Tennessee’s plan to bring internet connections to more than 43,800 locations across the state has cleared another hurdle to unlocking $403 million in federal and service provider matching funds to expand broadband infrastructure.
The approval, announced Monday by the Department of Commerce’s National Telecommunications and Information Administration, is the second-to-last oversight decision from the federal government before the state can begin signing contracts with service providers.
In a statement, Arielle Roth, assistant secretary of commerce for communications and information and the National Telecommunications and Information administrator, announced that 50 of 56 proposals from states and territories had been approved.
“This milestone reflects the vision set by Secretary (Howard) Lutnick — a program driven by competition, efficiency, skin in the game and better results for consumers,” Roth said. “NTIA is working diligently with states and territories to get the remaining six final proposals over the finish line so that we can deliver on our goal of universal connectivity for the United States, once and for all.”
The Commerce Department’s National Institute of Standards and Technology will need to sign off next.
Chris O’Brien, a public information officer at the Tennessee Department of Economic and Community Development, the state agency overseeing the program, said state officials are excited about the approval.
“We anticipate hearing next steps from NIST in the coming weeks,” O’Brien said in an email, and will be working toward finalization of the grant projects and contracting with grantees over the next month.”
Funding for the infrastructure projects comes from $813 million allocated to Tennessee as part of the $42 billion Broadband Equity, Access and Deployment program, established by the 2021 Infrastructure Investment and Jobs Act.
Though the state has not finalized its contracts with service providers, Tennessee tentatively awarded contracts to 16 companies to service the more than 40,000 locations.
More than three-quarters of those locations will receive service through fiber optic broadband, a technology that transmits information by light sent through cables containing strands of flexible glass that are hung on power lines or buried underground.
The remaining quarter of locations will receive broadband service through coaxial cables — older technology used for radio, television and internet connections — or low Earth orbit satellites that transmit data from a constellation of small satellites circling the Earth at an altitude between 300 and 1,200 miles.
The final, approved plan includes minor changes to the state’s initial proposal, including the elimination of about 470 locations and a $2.6 million reduction in the overall cost. Most of those reductions were for locations slated to receive satellite connections.
(READ MORE: Two Tennessee legislators ask federal government to release broadband funding)
Reid Starkey, a community broadband specialist and research associate at the Benton Institute for Broadband and Society — an organization that advocates for expanded access to the technology — said minor changes were expected.
“I’m pleased to see there wasn’t any grant reduction in locations that are going to be receiving fiber,” Starkey said by phone. “That is positive and, I think, expected result, and we’re happy to see that NTIA is getting these plans approved and the work on the program can start to take place in the states.”
Volunteer Energy Cooperative, a Decatur, Tennessee-based utility co-op, won five preliminary awards in Hamilton, Bradley and McMinn counties serving 2,000 locations at a cost of $18.8 million.
David Murphy, the director of key accounts and external affairs for Volunteer Energy, said the co-op had heard from the state economic development agency that the proposal had been approved but had not received word about Volunteer’s specific contracts.
Murphy said he expects to win all five of the provisional contracts.
Five other states and two territories also received approval this month: Oregon, Pennsylvania, Vermont, Mississippi, New Mexico, Puerto Rico and the U.S. Virgin Islands.
(READ MORE: Federal guidelines mean more satellite internet in Tennessee, but concerns persist)
In June last year, the administration of President Donald Trump changed the broadband program’s grant-making criteria, prioritizing bids by service providers offering the lowest installation cost. The original policy had prioritized internet speed, scalability and durability.
Under the new criteria, Tennessee reopened the application portal to more satellite internet providers. Amazon Leo and Starlink, two low Earth orbit satellite internet providers, tentatively won half of the 200 available contracts across the state.
Starlink’s parent company, SpaceX, merged with the artificial intelligence startup xAI earlier this month. Both companies are owned by Elon Musk, who said he plans to launch 1 million satellites into space, establishing data centers in orbit.
Contact Report for America corps member Jules Feeney at jfeeney@timesfreepress.com or 423-757-6431.