The following news report suggests that some in Knoxville, Tennessee, are starting to get a little jealous of the incredible FTTH network built by Chattanooga's publicly owned electric company. A number of Knoxville businesses are finding it more convenient to expand and add jobs in Chattanooga, where access to the Internet is faster and more affordable due to public investments.
Knoxville is located 100 miles northeast of Chattanooga. And 100 miles to the northeast of Knoxville is Bristol, Virginia, which has also been seeing significant job gains as a result of its publicly owned fiber-optic network that stretches into most of southwestern Virginia. In short, Knoxville should start worrying about its future and broadband competitiveness.
The Chattanooga Times Free Press discusses the state of the economy in Hamilton County. They have seen impressive new jobs (credit to the EPB Fiber network) but some existing companies have had to continue downsizing in the weak economy. From the article:
Chattanooga’s high-speed Internet service already is showing some promise. The Knoxville-based Claris Networks, a cloud-based IT provider, recently acquired two Chattanooga IT companies — SRC Technology and Allied IT — and has expanded the staff in its Freight Depot office downtown to eight employees.
“Connectivity for us is about eight to 10 times cheaper in Chattanooga than it is in Knoxville and other cities,” said Dan Thompson, manager of advanced infrastructure service and product development for Claris. “We see a great potential for growth in Chattanooga.”
Interestingly, Knoxville's public power utility had previously considered a public investment in a fiber network but decided against it. Not every publicly owned utility can duplicate EPB's success in Chattanooga, but most could if they gave it the effort demanded of perhaps the most important piece of the future economy: fast, affordable, and reliable access to the Internet.
Chattanooga and other similar pioneers are incredibly open when others look to them for lessons. So places like Knoxville have a choice: sit back and watch as innovative industries move to innovative cities or invest in yourself.
This is where the profit motive fails society -- there's no real financial incentive to provide coverage for someplace like Gilboa, New York, so therefore it isn't covered. But there is an incentive to prevent anyone else -- including the small town itself or, heaven forbid, the entire county -- from providing services to Gilboa because a David may grow up with the potential of killing Goliath.
Government does have an interest in seeing Gilboa, New York get access to broadband Internet coverage, because that would mean more employment opportunities, better educational facilities, and even more self-employment. In other words, like roads, sewage and utilities, broadband infrastructure is necessary to economic development.