14 DAY TRIAL // It appears that Tennessee fears that cable companies might suffer financial losses due to the recent rising popularity of Chattanooga, the city known for its fast Internet speed.
It might sound weird and even hard to believe, but the town has become quite well known in recent years thanks to its ultra-high-speed Internet which can reach up to 1 gigabit per second, something that most people in the U.S. can only dream of.
On top of that, people pay a relatively amount of money for their internet services, compared to other cities which don’t have the same privileges.
Why the state is against high-speed Internet
According to a report published by New America, for the same Internet speed, other cities in the U.S such as New York, Washington, DC or Los Angeles can pay up to $300 per month, which is about three times more than the inhabitants of Chattanooga.
The aim of this report was to underline the idea that local networks can charge up to three times less money for the same services offered by cable or telecom providers.
EPB, the abbreviation for Electric Power Board of Chattanooga, is the company in charge of the distribution of electricity and telecommunication and it is owned by the city. By introducing the fiber-optic network for Internet, it managed to increase the speed and reduce the price considerably.
Excited at the news of paying much less for better services, people from other cities want to make use of the fiber-optic technology as well. However, Tennessee would not allow it under any circumstances, mainly because the state’s laws are supported by the cable industry.
Since FCC had agreed to the decision without consulting the state’s laws beforehand, CNN reported that Tennessee is determined to take the matter in court, hoping to convince the judges that this decision is against the state’s welfare and that no federal rules apply in the state.
Cable companies currently have the monopoly over Internet in Tennessee, but the fiber-optic network has proven to be a very strong competitor.
It remains to be seen whether the state of Tennessee will win the lawsuit or the verdict will be in favor of a free market.