KNOXVILLE, Tenn. — People in Knoxville may soon have another choice for their internet provider — the same people who likely provide their electricity.
The Knoxville Utilities Board hosted a meeting Wednesday, May 26, about its plans to provide municipal broadband in its service area. During the meeting, officials said most people were excited about the plan to provide internet service along with other utilities.
More than 90% of people said they encouraged KUB to pursue the plan, and many were from rural areas.
"We heard from people in rural areas that literally have no internet options, and this would be the only foreseeable option for them," said Jay Miller, the KUB spokesperson.
The plan will allow KUB customers to use a municipal broadband system, which will provide high-speed internet access, phone services and television packages. Officials said the system could be faster than internet access provided by private companies since it can use 100% symmetrical fiber.
Through this infrastructure, download speeds should equal upload speeds, resulting in overall faster internet.
KUB also said that rates for a municipal broadband system would be cheaper compared to rates from private companies. Officials also said it could bring more competition in Knoxville's market, encouraging companies to offer lower prices to keep customers.
During the meeting, officials aid the service could cost around $65 per month for residential customers.
Around 60% of KUB customers only have one choice of internet service provider, according to a release from officials. They also said 76% of customers said they were interested in internet services from KUB. Half said they would consider switching providers.
KUB already invested in fiber infrastructure to support its electric system, so officials said they would not be starting from scratch. Instead, the broadband system would build off existing infrastructure.
They said they need to seek approval from the Board of Commissioners and the Knoxville City Council before it can develop the system, though. If it gets approval, work could begin in 2022 and roll out to customers over 7 years. they said it would also create around 200 new jobs in the community.
Officials said they will hold a meeting with the Board of Commissioners in June.
The Tennessee Cable & Broadband Association, an industry group, released a statement against the plan:
“Our members vigorously compete with 9 other companies offering broadband services in Knox County. While we think KUB’s plans to increase electric rates by 9% to offer broadband services creates an unfair burden to many in our community, our members are appropriately focused on providing the best service for the best price to our customers. The TCBA looks forward to working with KUB and policy makers to ensure continued access to utility poles, rights of way and other public infrastructure to expand and maintain state of the art broadband networks that our customers depend on.”
Information about the alleged plan to increase electric rates was not immediately available. Comcast and Charter Communications are members of the TCBA, according to its website.