Governor Proposes $45M Broadband Plan for Rural Tennessee

NASHVILLE, TN — Gov. Bill Haslam announced a $45 million proposal to expand access to broadband internet service in rural Tennessee Thursday.

At an event at Nashville's Cane Ridge High School, the governor said 34 percent of Tennesseans do not have access to broadband that meets minimum requirements, representing about 725,000 people. Generally, this is because high-speed internet companies haven't found it cost-effective to expand service into less densely populated areas, so the governor's plan will offer $30 million in grants to goose deployment in underserved area and $15 million in tax breaks on "broadband specifics."

The plan also allows rural electric co-operatives to provide broadband service, which is currently banned under state law, and allows them to partner with municipal electric services to do so.

"Our electrical cooperatives serve nearly two-and-a-half million Tennesseans and they're uniquely situated to provide broadband service universally throughout their service territories," Haslam said.

The proposal also creates grants for local libraries to boost internet literacy among rural Tennesseans.

"The plan will provide grant funding opportunities to local libraries to help our residents improve their digital literacy skills and to learn about the benefits of broadband," Haslam said.

The Tennessee Telecommunications Association, which represents 21 independent and cooperatively owned companies already providing rural broadband service to 136,000 customers, issued a statement that is cautiously optimistic about the governor's proposal.

“Like the Governor, Tennessee’s local telecoms are working hard to get the rural communities across the state connected to high-speed broadband service,” said Levoy Knowles, TTA's executive director. "We are analyzing the details of the Governor’s plan to see where we might work together. The local telecoms of Tennessee have invested more than $90 million in the last year in upgrading rural high-speed broadband access. We have the experience, and we have the expertise. We hope that Governor Haslam's proposal for will offer a level playing field for providers.”

Similar wait-and-see statements came from other broadband providers.

“With billions invested in our Tennessee networks, we are encouraged by the governor’s recognition of the work being done by private industry and are also pleased to see the conversation shift toward a more comprehensive approach to encourage continued and accelerated rural broadband deployment, adoption and digital literacy. We look forward to examining the proposed language,” Joelle Phillips, AT&T Tennessee president, said in a statement.

The governor has not filed the enacting legislation yet. Haslam is scheduled to deliver his State of the State address Monday.

Image via United States Department of Agriculture