AT&T will use $26 million collected from telephone universal access fees to extend its broadband service to 81,000 homes and businesses in Tennessee over the next six years.
The telephone giant, which has served the Volunteer State for 135 years, said Wednesday the Connect America Fund will allow AT&T to deploy broadband connections where market forces and economics do not support such expansion. AT&T is getting the bulk of $29 million coming from the Connect America Fund in Tennessee to phone providers in the state. As part of this deployment, AT&T will deliver broadband at speeds of at least 10 megabits per second (Mbps) for downloads and 1 Mbps for uploads.
“Connectivity to broadband is essential in today’s economy, and this additional deployment of high-speed Internet in rural areas will make communities across the state more attractive to future investment,” said Amy New, assistant commissioner for rural development with the Tennessee Department of Economic and Community Development.
EPB, which provides Voice-over-Internet phone service in Chattanooga through its Fiber Optics network, collects about $50,000 a month for the Universal Access Fund from its phone customers, but does not participate in the Connect America Fund, which is designated for underserved rural areas.