by Abigail Arpin
Anyone living in modern-day 2025 realizes that access to highspeed internet is vital to everyday life – from online learning to virtual healthcare access to working from home. And, Governor Lee and our legislature have made drastic improvements to expand broadband access. Since the start of 2020, Tennessee has significantly closed the gap between Tennesseans with access to high-speed internet and those without. Today, 95 percent of Tennesseans have access to wired or fixed wireless broadband. That means nearly everyone in our state has the option of high-speed internet in their home or business, except for a remote few in mostly rural areas.
While ensuring all Tennesseans have broadband access is a worthy goal, we should be wary that the big hand of the government, especially the federal government, will do significant harm in the name of expanding broadband to reach every Tennessean. It might surprise you to learn that the Biden administration has pushed significant new funding for broadband expansion, to the tune of $65 billion. As with many federal government programs, the money has great potential for misuse – including funding government owned networks (GONs).
Government owned networks put taxpayers at risk and also fund government networks to compete with the private sector, when private companies are best suited to expand broadband to rural areas from their existing infrastructure, to their expertise, to their ability to take on financial risk.
However, these federal funds frequent end up being used by local governments and electric co-ops to create GONs, with the promise of high-speed, affordable internet access for local residents. The reality is far different. A recent report released by the Beacon Center of Tennessee titled, “Going, Going, GONs! Broadband Access and Adoption in Tennessee and the Financial Performance of Government-Owned Networks,” exposes the bloat and risk to taxpayers posed by (GONs).
Tennessee is poised to receive $813 million in federal money to expand broadband to the least served across the state. This is money Tennessee and other states are receiving from our federal big brother. However, the good news is Tennessee will direct how that money is spent – though it must satisfy federal requirements. That said, it’s important that Tennessee invest this money in the most responsible manner possible that ensures transparency and taxpayer accountability.
Some local governments are proposing to waste taxpayer money by building government-owned broadband networks, usually in communities where more than one private internet service is already available, and without the necessary experience and expertise to successfully operate the network. Ask yourself, do you want the same folks who run the DMV or TSA, responsible for ensuring internet service?
Our friends over at Latinos for Tennessee launched a helpful website that goes into more detail on why GONs are a mistake and the importance of fiscal responsibility and protecting Tennessee’s taxpayers while expanding access to broadband. And the previously mentioned the Beacon Center report crunched the numbers on what this government-first approach to broadband has looked like so far, and the results are grim.
In short, GONs in Tennessee struggle to attract customers for years and dramatically underestimate their expenses by $367 million, a 98-percent cost overrun. Their pie in the sky promises often end up half-baked with lower than expected revenue and higher than expected expenses – resulting in an unprofitable government business.
Rather than responsibly using funds to expand broadband in truly unserved rural and remote areas, these GONs build costly networks at taxpayer expense that struggle to compete with existing businesses. Talk about inefficiencies. And, with additional wireless options and the prevalence of Star Link – should governments be investing in brand new largely duplicative networks?
However, the good news is there’s a better way to ensure a universally accessible, thriving, and affordable broadband market in Tennessee. Instead of investing taxpayer funds in wasteful government-owned networks, these federal funds should be used to increase adoption of available private sector internet service and to increase digital skills, which are increasingly necessary for economic success. To the extent any funds are deployed to GONs, they need to first prove they are feasible. These projects should maintain and update business viability plans throughout the fund application process, and they should be required to report to the Tennessee Comptroller on their feasibility every five years, with a plan to get back on track if needed.
This oversight matters because taxpayers demand that government make the highest and best use of their resources. We’ll continue to keep a watchful eye as Tennessee deploys $813 million in taxpayer dollars to expand broadband access. We’d also encourage each citizen to keep a watchful eye on their community to ensure they are spending taxpayer dollars wisely. If you see something that seems wasteful, send us a note and we’ll look into it.
– – –
Abigail Arpin serves as a board member of the Tennessee Conservatives Coalition.
