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September 23, 2007

The EPB/Comcast Showdown

EPB, a city-regulated utility, has been holding public meetings regarding its proposed citywide fiber-optic infrastructure plans for broadband. The City Council is scheduled vote on the initiative on Tuesday. Last Friday, the Tennessee Cable Telecommunications Association (TCTA) filed a lawsuit against EPB, claiming it will violate a state law that prevents utilities like EPB from subsidizing telecommunications initiatives with electric utility revenues.
see Chattanoogan.com article.

EPB has responded by accusing the TCTA (read Comcast) of "attempting to limit the choices available to people in the Chattanooga area," according to Harold DePriest, EPB President & CEO.

Apparently there is already adequate, if not overwhelming, support from both the city Mayor's office, as well as the city council ahead of the Tuesday vote.

The public forum held a few weeks ago yielded nothing but approval for the plan (with the one exception being a rep with the TCTA) by those citizens who took the time to attend.

The TCTA hasn't really bothered to deal with us, the public, directly about the issue, choosing, instead, to limit their attention to members of the city council.

Then, at the eleventh hour it filed a lawsuit, alledging that EPB can't possibly do what its business plan says it can do, even though the plan has been scrutinized both internally and publicly.

The bottom line is this: We have been suffering what seems like arbitrary rate increases and the type of customer service that comes with a lack of competition for too long. EPB's plan may have risks, and we, the rate payers, may be called upon to answer for unexpected losses (unlike what would occur if, say, Verizon came into the market and poured $$ into an infrastructure for the same service). Of course, we would still be on the hook as a Verizon-like company would set its broadband rates to absorb those infrastructure costs.

Chattanooga is not the only municipality working on such a plan. Dalton, GA has had a similar set up since 1999 and claims it is edging ever closer to profitability. Of course there is Memphis Light, Gas, & Water, which is selling off its broadband at a loss of some $28M see Cleveland Banner article.

The up-side is, however, worth the risk: Access to broadband in every home (regardless of whether the neighborhood is wealthy or poor), cost saving digital monitoring and regulating of electric utilities, a city-wide infrastructure that is more than a cute amenity as Chattanooga pushes itself ever closer to the 21st Century.

We have to face the fact that the "information super highway" isn't called that for no reason. A highway is necessary infrastructure. Without it commerce will not happen. Therefore, we accept a certain amount of government control over the espablishment and maintenance of such an important component of continued economic growth. Access to high-speed internet (at speeds much greater than Comcast can currently provide) is just as important to keeping Chattanooga in the economic development race with every other community, not just in Tennessee, the south east region, the U.S., but the world.

Sure we will have to keep our citizens' eyes on those who will manage this "highway," but what else is new. It is ALWAYS up to us to keep our local government in line, and to make sure it does what it says it will do.

Things to watch for:
Privacy issues. When our personal information is flowing through a city-regulated public utility, we don't want public servants snooping into our private lives.

Selective Distribution. EPB has already outlined its roll out plan, which seems to make sense: you have to start where you have the facilities and radiate outward. Just make sure that the promise of a digital chicken in every pot regardless of socio-economic demography is honored.

Bait and switch. Let's say fiber isn't profitable. We don't want our electric rates mysteriously being raised so that those revenues subsidize a failed business plan.

The First Taste is Free. Utopian rates, packages, offered bandwidth that makes us feel good for a while, then a settling into mediocre bandwidth/up & down speeds, gouging business customers while artificially keeping personal household rates low (or vice versa), etc.

Clearly, we can't just say, "Yes," sit back, and eat cake.

If you do support EPB's fiber in the home plan, now would be a good time to voice your opinions to the city council. It would also be a good time to visit the city council meeting this coming Tuesday at 6:00 p.m.

Media | By pulseblogger | 12:47 PM

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