A decade after EPB launched its biggest and costliest expansion into the world of television, telephones and Internet service, the $220 million venture by the city-owned utility appears to be paying off, according to an economic analysis prepared by the University of Tennessee at Chattanooga.
Fiber payoffs (2011-15)
* Increased reliability: Smart grid has cut 124.7 million customer minutes of interruptions over the past six years* Global publicity: Since 2010, Chattanooga and the “Gig City” were covered in at least 1,134 news stories reaching more than 1.8 billion viewers and readers, worth an estimated $24.3 million in advertising equivalency.* Business efficiency: Fewer outages, better energy controls and faster data links are projected to generate from $234.7 million to $266.4 million in gains* Customer savings: Smart grid should offer similar advantages to households worth $78.8 million to $121.8 million* New business investment: Faster telecom attracted or helped grow more business, projected to add from $198.2 million to $461.2 million in new investments* Increased jobs: Increased business activity supports 2,800 to 5,200 new jobs, both from new and expanding businesses.Source: University of Tennessee at Chattanooga Department of Finance, “The Realized Value of Fiber Infrastructure in Hamilton County, Tennessee.”
By the numbers
* 75,725: Number of EPB fiber optic customers, or 47 percent of all homes and businesses served by EPB * $220 million: EPB borrowing to build smart grid and fiber optic network throughout its 600-mile service territory * $111.7 million: Federal stimulus grant provided to EPB to help build smart grid in 2010 * $865.3 million to $1.3 billion: Net economic benefits from EPB fiber optics
Read more
Sohn: EPB’s fiber folly not folly at all
An EPB-commissioned study by UTC’s Department of Finance estimates EPB’s smart grid and fiber optic network has helped add at least 2,800 jobs and pumped an extra $865.3 million into the local economy over the past four years by cutting power outages, improving data connections, lowering power bills and attracting businesses to the self-described “Gig City.”