FAQs

How many Memphians have high-speed broadband now? How many will have at the 60% rate?

Approximately 80,000 households have high-speed broadband today
At 60%, nearly 150,00 households would have high-speed broadband – nearly doubling its reach
In low-income communities 60% network availability could triple high-speed broadband usage

Why 60%? How did you decide on that number? Seems like a big give away for just over half our population, especially given how many high-speed broadband already.

60% coverage delivers real impact. It could double usage amongst all households and triple broadband usage amongst low-income households
A threshold higher than 60% could dissuade private investment
And 60% is the investment floor, not its ceiling

Why not 75% or 95% if we’re trying to increase broadband access

60% coverage delivers real impact. It could double usage amongst all households and trip broadband usage amongst low-income households
The 60% threshold is less likely to dissuade investment than higher thresholds
And 60% is the investment floor, not its ceiling

That same Microsoft study says that 98% could get broadband, but that only 32% have it. Shouldn’t we be spending money connecting residents with existing broadband versus build new networks?

Not all broadband is the same. In fact, the FCC’s Chairwoman recently proposed to increase the national broadband standard and intends to set a national goal of 1Gbps/500 Mbps for the future
What we’re talking about — and incentivizing — is high-speed symmetrical broadband needed for remote work, online learning, and telemedicine

The Census Bureau says that 78% of Memphis households have broadband internet subscription. Why the discrepancy with your numbers?

Not all broadband is the same. In fact, the FCC’s Chairwoman recently proposed to increase the national broadband standard and intends to set a national goal of 1Gbps/500 Mbps for the future
What we’re talking about — and incentivizing — is high-speed symmetrical broadband needed for remote work, online learning, and telemedicine

Does the Ordinance require that every district is covered?

This ordinance does not specify that every Council district is served
The ordinance applies to any high-speed broadband network developer that will invest in 60% citywide coverage and 60% low-income premises coverage
This should double broadband usage throughout the city and triple amongst low-income households

How is the city defining low-income premises?

Low-Income premises will mean all premises within the census tracts of the City with median household income less than the City’s median household income
Department of Housing and Urban Development defines a Shelby Country family of four living on $64,800 as low income

For the purposes of this ordinance, how is the city defining broadband network?

One gigabit per second (Gbps) symmetrical broadband service
Broadband speed is obviously critical
So is symmetrical upload and download speed, which provides internet stability needed for remote work, online learning, and telemedicine

You refer to Smart City Fiber Access Systems. Does this mean only fiber networks qualify for this incentive?

Yes. The ordinance applies to any high-speed broadband fiber network developer that will invest in 60% citywide coverage and 60% low-income premises coverage

How much is the fee waiver worth to a developer?

It depends on how much network a developer builds and of course it’s worth nothing if we can’t get a network built
Any fee relief pales in comparison to: estimated $700m annual economic upside and 2500 additional jobs each year – and our ability to deliver on our Smart City ambitions today and for generations to come

What alternatives to fee waivers could incentivize investment in widespread high-speed broadband?

Our alternative is subsidies: for construction costs or to ISPs to compensate for lower per-unit revenues

What are the penalties or claw backs for companies that don’t meet the 60% / 60% thresholds?

If a fiber optics system does not meet one or more of the requirements the City may terminate the agreement
The telecoms company would then be liable for all fees and charges specified in Ordinance 5734 or any future ordinance establishing fees and charges for telecoms companies using the City’s public rights-of-way

Does the administration have a developer lined up?

Following an RFP last year, we’ve awarded a contract to the Blue Suede Networks consortium
This ordinance is designed to incentivize every telecom company to invest in the future of our city, increasing the quality and availability of broadband service and encouraging competition that benefits our community

Can multiple providers participate in this ordinance?

Yes and we hope it incentivizes them to invest in high-speed broadband networks for all our residents. It is the entire reason for the ordinance

Does this ordinance enable existing providers to recoup rights-of-way fees they’ve paid in the past?

This ordinance is designed to incentivize telecoms companies – whether they are existing providers or new ones – to invest in a future that delivers high-speed broadband to at least 60% of Memphis’ premises and 60% of low-income premises
It does not provide relief for fees on past or future projects that do not satisfy these minimum penetration levels

Do we need more internet providers in Memphis?

This ordinance will encourage competition and higher-speed, more widespread internet for the communities we serve – whether those communities are low- or higher-income
This is not exclusive to any partner and the ordinance does not discourage any business or resident from purchasing internet service from the provider of their choice

Is it enough to build networks? Do we need to incentivize companies to invest in providing low-income residents with service subsidies, devices, and training?

Affordable internet, devices and training can’t exist without the infrastructure this ordinance is designed to incentivize
ACP and other programs designed to create digital equity can’t exist without this infrastructure

Are there incentives for other telecom company investments in Memphis?

The most important thing we can do is create more widespread access to high-speed broadband across the city and to enable our Smart City program. This doesn’t happen without a high-speed network to enable today and for future generations.

Does the ordinance require minimum MWBE participation in network development?

The ordinance as written does not
But in keeping with other city programs, we could require that all companies make best efforts to comply with MWBE requirements

Does the ordinance require local minority participation in the ownership group?

Only a few companies are equipped to make the level of investment that will deliver a network to 60% of citywide premises and 60% of low-income premises

Comcast: we already provide 1g service to most of / lot of the network. Why is our existing network excluded?

The City wants to encourage future development in a manner that does not leave any communities behind
This ordinance is designed to incentivize investment in a future that delivers high-speed broadband to at least 60% of Memphis’ premises and 60% of low-income premises

Comcast: will our existing network qualify for this program?

It will qualify for the waiver once additional network is constructed

Comcast: Why do we have to build a new network to qualify?

The City wants to encourage future development in a manner that does not leave any communities behind.
This ordinance is designed to incentivize investment in a future that delivers high-speed broadband to at least 60% of Memphis’ premises and 60% of low-income premises

AT&T: We’ve already spent millions investing in Memphis. Why is this investment excluded?

The City wants to encourage future development in a manner that does not leave any communities behind.
This ordinance is designed to incentivize investment in a future that delivers high-speed broadband to at least 60% of Memphis’ premises and 60% of low-income premises