Broadband for Broadband for Economic Economic

DevelopmentDevelopment

Morristown Utility SystemsMorristown Utility SystemsMorristown, TNMorristown, TN

Jody Wigington, CEOJody Wigington, CEO

Equal Access Network for All UsersEqual Access Network for All Users

Local Economy Jump StartedLocal Economy Jump Started.

Educated Workforce CriticalEducated Workforce Critical

Economic Development – Existing Job Economic Development – Existing Job BaseBase

Economic Development – New Economic Development – New RecruitmentRecruitment

How was it Possible?How was it Possible?

Trends are ObviousTrends are Obvious

State of Tennessee fighting against State of Tennessee fighting against itselfitself

Will essential infrastructure have the Will essential infrastructure have the chains lifted?chains lifted?

• Morristown in East Tenn, 14K passings, Morristown in East Tenn, 14K passings, 30K population30K population

• Regional industrial base for 5 counties – a Regional industrial base for 5 counties – a driverdriver

• FTTH 100% passive optical network – FTTH 100% passive optical network – reliable & fast reliable & fast

• Not selective, passes every resident and Not selective, passes every resident and businessbusiness

• Gigabit symmetrical speeds accessible all Gigabit symmetrical speeds accessible all pointspoints

• Defined difference from incumbent Defined difference from incumbent systemssystems

• Major player is local customer serviceMajor player is local customer service

• Hurting from years of rate increases & Hurting from years of rate increases & lack of servicelack of service

• Call for Action by local leaders - looked to Call for Action by local leaders - looked to the utilitythe utility

• 8 Yrs later – financially stable & 8 Yrs later – financially stable & rejuvenated communityrejuvenated community

• Redirecting $9 million per year to provide Redirecting $9 million per year to provide networknetwork

• Leaving $3 million rate savings in local Leaving $3 million rate savings in local pocketspockets

• 60% increase in electric in lieu of tax 60% increase in electric in lieu of tax paymentspayments

• Incumbents improved products & Incumbents improved products & stabilized ratesstabilized rates

• Win-Win for local citizens & businessesWin-Win for local citizens & businesses

• Industry demands more & better Industry demands more & better educated workers to be sustainable in our educated workers to be sustainable in our communitycommunity

• 60 mile radius has population but lacks 60 mile radius has population but lacks broadbandbroadband

• Local education system on 3 gig, asking Local education system on 3 gig, asking 10 gig10 gig

• Remote sharing of skilled teachers Remote sharing of skilled teachers lowering costslowering costs

• Tech centers & local colleges choose fiber Tech centers & local colleges choose fiber benefitsbenefits

• Morristown proper has it but nearby Morristown proper has it but nearby cities do notcities do not

• State broadband restrictions are punitive State broadband restrictions are punitive barriersbarriers

• Prohibits areas communities a local Prohibits areas communities a local choice to provide for their own economic choice to provide for their own economic survivalsurvival

• Initial build-out focused on residents, then Initial build-out focused on residents, then shiftedshifted

• Industry & business connecting sites on Industry & business connecting sites on networknetwork

• Lower costs, higher speeds, better Lower costs, higher speeds, better reliabilityreliability

• More competitive: “Time is Money”More competitive: “Time is Money”

• Fortune 500 companies moved to fiber & Fortune 500 companies moved to fiber & local providerlocal provider

• RFP’s have evolved to ask for Gigabit RFP’s have evolved to ask for Gigabit speedsspeeds

• Network encouraged multiple local Network encouraged multiple local expansionsexpansions

• Small businesses choose fiberSmall businesses choose fiber

• Utility created jobs internallyUtility created jobs internally

• Local channel with advertising & Local channel with advertising & community focuscommunity focus

• Call Center w/ 500 jobs, impressed by Call Center w/ 500 jobs, impressed by broadband accessbroadband access

• Intangible: Sense of local prideIntangible: Sense of local pride

• Local electric utility owns & uses network Local electric utility owns & uses network for Smart Gridfor Smart Grid

• Transformed the utility to state-of-artTransformed the utility to state-of-art

• Shared w/ community offering 3-play retail Shared w/ community offering 3-play retail servicesservices

• Simple redistribution of corporate revenue Simple redistribution of corporate revenue wealthwealth

• Money now staying local and paying for Money now staying local and paying for networknetwork

• Recognition to the City helps economic Recognition to the City helps economic developmentdevelopment Connected TennesseeConnected Tennessee Community Community

Service AwardService Award

Community Broadband AwardCommunity Broadband Award Municipal Municipal Smart Grid AwardSmart Grid Award

Sustainable CommunitySustainable Community Next Century Next Century City City

• 1 of 7 Cities in Tennessee securing it’s 1 of 7 Cities in Tennessee securing it’s own futureown future

• Cord cutting: Video & phone decliningCord cutting: Video & phone declining

• Future with streaming video creates riskFuture with streaming video creates risk

• Obvious need? High Speed BroadbandObvious need? High Speed Broadband

• Business & residential market are Business & residential market are demanding speeddemanding speed

• Fear: Sustainability with small customer Fear: Sustainability with small customer basebase

• Answer: Remove legislative restriction & Answer: Remove legislative restriction & share networksshare networks

• Network under utilized, capable of Network under utilized, capable of multiples of customersmultiples of customers

• Old saying: “He who fibers first wins!”Old saying: “He who fibers first wins!”

• We fibered first and winning for nowWe fibered first and winning for now