In the Internet access industry, large corporations typically fight to maintain their positions as monopolies. Even if they have no intention of serving certain communities, big cable and telecom companies work to prevent others from gaining a foothold, fearful that they may someday lose subscribers. On the other hand, municipalities that operate publicly owned networks often encourage, mentor, and collaborate with neighboring communities to get people connected. Now, EPB Fiber Optics in Chattanooga is partnering with municipalities and cooperatives interested in offering Internet access.

Working Past Restrictions

Tennessee still prevents municipal power utilities from offering telecommunications services beyond their electric service areas, but state law won’t deter EPB Fiber Optics from doing what they can. Recently, EPB Vice President of Marketing J. Ed Marsten spoke with Telecompetitor. “We’re partnering with some other municipal and cooperative providers to help them get into the business,” Marston said. “We’ve seen a ton of interest.”

EPB Fiber Optics is offering a range of services to potential utility partners as a way to bring better connectivity to more Tennesseans. In addition to consulting services, the utility may be able to provide transport to an Internet point of presence (POP) and offers tech support. When municipalities or cooperatives work with EPB and use Chattanooga’s staff, they can cut operating costs and reduce the time it takes to begin offering services.

In Massachusetts, Westfield Gas+Electric (WG+E) offers similar services to the nearby rural towns that lack high-quality Internet access. Westfield’s Whip City Fiber, however, is not precluded from offering Internet access via local public infrastructure. Like EPB, WG+E also offers consulting services, if municipalities choose to operate their own networks.

Publicly Minded Moves…So Many

Since 2011, PCMag has collected speed data and written about the country’s Fastest ISPs based on download and upload results. This year’s results reflect, once again, that locations with publicly owned broadband infrastructure contribute to communities’ ability to offer faster connectivity.

How They Did It

PCMag asked readers to use a special speed test developed specifically for this reporting that measured download and upload speeds. PCMag's Speed Index assigned to each ISP represented 80 percent download speed and 20 percent upload speed. Filtering out non-U.S. tests, they ended up with 256,016 tests that applied to the comparisons. If, however, a location (for state and regional comparisons) or ISP had fewer than 100 tests, the folks at PCMag did not consider it a contender.

While editors further broke down results so as to stack major ISPs against each other in a head-to-head comparison, they also looked at all the results in a general comparison. PCMag broke down the results further by region and city. For more details on the results, check out the full article.

Munis New and Not-So-New

FairlawnGig in Ohio made the list this year, adding a third municipal Fiber-to-the-Home (FTTH) network to the list. The city’s retail service began serving residents with gigabit connectivity back in 2017, after firmly establishing their fiber services for local businesses.

When contemplating the investment, city leaders adopted the approach that their fiber optic network would be an essential piece of infrastructure on par with sewers or roads. Fairlawn used municipal bonds with no intention of turning a profit; they considered the network an investment that would keep the Akron suburb competitive. Residents, businesses, and institutions in Fairlawn, however, have enthusastically signed up for fast, reliable, connectivity where residents can get gigabit Internet access for $75 per month.

About ten years ago, we first reported on Johnson City, Tennessee. At that time, the community was in the process of installing fiber to improve reliability for their public electric utility. The Johnson City Power Board (JCPB) discussed the possibility of offering broadband via the new infrastructure, but they weren’t quite ready to move forward. Now JCPB has renamed itself BrightRidge and has not only started connecting local subscribers with fiber optic connectivity, but is offering 10 gig symmetrical service.

Past Plans

Johnson City has considered more than one model over the years before realizing the current plan. After initial consideration, they decided to move forward with a public-private partnership to first serve businesses and later residential subscribers. Later, they concluded that a public-public partnership with the Bristol Virginia Utility Authority (BVU) was a better option. After difficulties in Bristol with political corruption and state restrictions, however, that ultimately ended public ownership of the BVU, Johnson City was considering options again.

In 2017, they commissioned a fresh feasibility study to build on lessons learned from their own and others’ experiences and look deeper in the the possibilities of a publicly owned broadband utility.

Johnson City is located between Chattanooga and Bristol. Both cities have fiber infrastructure which has helped spur economic development. Being sandwiched in between these two communities requires Johnson City to be able to compete or contend with the possibility of losing employers and residents who want or need better connectivity. 

The JCPB also decided in 2017 to change their name to BrightRidge; they remain a “not-for-profit, local power company.”

An Eight Year Plan

During this legislative session, state lawmakers in several states passed bills that allocated funds to broadband deployment and planning programs. In many states, elected officials are listening to constituents and experts who tell them that they need fast, affordable, reliable connectivity to keep their communities from dwindling. States that refuse funding to public entities, however, block out some of the best opportunities to connect people and businesses in rural areas. In places such as Michigan, Tennessee, and Virginia, states need to trust their own people to develop necessary broadband networks.

The Great Lakes State: Not Great at Supporting Local Broadband

Michigan’s HB 5670 caught the attention of community broadband advocates when it was introduced by Representative Michele Hoitenga in 2018. The bill was firmly anti-municipal network and after some investigation, it became clear that Hoitenga received guidance from lobbyists from big cable and telephone monopolies. HB 5670, with its sad definition of “broadband” and attempt to fork over state funds to big national ISPs didn’t go anywhere alone after word spread.

Folks from the Michigan Broadband Cooperative (MBC) and other constituents in rural Michigan voiced their concern and the bill seemed to disappear. In reality, the House folded the language into SB 601, a large appropriations bill, which has now become law. Section 806 lists the types of entities that are eligible to receive grants from the $20 million set aside for infrastructure -- public entities are specifically eliminated.

Plans for Holston Electric Cooperative to offer television service as part of its Fiber-to-the-Home (FTTH) network deployment are on pause following allegations from the east Tennessee co-op that broadcasting company Nexstar Media Group refused to engage in “good faith” negotiations over retransmission consent agreements.

Holston Electric Cooperative established its broadband subsidiary, HolstonConnect, in late 2017 after a state law change removed restrictions on rural electric co-ops. Currently, HolstonConnect is in phase one of its FTTH project, which will bring high-quality Internet access to underserved communities in Rogersville, Surgoinsville, and nearby areas. Subsequent deployments will connect the remainder of the cooperative’s service territory, partially aided by federal funding from last year’s Connect America Fund phase II reverse auction.

From the start, the co-op planned to offer a “triple play” of broadband, voice, and video services. However, failure to come to an agreement with Nexstar, one of the nation’s largest station operators, over access to essential local channels has delayed the delivery of television services to HolstonConnect subscribers. In early March, Holston filed a complaint against Nexstar with the Federal Communications Commission (FCC), arguing that the broadcasting company demanded exorbitant fees and unfair station tying arrangements during negotiations with the co-op.

“Failure to Negotiate in Good Faith”

To carry popular television programming, networks must sign cable retransmission consent agreements with regional station operators. The FCC requires that these companies behave in “good faith” and make tangible efforts to engage in negotiations.

Lenoir City, Tennessee, has actively explored options for broadband for about ten years. After briefly considering broadband over power lines, the Lenoir City Utilities Board (LCUB) decided the time wasn’t right for the utility to offer Internet access to the public. The LCUB, however, is making a move to to open its fiber loop assets to potential partners, hoping to improve service for people in Lenoir City and surrounding areas.

Dark is the Way to Go

At their March 18th meeting, the LCUB members unanimously voted to accept proposals from private sector companies interested in leasing excess capacity on the utility’s fiber loop. According to LCUB general manager Shannon Littleton:

“There’s 80-85 roughly miles of 228-count fiber that’s around the perimeter of our system….We’re utilizing a small percentage of it right now. We plan on using a larger percentage of it in the future. We sat down as a group and decided there’s potentially 100 pair or 200 pair of fiber ... depending on what the board says, that we could put out to the marketplace for a period of time until the electric department decides to take it back for its own use.”

LCUB has already received requests to lease fiber on the network, suggesting potential competition and better options for folks in the rural areas of the LCUB service area. AT&T and TDS Telecom are incumbents with Lenoir City, but in the areas outside of town wired Internet access is difficult to come by.

Feasibility Results

Volunteer Energy Cooperative (VEC) and Twin Lakes Telephone Cooperative began collaborating in the fall of 2017 to bring high-quality connectivity to folks in Bradley County, Tennessee. Based on the results of a successful pilot project, the cooperatives have expanded gigabit connectivity to more areas. With a recent grant award, the partners will continue to offer the service to more rural Tennessee residents and businesses.

Catching Up on the News

When we last reported on VEC and Twin Lakes, they had announced that they would be launching the pilot in Bradley County. Residents and businesses in Bradley County have long felt slighted by the state’s restrictive laws that prevent Chattanooga’s EPB Fiber from expanding into their county. Over the years, Bradley County and Chattanooga officials have searched for ways to serve Bradley County, but the state’s insistence on protecting large incumbent monopolies by preventing expansion have left Bradley County folks without fast, affordable, reliable connectivity.

VEC and Twin Lakes commenced the pilot in the Camelot subdivision of the Bigsby Creek Road area of Bradley County. In a February 2018 blog post describing the first customer’s experience, subscriber Mrs. Charles Hollifield said, “We had no problem with the installers. They were on time and friendly. We chose the 25 Mbps because we do not download much but it works well. We haven’t had it quit once since we got it.” 

Since then, the initial pilot area passed 120 homes in the first pilot area. Later in the summer of 2018, VEC passed 545 more residences in two additional communities. Last fall, VEC received $1 million from the Appalachian Regional Commission (ARC) to apply toward expanding fiber to approximately 730 premises in in Meigs and Hamilton Counties.

State Assists With Deployment

Senator Janice Bowling has become a broadband hero in rural Tennessee and on the pages of MuniNetworks.org. Year after year, she introduces legislation aimed at expanding local authority to allow communities the ability to improve connectivity. She’s back this year with several bills aimed at expanding fiber in rural areas. 

Seeking Better Connectivity…That’s All

Like Bowling’s past legislation, related bills SB 489, SB 490, and SB 494 grant municipal electric utilities the authority “to provide telecommunications service, including broadband service” and specifies that they can do so beyond their electric service area. This change in the current law would allow places like her own community of Tullahoma to expand to serve neighboring towns. There is no fiscal impact from the Senator’s bills.

Bowling has seen firsthand how access to fiber optic infrastructure, such as Tullahoma’s LightTUBe, lifts economic development, improves educational opportunities, and helps a local community reduce costs. The city has thrived since investing in the network in 2009, while many of the communities that have had to rely on subpar service from the larger incumbents have limped along. 

SB 489 also extends authority for municipalities to collaboration for telecommunications and broadband service, to ease any uncertainty about public-private partnerships.

Earlier this month, Chattanooga’s celebrated as municipal network EPB Fiber Optics announced that they now have more than 100,000 subscribers. The high numbers indicate that the network is serving more than 60 percent of premises in the EPB service area. EPB's success also attests to the popularity of publicly owned Internet infrastructure that is accountable and responsive to the community that both own and use the network.

An Expected Milestone, Big Benefits

Hitting six digit subscribership this fall was no surprise based on rapid growth and intense interest in EPB’s affordable, symmetrical 10 gigabit connectivity along with other available speeds. When the city began serving subscribers in 2009, they based initial figures on an estimate of 35,000 subscribers within five years to break even. Within 18 months, they had already surpassed those goals.

Having paid off remaining debt earlier this year, more revenue is now freed up for more investment back into the system or to put back into the community. The utility is now reinvesting around $42 million per year back into the electric system and power rates are lower for the entire community, regardless of whether or not electric customers are EPB Fiber Optic subscribers.

"Contrary to the fears some had about us spending power funds to pay for this service, our power rates are actually 7 percent lower than they otherwise would be because of our Fiber Optic network and the business it has generated for us," EPB President David Wade said.

In addition to significant savings on power rates, Chattanooga has experienced an influx of economic development as tech companies have come to the city specifically for the network. “Gig City” Mayor Andy Berke:

What started as a pilot project back in 2014 has consistently expanded to more addresses. Now the “Little Gig City” has put a date on when they expect to complete the final phase of their community-wide fiber network — early 2020. “Right now we feel like we’re kind of in the home stretch,” says Erwin Utilities fiber optic engineer John Williams. 

When The Time Was Right

The small town of Erwin, Tennessee first explored the possibility of bringing Fiber-to-the-Home (FTTH) to its residents in 1999. At the time, however, the community chose not to pursue a publicly owned network because only 20 percent of homes in the area had a computer and the initial estimated cost of over $20 million was too high for local palates. The market changed over the next few years and in 2012, the town finally felt it was time to invest. They constructed a fiber backbone that connected 45 SCADA locations and six county schools. By 2014, the city announced plans to develop a pilot project for business and residential connectivity in the downtown area.

The pilot project reached approximately 1,000 premises; the utility’s goal was to achieve a 25 percent take rate to ensure the service would be self-sustaining. According to Williams, the utility swiftly surpassed their goal and are now at 36 percent subscribership in the original deployment area. Erwin Utilities has expanded, passing a total of approximately 5,000 premises out of 9,000 total potential premises, which are also electric service customers.

Because Tennessee municipal utilities are subject to state law that limits their Internet service area to their electric service footprint, Erwin can only provide connectivity to a limited number of premises. The law creates a situation that protects incumbent monopolies, but forces rural folks who obtain electric service from a different provider to rely on ISPs that generally offer poor Internet access options via DSL or expensive satellite service.

The Ultimate in Self-Reliance