (as Time Warner Cable is doing in North Carolina), we are also making an attempt to highlight good legislation (as we recently did in Washington state). In that spirit, we turn to HB 2076 / SB 1847 in Tennessee From the bill summary:

This bill urges all municipalities to endeavor to utilize advanced broadband systems in their operations and to encourage the construction of advanced broadband systems.

The full bill is available here [pdf] but the most interesting part is what was not included. As reported by Andy Sher of the Times Free Press, the bill was intended to go much further.

The bill would have let the municipal utilities extend service up to 30 miles outside their service areas.

Unfortunately, the powerful incumbent lobbying machine (including AT&T, Comcast, and others who already hate having to compete with technologically superior networks in several Tennessee communities) killed the bill, a blow to the future of economic development in the state. Neighbors of Chattanooga, including Bradley County, desperately want access to the impressive 1Gbps network Chattanooga built -- the most advanced citywide network in the country. Harold DePriest recognized the power of AT&T and Comcast in the Legislature, but vowed not to give up.

“Well, we would like to see the bill pass, but I think Gerald was dealing with the reality of the difficulty of moving the bill through the committee at this point in time,” he said Friday. “We will be back.

Guy Daniels heads to Chattanooga to learn about the best broadband network in the country -- interviews with Katie Espeseth (VP of EPB Fiber Optics) and Harold DePriest (President and CEO of EPB) from Telecom TV

We've been raving about Chattanooga' FTTH network and smart-grid for quite some time now, but others are just learning about it. Chattanooga's Electric Power Board serves some 170,000 households and businesses across 600 sq miles. Though we have mostly focused on the triple-play benefits of the network

Chattanooga had been named one of the 2011 Top 21 Intelligent Communities of the year previously, but more recently made the cut to a Top 7 Intelligent Community. Time will tell if is awarded the Intelligent Community of the year.

Green Tech Media covered the completion of the network pass and activation of electric grid smart switches at the end of 2010.

[A]ll of its 170,000 electricity customers could benefit from the infrastructure. The network will serve as the conduit for 80 billion data points on electricity use per year that could help the utility run more efficiently, reduce outages, and give customers more control over their monthly electricity expenses.

“Chattanooga is the epicenter of energy technology,” said Harold DePriest, president and CEO of EPB. “One of our biggest jobs is to exploit this technology for the benefit of our community.”

With power outages previously taking a $100 million/year bite out of private businesses served by EPB, the new FTTH network will enable a much smarter network that will radically decrease those outages and thereby make businesses more productive. By mid 2012, businesses will see a 40% decrease outage time. Over time, as EPB's grid grows ever "smarter," those losses will likely decrease further while also providing energy users (residential and business) more opportunities to manage their power consumption.

For those who only associate the smart-grid with enabling time-of-use pricing (paying more electricity during periods of high demand), there are other important, if hidden benefits:

Just how does the largest citywide community fiber network in the country deal with the thousands of people that want to subscribe? It is a daunting task, but the Times Free Press has an answer: a carefully scripted process. Chattanooga's Electric Power Board (EPB) largely contracts with a company for the labor to do the installs:

Adesta is responsible for 80 percent of EPB's fiber-to-the-home installations, according to Lansford, project manager for Adesta. EPB itself performs the remaining 20 percent, as well as trouble calls. Beginning in June 2009, Adesta ramped up from a one-man office to more than 120 locally hired technicians, and now performs an average of 500 installations per week, or about 100 every day, he said.

At the end of October, when the article was written, Adesta had hired some 123 technicians - more than twice as many as they originally expected to need. Perhaps the largest advantage of contracting with a company like Adesta for connecting subscribers is the company's ability to quickly hire more technicians as demand increases. Civil service rules for hiring can hamper hiring when all installs are done in-house. EPB directly employes some thirty installers. Chattanooga closely supervises the training and quality of work from the contracted technicians. Perhaps the biggest downside to hiring outside contractors for this work is the potential for technicians not being invested in the satisfaction of the customer or rushing from install to install to maximize their income. In Chattanooga, they expect technicians to do two installs per day to avoid encouraging shortcuts. In talking with an employee of another muni fiber network, he was amazed at the efficiency of Chattanooga's backoffice processes. The Times Free Press was also impressed:

From a control room in EPB, Abed manages every call that goes out, and knows the location of EPB and Adesta trucks at all times. A computer assigns work based on efficiency, and trouble calls are automatically routed to the nearest available unit.

Even in Chattanooga, which has had more of a smooth roll-out than most, getting into apartment buildings (MDU) is difficult:

In addition to servicing homes and businesses, EPB and Adesta have begun rolling out service to apartments as well, he said, addressing a key hole in their service.

Chattanooga's Times Free Press explained how locals are using the nation's fastest broadband network. You may remember that Chattanooga's gigabit service generated a fair amount of attention back in September:

Searching for “gigabit” on Google after the announcement revealed 298 news articles about Chattanooga’s milestone, and more than 9 million Twitter impressions within 48 hours, according to the Chattanooga Area Chamber of Commerce.

We already reported that one company (HomeServe) cited the network as a reason for bringing 140 jobs to Chattanooga. This article quotes their director of IT infrastructure: “This network will be so fast that it will be like we’re right next door." That company is located all over the East coast: Miami, New York, Connecticut, etc. Diagnostic Radiology Consultants are excited about the network:

“The bandwidth is a huge part of the practice because each one of these images is huge, about 300 megs,” Busch said. With DRC’s outgoing server uploading information at a gigabit, the nearly 700 doctors who use his service will be able to quickly access body scans anytime, from any computer, instead of on the more limited point to point networks many clinics and hospitals currently use.

Another company in the carpet industry needs the faster connections to meet their clients needs and become more efficient. As customers and clients request more streaming media, they greatly need to increase their upstream capacity. It isn't just about business, but education and entertainment…

The Tennessee Aquarium has already taken several steps to prepare for increased demand for streaming HD content, said Thom Benson, communications manager for the Aquarium. The Chattanooga landmark has already set up two webcams to stream live images of aquatic life to the Aquarium’s online visitors, and one HD camera to observe weather conditions outside.

Chattanooga continues to generate a lot of press since their announcement of the nation's fastest broadband speeds. For those who crave technical details, this article from Cable 360 looks into the tech behind the network:

EPB contracted with Alcatel-Lucent as its GPON network supplier. "We've designed our network a little bit different, with our control center located where our operations center is," says Wade. "We've designed a series of fiber rings that circle our city, allowing us to have multiple 10 Gig MPLS rings, terminating in 17 communications hubs connected back with our control center."

Another article from Cable 360 (affiliate) gets into the smart-grid details of the network:

As far as the cost savings of the smart grid are concerned, users often don't realize that it costs several times more at certain times of day to generate electricity than it does at others, says EPB COO David Wade.

But perhaps the most interesting update from EPB is another window into their take rates (from Tecca.com):

We are ahead of our business plan projections for this time frame. Since our launch last September (2009), we have signed up 18,873 homes to our EPB fiber optics services. That is a 15.45% take rate. Our goal is a 35% take rate, and we believe we will reach that in 2 years. Of our EPB fiber optics customers, 81% are receiving our Fi-Speed internet service. We are still building out fiber optics as well, and our entire 600-square-mile customer service area will have access to these advanced services by the end of the this year (2010).

And finally, a short interview (audio quality is not good) with an EPB employee discussing Chattanooga's community fiber network. An interesting piece: noting that EPB views all employees as ambassadors of their product and offered them public speaking training.

Communities with both smart-grid investments as well as community networks are again in the news, this time featuring Chattanooga, Leesburg, and Ponca City. Thanks to my colleague at EnergySelfReliantStates.org, who posted this item. ESRS publishes original content about decentralized renewable energy - mostly of a quantitative nature using charts. Perhaps one of the reasons the broadband networks run by public power utilities are so much more reliable than those run by telco and cablecos is the many decades that public power companies have focused intently on reliability.

Reliability is a good economic development tool, he said. One business looking at Chattanooga asked about the cost of a redundant feed. After EPB explained its smart grid plans, the company chose Chattanooga and decided it didn’t need a redundant feed, he said. In talking to businesses, "I can tell you ... that they get it and they get the importance of this level of automation."

The article offered more details about Ponca City's wireless network that we had previously not discussed. In addition to offering free Wi-Fi to residents, the Ponca City offers fiber-optic-based broadband to local businesses... and two are quite connected.

Perhaps the most eye-opening benefit is that Ponca City offers all of its 26,000 citizens free WiFi service. The city uses its fiber network to sell broadband services to businesses (one has requested 300 mbps service) and those sales pay for the free WiFi, Baird said. The network is basically support-free, said Baird, adding that he gets one or two calls per week. And the free WiFi is "a huge economic development draw," he said.