Telecom Update (July 19, 2010)

MUS built our telecommunications system to 100% of the City residents and intended to extend to the County in early 2008 but this process was delayed pending the outcome of the AT&T State legislation to allow state franchises.  At the recommendation of the State Comptroller, MUS pursued and received in November 2008 an amended local franchise to serve Hamblen County under similar build out requirements as provided to AT&T and Charter Communications. The Hamblen County Commission has been very helpful and supportive of our efforts to amend the franchise and to gain the support of our friends at Appalachian Electric Cooperative and Holston Electric Cooperative.

The Coop support is critical because we must attach FiberNET cabling to their poles and need to do so at the least cost possible in order to serve as many county residents as possible.  As partner electric systems, we each share common goals and face future electric rate changes in which a high speed telecommunications will prove invaluable.

You are aware that MUS staunchly opposed the AT&T legislation.  This legislation was about corporate profit and not local or rural broadband improvements. The result of the AT&T bill is that MUS will not be able to reach as many customers as first planned or as uniform across the county as desired.  MUS must now build to smaller areas where revenue will support the investment.  Fiber optic products offer a great service but the cost of delivery is expensive. Given the State franchise favors AT&T’s desire to selectively deploy to high revenue pockets, MUS must use a similar strategy in order to remain fiscally responsible to our funding and especially so during these difficult economic times.

MUS attempted to apply for Stimulus Broadband Funding to serve all of Hamblen County.  Due to the lame FCC definition of broadband, “750KB down and 250KB up”, Hamblen County was deemed already adequately served and thus we could not satisfy the requirements for stimulus funding.  Any basic cable modem or DSL product can burst to these speeds.  The MUS lowest speed is 6 MB sustained (over 6 times faster) and we simply cannot go as slow as the FCC defines.  We understand County residents want FiberNet speeds due to inadequate services but we must abide by the rules the FCC established.  As with most of the stimulus funding, it is proving very hard to obtain due to a slow process and cumbersome loads of paperwork requirements.

2007-12-01  AT&T Bill Position Resolution

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