Sunday, January 25, 2015

The Tale of Two [Tennessee] Cities

In Tennessee, only municipalities that own electric utilities can provide telecom services.  In other parts of the state, municipalities can only provide telecom in unserved areas in conjunction with the private sector.   The intent of the legislation is to protect taxpayers from over-investment, etc.  In a state with 95 counties and 34% of the population residing in rural areas, municipal broadband (partial, cable, fiber) exists in only 15 towns (10 counties).  Most of those counties are non-rural, including Chattanooga.  EPB Fiber Optics which operates the municipal broadband in Chattanooga  wants to expand its network into surrounding communities, but it is not able to do so because of the existing law.  Seems crazy!

Google Fiber has plans to enter Nashville, a city with technology, speed, and number of providers already higher than the state average.  (And, NESNet has dark cable there.)  Because of the economics of broadband, it has no announced plans to expand into other areas of Tennessee.  So, why not let the cities/towns do it themselves if they can make the economics work?

County Muni County Pop. Muni Pop. Muni Pop/ Co. Pop Provider Technology Wireline no>2 Wireline no>3 Wireline no>4 DL>100 DL>50 DL>25
Unicoi Erwin        18,082            6,097 33.7% Erwin Utilities Partial 79.9% 3.4% 0.0% 74.2% 74.2% 74.2%
Lincoln Fayetteville        33,633            6,827 20.3% Fayetteville Public Utl. Cable 68.3% 36.7% 3.7% 31.3% 61.6% 61.7%
Giles Pulaski        28,746            7,870 27.4% PES Energize Fiber 49.5% 34.8% 13.7% 38.9% 46.4% 46.4%
Coffee Tullahoma        53,357          18,579 34.8% Tullahoma Util. Board Fiber 90.0% 71.6% 4.6% 87.2% 87.2% 87.2%
Sullivan Bristol     156,595          26,702 17.1% Bristol TN Essential Svc Fiber 96.7% 47.5% 5.9% 98.9% 98.9% 98.9%
Maury Columbia        83,761          34,681 41.4% CPWS Broadband Cable 85.7% 39.3% 2.0% 90.7% 90.7% 90.7%
Washington Johnson City     125,546          65,123 51.9% BVU OptiNet Partial 96.5% 25.1% 4.3% 96.5% 96.5% 96.5%
Madison Jackson        98,733          67,685 68.6% Jackson Energy Auth. Fiber 92.0% 74.0% 9.0% 91.0% 93.0% 93.0%
Montgomery Clarksville     184,119       132,957 72.2% Clarksville CDE Lightband Fiber 91.9% 62.4% 5.2% 94.8% 94.8% 94.8%
Hamilton* Chattanooga + 5     348,673       210,991 60.5% EPB Fiber Optics Fiber 98.1% 91.1% 12.0% 98.8% 98.8% 98.8%
Davidson Nashville     658,602       569,891 86.5% NESNet Dark 98.4% 85.4% 31.9% 97.2% 97.2% 97.3%
 
TN State Average             84.0% 46.0% 11.0% 81.0% 82.0% 83.0%
Source: broadbandmap.gov

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