Broadband – A Modern Necessity

Having access to high speed broadband service is quickly becoming the most important differentiating infrastructure of our time. A 2016 report from then Commissioner for Economic and Community Development Randy Boyd, found businesses in Tennessee said broadband enabled 43 percent of all net new jobs and 66 percent of revenues. In addition, 34 percent of businesses classified broadband as essential to selecting their location, and 56 percent noted that it was essential to remain in their location. Sixteen percent of economic development agencies reported that businesses frequently chose not to locate in an area due to insufficient broadband. Access to high speed broadband service is a primary differentiating factor for families choosing to build or relocate to a particular area.

It is clear that broadband is critical to the economic future of Tennessee. Broadband already significantly contributes to Tennessee’s economy. When a community lacks adequate access, economic opportunities are lost. The vast majority of the areas in Tennessee without access are located in rural regions of the state. For example, only 2 percent of urban citizens do not have access to 25/3 broadband connectivity in Tennessee compared to 34 percent of rural citizens. Fiber connectivity is the most reliable, fastest and highly rated type of connectivity by a significant margin with cable and fixed wireless rated as the next best. DSL and mobile wireless perform at lower speeds with less reliability while satellite and dial-up had by far the poorest rated services.

Responding to this need, the General Assembly passed the Tennessee Broadband Accessibility Act in 2017 to permit the state’s private, nonprofit utility cooperatives to provide broadband service and provided $45 million over three years through grants and tax credits that focus on the state’s unserved and underserved areas. The Broadband Accessibility Grant Program is designed to offset the capital expenses in the deployment of broadband in these areas. The goal of this program is to facilitate broadband access to all Tennesseans while promoting practices that increase deployment and encourage adoption. Funds will be targeted to areas that are unlikely to receive broadband service without grant funding. The state established a broadband ready community program to give those communities willing to work with nonprofit utility cooperatives a bonus on grant applications.

Recognizing that action was needed on broadband for Union County, 1st District Commissioner Stan Dail presented a Resolution in May 2018 to put Union County on the list of Tennessee Broadband Communities. Passing with unanimous support, Union County is now one of 22 Tennessee Broadband Ready Communities. Working with USDA Rural Development and Sunset Digital Communications, Commissioner Dail facilitated the submission of a $2.875M grant to USDA’s Community Connect Grant program. If successful, this grant will provide funding to bring state of the art fiber broadband technology to Union County, extending Sunset Digital’s service from Claiborne County, south into underserved areas of Union County north of Norris Lake.

Sunset Digital Communications is currently preparing a subsequent grant application to the Tennessee Broadband Accessibility Grant Program. Important to this application is community support. In fact, upon acceptance by the state, an open comment period will be provided to allow community members to both voice their support for the grant and communicate concerns to the state over the areas defined as eligible for grant funding by the grant application. A proposed letter of support for the Tennessee Broadband Accessibility Grant, addressed to Sunset Digital Communications, is attached. Union County citizens are encouraged to download this letter, sign, date and return the letter to Sunset Digital Communications.

If successful, these grant applications will assist in bringing fiber communications to a portion of the unserved and underserved areas of Union County. However, this is not enough. The Tennessee Broadband Accessibility Act permits the state’s private, nonprofit utility cooperatives to enter the broadband market and the Tennessee Broadband Accessibility Grant Program provides funds to assist bringing access to all unserved and underserved areas of Union County. Work with your elected officials and reach out to companies like TDS Telecommunications LLC and encourage them to apply for grant funding to bring fiber optic broadband service to your community.