The essence of the objection to municipal involved in communications is that public intervention will undermine the private sector due to the cost advantages uniquely available to governmental entities, thus creating a barrier to public entry. As we have shown, however, this objection fails in two ways: First, municipalities tend not to become involved in communications in markets characterized by effective competition; and second, where municipalities do become communications providers, private entry into the market tends to be stimulated rather than suppressed.
Chattanooga Launches Fastest Residential Broadband Tier: 150Mbps
Chattanooga's Electric Power Board (EPB) is ahead of schedule in the fiber rollout, planning to offer triple-play services to all 145,000 residential customers in its electrical territory by the end of the year. Dave Flessner at the Chattanooga Times Free Press covered this story and the paper posted a short audio clip of EPB President Harold DePriest at the press conference.
EPBFi is up to almost 10,000 customers, a number expected to double by the end of the year.
Comcast is responding to this aggressive muni network:
Comcast Corp. remains Chattanooga's biggest video provider and has also increased the speed of its Internet offerings and the number of high-definition television channels and movies it provides for its subscribers.
Tennessee, home to the famous Tennessee Valley Authority that brought the electrical grid the mountains long neglected by the private sector, continues to value public ownership of infrastructure:
Hamilton County Mayor Claude Ramsey likened EPB's broadband expansions to what the Tennessee Valley Authority brought to the region during the Great Depression.
"What is happening today is equivalent to electricity coming to the valley in the 1930s," he said.
I'm guessing this 150Mbps plan is the first of more impressive announcements to come out of Chattanooga as they take advantage of this key community asset. The 150 Mbps press release is available here.
The article also noted a major economic development win in Bristol Tennessee - a $20 million newspaper printing plant that would not have been possible without their muni network. This testimonial is located toward the bottom of the page.
Hyatt [company VP] acknowledged that the high-speed data transfer and reliable fiber optics were the main reasons for locating the facility in the park. This service is essential as companies move deeper into the information age, especially with the timeliness of newspaper deadlines, multimedia, tricities.com, WJHL information, news, film and video that we have because of the fiber provided by BTES.