The Federal Communications Commission voted 3-2 on Thursday to allow EPB to expand its broadband offerings to neighboring communities.
Chairman Tom Wheeler and two other Democrats were in favor, while the two Republican members said the agency was acting illegally in overriding state law.
EPB's phone, Internet and TV offerings have been far more successful than expected and have been helping subsidize the electric side of the city-owned utility's operation.
The FCC staff had recommended approval for the expansion by EPB and the municipal utility at Wilson, N.C.
“We applaud the FCC for voting in favor of communities having control, at the local level, of their broadband futures” said Harold DePriest, president and CEO of EPB. “We look forward to being able to serve our neighbors with 21st century communications services. “
“I applaud any effort to make high-speed broadband available to all homes and businesses in Hamilton County,” said County Mayor Jim Coppinger. “Today’s FCC decision and efforts by lawmakers in the Tennessee Assembly to remove territorial restrictions are moving us closer to that goal.”
“Today’s decision is another great example of Chattanooga leading the way in the innovation century,” said Mayor Andy Berke. “By removing barriers to broadband access, we can help ensure digital equity and improve quality of life for our neighbors in Southeast Tennessee and beyond.”
With the FCC action, EPB said it is reviewing technical, financial, and legal issues "to determine how it can best respond to the requests of surrounding communities for extension of EPB’s fiber broadband service."
EPB officials said they continue to pursue additional options through the Tennessee legislature for responding to requests of neighbors for extension of EPB Fiber Optics services to them. Tennessee Senate Bill 1134 and House Bill 1303 would remove the state territorial restrictions that currently prevent municipal electric systems from extending fiber services to neighboring areas that have requested them.
“Many neighbors have been struggling with the economic and educational disadvantages of not having access to broadband services,” said Mr. DePriest. “We are looking for the quickest path forward to help those neighbors join the 21st century information economy.”
Neighboring communities who wish to have access to EPB Fiber Optics services are encouraged to send requests from elected officials to EPB.
Once EPB has received a formal request for service from a community, EPB will evaluate the technical, financial, and legal feasibility of delivering service to the community.
EPB will extend service only into cities and counties that request EPB's presence and will only extend to areas where it is financially and technically feasible to do so.
“We’ll likely look to southwest Bradley County and the portion of Hamilton County that we do not currently serve first” said Mr. DePriest.
The full FCC petition, accompanying exhibits , Tennessee SB 1134 and HB 1303 are available for review.
FCC staff member Julie Veach said it was "about getting better broadband to more people."
Gregory Kwan, an FCC attorney, said many communities had a single provider or none at all, while being near "a world-class provider."
He said officials at both EPB and Wilson "have received numerous requests to expand their services."
The action, he said, was "about allowing them to serve their neighbors, removing barriers and promoting competition."
Commissioner Mignon Clyburn said, "Millions are trapped in digital darkness, and the promise of universal access remains unfilled."
She said some have top-notch service, "while others a few yards from town are stuck in a digital divide."
Jessica Rosenworcel said, "When existing providers failed to meet the need, they (municipalities) stepped forward and did it themselves."
She said, "Today we tear down barriers and offer consumers more choices."
Ajit Pai said the Tennessee law setting up broadband service areas had been approved in a bi-partisan fashion. He said, "Now we have three un-elected officials deciding to rewrite it on a party line vote."
He said, "The FCC simply does not have the power to do this."
He added, "Unfortunately for the commission, all the lipstick in the world can't disguise this pig."
Michael O'Rieily said the order was "legally infirm and bad public policy."
He said he was "profoundly opposed to municipalities being in the broadband business" and he said the order "is downright hostile to states."
Chairman Wheeler introduced two Chattanooga area residents he said live just outside the EPB service area.
He said Richard Thornton was just three-quarters of a mile outside the EPB loop and had to deal with inferior and more costly service.
The chairman said Eva Van Hook of Bradley County had to drive her son 12 miles to a church where he could be on broadband to do his online courses.
The audience broke out in cheers after the ruling that was aired on C-Span.