Wilson County Trends 2020

Wilson County Trends

A Cumberland University Publication • Spring 2020

Dean’s Foreword

Chris Fuller Dean, LSSTB

Welcome to the Spring 2020 issue of Wilson County Trends, a publication about business and economic activity in Wilson County, Tennessee.

I want to thank Dr. Steve Shao, Cumberland University faculty member and Wilson County Trends Editor, for his work to make this publication possible.

Cumberland University’s Labry School of Science, Technology, and Business is pleased to be a sponsor of this publication and hopes that readers will find it informative. Thank you for your interest in Wilson County Trends. I hope you will enjoy perusing the pages which follow.

Steve Shao WCT Editor

Chris Fuller, Ph.D. - Dean, Cumberland University’s Labry School

In This Issue Wilson County Trends contains business and economic data on the county and also provides news articles on local industry, businesses and special topics. This current issue provides updates on local business activities as well as on changes in the Wilson County economy.

Given the rapid ongoing developments in the nation’s computer industry and Internet service industry, as well as the accelerating pace of online commerce, we include an industry outlook of WC’s information technology industry. Also included in this issue are two IT related articles - a guest article on digital marketing strategies and a feature article on the status of Wilson County’s broadband Internet services industry.

Contents Dean’s Foreword . . . . . . . . . . . . 1 In This Issue . . . . . . . . . . . . . . . . 1 Recent Trends . . . . . . . . . . . . . . 2

WC’s IT Industry . . . . . . . . . . . 7 Who’s Who in WC IT . . . . . . 12 Online Marketing Strategies 15

Broadband Internet in WC . 20 The Last Word . . . . . . . . . . . . 39 Figures, Maps, & Tables . . . 40

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Cumberland University Founded in 1842, Cumberland University offers a variety of educational, athletic and social experiences to enhance the learning opportunities of the current student body. The university has an exceptional academic program steeped in the liberal arts, business, technology, nursing and many other fields. The University’s athletic teams regularly compete for conference and national championships. Cumberland University is located in Lebanon, Tennessee, 30 miles east of Nashville.

President . . . . . . . . . . . . . . . . . . . Dr. Paul Stumb Provost . . . . . . . . . . . . . . . Dr. C. William McKee Dean, Labry School . . . . . . . . . Dr. Chris Fuller Wilson County Trends Editor Dr. Steve Shao

Cover photo: Visualization of a portion of the Internet, 2005 (The Opte Project)

2019 Wilson County Fair, Jame E. Ward Agricultural Center, Lebanon TN (2019 Attendance = 578,131) 1

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Recent Trends The recent trends section of this economic report1 includes time series and cross section graphs for economic activity occurring in Wilson County using the most recent available complete public data sets, which in this issue is primarily 2018 data.

In 2018, Wilson County (WC) was home to 2,907 businesses, a 6.25% increase over the 2,736 residing in the county in the previous year 20172 . WC is today primarily a service economy. The county’s 2018 business community consisted of 462 goodsproducers (16%) and 2,445 service providers (84%).

By number of establishments, WC’s top industry supersectors in 2018 continue to be Trade, transportation & utilities3 (775 firms, or 27% of the private industry total), Professional & business services4 (506 firms, or 17.4%), and a near tie in the third spot between Construction 39 (308 firms, or 10.6%) and Leisure & hospitality5 (291 firms, or 10.1%). Also well represented in WC’s local economy for that year were financial service providers (282 firms, or 9.7%) and private education and health service providers (280 firms, or 9.6%).

Interestingly, the WC industries with the two highest annual growth rates (2017-2018) in the county were Other Services and Information. The 253 firms classified as Other Services, representing 8.7% of WC’s 2018 economy, expanded by a healthy 15.5% over the previous year. The 57 firms in the information supersector, an industry area with much future potential, representing just 2% of the local economy in 2018, grew 12%. We also note that with the minor exception of the 7 natural resource and mining establishments in 2018 (decreasing by 1 firm from 2017), the number of business establishments in WC increased from 2017 to 2018 in all other industry supersector categories. See Fig. R1.

US Department of Labor 2018 wage data for Wilson County was largely unchanged from the pre-

Wilson County Trends’ Spring 2019 edition presented a similar “Recent Trends” analysis using 2017 business data.

Due to ongoing data provider revisions (e.g., US Department of Labor), some 2017 business data reported in this WCT issue may differ slightly from data cited in WCT’s earlier Spring 2019 issue. WCT policy is to cite the most recent available numbers for all historical data years.

3 NAICS Supersector 40 (Trade, transportation, and utilities) consists of Sectors 42 (Wholesale Trade), 44-45 (Retail Trade), 48-49 (Transportation and Warehousing) and 22 (Utilities).

4 NAICS Supersector 60 (Professional and business services) consists of Sectors 54 (Professional, Scientific, and Technical Services), 55 (Management of Companies and Enterprises), and 56 (Administrative and Support and Waste Management and Remediation Services).

5 NAICS Supersector 70 (Leisure & hospitality) consists of Sectors 71 (Arts, entertainment, & recreation), and 72 (Accommodation & food services).

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3 Figure R1 Number of Business Establishments by Industry in Wilson County TN, 2017 vs 2018 Source: US Department of Labor

vious year of 2017. The 2018 average weekly wage for all WC businesses was $807. Average wages for Service-providing firms was slightly below that for all business firms at $759.

Pay was higher in WC’s Goods-producing category, which averaged $1067 per week. In reviewing the average weekly wage across major WC industry groups, the highest wages in Wilson County in 2018 were paid in Supersectors 55-Financial activities ($1,262 per week), 20-Construction ($1,085/wk), 30-Manufacturing ($1,057/wk), 60-Professional & business services ($1,024/wk), and 50-Information

($901/wk). Lowest average weekly wages were paid in Supersector 70-Leisure and Hospitality at $348/wk. See Fig. R2.

In 2018, the number of persons working in Wilson County in private industry grew steadily, from 39,659 workers in January to 42,222 by December, for an average employment level for the year of 40,772. See Fig. R3.

Tennessee Department of Revenue data shows a 2018 retail sales total for Wilson County TN of $2,581,139,825, a slight 5.8% decrease from 2017.

WC’s largest retail category continued to be AutoFigure R2 Average Weekly Wage by Industry in Wilson County TN, 2018 Source: US Department of Labor

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Figure R3 Total Persons Employed in Wilson County TN, 2018 Source: US Department of Labor

Figure R4 Total Retail Sales by Category in Wilson County TN, 2018 Source: TN Dept of Revenue

Figure R5 Monthly Retail Sales in Wilson County TN, 2018 Source: TN Dept of Revenue

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2019 Americana Day Music Fest, Watertown TN

Call for Business Speakers Cumberland University is seeking active or retired senior managers and executives who would be interested in serving as classroom guest speakers for our undergraduate and graduate business students. Anyone who would like to volunteer as a speaker is encouraged to email wilsoncountytrends@cumberland.edu or call (615) 547-1259 to express their interest. We always appreciate people willing to share their business experiences, insights, and knowledge with our students! mobiles, Boats & Aircraft at $809,888,733, or 32% of the county’s 2018 retail sales total. See Fig. R4.

Monthly retail sales in Wilson County TN were relatively stable during the second half of 2018. Annual change in total retail sales from the previous year of 2017 ranged from a minor decrease of 2% in September, November and December, to an approximate 4% monthly increase in July, August and October.

In the first two quarters of 2018, however, total retail sales in WC were largely down with decreases of about 20% from February through May. The exception was January 2018 which registered a 5.75% increase over January 2017 sales levels. See Fig. R5.

WC’s 2018 retail category sales levels were somewhat mixed in comparison with sales from the previous year. 2018 sales increases over 2017 were recorded for building materials, general merchandise, food stores, and service stations. Retail categories

with minor sales drops included apparel & accessories, and other retail.

Significant 2017-2018 sales decreases occurred, however, in furniture & home décor ($15,525,294 in 2018 for a decrease of 21%) as well as in autos, boats & aircraft ($809,888,733 in 2018 for a decrease of 17.9%). The two digit percent decrease in the autos, boats & aircraft category is largely attributed to reduced business activity from one WC firm in this retail category. See Fig. R6.

Among sales categories for retail industries other than the autos, boats & aircraft category, food store sales ranked highest, averaging almost $35 million per month. Next were the general merchandise and other retail sales groups averaging $24.5 and $22.8 million per month, respectively. Close behind other retail sales was building materials, averaging just over $20 million per month. See Fig. R7.

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Figure R6 Monthly Autos, Boats & Aircraft Sales in Wilson County TN, 2018 Source: TN Dept of Revenue

Figure R7 Monthly Retail Sales by Category in Wilson County TN, 2018 Source: TN Dept of Revenue

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Industry Outlook: Wilson County’s Information Technology Industry Information Technology (IT) is an important part of the nation’s economy as well as for Tennessee (TN) and Wilson County (WC). In terms of economic impact, the IT industry ranked third nationally in 2018 with a $1.8 trillion (10.2%) contribution to the U.S. economy6 . In Tennessee, IT companies contributed $17 billion (5.2%) to the state economy. 174,346 people were employed in Tennessee in 2018, either as IT workers or as business professionals working in IT companies6 . For the Nashville Metropolitan Statistical Area (MSA), which includes Wilson County, IT companies contributed $7.5 billion (6.2%) to the Nashville MSA economy6 . Relative to non-tech employment, working in IT is generally a lucrative occupation. The median wage of $81,900 for the nation’s 7.3 million IT workers was almost double that of the general median wage of $42,7007 .

The economic importance of the Information Technology (IT) industry to Wilson County is twofold. First, IT is important as an industry in and of itself, a component of WC’s local economy which, along with other industries (e.g., retailing, financial services, transportation, warehousing, etc.), trains and employs workers, contributes to the local tax base, etc.

Stat Informatics Solutions, Lebanon TN 6

Second, WC’s resident IT industry 1) provides IT products (e.g., hardware, software, etc.), 2) offers voice and data services (e.g, telecommunication services, cloud computing and data storage, etc.), and 3) provides for-hire technical expertise. These three product/service outputs from WC’s IT industry serve as important technical inputs that enable and support the operations and business activities of WC’s other local industries.

CTDI, Mt Juliet TN

IT Industry Defined Dictionary.com defines information technology (IT) as the development, implementation, and maintenance of computer hardware and software systems to organize and communicate information electronically. From this statement, we will infer that an “IT Industry” consists of businesses which are involved in the manufacture, installation, support and operation of computer-based components and systems.

We will assume that “computer based systems” refers to both single standalone computer devices as well as computer network (aka cloud) configurations.

We also assume that “support” involves such esoteric 3rd party services as computer design, system design, training, repair, and planning.

The following IT data discussion focuses on companies and personnel who produce or offer IT products and services - excluding 1) consumer retailers

Source: U.S. Bureau of Labor Statistics Cyberstates 2019- The Definitive Guide to the U.S. Tech Industry and Tech Workforce publication produced by Computing Technology Industry Association (CompTIA), pages 8-10, March 2019T these figures include employment counts and wages for all IT workers in the U.S. as well as non-IT business professionals employed by IT companies.

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and 2) IT workers employed by companies whose primary line of business is decidedly non-tech (e.g., retailers, restaurants, law firms, fitness gyms, etc.).

Specifically, WC’s IT industry is defined as consisting of nine industrial areas, as defined by the following NAICS industry subsectors, industry groups and industry types8 .

• Computer Manufacturing (334) • Computers, Peripherals, & Software Wholesalers9 (42343) • Software Publishing10 (5112) • Telecommunications (517) • Data Processing, Hosting & Related Services (518) • Internet Publishing & Broadcasting, Web Search Portals11 (51913) • Computer Systems Design & Related12 (5415) • Computer Training13 (61142), and • Electronic & Precision Equipment Repair & Maintenance14 (8112).

WC’s IT industry Trends Recent, but preliminary US Department of Labor estimates show that 114 IT companies resided in Wilson County in 2018, employing a total of about 353 workers. Currently, WC’s IT industry is a fairly small part of the county’s total economy, representing about 4% of the total 2,907 firms residing in WC that year and employing less than 1% of WC’s total 40,772 private sector workers15 .

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Destaco, Mt Juliet TN Table 1 depicts changes which have taken place in WC’s IT industry during 2008-2018. In this past decade, we observe that while the total number of businesses in WC grew by a healthy 34% (from 2,170 firms in 2008), WC’s IT industry increased by 119% (52 to 114 firms), making WC’s IT industry one of the fastest growing segments of the local economy.

While Wilson County made significant gains in the total number of IT firms taking up residence in the county, the total number of IT industry workers employed in WC decreased 73% during this 10 year period. This employment drop was largely due to structural changes taking place in the microcomputer industry at the time, prompting Wilson County’s largest IT manufacturer, Dell Computer Corporation, to transfer and consolidate much of its WC-based workforce.

Significant employment increases, however, are noted in WC’s non-manufacturing IT industries. Total workers employed in WC’s non-manufacturer IT sectors (excluding NAICS 334 subsector) was 207 in year 2008, increasing to 277 in year 2018, a 34% increase for the decade. Table 1 lists non-manufacturer IT sectors as including computer support and cloud related services, IT distribution and computer consulting.

With a few notable exceptions, the majority of IT firms currently operating in Wilson County are small businesses, including several that are home-

In the North American Industry Classification System (NAICS), types of industries are classified into increasingly more specific and detailed industry categories as the number of digits increases i the NAICS coding. Thus, 2 digit NAICS codes refer to industry sector, 3 digit codes refer to industry subsector, 4 digit codes refer to industry group, and 5 digit codes refer to industry.

9 The Computers, Peripherals, & Software Wholesalers industry is part of the NAICS 423 industry subsector Merchant Wholesalers, Durable Goods.

10 The Software Publishing industry group is part of the NAICS 511 industry subsector Publishing Industries (except Internet).

11 The Internet Publishing & Broadcasting, Web Search Portals industry is part of the NAICS 519 industry subsector Other Information Services.

12 The Computer Systems Design & Related industry group is part of the NAICS 541 industry subsector Professional, Scientific, and Technical Services.

13 The Computer Training industry is part of the NAICS 611 industry subsector Educational Services.

14 The Electronic & Precision Equipment Repair & Maintenance industry group is part of the NAICS 811 industry subsector Repair & Maintenance.

15 Source: U.S. Bureau of Labor Statistics

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9 Figure H1 Number of Establishments

by IT Industry Type in Wilson County TN, 2008-2018 Source: US Dept of Labor

based. The presence of many small IT firms in WC is not unusual for the industry and in part due to low startup and operating costs.

Which IT industry subsectors are growing the most in Wilson County? First we note that WC is experiencing an IT industry growth surge across almost all of the subsectors. The one exception is in private firms which offer computer training (NAICS 61142).

This IT category is essentially non-existent in WC due largely to the number of public supported higher education institutions that provide various kinds of low cost computer training programs (e.g., Tennessee Board of Regents’ Technology Centers, TBR community college satellite campuses, University of Tennessee extension centers, etc.).

WC’s fastest growing IT industry subsector over the recent past decade, 2008-2018, was Software Publishing (NAICS 5112) which grew 475%, expanding from 4 firms to 23. The second fastest growing IT subsector was Data Processing, Hosting & Related Services (NAICS 518) which grew 250%, expanding from 2 firms to 7. The third fastest and largest growing subsector was Computer Systems Design & Re-

lated (NAICS 5415) which grew 128%, expanding from 25 to 57 firms. In 2018, we note that Computer Systems Design & Related (5415) firms and Software Publishing (5112) firms accounted for 70% of Wilson County’s entire IT industry, the former subsector at 50% and the latter at 20% of the total. See Table 1 and Figure H1.

Parallel Grippers Robohand Product Line (Destaco, Mt Juliet)

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NAICS Subsector Code

Number of Establishments 2008 2018b

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All Employees

10 yr. % changea

2008

2018b

Estabs

Empls

Subsectorsc :

IT Industry Computer Manufacturingd Computers, Peripherals, & Software Wholesalers Software Publishing Telecommunications Data Processing, Hosting & Related Services Internet Publishing & Broadcasting, Web Search Portals Computer Systems Design & Related Computer Training Electronic & Precision Equipment Repair & Maintenance TOTALS

334 42343

4 3

5 6

(2009) 1109 7

(2016) 76 8

25% 100%

-91% 14%

5112 517 518

4 6 2

23 7 7

25 73 (2009) 9

39 80 7

475% 17% 250%

56% 9.6% -22%

51913

2

2

(2016) 4

(2017) 3

0%

-25%

5415

25

57

78

101

128%

31%

61142 8112

(2014) 1 5

1 6

n/a 11

n/a 39

0% 20%

n/a 254%

52

114

1316

353

119%

-73%

Table 1: No. of Establishments and Employees by IT Industry Type in Wilson County TN, 2008 vs 2018 Source: US Dept of Labor a

In cases where nondisclosure restrictions are in effect, % change is for less than ten years.

2018 data are preliminary US Bureau of Labor Statistics estimates. c In cases of 2008 (2018) federal nondisclosure restrictions, oldest (most recent) available data is reported. d WC’s 2008 NAICS 334 employee total is before Dell Computer restructuring. b

Figure H2 Average Weekly Wage by IT Industry Type in Wilson County TN, 2008-2018a Source: US Dept of Labor a

Due to federal disclosure restrictions, the line graph for Software Pub. Industry is extrapolated for years 2011-12.

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11 Average Weekly Wages ($)

10 yr. % changea

2008

2018b

334 42343

(2009) 1020 753

(2016) 2045 1072

100% 42%

5112 517 518

1158 1050 (2009) 434

2355 1406 1745

103% 34% 302%

51913

n/a

n/a

n/a

5415

1371

2349

71.3%

61142 8112

n/a 875

n/a 956

n/a 9.3%

Classificationsc :

IT Industry Computer Manufacturing Computers, Peripherals, & Software Wholesalers Software Publishing Telecommunications Data Processing, Hosting & Related Services Internet Publishing & Broadcasting, Web Search Portals Computer Systems Design & Related Computer Training Electronic & Precision Equipment Repair & Maintenance

Table 2: Average Weekly Wage by IT Industry Type in Wilson County TN, 2008 vs 2018 Source: US Dept of Labor a

In noted cases where nondisclosure restrictions are invoked, changes are for less than ten years.

2018 data are preliminary US Bureau of Labor Statistics estimates. c In cases of 2008 (2018) federal nondisclosure restrictions, oldest (most recent) available data are reported.

b

Average weekly wage growth in WC’s IT industry has largely been in the double digits range for most of the past decade. Table 2 compares wage growth for WC’s IT sectors during 2008-2018.

In comparison with the $807 average weekly wage for all WC businesses in year 2018, the county’s IT industry pays its workers well indeed. WC’s largest average weekly wages in 2018 are found in Software Publishing at $2355 per worker. In very close second place is Computer Systems Design ($2349). In third place is Computer Manufacturing ($2045)16 .

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Which Wilson County IT industry sectors have experienced the largest wage growth in the past decade? The highest change in worker wages for WC was in Data Processing, Hosting & Related Services at 302%. Second and third highest wage changes occurred in Software Publishing and Computer Manufacturing, at 103% and 100% respectively. Computer Systems Design and Related also saw significant wage growth at 71.3% for the decade. See Table 2 and Figure H2.

As explained in Table 2, the latest publicly available wage figure for WC computer manufacturing is for year 2016.

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Who’s Who: Wilson County’s Information Technology Industry A partial list of IT companies17 residing and operating in Wilson County is given in Table 3. With several notable exceptions, most of WC’s IT businesses are small enterprise firms that offer a wide variety of computer support services to both consumers and general small business. The growing presence of many small IT companies in Wilson County is a healthy sign of a vibrant and forward moving county economy 18 .

Computer/cell phone repair is an important IT service noted in Table 3 as are Internet related services such as web design, online marketing and web site hosting. Also included are several companies which offer expert consultation services in data security and data recovery, telecommunications network design and industry specific software development.

While WC’s mid to large computer service companies tend to market themselves regionally or nationally, small IT enterprises typically focus on local clientele and provide an essential IT outsourcing option for firms in WC, especially for area small busi-

nesses.

Amazon is not new to Wilson County but there may be a potential paradigm shift in WC’s IT industry related to this major e-commerce player.

It has been confirmed that Internet giant Amazon has purchased land to build a large state-ofthe-art 3.6 million square foot distribution facility in Mt. Juliet, capable of processing hundreds of millions of online orders, in the coming years19 . According to statements made during the approval process, the new facility is expected to add several thousand jobs to the company’s existing operations in Wilson County. Job types were described by Amazon representatives as being “world-class” high tech and “next generation” and would include fulfillment, tech, robotics, logistics and managerial white collar positions. A major expansion of the world’s largest Internet company (by revenue) in Wilson County cannot help but have a very positive general impact on WC’s IT industry.

Comstar, Lebanon TN 17 In Table 3’s Who’s Who listing, we generally exclude those out-of-county computer firms and franchises which may actively market and sell their IS or IT products and services in WC yet do not have a local physical presence, such as administrative offices, operations facilities, etc.

18 See, for example, the interesting article How Technology-Based Start-Ups Support U.S. Economic Growth

by John Wu and Robert Atkinson, Information Technology & Innovation Foundation, November 28, 2017 at https://itif.org/publications/2017/11/28/how-technology-based-start-ups-support-us-economic-growth 19 “Amazon buys land in Mt. Juliet where Project Sam is approved for nearly $5 million” by Andy Humbles, Tennessean, December 3, 2019, retrieved at https://www.tennessean.com/story/news/local/wilson/2019/12/03/amazon-com-services-pays-nearly5-m-mt-juliet-land/2595239001/

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Table 3: Who’s Who in Wilson County TN’s IT Industry, 2019 WC IT Company20 Advanced Computer Experts (ACE) Alpha and Omega Allison Data Systems Amerimart Cloud Systems Arrow Tech Bear Web Design CCSG The Computer Doctor Cellphone and Computer Shop Cloverlock Common Sense Tech Solutions Complete Technology Solutions Computer MD The Computer Room Computer Technology Solutions Comstar Conner’s Comp. Service & Repair Costa Electronics CTDI CPR Cell Phone Repair D&H Electronic Systems Data Triangle Computer Forensics Day Star Data Centers DC’s Computer Repair Desired Technology Services Destaco DexYP Dillon IT DLS Graphics Duravox Information Technologies Geek Squad Hostetler Group Inc iBrokeiT I’m So Worth It Intellisol Ipods & More Jeter IT Solutions Jitterbyte Technology J L Information Services Leap Networks Lighthouse Computer Solutions Local Net

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Primary IT Products and Services LAN systems integ., computer repair computer consulting, data backup computer and software consulting software development IT services, web design web design, social media marketing IT services, computer repair IT services, computer repair IT services, computer repair computer consulting computer repair, web design computer repair IT services, computer repair IT services, computer repair computer repair telecom training & consulting computer repair IT services, electronics repair telecom equip repair & testing electronics & mobile phone repair communications & security systems data recovery, computer security managed data svcs, cloud computing IT services, computer repair computer consulting, web design industrial automation products software development computer repair web design, graphics design computer repair, web design electronics repair computer repair mobile phone repair IT services, computer repair parts testing,depot repair22 mobile phone repair managed IT, network consulting IT services, computer repair computer consulting hospitality industry voicecom ISP IT services, computer repair Internet service provider Continued on

Please send corrections to wilsoncountytrends@cumberland.edu .

Abbreviations: Leb=Lebanon, MJ=Mt. Juliet, Wtn=Watertown 22 Depot repair refers to repair of damaged products returned by customers.

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Locale21 Leb, MJ Leb MJ Leb Wtn Leb MJ Leb MJ MJ Leb Leb Leb Leb Leb Leb Wtn Leb MJ MJ Leb Leb Leb Leb Leb MJ MJ Leb MJ Leb MJ Leb Leb MJ Leb Leb MJ Leb Leb Leb Leb Leb next page

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Table 3: (continued) Who’s Who in Wilson County TN’s IT Industry, 2019 WC IT Company Longway Broadband Services Main Street Consulting Mid Tenn Technology Mighty Empire Miles Technologies The Mobile Phone Guy Navigator Systems Nay & Associates NetEvidence OfficeMax Tech Services Optoro PC Dude Primal Systems Reliance Technology Solutions Sent Software Shades It Services Sof Tek Sof Trac Sorvick Design Stat Informatics Solutions Summit Management Systems System Integrations System Link Tennessee 3D Media Group TDS Telecom Tackle Box Marketing & Comms Televergence Solutions Tennetech uBreakiFix X1 Technology Services Xtra Mile Marketing Verified Safe CyberSecurity Solutions Victor Technologies Visionary Design Group World Wide Technology

Primary IT Products and Services telecom & IT consulting web design,advertising Satellite ISP web design, software development data security, software dev. cellular phone repair, data recovery software development computer repair computer forensics & security IS services, computer consulting software dev., supply chain IS IS services, computer repair computer consulting, CCTV systems dental tech IS services software development, web applics computer repair web design & hosting, software dev. safety management software web design, graphics design healthcare data management services software development IT services, computer security computer consulting web design, marketing telecom, broadband services web design, marketing business telecom IT services, computer & data security electronics & mobile phone repair web design web design IT services, computer repair & security IT services, computer repair, telecom web design system integration, supply chain IS

Locale MJ Leb Leb MJ MJ MJ Leb Leb MJ Leb MJ Leb Leb Leb Leb MJ Leb Leb MJ Leb Leb Leb Leb Leb MJ MJ Leb MJ MJ Leb Leb Leb MJ Wtn MJ, Leb

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Guest Article: Online Marketing Strategies

by Mike Rosen, Tackle Box Marketing Communications

Mike Rosen is the owner manager of Tackle Box Marketing Communications, a multidisciplinary branding and advertising consulting business located in Mt Juliet, TN. Originally from New York, Mike has resided in Wilson County for the past 9 years. A former vice president and board member of a prestigious Madison Avenue advertising agency, Mike’s work in advertising and digital marketing has received numerous awards and recognition from such organizations as the New York Advertising Club, Clio’s, NY Business Professional Advertising Association, and others. Mike is a former board member of the Long Island Advertising Club and has served as a committee adviser or guest lecturer at various colleges and universities in New York and Tennessee, including Briarcliff College, Stony Brook University, Farmingdale University, and Cumberland University.

Today’s digital tools dominate our marketing programs; however, the principles of marketing remain the same. Think of marketing like a fishing trip. The more you know about your market, the easier it is to make the catch. Answer these questions: Where do your prospects swim (geography), what are the right vehicles to reach them (media), what lures to use (promotion and creativity), what are their habits (commonalities)?

word out? There are many promotional alternatives to consider: Unique Website, Blogs, Email, Social Media, Direct Mail, Print and or Electronic Advertising, PR, Seminars, Trade Shows, Highway Signs, Networking, Sandwich Boards, Social Media, Radio, TV.

Find Your Fishing Hole First of all, decide where you’re going to go fishing for customers. Target your market by grouping customers with similar characteristics. Define and chart market commonalities by 1) Demographic and Socioeconomic Segmentation (gender, age, income, occupation, education, household size, stage in the family life cycle), 2) Psychographic Segmentation (similar attitudes, values, lifestyles), and 3) Behavioral Segmentation (degree of loyalty, emotional purchase, planned purchase). See Figure G1.

Why should customers bite? Define your unique selling proposition. What separates you from the competition? Is it price, service, branding, added value, new, or created perception? What markets do your prospects service? How can you help them with their fishing? A successful marketing strategy means finding the right combination of vehicles to communicate your value proposition. How to get the

Figure G1 - Market Segmentation Monitor your competition. Where do they promote? What are their value propositions? Your customer profiles, demographics, the media’s audience, and costs will help decide which combinations of marketing tools will be most efficient. Create a strategy, write a plan, and map out the trip. You need to set objectives, goals, and a budget, and decide what kind of support you need to make the trip successful. Use your experience and analytics to improve your marketing strategy, refresh your bait, smooth

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out the rough waters, and go fishing again.

Marketing planning, whether you’re a new or existing company, starts with a self-analysis, a review of your business model, and most importantly, setting objectives and goals. Start with a standard SWOT analysis. Determine and evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in your business. See Figure G2.

1. Define your strengths and capitalize on them: Reputation (brand), marketing, manufacturing, technical capability, integrity, experience etc. Your reputation versus market perception.

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offer the best potential for growth and profit, while maintaining sales and or clients across a variety of existing products and services.

Define your business goals. First, focus on three measurable benchmarks to achieve in the next six to 12 months. Then, name the single most critical activity you must do consistently to achieve each goal.

For each goal, identify the critical activity, information, or skillset that will ensure your ability to reach your goal. A few customer goal and objective categories might include: Attract new customers, Sell more to existing customers, Expand product lines and or services, Increase brand awareness and reputation, Increase website or store traffic, and Go public.

2. Improve upon weaknesses: Focus on prominent weaknesses and what weaknesses the market perceives.

3. Exploit and benefit from each opportunity: List ways in which to take advantage of opportunities.

Budget the Fishing Trip

4. Mitigate any threats: Is it your competition, politics, manufacturing capabilities, change in technology, trained employees, shifting market needs?

Conceptually, marketing should be a profit center, not a cost of doing business or overhead. As a general rule, small businesses with revenues less than $5 million should allocate 7-8% of their revenues to marketing, if you want to grow your business more aggressively. Otherwise, 5% would be adequate. Larger companies should allocate 6-12%. A startup business in the early brand building years should budget between 12-20%, which could be related to projected sales. See Figure G3.

Figure G2 - SWOT Analysis The objective is to use the information from a SWOT analysis to help focus and optimize marketing and sales resources and potentially internal resources. The goal is to increase sales in areas that

Figure G3 - Marketing Budget Split your budget between a) brand development costs (which include all the channels you use to promote your brand such as your website, blogs, seminars, sales collateral material), and b) mar-

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keting your business (sales promotion, advertising, public relations, events and trade shows).

The above percentages assume you have margins in the range of 10-12 percent (after you’ve covered your other expenses, including marketing). Allocations also depend on the business you’re in, the size of it, and its growth stage. A useful guideline is the 80/20 rule. Invest 80% of your advertising budget and effort in proven promotions and 20% in testing new variations.

Choose the Right Bait An effective digital marketing strategy should include some mix of the following digital marketing alternatives: • Email Marketing: Electronic communications to your market, via the Internet • Database Marketing: Using files in a database to communicate to a specific audience • Pay Per Click Advertising (PPC ads): Sponsored advertisements that appear on search engines, that you pay the price for each time a prospect clicks on it to get to your website.

• Social Media: Branding and marketing through posting relevant information and connecting with your market on such outlets as LinkedIn, Facebook, Twitter, InstaGram and more • Website: The electronic doorway to your business on the Internet.

Web Site Design There are many things to consider in designing a great promotional web site. Important considerations include: • Search Engine Optimization (SEO): Optimizing your website, so it attracts the optimum amount of prospects seeking information on a product or service from Google or other search engines

17 • Key Words: words used on your website to attract prospects searching for products or services on a browser like Google • Meta Tags: Title embedded in a website page that will attract Internet search engines seeking information on that subject, product or service • Market Segmentation: Communicating your value proposition to specific market profiles so that your message is more audience appropriate and targeted • Google Databased Analytics: Used to track the website activity of its visitors and to profile them • Cross-Linking: Offering links with supporting information on pages within your website as well as linking to other informational websites increases site stickiness (prolonging visitor time), viability and exposure • Ranking: The position that your website is listed in Google or other search engines when a user searches for information • Click Through Rate: The percentage of people visiting a web page who access a hypertext link to a particular advertisement.

• Bounce Rate: The percentage of visits in which a person leaves your website from the landing page without browsing any further.

• Dashboard: An information management tool for your website that visually tracks, analyzes, and displays critical performance indicators, metrics, and key data points to monitor the health of a business. They are customizable to meet specific needs. And, • Organic Search and Direct Search: Organic traffic to your website consists of visits from search engines, while direct traffic is made up of visits from people entering your company URL into their browser.

Website optimization is vital. You’ll need to have searchable keywords on every page, as well as Meta tags (search engines look for Meta tags), this will help in your rankings. Use cross-linking info from

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Wilson County Trends

page to page on your site as well as links to other relevant sites. Have submissions to Google and other popular search engines in place and make use of and set up a Google Analytics Dashboard. Renew with major updates to your site every couple of years.

Keep the site relevant, succinct, visually exciting, and most importantly, easy to navigate, and you want to make it seamless for your prospects to find information. Generally, websites should be updated regularly and given a face-lift every few years.

Social Media Use social media for branding, and communicating with your prospects as frequently as possible and to build traffic to your website. Pick social media choices that match your prospect’s characteristics and profiles. Although there is some cross over, LinkedIn is primarily used for business-to-business communications, whereas Facebook is mainly used for consumer engagement. YouTube is an American video-sharing website where you can post videos that entertain, inform, teach, and instruct. Videos are an effective tool for your website as well. For quick, short communications, use Twitter (limit 140 words) and InstaGram, which allows users to edit and upload photos and short videos through a mobile app owned by Facebook. It is the leading Social Media application today.

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website visitors and data characteristics about their behavior. It is the who,-what-why-when of your marketing program. In its most sophisticated form, it can provide customer segmentation, conversion rates, track sales activity, and more. Every site should have a Google visitor dashboard setup. Common Dashboard analysis includes - Tracking weekly, monthly, and yearly visitors. It will track visitor activity and is an invaluable tool for qualifying your marketing program. A new post on social media, an email blast newsletter, or other events can generate visitors to your website or outside influences like holidays, or trade show.

Top Channels A Top Channels Chart visualizes where and how your prospects or visitors found you. For instance, this chart shows almost 50% coming from Organic Search. Organic Search is when you search with a keyword or phrase in Google, and you click on a listing on the Google listing page. Direct Search is visitors who already know who you are and have your email address and type it in: most likely customers or frequent visitors. Paid Search is from visitors who come to the site by clicking on an ad that the website company pays for. A referral comes from another website that has your link on it, like a business organization or club. The Display section shows the results of regular online advertising.

Figure G4 - Top Channels

Google Analytics is the report card of your digital marketing program’s performance. Google Analytics is the most widely used system for tracking

This information tells you whether your SEO is working, or how much value you’re getting from PPC ads or direct. An example goal for direct would be increasing sales from existing customers or fundraising for a college alumni association. See Figure G4.

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Audience View

• Develop focused messaging & branding.

An invaluable sky view of visitor characteristics that charts new and returning visitors, how many page views occurred, session duration and bounce rates, as well as what countries visitors are from. See Figure G5.

In summary,

• Write a plan with clear objectives & goals.

• Profile your customers and prospects.

• Find the right vehicles to take you to them.

• Define your value proposition.

• Execute your plan, review & adjust.

• Keep in touch. Keep track.

• Plan your next trip.

Remember, take these eight steps, and then use the appropriate tools to help make your digital marketing plan successful.

Good fishing!

Figure G5 - Google Analytics

Tackle Box Marketing Communications Located in Mt. Juliet, Tennessee, TBMC is a multidisciplinary branding and advertising consulting business that customizes its resources and uses the latest marketing tools to fit the specific objectives and needs of its clients. Included among TBMC’s national clientele are PLX Inc (designers of optical instruments for the aerospace and defense industries), Leaner, Meaner and Greener, Inc. (resource management consultants), Mixing Dynamics (processing equipment), Crysalli Artisan Water Systems (filtered water distributor), Solutions Professional Buildings (healthcare office space provider), and others.

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Feature Article: Broadband Internet in Wilson County

Pulling Fiber Optic Cable (photo courtesy of AT&T)

Introduction Wilson County’s future is cloudy. By that, we don’t mean murky. And it’s not about the weather. We’re talking about technology clouds - wide area computer networks. There are many arising tech cloud nets in the Digital Information Age of the 21st Century. Cellular phone networks, GPS networks, Satellite networks, private business networks, military defense networks, and others. And the cloud with perhaps the greatest coverage and impact of all, the public Internet.

The Internet (aka “Internet of Things”, or IoT) is as complex as it is large. The power and reach of the public Internet are evolving and expanding at a dizzying rate. Cloud-based data storage and application processing are revolutionizing today’s business operations and reshaping consumer behaviors. For an ever widening array of cloud-based applications that improve the lives of individuals and enable new models of commerce for the business community, users are attaching themselves in droves to the cloud Internet.

Accessing the Internet is a critical desire and challenge to everyone. Inadequate access to the cloud infers a likely competitive disadvantage for businesses and entails perhaps a lesser lifestyle for consumers.

To understand the Internet “big picture”, we note three key interdependent, interlocking, pieces that 23

must fit snugly together to constitute the Internet tech environment: • End User technology, • Cloud technology, and • Cloud access technology.

End User Technology are the user owned digital gadgetry. Smartphones, tablets, laptops, video gaming boxes, smart home/office devices, and so on. Users (e.g., organizations, managers, consumers) decide what type of computer, computer system premises equipment and other digital assets are required to best accomplish their tasks and objectives (e.g., be productive, make a profit, have satisfied customers, be entertained, etc.)

Cloud Technology consists of the computer network hardware and software needed to physically configure the cloud and offer services to its subscribers.

Cloud components include such things as network controllers, packet switches, copper and fiber optic cables, wireless transmitters and receivers, network based servers, etc.

Finally, there is Cloud Access Technology. This is the all-important tie which binds (connects) users’ digital devices to the cloud. Cloud access tech23 nology, CAT for short, is sometimes referred to as

Not to be confused with “cat 5 (category 5)” twisted pair wiring, which is a technical name for landline telephone wire.

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an “edge technology” as it exists and operates at the perimeter rim of the cloud. An older, more traditional, terminology for CAT is “last mile”, noting the approximate distance between the network’s terminating switch and users’ premises equipment. Of the three components of the cloud environment, one can arguably say that cloud access technology (Internet access service) receives most of the attention of users, network providers, and public policy makers in their ongoing discussions.

CATs Up Close A CAT is not a simple creature to own or control.

It is a multi-faceted technology whose critical role can be adversely affected by the manner in which it is provisioned. A CAT can be thought of as having three important layers a tech layer and 2 impact layers. The first, or lower, layer refers to the CAT’s physical “access media” hardware used to transmit data and information via copper cables, fiber cables, or by wireless radio signals.

The second, or middle, layer refers to the transmission quality and service capabilities made possible by the first layer - e.g., speed, response time, reliability, data security, etc. The third, or upper, level refers to the end-user application made possible by the IT capabilities of the second layer, e.g, constructing and accessing web sites, engaging in electronic commerce, attending electronic meetings, participating in distance training/education programs, observing video streaming content, etc.

The most powerful CAT on the block is the “broadband” CAT, one in which the Internet connection speed between users and the cloud is very fast. Like in NASCAR racing, Internet access speed is the top priority. Not everything users do on the Internet will require a fast connection, but a growing percentage do.

FCC Definition of Broadband Historically, the term “broadband” has been variously defined to mean different transmission speeds 24

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in various technical contexts. Due to a relative lack of consensus by the scientific community concerning the term, the federal government (specifically, the Federal Communications Commission, or FCC) has taken upon itself the role to precisely define a suitably fast minimum Internet access speed to be considered broadband. This objective has proven to be somewhat of a moving target, however. Given ongoing improvements in computer and telecommunications technologies, the notion of a “fast” transmission speed has changed over time. In fact, the FCC has redefined (increased) the transmission speed benchmark definition of “broadband” three times since 1996.

Since 2015 and still in effect as of this writing, the FCC defines an Internet Service Provider’s (ISP) Internet access service as “broadband” as long as the “asynchronous” offered service provides a minimum download speed of 25 Mbps (million bits per second) and an upload speed of 3 Mbps. Download speed refers to the transmission of data coming out of the Internet cloud to the subscriber. Upload speed refers to data transmission from the user’s device into the cloud.

Notably, access media matters. Data transmits faster over “fixed wire media” such as copper or fiber, than over wireless media, such as cellular phone nets, or by satellite. In recognition of current stark differences between wireline and wireless access media, the FCC proposed in late 2017 to set a lower benchmark for “mobile broadband” of 10/1, instead of continuing with the 25/3 standard24 . The FCC proposal to define a lower benchmark for wireless broadband than for wire-based fixed broadband was not well received by the IT trade media so the same broadband access speed minimum still applies to both wire-based and wireless Internet services25 .

Why Do We Need Broadband?

Asking why users need broadband is akin to asking why race car enthusiasts want a big engine under the hood. For speed baby. As consumers or businesses use the Internet to do more and more things, many

Inquiry Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, GN Docket No. 17-199, 13th Section 706 Report Notice of Inquiry, page 7, Federal Communications Commission, Adopted and Released: August 8, 2017, available at https://transition.fcc.gov/Daily Releases/Daily Business/2017/db0808/FCC-17-109A1.pdf 25 The now emerging 5G mobile services being promoted by cellular service providers may close or eliminate the current transmission standard debate between fixed broadband and mobile broadband Internet services - assuming that unexpected costs or raised health and environmental concerns don’t impede its deployment.

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of these “things” increasingly require more complex, oftentimes high computer memory intensive, media types. Faster transmission speed means a sharper image, smoother movement, and less screen delay.

In a recent online advertisement for broadband service, perhaps AT&T describes as well as anyone the required Internet service bit rates that are needed to support various types of popular online applications26 : • Basic Internet use: .5 to 3 Mbps

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TV, Hulu, Disney, etc. - where viewers have more channel control, program flexibility and interactivity.

The mass migration of viewers from broadcast and cable network platforms to the Internet is obvious and irreversible.

A recent survey by SurveyMonkey27 comparing cable/satellite TV to Internet streaming TV viewer behavior found, for example, that • Half of those today who watch only cable or satellite TV are senior citizens;

– sending emails – browsing the web – downloading texts such as e-books • Moderate Internet use: 6 to 18 Mbps – downloading an SD video – downloading mp3 songs

• Over a quarter of 18-29 year olds prefer Internet programming; • 60% of those who currently use both cable/satellite TV AND Internet TV are thinking of canceling their cable/satellite TV service within the next year;

– streaming short SD videos – connecting 2-3 devices at once • Heavy Internet use: 25+ Mbps – streaming SD or HD shows and movies – online gaming – downloading multiple songs at once – connecting numerous devices at once.

Since the Internet first become a hot technology commodity back in the mid-1990s, an evolving public adoption and transition to new media has occurred starting with monochrome text and numerical data, then to basic sound and color images, then to basic video and high fidelity sound, and now to really “good quality” video and advanced multimedia.

For consumers, the need for faster access speed to the Internet may be as simple as noting that all the “good TV shows and movies” are moving over to the Internet. Viewers are increasingly deserting the old traditional television broadcasting and cable network venues dominated by such well known “content providers” as ABC, CBS, NBC, CNN, HBO, etc. and moving over to Internet platforms where we find such IoT based content providers as NetFlix, Apple 26

• More than half of all sampled viewers believe that streaming services are cheaper than cable/satellite and a third say that streaming is more convenient for on-demand programming than cable/satellite services.

Cloud-based video is here to stay. Not only is the TV viewer audience moving over to the Internet but the general video community has become the IoT’s most prominent user group. For better or worse, for consumers and business users alike, information gathering, dissemination and analysis is increasingly visual in nature. In the coming years, the total of all forms of digital video is expected to reach 86% of total Internet traffic28 . As the Internet becomes the dominant platform for video-based entertainment, video-based learning, video-based consumer and business transactions and so on, those lacking broadband access will be ill equipped to participate in, and benefit from, an increasingly video mediadominant society.

https://www.attplans.com/resources/difference-mbps-and-mbps/ https://www.surveymonkey.com/curiosity/how-do-consumers-feel-about-streaming-services-vs-cable/ , retrieved on July 8, 2019.

28 The Importance of Broadband: Why This Matters by Diane Kruse, NEO Connect, 2017 27

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Economic and Community Impacts Businesses and municipalities need and want broadband Internet. A 2012 study29 commissioned by the Kaufman Foundation reviewed economic development impacts of broadband technology in the U.S. The study included positive survey results and testimonials regarding six key socio-economic outcomes: • Attracting new businesses to a community, • Making existing businesses more profitable, • Reviving depressed business districts, • Increasing home based businesses, • Reviving depressed communities, and • Improving personal economic development.

Additionally, a 2017 report on broadband deployment in Tennessee stated that “communities without broadband have difficulty attracting and retaining businesses and that almost 45% of surveyed development agencies reported that businesses either frequently or occasionally chose not to locate in their communities because of insufficient broadband”30 .

FCC Oversight Because of the potential adverse community and economic impacts resulting from technological disparities in local public IT infrastructures, the Federal Commissions Commission (FCC) monitors the number of ISPs operating in various regions of the nation. Also being monitored are the types of available public services and what media platforms are being deployed.

The economic mindset is this. Three or more ISPs present and competing against one another in a select local area (e.g., federal census tract) is good.

Only two ISPs present is not so good. And in a worse scenario, only one ISP is present - an unfortunate situation as the CAT service provider may be tempted to act in a monopolistic manner, resulting in local

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higher prices and lower quality of service. The typical remedy for a local ISP monopoly is municipal regulation, the effectiveness of which depends on the local laws and public policy.

Worse still are cases where either 1) no ISP is present31 , or 2) those ISPs that are present have not yet invested in the CAT infrastructure needed to provide a desired level of public Internet service quality and connect speed. Examples of these scenarios include the lack of cellular towers, or use of outmoded cell technology in select localities - resulting in socalled service “dead zones”, a dearth of advanced mobile data services (including Internet access), etc.

Perhaps the most notable current local public technology of concern to the FCC is the lacking local deployment of fiber optic cabling technology.

Fixed Broadband Defined A variety of alternate ISP service technologies and transmission media currently exist to access the Internet, though not all are available in every local area.

The most important of these Internet services fall under the category of what is sometimes referred to as “fixed broadband”.

Fixed broadband is a major FCC Internet service category of interest. The term refers to ISP CAT services in which subscribers access the Internet at broadband speeds from fixed user locations (e.g., homes or office buildings). A related term, Fixed Internet Service, or Fixed Internet, refers to fixed location access services whether the service is provisioned at broadband speed or at lower sub-broadband bitrates.

Fixed Internet services include the following access media types: • ADSL, • Cable, • Fixed Wireless, • Fiber, and • Satellite (e.g., roof mounted).

29 “Driving economic outcomes with broadband”, Chapter 16 in Building the Gigabit City by Craig Settles, self-published e-book, 2013, retrieved at http://www.ourbroadbandfuture.com/uploads/3/6/3/1/3631947/settles-building-the-gigabit-city.pdf 30 Broadband Deployment, Availability and Adoption In Tennessee, Report of the Tennessee Advisory Commission on Intergovernmental Relations, January 2017 31 Here, we are referring to terrestrial based ISPs, which includes cellular as well as cable based (copper or fiber) ISPs. Satellite ISPs are, of course, available to everyone on the planet, but vulnerabilities to weather disturbances, inherent latency delay and pricing, prompt many potential subscribers to consider the service platform only as a last resort.

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The term “Internet Service”, or Internet Access Service, usually refers to the access media and speed used to connect a subscriber (e.g., a consumer or business) to the Internet. The speed (i.e., service quality) at which a user can access the Internet depends in part on which specific type of transmission media the user subscribes.

There are three transmission media options - copper that transmits electrical signals, wireless that transmits radio signals, and finally, fiber optic cabling (fiber, for short) that transmits light signals 32 .

Data transmitted over copper is generally faster than by radio wave. And data transmitted over fiber is faster than over copper or wireless media. Radio waves (and hence, all wireless platforms) have the added disadvantage of being more vulnerable to environmental disturbances.

Internet Service Providers (ISPs) today mostly provision 4 types of copper based Internet services and 3 types of wireless Internet services.

Copper based Internet services include DSL (or ADSL33 ), cable, electric powerline, or traditional/other copper. Wireless options include cellular mobile, fixed wireless, and satellite.

When deciding on which type of Internet service(s) to offer in a given region, ISPs consider a variety of technical and market related factors, including transmission distances, terrain topologies, population densities, local residential and economic growth trends, time to recoup up front capital investment, future revenue potential, public subsidies, government support, etc.

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Internet Service in Wilson County The good news is that everyone in Wilson County can subscribe to a broadband Internet service, though not all via wireline access.

Internet service provider (ISP) access technologies currently being offered in WC’s urban city and town areas of Lebanon, Mt. Juliet and Watertown are listed in Table 4. The table also gives the number of ISPs that provide urban Internet service via a particular access media.

There are almost two dozen ISP provider networks offering Internet service in WC’s Lebanon and Mt. Juliet city regions, along with 10 provider networks in Watertown. Mt Juliet and Lebanon average download speeds are 47.14 mbps and 45.09 mbps, respectively while Watertown’s average is estimated at 11.71 mbps. The download speeds of WC’s two largest urban areas, Lebanon and Mt. Juliet, compare favorably with the estimated overall 45.1 mbps ISP average for the entire state of Tennessee.

Lebanon has a lot of DSL ISPs (5), a few Cable ISPs (2), and several fiber ISP networks (4). Mt Juliet has an equal number of Cable, DSL and Fiber ISPs at 3 each. Among wireline ISPs, Watertown has 2 DSL service providers, 1 cable ISP and no fiber ISP. For the copper access ISPs (mostly T-carrier services), both Lebanon and Mt. Juliet are well represented at 3 and 5, respectively.

Urban vs Rural Wilson County According to recent FCC data, there are at least 3 ISPs operating in WC which provide broadband Internet services to 99.68% of the county’s urban residents. There are 2 ISPs present that offer broadband to the remaining .32% of urban WC. For Wilson County’s rural residents, at least 3 ISPs are present that provide broadband Internet to 88.93% of the rural populace, and 2 ISPs providing broadband to the

32 Copper based Internet (access) service options include the provisioning of Internet service via 1) coaxial cable which uses thick gauge cable TV cabling (aka cable Internet), 2) landline phone wiring, which uses thin gauge category 5 copper telephone wire (aka Digital Subscriber Line, or DSL Internet), 3) electrical utility powerlines (powerline Internet, while technically possible, has decidedly been nixed as a service offering by most ISPs), and 4) “other” traditional point-to-point transmission services such as 1.5 Mbps T1, 45 Mbps T3, ISDN primary rate, etc.

Wireless Internet service options include 1) mobile Internet services which connect portable user devices (e.g., smartphones) via cell phone towers, 2) satellite Internet services which use small satellite dishes mounted on building or home roof tops, and 3) fixed wireless services, which use stationary (fixed) line-of-sight transmitters externally mounted on buildings or homes that communicate with fixed wireless towers.

33 In this report, the terms DSL and “ADSL” are used interchangeably. ADSL stands for asymmetric digital subscriber line.

Asymmetric simply means that the download and upload speeds are different from one another.

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remaining 11.07%.

If we exclude satellite Internet, which is available to 100% of WC residents, broadband Internet is available to 95.21% of county residents through at least one fixed broadband service type. About 4.79% of WC residents, mostly those who live in rural areas, do not have broadband access to the Internet except through satellite Internet service.

Wilson County’s ISP service offerings follow national trends in that the portfolio of available Internet access services is different for urban vs rural regions.

Internet access media commonly available in urban areas includes DSL, Cable and Fiber. For rural regions, the available Internet service mix is more likely to include DSL, Satellite and Fixed Wireless.

Although Table 4 shows that WC’s urban areas are in relatively good shape with healthy levels of ISP competition, the rural parts of the county are faced with some significant economic and technical challenges. In Figure R8, we compare the percentage of various kinds of fixed broadband Internet services that are available to WC residents living in urban vs rural parts of the county. These urban/rural regional differences are described in greater detail in the following sections on each type of fixed broadband service. The FCC data is based on a 2017 county population total of 136,436 persons, 79,692 of which are classified as residing in urban WC and 56,744 as living in rural WC.

Wilson County Census Tracts The FCC maps referenced in this report show the number of ISPs that are present within each of Wilson County’s 21 census tracts, both urban and rural34 . Federal census tract35 ID numbers and locations for Wilson County are shown in Map 1. Since

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census tracts are designed to include an average of 4000 people each, larger geographic census tracts in Map 1 are viewed as being more rural whereas much smaller geographic tracts are considered as urban areas.

Map 1: Wilson County TN 2010 Census Tracts Source: U.S. Census Bureau

ISP Competition in WC To depict the local presence and competitive level of ISPs, the FCC uses a visual color spectrum coding scheme, shown in Legend A. Legend A’s progression through the color spectrum, from light to darker hues of yellow, green, blue and black, depicts an increasingly larger number of competing ISPs in the select area36 of interest. Legend A should be used to interpret the color-coded FCC maps and Figure R9.

Maps 2 through 6 consider only ISP Internet services which provide at least the FCC’s desired minimum “25/3” broadband connection. 25/3 is FCC shorthand notation for 25mbps minimum down-

34 The FCC designates census blocks as urban vs. rural based on definitions used in the 2010 U.S. Census. The Census Bureau identifies two types of urban areas: 1) Urbanized Areas (UAs) of 50,000 or more people; and 2) Urban Clusters (UCs) of at least 2,500 and less than 50,000 people. “Rural” encompasses all population, housing, and territory not included within an urban area. (source: https://www.census.gov/programs-surveys/geography/guidance/geo-areas/urban-rural.html ) 35 Designed for use in constitutionally mandated decennial national population counts, census tracts are small, relatively permanent statistical subdivisions of a county consisting on average of approximately 4000 people (may be as small as 1200 or as large as 8000 people). Census tracts can be further subdivided into block groups and census blocks. (Source: U.S. Census Bureau) 36 According to the color definitions of Legend A, a yellow census tract implies that there are no ISPs present that provide Internet service at a selected access speed or using a selected media type. Greenish tracts indicate a non-competitive situation (only 1 ISP present). Light blue regions are essentially duopolistic (2 ISPs). Competitive ISP environments exist in tracts colored as blue and darker hues (3 to 6 ISPs). Black (12 or more ISPs) would indicate essentially a perfect competitive landscape. A final point about the FCC Legend A is to note that color-based indications that imply there are “x” ISPs present does not necessarily imply that each ISP present offers service to the entire census tract. For example, while 2 ISPs may be shown as operating in the same tract, in actuality they may be serving different divided customer locations - so that only 1 ISP is actually offering service to a particular subtract locality or neighborhood.

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load speed, accompanied by 3mbps minimum upload speed.

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the county.

Like the nation at large, most broadband services in WC today are provided primarily through copper based technologies (e.g., cable or DSL) or wireless (e.g., fixed wireless or satellite) though with varying levels of price and service quality.

Legend A - Number of Broadband ISPs by Color Code Source: Federal Communications Commission

Broadband DSL37

In general, Wilson County’s competitive landscape for fixed broadband services is very good, depicted in Map 2 by countywide blue color hues, indicating 3 or more competing ISPs within each census district.

In a closer look Map 2, however, we note that the blue hues on the north western side of WC are darker than the blues on the county’s south eastern side. Using Legend A to interpret this color disparity, we conclude that people living on the western side of WC, from the county seat of Lebanon, towards Nashville (i.e., urban WC), have more competitive choices for fixed broadband Internet service (shown by the dark blues) than do people living on the eastern side of Lebanon, who have fewer choices (i.e., rural WC, as shown by the light blues).

Figure R9 gives Internet connect speeds for WC’s fixed Internet service providers. Overall, WC currently has at least 3 ISPs that provide 25/3 broadband Internet service to 95.21% of the county’s residents. For faster 100/10 broadband service, 54.8% of WC residents are served by 2 ISPs while 32.11% only have a single ISP offering the service. 9.49% of WC residents live in a census tract part of the county where 100/10 fixed broadband is not available.

How do fixed broadband competition levels and service coverage compare among the three most popular ISP access media types in Wilson County - that of DSL, Cable and Fiber? Map 3 shows the number of ISPs that provide broadband Internet service using DSL (Map 3-A) versus Cable (Map 3-B). Map 5 shows similar information for fiber-based Internet service. Confirming the results of Figure R8, these maps show that DSL based Internet service dominates the rural areas of WC while cable and fiber optic based Internet service are more prevalent in urban areas of

According to Map 3-A, with few exceptions, 25/3 broadband DSL is available in every census tract in WC though perhaps only through a single ISP. Low competitive levels of DSL service is not surprising since DSL primarily takes advantage of existing “legacy” phone wiring infrastructure left over from the pre-cellular regulated monopoly days of landline phone service. But while most of WC is coded green, broadband DSL is not available in every census tract region in the county as noted by the few patches of yellow. Nor is broadband DSL necessarily available to every residential location within a DSL service census tract. For example, while Map 3-A shows that all Mt Juliet and Lebanon census tracts have broadband DSL, upon closer examination of the WC enlargement in Map 4, one notes the spotty service coverage of broadband DSL. This WC DSL case points to an oft-criticized flaw found in the FCC data, not only for broadband DSL, but for all of the other fixed broadband alternatives as well, that the FCC data actually overestimates the availability of fixed broadband service, for the nation as well as for the residents of Wilson County.

Unavailability of broadband DSL service in Wilson County includes a parcel of eastern WC land bordering Davidson County, just north of Hayes Road (census tract 303.08), as well as WC land bordering the eastern side of Smith Hill Road (census tract 303.04). According to the most recent FCC data (released in December 2017), broadband DSL is available to 52.28% of WC residents through a single ISP. Broadband DSL is unavailable to 46.28% of the county’s residents.

Possible reasons for lack of broadband DSL service in some parts of WC (and elsewhere in the U.S.) may be related to ISP/telephone carrier business de-

37

The terms DSL and ADSL are used interchangeably in this report. DSL is a broader term referring to digital data services which transmit over phone lines. ASDL is the most commonly requested DSL service. “Asymmetric” Digital Subscriber Line refers to the fact that the data transmission speeds are dissimilar for upload vs download directions.

38 Another reason for lacking availability of broadband DSL in select locations is the “local loop” distance limitation for data

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Map 2: Number of Fixed Broadband Providers in Wilson County TN, 2017 Source: Federal Communications Commission

(A) ADSL

(B) Cable

Map 3: Number of ADSL and Cable Broadband Providers in Wilson County TN, 2017 Source: Federal Communications Commission

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Map 4: Number of ADSL Broadband Providers (Enlargement) in Wilson County TN, 2017 Source: Federal Communications Commission

Map 5: Number of Fiber Broadband Providers in Wilson County TN, 2017 Source: Federal Communications Commission

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(A) North of I-40

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(B) South of I-40

Map 6: Number of Fiber Broadband Providers (Enlargements) in Wilson County TN, 2018 Source: Federal Communications Commission

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Figure R8 Urban vs Rural Broadband Coverage

by Media Type in Wilson County TN, 2017 Source: Federal Communications Commission

Figure R9 Number of ISPs Serving Wilson County TN Residents

by Access Speed, 2017 Source: Federal Communications Commission

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ISP Access Type Cable DSL Fiber Fixed Wireless Mobile Broadband Powerline/Copper Satellite Total no. of provider networks Avg download speed (Mbps) No. residential ISPs No. business ISPs No. mobile ISPs

31 Lebanon

Mt. Juliet

Watertown

2 5 4 1 5 3 2

3 3 3

1 2

5 5 2

22 45.09

21 47.14

10 11.71

8 14 5

8 13 5

6 3 5

1 5 2

Table 4: Number of ISPs in Wilson County, TN by Access Technology Type, 2019 Sources: broadbandnow.com, Federal Communications Commision cisions not to upgrade or invest in new DSL installations38 - as in the case of new residential developments, as well as ISP decisions to focus on higher demand high speed wireless (e.g., 5G) and fiber optic based services.

Broadband DSL is available to 49.02% of urban WC through a single ISP. The service is unavailable, however, to the remaining 50.17% of WC’s urban residents. Interestingly, the picture is brighter for rural county residents where broadband ADSL is available to 56.85% of rural WC but through a single ISP, with the service available to another 2.32% by 2 ISPs. Broadband ADSL is unavailable to 40.82% of rural WC.

Broadband Cable Map 3-B shows the service availability and competitive landscape for broadband Cable. Broadband Cable is available to 87.17% of WC residents, though through a single ISP39 . The service is not available to 10.59% of WC residents.

Broadband Cable is available in WC primarily to

those who live north of route 265 and on the western side of Interstate 840. Broadband cable is mostly unavailable to residents in rural census tract 309.04 which is the region south of route 265 and east of I-840. Except for Watertown and its immediate surrounding area, broadband cable is generally not available to those residing south of route 265 (census tract 310) and on to the eastern county line.

Broadband cable is a winner in urban WC with the service available to a whopping 98.15% of the community, though through a single ISP, with another .82% residing in city areas where 2 ISPs offer the broadband service. The residential market for broadband cable is smaller in rural WC where the broadband service is available to 71.75% of the populace through a single ISP, and an additional 4.23% of rural residents living in areas served by 2 ISPs. Broadband cable is unavailable to 24.02% of rural WC. Similar to the case for broadband DSL, the relatively low level of competition for broadband cable is not surprising and may be largely due to localities traditionally being served by a single cable service

transmission over thin gauge phone wiring. The greater the distance of a residence from the local serving telephone switch, the more expensive it is to provision DSL service, the case of rural areas notwithstanding.

39 One might wonder why a greater percentage of Wilson County residents can subscriber to broadband Internet service over cable than over the telephone wiring used for DSL. The simple reason for the service disparity is that the Internet transmission speed capacity decreases as the distance between the ISP switch and the subscriber’s home or office increases (aka “the last mile”). Thus, in the rural regions where this distance may be great, WC residents who live far from the ISP cloud may still be able to subscribe to an Internet DSL service but the available connect speed may be less than 25/3 and thus “not broadband”.

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provider. Most cable TV subscribers are offered cable based Internet service as added service by the same carrier although the service may be provisioned to the subscriber through a separate coaxial cable connection.

Broadband Wireless There are three wireless Internet services that are capable of broadband speeds: Mobile (cellular phone data service) and two fixed wireless options Satellite and Fixed Wireless. Mobile data device users and Satellite subscribers have 100% broadband service tract coverage in Wilson County and Tennessee.

Both wireless Internet services are competitive.

The most popular urban ISP service offering in Wilson County is Mobile Broadband, meaning Internet access via cell towers to/from a person’s smartphone, tablet or other portable mobile device. While both urban and rural Internet users may also subscribe to Mobile Broadband, it’s mostly rural residents who subscribe to Satellite Broadband, a wireless media fraught with servicing issues including latency transmission delays, weather disturbances, service pricing and caps on Internet data usage. Urban residents in WC and other densely populated regions are not likely to subscribe to satellite services due to the presence of other Internet service alternatives that are less costly and of better service quality.

Most current mobile broadband devices use 4th generation (4G, aka 4G LTE) transmission technology, with faster 5th generation (5G) services rolled out by ISPs in select urban locations around the U.S. including nearby Nashville.

While the transmission speeds of 4G technology can exceed the FCC 25/3 threshold minimum for broadband, a variety of technical and environmental factors can reduce mobile Internet access to connect speeds below the FCC broadband minimum. For reliable broadband service and oftentimes provisioned above the 25/3 minimum, most users would prefer a fixed broadband Internet service connection over a mobile link.

40

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Fixed Wireless Fixed Wireless service is sometimes provisioned as a broadband service and sometimes at sub-broadband speed. There are 50 listed Fixed Wireless providers in Tennessee with a 21.4% service coverage of the state40 . In 2018, AT&T announced an expansion of its Fixed Wireless service to its rural based customers in 18 states, including select rural areas of Tennessee41 .

Ubiquiti Air Fiber Fixed Wireless Mount (photo courtesy of Cumberland University) Popular in Midwestern states, and currently promoted with maximum download speed in the range of 10-12mbps (AT&T, Verizon), 50mbps (Rise Broadband) or 100mbps (Etheric Networks)42 , one will note that Fixed Wireless technology is technically capable of transmitting at gigabit speed, though line of sight transmission is required.

According to 2017 FCC data, the number of Fixed Wireless residential users in Wilson County is essentially zero. The number of Fixed Wireless business customers in WC is unknown but probably low.

Notably, at least one ISP (United Communications) is expanding into Wilson County that actively promotes fixed wireless services to rural communities, though currently not at gigabit speeds.

Fixed Wireless is one of few alternate Internet access technologies that can technically compete with fiber optic cable capabilities43 . A fixed wireless trans-

Source: broadbandnow.com Source: “AT&T Expands Access to High Speed Internet in Benton & Henry Counties and other Rural and Underserved Areas of Tennessee”, Posted by AT&T Tennessee Team on August 09, 2018, available at https://engage.att.com/tennessee/blog/?PostI d=4849 42 Source: https://www.allconnect.com/internet/fixed-wireless 43 “Pros and Cons of Fixed Wireless Broadband Internet Access” by Bradley Mitchell, Livewire, August 09 2019, available at https://www.lifewire.com/fixed-wireless-broadband-internet-access-818318 41

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mission “tower” replaces the need to lay FO cable, which in certain circumstances may represent a significant cost savings. In certain parts of the country, some urban regions have considered Fixed Wireless as a permanent or temporary high speed broadband service alternative to fiber44 .

Will Fixed Wireless become an important broadband access option for rural areas? Some analysts claim a significant future for this Internet access technology.

“Fixed wireless internet already covers nearly half the U.S. population, but many providers hope to continue expanding their networks to bring the service to more areas. AT&T has recently announced their fixed wireless service now covers parts of 18 states and the company hopes to “make internet access available in over 1.1 million locations by the end of 2020.” Verizon’s fixed wireless internet – LTE Internet (installed) – is already available in most locations where Verizon 4G LTE service is offered. As Verizon rolls out their 5G network, new fixed wireless plans with faster speeds may become available in select areas. Other fixed wireless providers, such as Rise Broadband, also hope to continue expansion and bring fixed wireless broadband to more areas.

Rise Broadband recently announced plans to preserve their networks, currently in 16 states, with plans to expand to more markets in coming years.” 45

Broadband Fiber Just like being offered a Ford Focus or a Ford Lincoln Town Car, most of us would naturally prefer to drive the Town Car, with its higher vehicular performance, features and quality. Similarly, choosing among an Internet service subscription offer for DSL, Cable or Fiber, the clear and obvious choice would be for Fiber. Fiber optic cables carry light signals, in44

33

comparably faster and more secure than electrical or radio signals transmitted over the other access media alternatives. Broadband by fiber means gigabit (a billion bits) per second transmission speed.

Rackmount with fiber optic cable connectors (photo courtesy of Cumberland University) Map 5 shows where fiber Internet46 service is available in Wilson County, indicated by the dark and light green areas of the map. Fiber Internet service in Wilson County is primarily available on the urban east side of Lebanon (including Mt Juliet) going towards Nashville, and is mostly unavailable on the western rural side of the county. According to FCC data, about half (48%) of WC’s total population live in a fiber Internet service area served by one ISP. Fiber Internet is unavailable to slightly more than half of Wilson County’s residents (50.93%).

According to FCC data released June 2018, fiber optic- based Internet service is unavailable to almost 75% of all U.S. residents. The data also estimates that slightly over 25% of the nation can get fiber internet through one local provider, 1% can choose fiber from two providers, and .03% reside in areas where three or more providers offer fiber service. For

See, for example, “Windstream Outlines Fixed Wireless Efforts in Iowa, Highlights Growing Interest in Expanding Wireless Broadband” by Joan Engebretson, Telecompetitor, July 02, 2019. Available at https://www.telecompetitor.com/windstreamoutlines-fixed-wireless-efforts-in-iowa-highlights-growing-interest-in-expanding-wireless-broadband/ 45 Source: https://www.allconnect.com/internet/fixed-wireless 46 In today’s Fiber Internet installations, the fiber optic cabling is usually terminated either at 1) an off-premises location - near, but outside, the home or office building, or else 2) to the premise location - inside the home or office. A popular service of the off-premises case is Fiber-to-the-Node (FTTN). A common service of the premises case is Fiber-to-the-Home (FTTH). In business scenarios, FTTH is often referred to as Fiber-to-the-Building (FTTB). In FTTN, fiber is run to a nearby off-premises hub which uses either a wireless signal (e.g., Wifi) or conventional copper coax cable/twisted pair wiring (Cable/DSL) configuration to connect to the user’s computer. Still in use today, FTTN was an early ISP favorite due to its relatively lower installation cost and being able to serve multiple homes or business from the same hub. With FTTH, the ISP runs fiber directly into the home or office and terminates the fiber optic cable at a port on a “fiber modem” (which replaces the cable/DSL modem), then running a copper Ethernet cable the remaining few feet to the user’s computer.

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Wilson County, broadband fiber Internet is available through a single ISP to 68.39% of the people living in the urban areas of the county. An additional 1.25% are served by 2 ISPs. Broadband fiber is unavailable to 30.35% of urban WC. For rural WC residents, broadband fiber is available to 22.55% of the populace through a single ISP, with an additional 1.39% provided the service by two ISPs. Broadband fiber Internet is currently unavailable to 76.06% of the persons living in rural areas of Wilson County.

AT&T as well as 1 new cell tower site. As of May 2019, 100% of WC was covered by AT&T’s Mobile Broadband network. As of July 2019, there were 8 AT&T wifi hotspots in the county as well as 6 local retail centers. Interestingly, AT&T states that there are 256 employee retirees living in WC.47

Figures 6A and 6B provide enlargements of Figure 5 to show specific areas of fiber availability within each WC census tract. Interestingly, Figure 6B shows a turquoise blue coloring for a land parcel located in census tract 309.03 between Gladeville and Suggs Creek, just south of route 265 and to the west of I-840. According to Legend A, this indicates the presence of 2 ISPs offering broadband fiber in this region, unlike the surrounding areas of tract 309.03 which have at most a single fiber ISP present.

Wisconsin-based Telephone and Data Systems, Inc. (TDS) has operated in Tennessee and WC since 1975 investing $432 million in the region. Most of TDS’ presence in Wilson County is in the Mt. Juliet area.

TDS currently claims 94% fiber coverage in Mt. Juliet with access speeds up to 1 gigabyte per second.

The remaining 6% of Mt. Juliet has access speed up to 100 mbps. There are about 11,000 Mt Juliet residents using TDS broadband services, 10,100 for Internet and 7,000 using TDS broadband for video applications.48,49

Business Fiber Internet in WC According to FCC data released December 2017, the 3 largest fiber broadband business service providers in Wilson County are AT&T, TDS and Charter Spectrum. In Lebanon, business fiber service coverage includes AT&T (16.6%), Windstream (2.65%), Spectrum Business (1.57%) and CenturyLink (.6%). In Mt Juliet, the largest fiber ISPs are TDS Business (33.7% service coverage), AT&T (14.3%) and CenturyLink Business (1.6%). Watertown had no fiber business ISP as of the 2017 FCC data release. See Table 5.

AT&T AT&T has been an active telecom service provider in Wilson County for decades.

From 2016 to 2018, AT&T invested more than $15 million in wireline and wireless network infrastructure in WC. During the same time period, 13 wireless upgrades were made in WC by 47

TDS

Charter Communications Telecom network services provider Charter Communications Inc. offers its cable TV, Internet and wireless services to consumers and businesses under the branding name Spectrum.

Since merging with Bright House Networks and Time Warner Cable in 2016, Charter Communications has grown to become one of the top three largest U.S. Internet providers. Charter’s Internet service area includes 102.7 million residents and spans 44 states.

They have the widest coverage in California, Texas, New York, and 41 other states. In Tennessee, Charter Spectrum service is available to 1.8 million people, or about 31% of the state50 . Spectrum’s primary business Internet service presence is in the Lebanon, TN area.

Information provided by AT&T, August 2019 Information provided by TDS, September 2019 49 “TDS celebrates launch of 1 Gigabit high-speed Internet service in Mt. Juliet, Tenn”, January 30, 2015, updated February 2019, retrieved from https://tdstelecom.com/about/news/categories/tds/1gig-service-in-mt-juliet.html 50 Source: broadbandnow.com 48

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MTEMC-United Partnership A promising broadband regional initiative launched August 2018 in Wilson County is a partnership between the Middle Tennessee Electric Membership Cooperative (MTEMC) and United Communications

35 (United)51 . MTEMC is the largest electrical coop in Tennessee and is the public electric utility for Wilson County. United is an ISP that operates within the state of Tennessee. The company offers fiber broadband, fixed wireless and DSL Internet services, with a particular servicing focus on rural areas. A major objective of the MTEMC/United Partnership initiative is to expand broadband Internet service coverage in rural portions of WC and other nearby rural counties.

Besides its expansion of broadband Internet service coverage, United is also assisting MTEMC with

51

Information reported on the M/U Partnership comes from a discussion meeting held August 9th, 2019 with senior executives from MTEMC and United Communications. See also information links at https://www.tennessean.com/story/news/local/williams on/2018/08/24/rural-broadband-middle-tennessee-electric-membership-united-communications/1087476002/ and https://www.mt emc.com/content/state%E2%80%99s-largest-electric-cooperative%C2%A0partners%C2%A0%C2%A0local-internet-service-provide r-expand

Internet Access Technology

City Coverage

Maximum Business Download Speed

Lebanon Business ISPs AT&T Spectrum Business AT&T DTC Comcast Business GTT Communications Windstream Spectrum Business MegaPath CenturyLink Business

DSL, IPBB cable fiber DSL cable DSL , copper fiber fiber copper fiber, copper

99.7% 90.7% 16.6% 16.3% 11.04% 3.38% 2.65% 1.57% 1.0%+ 0.6%+

100 Mbps 300 Mbps 1 Gbps 50 Mbps 987 Mbps 6 Mbps 500 Mbps 1 Gbps 3 Mbps 1 Gbps

Mt Juliet Business ISPs Comcast Business AT&T TDS Business AT&T Spectrum Business Windstream CenturyLink Business XO Communications Verizon Business GTT Communications

cable DSL, IPBB fiber fiber cable copper fiber, copper copper copper copper

100% 45.3% 33.7% 14.3% 6.4% 3.1%+ 1.6%+ 1.2%+ 1.0%+ .2%+

987 Mbps 100 Mbps 1 Gbps 1 Gbps 300 Mbps 1.5 Mbps 1 Gbps 10 Mbps 3 Mbps

DSL DSL, IPPB cable

100% 65.9% 40.3%

50 Mbps 25 Mbps 300 Mbps

Internet Service Provider (ISP)

Watertown Business ISPs DTC AT&T Spectrum Business

Average Business Download Speed

69.34 Mbps 91.28 Mbps

114.79 Mbps

55.72 Mbps

76.9 Mbps

54.56 Mbps

Table 5: Wilson County Business Internet Service Providers, 2019 Sources: broadbandnow.com, Federal Communications Commision

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Wilson County Trends

the development of SmartGrid. MTEMC’s SmartGrid is a self-healing electric services grid consisting of MTEMC’s electric grid coupled with a fiber optic network overlay for improved and faster communication and telemetry data transfer - to improve electric provider grid management, more quickly resolve power outages, automate electrical routing and rerouting actions, provide subscribers with electric usage reports, as well as enable other improvements in customer service.

United does not currently provide residential broadband Internet service in Wilson County but plans to in the near future. United plans to provide broadband Internet service to unconnected WC residents and businesses through use of either fiber optic cabling or fixed wireless services. United’s general technology plan is to deploy fiber Internet in WC and then interconnect the new local fiber optic lines to the ISP’s existing gigabit “backbone” fiber network. While technically possible, the M/U Partnership does not involve provisioning of United’s broadband Internet services over MTEMC’s copper wire based electric grid.

United notes that it will invest some upfront capital monies in expectation of future service subscriptions enabled by its broadband expansions. The M/U Partnership will also consider applications to Tennessee’s Broadband Accessibility Grant Program52 , the federal Connect America Fund53 and other public investment programs designed to bring broadband Internet and related technologies and services to underserved rural locations.

The M/U Partnership is “multi-year” in nature with no specific time schedules or completion dates yet announced.

Connect America Fund To ensure that broadband Internet access is available to every U.S. resident and every region, federal and state governments have initiated various public infrastructure development grant programs. The FCC, 52

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for example, has taken a federal leadership role in developing and supporting the nation’s public broadband infrastructure.

High-speed Internet access, or broadband, is critical to economic opportunity, job creation, education, and civic engagement. But there are too many parts of this country where broadband is unavailable. In urban areas, 97% of Americans have access to highspeed fixed service. In rural areas, that number falls to 65%. The FCC has taken a number of steps to expand broadband across America, including establishment of the Connect America Fund54 .

Map 7: Rural Locations Eligible for CAF II Funding in Wilson County TN (dark areas) Source: Federal Communications Commission The Connect America Fund (CAF), also known as the Universal Service High-Cost program, is the FCC’s program to expand access to voice and broadband services for areas where they are unavailable.

Through CAF Phase II, the FCC provides funding to local telephone companies55 to subsidize the cost of building new network infrastructure or performing network upgrades to provide voice and broadband service in areas where it is lacking. Companies that accept CAF Phase II support have six years to plan and provide broadband to consumers, although not every household is guaranteed access. The deploy-

See, for example, https://www.tn.gov/ecd/rural-development/tennessee-broadband-grant-initiative/tennessee-broadband-acc essibility-act-article.html 53 See, for example, https://www.fcc.gov/general/universal-service-high-cost-areas-connect-america-fund 54 Retrieved from https://www.fcc.gov/about-fcc/fcc-initiatives/bridging-digital-divide-all-americans . For general information on the Connect America Fund, see also https://www.fcc.gov/consumers/guides/connect-america-fund-phase-ii-faqs . For an interesting article on public vs private carrier broadband funding, see https://www.fiercetelecom.com/special-report/at-t-frontier-others-accept1-5b-caf-ii-funding-despite-fcc-s-changing-broadband 55 Incumbent Local Exchange Providers in Wilson County include AT&T, DTC and TDS (2007).

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ment schedule is determined by the service provider, not the FCC. CAF Phase II funding is designed to ensure that consumers in rural, insular, and high-cost areas have access to modern communications networks capable of providing voice and broadband service, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. Started in May 2015, and based on competitive bid proposals, CAF-II is a six year federal fund awarding 1.675 billion dollars annually. Map 7 depicts rural locations in Wilson County (shown in dark purple) which are eligible for CAF-II funding.

Reflecting most of Map 7’s eligible areas, Map 8 depicts 2015 CAF-II funded broadband rural areas (shown in blue) for Wilson County and surrounding regions. CAF-II funding in Tennessee was awarded to ISPs AT&T, Century Link and Frontier. AT&T was WC’s primary CAF-II funded ISP.

Map 8: CAF-II Broadband Build-Out Commitments in Wilson County TN, August 2015 Source: Federal Communications Commission

Tennessee Broadband Accessibility Act A complementary measure to the Connect America Fund, Tennessee state government announced in 2017 legislation to increase broadband access to Tennessee’s rural populace. The Tennessee Broadband Accessibility Act of 2017, provides $45 million over three years in grants and tax credits for ISPs to assist in making broadband available to unserved homes and businesses. The plan also provided support to Tennessee’s private, nonprofit electric cooperatives to provide retail broadband service and make grant funding available to the state’s local libraries to help 56

37 residents improve technology literacy56 .

The 2017 broadband Internet legislation impacted Wilson County through a first round funded ISP - DTC Communications, which received $1,725,000 from the broadband development program to serve parts of Smith and Wilson counties.

Supported by the grant (which requires matching funds from the recipient), DTC announced plans to extend its fiber optic service area to underserved areas, including parts of WC near Watertown57 .

USDA’s ReConnect Loan and Grant Program In March 2018, Congress passed the Consolidated Appropriations Act of 2018, which established a new broadband loan and grant pilot program, now called the Rural eConnectivity Pilot Program (ReConnect Program). The Act appropriated a budget authority of $600,000,000 to be used on an expedited basis. The ReConnect program is a result of President Trump’s Interagency Task Force on Agriculture and Rural Prosperity established in April 2017 to identify legislative, regulatory, and policy changes that could promote agriculture and prosperity in rural communities. The ReConnect Program offers unique federal financing and funding options in the form of loans, grants, and loan/grant combinations to facilitate broadband deployment in areas of rural America that don’t currently have sufficient access to broadband.

Interestingly, USDA’s ReConnect program defines “broadband” as 10 Mbps downstream and 1 Mbps upstream (10/1), different from the FCC’s 25/3 definition of broadband. The apparent end result of this access speed disparity is to reduce the number of general qualifying regions in the U.S. so as to better focus on rural areas with the greatest public IT infrastructure disadvantages.

Included among the first round of four successful awardees in Tennessee was a proposal submitted by United Communications Inc. requesting $3,287,500 in funding to deploy a fiber broadband network in rural Wilson, Rutherford, Williamson and Maury counties. The total funded service areas of the award include 2,716 households, and one critical commu-

“Gov. Haslam broadband plan offers $45M in grants, incentives”, Tennessean, January 26, 2017 See https://tnecd.com/news/haslam-rolfe-announce-nearly-10-million-in-grants-through-the-tennessee-broadband-accessibility -act/ See also, https://www.lebanondemocrat.com/article/utilities/ 57

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nity facility spread over 48 square miles. The total project cost is $6,575,000, which includes $3,287,500 in matching funds from the MTEMC-United Partnership. The Wilson County portion of the grant award is depicted in Map 9 and includes 445 households (about 1,125 residents), encompassing about 10.79 square miles of the county. The new fiber infrastructure may be in place as early as Spring 2121 of next year58 .

Map 9: USDA ReConnect Grant Award in Wilson County, 2020 Source: U.S. Department of Agriculture

Current and Future Outlook Internet service in Wilson County is evolving on a par with the rest of the country. People and businesses residing in the county’s growing urban areas, Lebanon and Mt. Juliet in particular, are offered a variety of broadband Internet services from which to choose. There are, however, some servicing issues, fiber Internet availability for one, which all suburban/rural counties like WC must continue to work on.

Since ISPs usually operate as for-profit entities, it is not surprising that they would choose to first invest in “low hanging fruit” areas, i.e., densely populated urban centers with concentrations of potential customers. There is some understandable ISP hesitation in investing in more sparsely populated areas where the return on investment is less certain. Fortunately, government agencies - local, state and federal, have

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established cooperative broadband development programs to encourage ISPs to expand their high speed service areas into rural locales. Wilson County has participated in such programs and will undoubtedly continue to do so in the near future.

Physical Economy’s IT Pull Public subsidies aside, Wilson County is fortunate to possess resources and circumstances that will help drive the development of its local public IT infrastructure.

While the Internet is a powerful economic engine in its own right, one cannot ignore the equally important role of the Internet in helping to facilitate physical commerce. In the nation’s traditional economy involving the manufacture and distribution of physical goods, physical supply chains must exist in order to bring materials and parts to the factory and then to distribute finished goods to end markets.

The nation’s supply chain industries, especially warehousing and transportation, are undergoing major IT-based structural improvements, incorporating such game-changing emerging technologies as GPS, RFID, inventory drones, autonomous vehicles, etc. These new tech enhancements to physical supply chains are radically empowering the downstream physical flows of raw materials, parts, and products with cost-reducing advanced upstream data and communications capabilities.

Wilson County is a strategically important midtransit location and facilitator of large supply chains59 in the nation’s physical economy. Hence, the county is a major regional draw to IT companies and Internet/cloud service providers that provide support to evolving national and global supply chains.

Notably, it is the customer end of corporate supply chains that is currently undergoing the greatest technological change. “E-commerce retail has become the fastest growing trade sector and has outpaced every other trade and manufacturing sector since 1999 As technology, e-commerce, and globalization become more intertwined, buyers and sellers are increasing their connectivity and the speed with which they conduct sales transactions.” 60

58 Sources: U.S. Department of Agriculture news release, February 13, 2020, Arcgis.com, and “USDA looks to boost county’s rural Internet with $3.3M grant”, p. 1, February 18-19, 2020, Lebanon Democrat.

59 See, for example, “Wilson County’s Supply Chain Industry,” Wilson County Trends, Spring 2019, pages 14-19.

60 “Economic impact of e-commerce” by Chris G. Christopher, Jr. , Supply Chain Quarterly, CSCMP, November 2019

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The supply chain industry in the U.S. is currently all abuzz concerning consumer fulfillment centers which are currently undergoing major transitions to larger size and increasing electronic capacity and sophistication61 . These supply chain industry developments play to WC’s strengths in regards to available open tracts of land needed to accommodate the increasing size footprints of future fulfillment centers located strategically alongside major interstate thoroughfares (e.g., I-40).

The rapid growth in electronic consumer transactions of physical goods is increasing the physical demand for supply chain distribution logistics, which in turn is increasing the digital business demand for

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information technology, cloud-based platforms and Internet services. This economic tie between the nation’s physical and digital economies will help to drive the development of WC’s local IT industry and public IT infrastructure.

Wilson County’s city of Mt Juliet promotes itself as “City between the Lakes”, a reference to the local topography. Well, noting the physical economic importance of Interstate 40 which crisscrosses Wilson County, AND the growing digital economic importance of WC’s evolving broadband Internet “electronic highway”, might an appropriate 21st century moniker for Wilson County be the “County Between the Highways”- one physical, the other electronic?

Appreciation and Thanks are expressed to CU faculty and staff, as well as other individuals and organizations for their general support and for materials used in this report. In particular, we would like to thank the Tennessee Department of Economic & Community Development, Tennessee Department of Revenue, Middle Tennessee Electric Membership Cooperative, United Communications, AT&T, TDS, Wilson County, City of Lebanon, City of Mt Juliet, and the Watertown Chamber of Commerce.

The Last Word Three beggars are begging in Metropolis. The first one wrote “beg” on his broken steel cup. After one day he had received ten bucks. The second one wrote “beg.com” on his cup. After one day he had received hundreds of thousand of dollars. Someone even wanted to take him to NASDAQ. The third one wrote “eBeg” on his cup. Both IBM and HP sent vice-presidents to talk to him about a strategic alliance and offered him free hardware and professional consulting. Larry Ellison claimed on CNBC that eBeg uses 95% Oracle technology. i2 announced begTradeMatrix, a b2b industry portal to offer supply chain integration for the beggar. And Cisco just announced that virtually all eBeg traffic runs over their equipment.

61

“How Ecommerce is Transforming Today’s Supply Chain,” Rakuten Super Logistics, October 9th 2019

Wilson County Trends A Cumberland University Publication from the Labry School of Science, Technology, and Business 1 Cumberland Square Lebanon TN, 37087

List of Figures, Maps, and Tables Recent Trend Graphs Figure Figure Figure Figure Figure Figure Figure Figure Figure

R1 R2 R3 R4 R5 R6 R7 R8 R9

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Number of Business Establishments by Industry in Wilson County TN, 2017 vs 2018 . . . . . . . . . . . . . . . . . . . . 3 Average Weekly Wage by Industry in Wilson County TN, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Total Persons Employed in Wilson County TN, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Total Retail Sales by Category in Wilson County TN, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Monthly Retail Sales in Wilson County TN, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Monthly Autos, Boats & Aircraft Sales in Wilson County TN, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Monthly Retail Sales by Category in Wilson County TN, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Urban vs Rural Broadband Coverage by Media Type in Wilson County TN, 2017 . . . . . . . . . . . . . . . . . . . . . . 30 Number of ISPs Serving Wilson County TN Residents by Access Speed, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Historic Trend Graphs Figure H1 - Number of Establishments by IT Industry Type in Wilson County TN, 2008-2018 . . . . . . . . . . . . . . . . . . . . . . . 9 Figure H2 - Average Weekly Wage by IT Industry Type in Wilson County TN, 2008-2018 . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Guest Article Graphs Figure Figure Figure Figure Figure

G1 G2 G3 G4 G5

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Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Marketing Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Top Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Google Analytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15 16 16 18 19

Wilson County TN 2010 Census Tracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of Fixed Broadband Providers in Wilson County TN, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of ADSL and Cable Broadband Providers in Wilson County TN, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of ADSL Broadband Providers (Enlargement) in Wilson County TN, 2017 . . . . . . . . . . . . . . . . . . . . . . . .

Number of Fiber Broadband Providers in Wilson County TN, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of Fiber Broadband Providers (Enlargements) in Wilson County TN, 2018 . . . . . . . . . . . . . . . . . . . . . . . .

Rural Locations Eligible for CAF II Funding in Wilson County TN (dark areas) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CAF-II Broadband Build-Out Commitments in Wilson County TN, August 2015 . . . . . . . . . . . . . . . . . . . . . . . . . .

USDA ReConnect Grant Award in Wilson County, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25 27 27 28 28 29 36 37 38

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10 11 13 31 35

Maps Map Map Map Map Map Map Map Map Map

1 2 3 4 5 6 7 8 9

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Tables Table Table Table Table Table

1 2 3 4 5

No. of Establishments and Employees by IT Industry Type in Wilson County TN, 2008 vs 2018 . . . . . . . . . . .

Average Weekly Wage by IT Industry Type in Wilson County TN, 2008 vs 2018 . . . . . . . . . . . . . . . . . . . . . . . . .

Who’s Who in Wilson County TN’s IT Industry, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of ISPs in Wilson County, TN by Access Technology Type, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Wilson County Business Internet Service Providers, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .