Lexington, Tennessee is the latest U.S. city that will soon see the expansion of more affordable fiber thanks to the city-owned utility, Lexington Electric System (LES). LES’ recent $27.49 million state grant award will be the backbone of a new initiative that will both improve the utility’s electrical services, and deliver a long overdue dose of broadband competition to the area. 

Cooperatives and utilities were huge winners in the latest round of awards from the Tennessee Emergency Broadband Fund, itself made possible by the American Rescue Plan. Of the $446.8 million in awards doled out by the state, utilities and cooperatives walked away with $204.4 million — or nearly half of all funds.

LES Lands Major Grant Funding

The second biggest grant recipient was LES, whose $27.49 million award will be used to deliver future-proof fiber to the 22,000 residents across Henderson, Decatur, Benton, Carroll and Hardin counties that already receive electricity service from the utility. 

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The utility’s original business plan estimated that it will take five years and roughly $42 million to deploy 2,101 miles of new fiber to about 88 percent (18,183) of its current electric customer base. It then proposed taking another five years — and an additional $1.2 million — to reach the remainder of the utility’s harder to reach service users.

More recent estimates proposed by the utility peg the full cost of the fiber deployment at somewhere between $50 million and $55 million.  

Tennessee cooperatives and utilities came out at the top of the heap in the latest round of awards from the Tennessee Emergency Broadband Fund, netting nearly half of all money awarded for the expansion of more affordable broadband statewide.

The Tennessee Department of Economic and Community Development (TNECD) awarded $446.8 million to 36 applicants, who are now tasked with deploying improved broadband service to 150,000 unserved homes and businesses across 58 Tennessee counties. All told, TNECD said that 218 applicants applied for a total of $1.2 billion in broadband funding.

Of the $446.8 million in awards, utilities and cooperatives walked away with $204.4 million.

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Major awards to utilities included Lexington Electric System ($27.5 million), Bledsoe Telephone Cooperative ($17.7 million), Greeneville Energy Authority ($8.2 million), Knoxville Utilities Board (KUB) ($15.2 million), Board of Public Utilities of the City of Fayetteville ($23.9 million), and Cumberland Electric Membership Corporation ($17.5 million). 

“This is great news for our community,” Gabriel J. Bolas, President & CEO of KUB, said in a statement provided to ILSR. “We have known for some time that there is a need for reliable internet in Union, Grainger, Sevier, and Jefferson Counties, and this announcement proves there is a broad and concerted commitment to address their needs soon.”

Grants for Regional Telecom Giants Part of the Mix

Regional telecom giants and local monopolies were also well represented by the state’s latest broadband funding round. 

Tennessee cooperatives and utilities came out at the top of the heap in the latest round of awards from the Tennessee Emergency Broadband Fund, netting nearly half of all money awarded for the expansion of more affordable broadband statewide.

The Tennessee Department of Economic and Community Development (TNECD) awarded $446.8 million to 36 applicants, who are now tasked with deploying improved broadband service to 150,000 unserved homes and businesses across 58 Tennessee counties. All told, TNECD said that 218 applicants applied for a total of $1.2 billion in broadband funding.

Of the $446.8 million in awards, utilities and cooperatives walked away with $204.4 million.

Major awards to utilities included Lexington Electric System ($27.5 million), Bledsoe Telephone Cooperative ($17.7 million), Greeneville Energy Authority ($8.2 million), Knoxville Utilities Board (KUB) ($15.2 million), Board of Public Utilities of the City of Fayetteville ($23.9 million), and Cumberland Electric Membership Corporation ($17.5 million). 

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“This is great news for our community,” Gabriel J. Bolas, President & CEO of KUB, said in a statement provided to ILSR. “We have known for some time that there is a need for reliable internet in Union, Grainger, Sevier, and Jefferson Counties, and this announcement proves there is a broad and concerted commitment to address their needs soon.”

Grants for Regional Telecom Giants Part of the Mix

Regional telecom giants and local monopolies were also well represented by the state’s latest broadband funding round. 

Join us live on Thursday, September 22, at 4pm ET for the latest episode of the Connect This! Show. Co-hosts Christopher Mitchell (ILSR) and Travis Carter (USI Fiber) will be joined by regular guests Kim McKinley (UTOPIA Fiber) and Doug Dawson (CCG Consulting). They'll dig into the recent New York City announcement that it would subsidize connection costs for hundreds of thousands in public housing, Tennessee's recent grant announcements, upcoming and dramatic speed increases announced by Comcast, and how the increasing cost of labor, materials, and now capital is affecting new fiber builds.

Email us at broadband@muninetworks.org with feedback and ideas for the show.

Subscribe to the show using this feed or find it on the Connect This! page, watch on YouTube Live, on Facebook live, or below.

Join us live on Thursday, September 22, at 4pm ET for the latest episode of the Connect This! Show. Co-hosts Christopher Mitchell (ILSR) and Travis Carter (USI Fiber) will be joined by regular guests Kim McKinley (UTOPIA Fiber) and Doug Dawson (CCG Consulting). They'll dig into the recent New York City announcement that it would subsidize connection costs for hundreds of thousands in public housing, Tennessee's recent grant announcements, upcoming and dramatic speed increases announced by Comcast, and how the increasing cost of labor, materials, and now capital is affecting new fiber builds.

Email us at broadband@muninetworks.org with feedback and ideas for the show.

Subscribe to the show using this feed or find it on the Connect This! page, watch on YouTube Live, on Facebook live, or below.

There is a long-term solution to the broadband affordability gap that can be found in America’s first gig city. Thanks to Chattanooga’s wildly successful municipal broadband network, EPB Fiber, and its partnership with The Enterprise Center and Hamilton County Schools, over 15,000 low-income students in 8,500 households in Hamilton County are already getting a decade of free high-speed Internet service at no cost through a program known as HCS EdConnect.

It was borne out of the community’s response to the pandemic as local leaders looked to leverage an existing community asset to allow students to participate in distance learning, enable educators to expand educational opportunities outside the classroom, and support parents in pursuing their own professional and personal goals.

It’s an example of the one of the many benefits of having a locally-controlled, publicly-owned broadband network in which the infrastructure is seen as a public good like roads or a water system. It’s an approach that sees broadband infrastructure as something that should be accessible to everyone in the community and not used as a tool to simply benefit those who can afford it.

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We wanted to visually document the power that HCS EdConnect has had in transforming the lives of program participants by weaving together a compilation of video diaries that will give you a glimpse of how a visionary municipal network made this Tennessee county more resilient in the face of the pandemic and ensured no one in their community was left on the wrong side of the digital divide.

Big Telecom Band-Aid or Local Long-Term Solution?

A recently announced $610,000 grant award from the Tennessee Valley Authority to a partnership in Chattanooga, Tennessee will fund a pilot project to fund a set of holistic interventions in the Orchard Knob neighborhood to create healthier, more cost-efficient, better-connected homes for 1,000 residents.

The initiative, driven by a coalition made up of the Enterprise Center, EPB Fiber, Parkridge Health System, Habitat for Humanity, Tech Goes Home, and the Orchard Knob Neighborhood Association, aims to tackling an array of social determinants of health all at once. From The Chattanoogan:

Together, the partners plan to simultaneously invest in infrastructure and test new strategies for improving social determinants of health and quality of life of residents within a historically underserved neighborhood. Ultimately, the program in Orchard Knob will serve as a model for other communities across the Tennessee Valley.

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It's happening as a result of funds contributed by the TVA's Connected Communities initiative, which aims to help "communities within the Valley leverage tech- and data-driven solutions to improve residents’ lives, deliver environmental benefits and scale economic opportunities." So far, these include projects like outfitting the Cheatham County School District with a solar array and battery backup, technology upgrades at more than a dozen Knoxville Recreation Centers, and improved connectivity at public housing sites in Murfreesboro.

Welcome to In Our View. From time to time, we use this space to explore new ideas and share our thoughts on recent events playing out across the digital landscape, as well as take the opportunity to draw attention to important but neglected broadband-related issues.

As federal funds to expand high-speed Internet access began to flow to states and local communities through the American Rescue Plan Act, and with billions more coming under the Infrastructure Investment and Jobs Act, Big Telecom is beginning to mount its expected opposition campaign designed to discourage federal (and state) decision-makers from prioritizing the building of publicly-owned networks.

Predictably, a centerpiece of this anti-municipal broadband campaign is the trotting out of well-worn - and thoroughly debunked - talking points, arguing that federal funding rules should not “encourage states to favor entities like non-profits and municipalities when choosing grant winners” because of their “well-documented propensity to fail at building and maintaining complex networks over time.” That’s what USTelecom, a trade organization representing big private Internet Service Providers (including the monopolies) wrote in a memo sent last week to President Biden, the FCC, cabinet secretaries, House and Senate members, Tribal leaders, as well as state broadband offices.