UNITED KINGDOM / AGILITYPR.NEWS / July 06, 2021 / Bridging divides and futureproofing cities through open access

In most US states, Internet Service Providers (ISPs) are privately owned companies who have established copper network infrastructure exclusively for their own use, forcing customers into often unreliable, unsustainable internet package deals. But in 2010, the small city of Chattanooga, Tennessee invested in the USA’s first publicly owned fiber optic network. Here Mike Harris, co-founder of open-access telecoms company SiFi Networks, explains how investments in open-access infrastructure helps bridge community divides and futureproof a city’s economic and social prosperity.

According to a study by Dr Bento Lobo, department head of finance and economics at the University of Tennessee, Chattanooga’s municipal broadband has delivered over $2.69 billion worth of social and economic benefits during its first decade. With a population of just 185,000, imagine the potential savings for a city the size of New York.

Chattanooga used to be perceived as an underdeveloped, low-income area, but now businesses are moving in, employment is growing, and more adolescents are graduating from high school. Is it about time for other cities to follow suit?

Why other cities should follow suit

Internet connectivity is a human right much like water, electricity and gas utilities. Yet 21 million US citizens are still living without reliable broadband according to the PEW Charitable Trusts. Research also shows that 40 per cent of schools and 60 per cent of healthcare facilities outside metropolitan regions lack internet download speeds of at least 25 megabits per second and upload speeds of at least three megabits per second. This is the acceptable speed defining a reliable broadband connection.

As the Chattanooga model demonstrates, the solution is the establishment of fiber optic infrastructure. With fiber networks, EPB offers residents and businesses gigabit speeds of up to 1,000 megabits per second. In hindsight, with this capacity Hamilton County was well equipped to deal with the 75 per cent increase in total volume of bandwidth being used per day during the pandemic, with residents being forced to work and educate from their homes.

These gigabit speeds also allow for a high degree of network responsiveness necessary for establishing a smart grid system. Most US cities use standard grid systems, which rely on consumers informing a service when they have a power outage or system failure. 

Smart grids establish a two-way communication network using digital devices and automation so that service providers are notified immediately when problems occur. EPB’s Hamilton County smart grid, for example, can quickly re-route power around storm damage decreasing outages by 40 per cent in minutes, according to Dr Lobo’s study. He estimates Chattanooga’s consumers will save $20.6 million per annum simply from avoiding spoilage and loss of productivity due to power outages.

Saving money, saving livelihoods

EPB has more than proven that fiber networks are a socioeconomic investment benefitting everyone, not just those lucky enough to live in a fiber area. Better, faster connectivity will enable businesses in all neighbourhoods to thrive, creating job opportunities. During the ‘gig decade’ (2011-2020), EPB’s fiber network directly supported the creation or retention of approximately 9,500 jobs in Hamilton County, luring the migration of global corporations like Volkswagen. The US Bureau of Labor Statistics has reflected this, stating Hamilton County’s unemployment rate being 4.7 per cent as of November 2020, compared to the USA’s overall percentage of 6.7.

The social benefits don’t stop here. A study by South Australia’s premier, Jay Weatherill, correlated gigabit networks with improved support for police and fire communications, wastewater management, traffic control and medical diagnostics. These are all features of SiFi Networks’ FiberCity® and if Chattanooga has demonstrated anything, it is that fiber networks improve residents’ quality of living above all else.

Chattanooga has demonstrated the importance of staying connected. To this end, becoming a SiFi Networks FiberCity® could be the next step for cities across the US.