Tennessee is currently ranked 29th in the U.S. for broadband access, and 34 percent of residents in rural areas of the state do not have minimum-standard access, according to a 2016 study commissioned by the Tennessee Department of Economic and Community Development. In addition to impacting education, healthcare, and agriculture, this has harmed the business community. Thirty-four percent of businesses surveyed identified broadband access as essential to location selection and 56 percent said it was essential to remain in their location. Now, a measure recently signed into law by Gov. Bill Haslam aims to boost the state’s economic growth and competitiveness by expanding broadband access.
The Tennessee Broadband Accessibility Act (House Bill 529/Senate Bill 1215) will address the problem with investment, deregulation, and education initiatives. This includes:
- The Broadband Accessibility Grant Program, giving $30 million over three years to broadband providers for deployment to unserved homes and businesses
- $15 million in tax credits over three years to private service providers for purchase of equipment to provide access to economically challenged counties
- Allowing private, nonprofit electric cooperatives to provide retail broadband service (which was previously prohibited)
- Providing grant funding to local libraries for digital literacy skills programs
HB 529/SB 1215 was developed as a compromise after a year of study and stakeholder conversations.
NFIB was neutral on various broadband bills since we heard from members on both sides of this issue.
