Wilson County Trends 2020

Page 39

WilsonCountyTrends

ACumberlandUniversityPublication

Spring2020

Dean’sForeword

WelcometotheSpring2020issueof WilsonCountyTrends,apublicationaboutbusinessandeconomicactivityinWilsonCounty,Tennessee.

IwanttothankDr.SteveShao,CumberlandUniversityfacultymemberand WilsonCountyTrends Editor,forhisworktomakethispublicationpossible.

ChrisFuller Dean,LSSTB

CumberlandUniversity’sLabrySchoolofScience,Technology,and Businessispleasedtobeasponsorofthispublicationandhopesthat readerswillfinditinformative.Thankyouforyourinterestin Wilson CountyTrends.Ihopeyouwillenjoyperusingthepageswhichfollow.

ChrisFuller,Ph.D.-Dean,CumberlandUniversity’sLabrySchool

InThisIssue

WilsonCountyTrends containsbusinessandeconomicdataonthecountyandalsoprovidesnewsarticleson localindustry,businessesandspecialtopics.Thiscurrentissueprovidesupdatesonlocalbusinessactivitiesas wellasonchangesintheWilsonCountyeconomy.

Giventherapidongoingdevelopmentsinthenation’scomputerindustryandInternetserviceindustry,aswell astheacceleratingpaceofonlinecommerce,weincludeanindustryoutlookofWC’sinformationtechnology industry.AlsoincludedinthisissuearetwoITrelatedarticles-aguestarticleondigitalmarketingstrategies andafeaturearticleonthestatusofWilsonCounty’sbroadbandInternetservicesindustry.

SteveShao WCTEditor
Contents Dean’sForeword............1 InThisIssue................1 RecentTrends..............2 WC’sITIndustry...........7 Who’sWhoinWCIT......12 OnlineMarketingStrategies15 BroadbandInternetinWC.20 TheLastWord............39 Figures,Maps,&Tables...40

CumberlandUniversity

Foundedin1842,CumberlandUniversityoffersa varietyofeducational,athleticandsocialexperiencestoenhancethelearningopportunitiesof thecurrentstudentbody.Theuniversityhasan exceptionalacademicprogramsteepedintheliberalarts,business,technology,nursingandmany otherfields.TheUniversity’sathleticteamsregularlycompeteforconferenceandnationalchampionships.CumberlandUniversityislocatedin Lebanon,Tennessee,30mileseastofNashville.

RecentTrends

Therecenttrendssectionofthiseconomicreport1 includestimeseriesandcrosssectiongraphsfor economicactivityoccurringinWilsonCountyusing themostrecentavailablecompletepublicdatasets, whichinthisissueisprimarily2018data.

In2018,WilsonCounty(WC)washometo2,907 businesses,a6.25%increaseoverthe2,736residinginthecountyinthepreviousyear20172 .WC istodayprimarilyaserviceeconomy.Thecounty’s 2018businesscommunityconsistedof462goodsproducers(16%)and2,445serviceproviders(84%).

President

Dean,LabrySchool

Dr.SteveShao

Bynumberofestablishments,WC’stopindustry supersectorsin2018continuetobeTrade,transportation&utilities3 (775firms,or27%oftheprivateindustrytotal),Professional&businessservices4 (506firms,or17.4%),andaneartieinthethirdspot betweenConstruction39(308firms,or10.6%)and Leisure&hospitality5 (291firms,or10.1%).Also wellrepresentedinWC’slocaleconomyforthatyear werefinancialserviceproviders(282firms,or9.7%) andprivateeducationandhealthserviceproviders (280firms,or9.6%).

Coverphoto

1

Interestingly,theWCindustrieswiththetwo highestannualgrowthrates(2017-2018)inthe countywereOtherServicesandInformation.The 253firmsclassifiedasOtherServices,representing 8.7%ofWC’s2018economy,expandedbyahealthy 15.5%overthepreviousyear.The57firmsinthe informationsupersector,anindustryareawithmuch futurepotential,representingjust2%ofthelocal economyin2018,grew12%.Wealsonotethatwith theminorexceptionofthe7naturalresourceand miningestablishmentsin2018(decreasingby1firm from2017),thenumberofbusinessestablishmentsin WCincreasedfrom2017to2018inallotherindustry supersectorcategories.SeeFig.R1.

USDepartmentofLabor2018wagedatafor WilsonCountywaslargelyunchangedfromthepre-

2 Duetoongoingdataproviderrevisions(e.g.,USDepartmentofLabor),some2017businessdatareportedinthisWCTissue maydifferslightlyfromdatacitedinWCT’searlierSpring2019issue.WCTpolicyistocitethemostrecentavailablenumbersfor allhistoricaldatayears.

3 NAICSSupersector40(Trade,transportation,andutilities)consistsofSectors42(WholesaleTrade),44-45(RetailTrade), 48-49(TransportationandWarehousing)and22(Utilities).

4 NAICSSupersector60(Professionalandbusinessservices)consistsofSectors54(Professional,Scientific,andTechnical Services),55(ManagementofCompaniesandEnterprises),and56(AdministrativeandSupportandWasteManagementand RemediationServices).

5 NAICSSupersector70(Leisure&hospitality)consistsofSectors71(Arts,entertainment,&recreation),and72(Accommodation&foodservices).

2 Spring2020WilsonCountyTrendsCumberlandUniversity
...................Dr.PaulStumb Provost ...............Dr.C.WilliamMcKee
.........Dr.ChrisFuller WilsonCountyTrendsEditor
:Visualizationofaportionofthe Internet,2005(TheOpteProject) 2019WilsonCountyFair,JameE.Ward AgriculturalCenter,LebanonTN (2019Attendance=578,131)
WilsonCountyTrends’Spring2019editionpresentedasimilar“RecentTrends”analysisusing2017businessdata.

FigureR1

NumberofBusinessEstablishmentsbyIndustryin WilsonCountyTN,2017vs 2018

Source:USDepartmentof Labor

viousyearof2017.The2018averageweekly wageforallWCbusinesseswas$807.Average wagesforService-providingfirmswasslightlybelowthatforallbusinessfirmsat$759.Pay washigherinWC’sGoods-producingcategory, whichaveraged$1067perweek.Inreviewing theaverageweeklywageacrossmajorWCindustrygroups,thehighestwagesinWilsonCountyin 2018werepaidinSupersectors55-Financialactivities ($1,262perweek),20-Construction($1,085/wk), 30-Manufacturing($1,057/wk),60-Professional& businessservices($1,024/wk),and50-Information

($901/wk).Lowestaverageweeklywageswere paidinSupersector70-LeisureandHospitalityat $348/wk.SeeFig.R2.

In2018,thenumberofpersonsworkinginWilson Countyinprivateindustrygrewsteadily,from39,659 workersinJanuaryto42,222byDecember,foranaverageemploymentlevelfortheyearof40,772.See Fig.R3.

TennesseeDepartmentofRevenuedatashows a2018retailsalestotalforWilsonCountyTNof $2,581,139,825,aslight5.8%decreasefrom2017. WC’slargestretailcategorycontinuedtobeAuto-

FigureR2

AverageWeeklyWagebyIndustryinWilsonCountyTN,2018

Source:USDepartmentofLabor

LabrySchoolofScience,Technology,andBusiness 3

FigureR3

TotalPersonsEmployedin WilsonCountyTN,2018

Source:USDepartmentof Labor

FigureR4

TotalRetailSalesbyCategoryinWilsonCountyTN, 2018

Source:TNDeptofRevenue

FigureR5

MonthlyRetailSalesinWilsonCountyTN,2018

Source:TNDeptofRevenue

4 Spring2020WilsonCountyTrendsCumberlandUniversity

CallforBusinessSpeakers

CumberlandUniversityisseekingactiveorretiredseniormanagersandexecutiveswhowouldbeinterested inservingasclassroomguestspeakersforourundergraduateandgraduatebusinessstudents.Anyonewho wouldliketovolunteerasaspeakerisencouragedtoemailwilsoncountytrends@cumberland.eduorcall(615) 547-1259toexpresstheirinterest.Wealwaysappreciatepeoplewillingtosharetheirbusinessexperiences, insights,andknowledgewithourstudents!

mobiles,Boats&Aircraftat$809,888,733,or32% ofthecounty’s2018retailsalestotal.SeeFig.R4.

MonthlyretailsalesinWilsonCountyTNwere relativelystableduringthesecondhalfof2018.Annualchangeintotalretailsalesfromtheprevious yearof2017rangedfromaminordecreaseof2% inSeptember,NovemberandDecember,toanapproximate4%monthlyincreaseinJuly,Augustand October.

Inthefirsttwoquartersof2018,however,total retailsalesinWCwerelargelydownwithdecreases ofabout20%fromFebruarythroughMay.TheexceptionwasJanuary2018whichregistereda5.75% increaseoverJanuary2017saleslevels.SeeFig.R5.

WC’s2018retailcategorysaleslevelsweresomewhatmixedincomparisonwithsalesfromthepreviousyear.2018salesincreasesover2017were recordedforbuildingmaterials,generalmerchandise, foodstores,andservicestations.Retailcategories

withminorsalesdropsincludedapparel&accessories,andotherretail.

Significant2017-2018salesdecreasesoccurred, however,infurniture&homed´ecor($15,525,294in 2018foradecreaseof21%)aswellasinautos,boats &aircraft($809,888,733in2018foradecreaseof 17.9%).Thetwodigitpercentdecreaseintheautos,boats&aircraftcategoryislargelyattributedto reducedbusinessactivityfromoneWCfirminthis retailcategory.SeeFig.R6.

Amongsalescategoriesforretailindustriesother thantheautos,boats&aircraftcategory,foodstore salesrankedhighest,averagingalmost$35million permonth.Nextwerethegeneralmerchandiseand otherretailsalesgroupsaveraging$24.5and$22.8 millionpermonth,respectively.Closebehindother retailsaleswasbuildingmaterials,averagingjustover $20millionpermonth.SeeFig.R7.

2019AmericanaDayMusicFest,WatertownTN
LabrySchoolofScience,Technology,andBusiness 5

FigureR7

MonthlyRetailSalesbyCategoryinWilsonCountyTN,2018

Source:TNDeptofRevenue

FigureR6

MonthlyAutos,Boats&Aircraft SalesinWilsonCountyTN,2018

Source:TNDeptofRevenue

6 Spring2020WilsonCountyTrendsCumberlandUniversity

IndustryOutlook:

WilsonCounty’sInformationTechnologyIndustry

InformationTechnology(IT)isanimportantpart ofthenation’seconomyaswellasforTennessee (TN)andWilsonCounty(WC).Intermsofeconomicimpact,theITindustryrankedthirdnationallyin2018witha$1.8trillion(10.2%)contribution totheU.S.economy6 .InTennessee,ITcompanies contributed$17billion(5.2%)tothestateeconomy.174,346peoplewereemployedinTennessee in2018,eitherasITworkersorasbusinessprofessionalsworkinginITcompanies6 .FortheNashville MetropolitanStatisticalArea(MSA),whichincludes WilsonCounty,ITcompaniescontributed$7.5billion (6.2%)totheNashvilleMSAeconomy6 .Relativeto non-techemployment,workinginITisgenerallya lucrativeoccupation.Themedianwageof$81,900 forthenation’s7.3millionITworkerswasalmost doublethatofthegeneralmedianwageof$42,7007

TheeconomicimportanceoftheInformation Technology(IT)industrytoWilsonCountyis twofold.First,ITisimportantasanindustryin andofitself,acomponentofWC’slocaleconomy which,alongwithotherindustries(e.g.,retailing,financialservices,transportation,warehousing,etc.), trainsandemploysworkers,contributestothelocal taxbase,etc.

Second,WC’sresidentITindustry1)providesIT products(e.g.,hardware,software,etc.),2)offers voiceanddataservices(e.g,telecommunicationservices,cloudcomputinganddatastorage,etc.),and 3)providesfor-hiretechnicalexpertise.Thesethree product/serviceoutputsfromWC’sITindustryserve asimportanttechnicalinputsthatenableandsupport theoperationsandbusinessactivitiesofWC’sother localindustries.

ITIndustryDefined

Dictionary.comdefinesinformationtechnology(IT) asthe development,implementation,andmaintenanceofcomputerhardwareandsoftwaresystems toorganizeandcommunicateinformationelectronically.Fromthisstatement,wewillinferthatan“IT Industry”consistsofbusinesseswhichareinvolvedin themanufacture,installation,supportandoperation ofcomputer-basedcomponentsandsystems.

Wewillassumethat“computerbasedsystems” referstobothsinglestandalonecomputerdevicesas wellascomputernetwork(akacloud)configurations. Wealsoassumethat“support”involvessuchesoteric 3rdpartyservicesascomputerdesign,systemdesign, training,repair,andplanning.

ThefollowingITdatadiscussionfocusesoncompaniesandpersonnelwhoproduceorofferITproductsandservices-excluding1)consumerretailers

ITworkersintheU.S.aswellasnon-ITbusinessprofessionalsemployedbyITcompanies.

CTDI,MtJulietTN
LabrySchoolofScience,Technology,andBusiness 7
StatInformaticsSolutions,LebanonTN
6 Source:U.S.BureauofLaborStatistics 7 Cyberstates2019-TheDefinitiveGuidetotheU.S.TechIndustryandTechWorkforce publicationproducedbyComputing TechnologyIndustryAssociation(CompTIA),pages8-10,March2019Tthesefiguresincludeemploymentcountsandwagesforall

and2)ITworkersemployedbycompanieswhose primarylineofbusinessisdecidedlynon-tech(e.g., retailers,restaurants,lawfirms,fitnessgyms,etc.). Specifically,WC’sITindustryisdefinedasconsisting ofnineindustrialareas,asdefinedbythefollowing NAICSindustrysubsectors,industrygroupsandindustrytypes8

• ComputerManufacturing(334)

• Computers,Peripherals,&SoftwareWholesalers9 (42343)

• SoftwarePublishing10 (5112)

• Telecommunications(517)

• DataProcessing,Hosting&RelatedServices (518)

• InternetPublishing&Broadcasting,Web SearchPortals11 (51913)

• ComputerSystemsDesign&Related12 (5415)

• ComputerTraining13 (61142),and

• Electronic&PrecisionEquipmentRepair& Maintenance14 (8112).

WC’sITindustryTrends

Recent,butpreliminaryUSDepartmentofLabor estimatesshowthat114ITcompaniesresidedin WilsonCountyin2018,employingatotalofabout 353workers.Currently,WC’sITindustryisafairly smallpartofthecounty’stotaleconomy,representingabout4%ofthetotal2,907firmsresidinginWC thatyearandemployinglessthan1%ofWC’stotal 40,772privatesectorworkers15 .

Destaco,MtJulietTN

Table1depictschangeswhichhavetakenplace inWC’sITindustryduring2008-2018.Inthispast decade,weobservethatwhilethetotalnumberof businessesinWCgrewbyahealthy34%(from2,170 firmsin2008),WC’sITindustryincreasedby119% (52to114firms),makingWC’sITindustryoneof thefastestgrowingsegmentsofthelocaleconomy.

WhileWilsonCountymadesignificantgainsin thetotalnumberofITfirmstakingupresidencein thecounty,thetotalnumberofITindustryworkers employedinWCdecreased73%duringthis10year period.Thisemploymentdropwaslargelydueto structuralchangestakingplaceinthemicrocomputer industryatthetime,promptingWilsonCounty’s largestITmanufacturer,DellComputerCorporation, totransferandconsolidatemuchofitsWC-based workforce.

Significantemploymentincreases,however,are notedinWC’snon-manufacturingITindustries.TotalworkersemployedinWC’snon-manufacturerIT sectors(excludingNAICS334subsector)was207in year2008,increasingto277inyear2018,a34%increaseforthedecade.Table1listsnon-manufacturer ITsectorsasincludingcomputersupportandcloud relatedservices,ITdistributionandcomputerconsulting.

Withafewnotableexceptions,themajorityof ITfirmscurrentlyoperatinginWilsonCountyare smallbusinesses,includingseveralthatarehome-

anddetailedindustrycategoriesasthenumberofdigitsincreasesitheNAICScoding.Thus,2digitNAICScodesrefertoindustry sector,3digitcodesrefertoindustrysubsector,4digitcodesrefertoindustrygroup,and5digitcodesrefertoindustry.

9

TheComputers,Peripherals,&SoftwareWholesalersindustryispartoftheNAICS423industrysubsectorMerchantWholesalers,DurableGoods.

10

TheSoftwarePublishingindustrygroupispartoftheNAICS511industrysubsectorPublishingIndustries(exceptInternet).

11

TheInternetPublishing&Broadcasting,WebSearchPortalsindustryispartoftheNAICS519industrysubsectorOther InformationServices.

12

TheComputerSystemsDesign&RelatedindustrygroupispartoftheNAICS541industrysubsectorProfessional,Scientific, andTechnicalServices.

13

TheComputerTrainingindustryispartoftheNAICS611industrysubsectorEducationalServices.

14 TheElectronic&PrecisionEquipmentRepair&MaintenanceindustrygroupispartoftheNAICS811industrysubsector Repair&Maintenance.

15

8 Spring2020WilsonCountyTrendsCumberlandUniversity
8 IntheNorthAmericanIndustryClassificationSystem(NAICS),typesofindustriesareclassifiedintoincreasinglymorespecific
Source:U.S.BureauofLaborStatistics

FigureH1

Numberof Establishments byITIndustry TypeinWilson CountyTN, 2008-2018

Source:US DeptofLabor

based.ThepresenceofmanysmallITfirmsinWC isnotunusualfortheindustryandinpartduetolow startupandoperatingcosts.

WhichITindustrysubsectorsaregrowingthe mostinWilsonCounty?FirstwenotethatWCisexperiencinganITindustrygrowthsurgeacrossalmost allofthesubsectors.Theoneexceptionisinprivate firmswhichoffercomputertraining(NAICS61142). ThisITcategoryisessentiallynon-existentinWC duelargelytothenumberofpublicsupportedhigher educationinstitutionsthatprovidevariouskindsof lowcostcomputertrainingprograms(e.g.,Tennessee BoardofRegents’TechnologyCenters,TBRcommunitycollegesatellitecampuses,UniversityofTennesseeextensioncenters,etc.).

WC’sfastestgrowingITindustrysubsectorover therecentpastdecade,2008-2018,wasSoftware Publishing(NAICS5112)whichgrew475%,expandingfrom4firmsto23.Thesecondfastestgrowing ITsubsectorwasDataProcessing,Hosting&Related Services(NAICS518)whichgrew250%,expanding from2firmsto7.ThethirdfastestandlargestgrowingsubsectorwasComputerSystemsDesign&Re-

lated(NAICS5415)whichgrew128%,expanding from25to57firms.In2018,wenotethatComputerSystemsDesign&Related(5415)firmsand SoftwarePublishing(5112)firmsaccountedfor70% ofWilsonCounty’sentireITindustry,theformersubsectorat50%andthelatterat20%ofthetotal.See Table1andFigureH1.

ParallelGrippersRobohandProductLine
LabrySchoolofScience,Technology,andBusiness 9
(Destaco,MtJuliet)

ComputerSystemsDesign

5415255778101128%31%

ComputerTraining61142(2014)11n/an/a0%n/a Electronic&Precision

811256113920%254%

TOTALS 521141316353119%-73%

Table1: No.ofEstablishmentsandEmployeesbyITIndustryTypeinWilsonCountyTN,2008vs2018

Source:USDeptofLabor

a Incaseswherenondisclosurerestrictionsareineffect,%changeisforlessthantenyears.

b 2018dataarepreliminaryUSBureauofLaborStatisticsestimates.

c Incasesof2008(2018)federalnondisclosurerestrictions,oldest(mostrecent)availabledataisreported.

d WC’s2008NAICS334employeetotalisbeforeDellComputerrestructuring.

AverageWeekly WagebyIT IndustryTypein WilsonCounty TN,2008-2018a Source:US DeptofLabor a Duetofederaldisclosurerestrictions,theline graphforSoftware Pub.Industryisextrapolatedforyears 2011-12.

10 Spring2020WilsonCountyTrendsCumberlandUniversity NAICSNumberofAllEmployees10yr.%changea SubsectorEstablishments Code20082018b 20082018b EstabsEmpls ITIndustrySubsectorsc : ComputerManufacturingd 33445(2009)1109(2016)7625%-91% Computers,Peripherals,& SoftwareWholesalers 423433678100%14% SoftwarePublishing51124232539475%56% Telecommunications51767738017%9.6% DataProcessing,Hosting &RelatedServices 51827(2009)97250%-22% InternetPublishing& Broadcasting,Web SearchPortals 5191322(2016)4(2017)30%-25%
&Related
EquipmentRepair& Maintenance
FigureH2

NAICSAverageWeeklyWages($)10yr.% Codechangea 20082018b

ComputerManufacturing334(2009)1020(2016)2045100%

Computers,Peripherals,&

42343753107242%

SoftwarePublishing511211582355103% Telecommunications5171050140634%

DataProcessing,Hosting&

InternetPublishing& Broadcasting,WebSearch

518(2009)4341745302%

51913n/an/an/a

ComputerSystemsDesign& Related 54151371234971.3%

ComputerTraining61142n/an/an/a Electronic&Precision EquipmentRepair& Maintenance 81128759569.3%

Table2: AverageWeeklyWagebyITIndustryTypeinWilsonCountyTN,2008vs2018

Source:USDeptofLabor

a Innotedcaseswherenondisclosurerestrictionsareinvoked,changesareforlessthantenyears.

b 2018dataarepreliminaryUSBureauofLaborStatisticsestimates.

c Incasesof2008(2018)federalnondisclosurerestrictions,oldest(mostrecent)availabledataarereported.

AverageweeklywagegrowthinWC’sITindustry haslargelybeeninthedoubledigitsrangeformost ofthepastdecade.Table2compareswagegrowth forWC’sITsectorsduring2008-2018.

Incomparisonwiththe$807averageweeklywage forallWCbusinessesinyear2018,thecounty’sIT industrypaysitsworkerswellindeed.WC’slargest averageweeklywagesin2018arefoundinSoftware Publishingat$2355perworker.Inveryclosesecond placeisComputerSystemsDesign($2349).Inthird placeisComputerManufacturing($2045)16

WhichWilsonCountyITindustrysectorshave experiencedthelargestwagegrowthinthepast decade?ThehighestchangeinworkerwagesforWC wasinDataProcessing,Hosting&RelatedServices at302%.Secondandthirdhighestwagechanges occurredinSoftwarePublishingandComputerManufacturing,at103%and100%respectively.ComputerSystemsDesignandRelatedalsosawsignificantwagegrowthat71.3%forthedecade.See Table2andFigureH2.

16 AsexplainedinTable2,thelatestpubliclyavailablewagefigureforWCcomputermanufacturingisforyear2016.

LabrySchoolofScience,Technology,andBusiness 11
ITIndustryClassificationsc :
SoftwareWholesalers
RelatedServices
Portals

Who’sWho:

WilsonCounty’sInformationTechnologyIndustry

ApartiallistofITcompanies17 residingandoperatinginWilsonCountyisgiveninTable3.With severalnotableexceptions,mostofWC’sITbusinessesaresmallenterprisefirmsthatofferawidevarietyofcomputersupportservicestobothconsumers andgeneralsmallbusiness.Thegrowingpresence ofmanysmallITcompaniesinWilsonCountyisa healthysignofavibrantandforwardmovingcounty economy 18

Computer/cellphonerepairisanimportantIT servicenotedinTable3asareInternetrelatedservicessuchaswebdesign,onlinemarketingandweb sitehosting.Alsoincludedareseveralcompanies whichofferexpertconsultationservicesindatasecurityanddatarecovery,telecommunicationsnetwork designandindustryspecificsoftwaredevelopment.

WhileWC’smidtolargecomputerservicecompaniestendtomarketthemselvesregionallyornationally,smallITenterprisestypicallyfocusonlocal clienteleandprovideanessentialIToutsourcingoptionforfirmsinWC,especiallyforareasmallbusi-

nesses.

AmazonisnotnewtoWilsonCountybutthere maybeapotentialparadigmshiftinWC’sITindustryrelatedtothismajore-commerceplayer.

IthasbeenconfirmedthatInternetgiantAmazonhaspurchasedlandtobuildalargestate-ofthe-art3.6millionsquarefootdistributionfacilityin Mt.Juliet,capableofprocessinghundredsofmillionsofonlineorders,inthecomingyears19 .Accordingtostatementsmadeduringtheapprovalprocess,thenewfacilityisexpectedtoaddseveralthousandjobstothecompany’sexistingoperationsin WilsonCounty.JobtypesweredescribedbyAmazonrepresentativesasbeing“world-class”hightech and“nextgeneration”andwouldincludefulfillment, tech,robotics,logisticsandmanagerialwhitecollar positions.Amajorexpansionoftheworld’slargest Internetcompany(byrevenue)inWilsonCountycannothelpbuthaveaverypositivegeneralimpacton WC’sITindustry.

Comstar,LebanonTN

17 InTable3’sWho’sWholisting,wegenerallyexcludethoseout-of-countycomputerfirmsandfranchiseswhichmayactively marketandselltheirISorITproductsandservicesinWCyetdonothavealocalphysicalpresence,suchasadministrativeoffices, operationsfacilities,etc.

18 See,forexample,theinterestingarticleHowTechnology-BasedStart-UpsSupportU.S.EconomicGrowth byJohnWuandRobertAtkinson,InformationTechnology&InnovationFoundation,November28,2017at https://itif.org/publications/2017/11/28/how-technology-based-start-ups-support-us-economic-growth

19 “AmazonbuyslandinMt.JulietwhereProjectSamisapprovedfornearly$5million”byAndyHumbles,Tennessean,December3,2019,retrievedathttps://www.tennessean.com/story/news/local/wilson/2019/12/03/amazon-com-services-pays-nearly5-m-mt-juliet-land/2595239001/

12 Spring2020WilsonCountyTrendsCumberlandUniversity

Table3: Who’sWhoinWilsonCountyTN’sITIndustry,2019

WCITCompany20

PrimaryITProductsandServicesLocale21

AdvancedComputerExperts(ACE)LANsystemsinteg.,computerrepairLeb,MJ

AlphaandOmegacomputerconsulting,databackupLeb

AllisonDataSystemscomputerandsoftwareconsultingMJ

AmerimartCloudSystemssoftwaredevelopmentLeb

ArrowTechITservices,webdesignWtn

BearWebDesignwebdesign,socialmediamarketingLeb

CCSGITservices,computerrepairMJ

TheComputerDoctorITservices,computerrepairLeb

CellphoneandComputerShopITservices,computerrepairMJ

CloverlockcomputerconsultingMJ

CommonSenseTechSolutionscomputerrepair,webdesignLeb

CompleteTechnologySolutionscomputerrepairLeb

ComputerMDITservices,computerrepairLeb

TheComputerRoomITservices,computerrepairLeb

ComputerTechnologySolutionscomputerrepairLeb Comstartelecomtraining&consultingLeb

Conner’sComp.Service&RepaircomputerrepairWtn

CostaElectronicsITservices,electronicsrepairLeb

CTDItelecomequiprepair&testingMJ

CPRCellPhoneRepairelectronics&mobilephonerepairMJ

D&HElectronicSystemscommunications&securitysystemsLeb

DataTriangleComputerForensicsdatarecovery,computersecurityLeb

DayStarDataCentersmanageddatasvcs,cloudcomputingLeb

DC’sComputerRepairITservices,computerrepairLeb

DesiredTechnologyServicescomputerconsulting,webdesignLeb

DestacoindustrialautomationproductsMJ

DexYPsoftwaredevelopmentMJ

DillonITcomputerrepairLeb

DLSGraphicswebdesign,graphicsdesignMJ

DuravoxInformationTechnologiescomputerrepair,webdesignLeb

GeekSquadelectronicsrepairMJ

HostetlerGroupInccomputerrepairLeb

iBrokeiTmobilephonerepairLeb

I’mSoWorthItITservices,computerrepairMJ

Intellisolpartstesting,depotrepair22 Leb

Ipods&MoremobilephonerepairLeb

JeterITSolutionsmanagedIT,networkconsultingMJ

JitterbyteTechnologyITservices,computerrepairLeb

JLInformationServicescomputerconsultingLeb

LeapNetworkshospitalityindustryvoicecomISPLeb

LighthouseComputerSolutionsITservices,computerrepairLeb

LocalNetInternetserviceproviderLeb

Abbreviations:Leb=Lebanon,MJ=Mt.Juliet,Wtn=Watertown

22 Depotrepairreferstorepairofdamagedproductsreturnedbycustomers.

LabrySchoolofScience,Technology,andBusiness 13
Continuedonnextpage 20 Pleasesendcorrectionstowilsoncountytrends@cumberland.edu. 21

Table3: (continued )Who’sWhoinWilsonCountyTN’sITIndustry,2019

WCITCompanyPrimaryITProductsandServicesLocale

LongwayBroadbandServicestelecom&ITconsultingMJ

MainStreetConsultingwebdesign,advertisingLeb

MidTennTechnologySatelliteISPLeb MightyEmpirewebdesign,softwaredevelopmentMJ

MilesTechnologiesdatasecurity,softwaredev.MJ

TheMobilePhoneGuycellularphonerepair,datarecoveryMJ

NavigatorSystemssoftwaredevelopmentLeb

Nay&AssociatescomputerrepairLeb

NetEvidencecomputerforensics&securityMJ

OfficeMaxTechServicesISservices,computerconsultingLeb

Optorosoftwaredev.,supplychainISMJ

PCDudeISservices,computerrepairLeb

PrimalSystemscomputerconsulting,CCTVsystemsLeb

RelianceTechnologySolutionsdentaltechISservicesLeb

SentSoftwaresoftwaredevelopment,webapplicsLeb

ShadesItServicescomputerrepairMJ

SofTekwebdesign&hosting,softwaredev.Leb

SofTracsafetymanagementsoftwareLeb

SorvickDesignwebdesign,graphicsdesignMJ

StatInformaticsSolutionshealthcaredatamanagementservicesLeb SummitManagementSystemssoftwaredevelopmentLeb SystemIntegrationsITservices,computersecurityLeb SystemLinkTennesseecomputerconsultingLeb

3DMediaGroupwebdesign,marketingLeb

TDSTelecomtelecom,broadbandservicesMJ

TackleBoxMarketing&Commswebdesign,marketingMJ

TelevergenceSolutionsbusinesstelecomLeb

TennetechITservices,computer&datasecurityMJ

uBreakiFixelectronics&mobilephonerepairMJ

X1TechnologyServiceswebdesignLeb

XtraMileMarketingwebdesignLeb

VerifiedSafeCyberSecuritySolutionsITservices,computerrepair&securityLeb

VictorTechnologiesITservices,computerrepair,telecomMJ

VisionaryDesignGroupwebdesignWtn

WorldWideTechnologysystemintegration,supplychainISMJ,Leb

14 Spring2020WilsonCountyTrendsCumberlandUniversity

GuestArticle:

OnlineMarketingStrategies

MikeRosen istheownermanagerof TackleBoxMarketingCommunications,amultidisciplinarybranding andadvertisingconsultingbusinesslocatedinMtJuliet,TN.OriginallyfromNewYork,Mikehasresidedin WilsonCountyforthepast9years.AformervicepresidentandboardmemberofaprestigiousMadison Avenueadvertisingagency,Mike’sworkinadvertisinganddigitalmarketinghasreceivednumerousawards andrecognitionfromsuchorganizationsastheNewYorkAdvertisingClub,Clio’s,NYBusinessProfessional AdvertisingAssociation,andothers.MikeisaformerboardmemberoftheLongIslandAdvertisingClubandhas servedasacommitteeadviserorguestlectureratvariouscollegesanduniversitiesinNewYorkandTennessee, includingBriarcliffCollege,StonyBrookUniversity,FarmingdaleUniversity,andCumberlandUniversity.

Today’sdigitaltoolsdominateourmarketingprograms;however,theprinciplesofmarketingremain thesame.Thinkofmarketinglikeafishingtrip.The moreyouknowaboutyourmarket,theeasieritis tomakethecatch.Answerthesequestions:Where doyourprospectsswim(geography),whatarethe rightvehiclestoreachthem(media),whatluresto use(promotionandcreativity),whataretheirhabits (commonalities)?

FindYourFishingHole

Firstofall,decidewhereyou’regoingtogofishingforcustomers.Targetyourmarketbygroupingcustomerswithsimilarcharacteristics.Define andchartmarketcommonalitiesby1)Demographic andSocioeconomicSegmentation(gender,age,income,occupation,education,householdsize,stage inthefamilylifecycle),2)PsychographicSegmentation(similarattitudes,values,lifestyles),and3)BehavioralSegmentation(degreeofloyalty,emotional purchase,plannedpurchase).SeeFigureG1.

Whyshouldcustomersbite?Defineyourunique sellingproposition.Whatseparatesyoufromthe competition?Isitprice,service,branding,added value,new,orcreatedperception?Whatmarkets doyourprospectsservice?Howcanyouhelpthem withtheirfishing?Asuccessfulmarketingstrategy meansfindingtherightcombinationofvehiclesto communicateyourvalueproposition.Howtogetthe

wordout?Therearemanypromotionalalternatives toconsider:UniqueWebsite,Blogs,Email,Social Media,DirectMail,PrintandorElectronicAdvertising,PR,Seminars,TradeShows,HighwaySigns, Networking,SandwichBoards,SocialMedia,Radio, TV.

FigureG1 -MarketSegmentation

Monitoryourcompetition.Wheredotheypromote?Whataretheirvaluepropositions?Yourcustomerprofiles,demographics,themedia’saudience, andcostswillhelpdecidewhichcombinationsofmarketingtoolswillbemostefficient.Createastrategy, writeaplan,andmapoutthetrip.Youneedto setobjectives,goals,andabudget,anddecidewhat kindofsupportyouneedtomakethetripsuccessful.Useyourexperienceandanalyticstoimprove yourmarketingstrategy,refreshyourbait,smooth

LabrySchoolofScience,Technology,andBusiness 15

outtheroughwaters,andgofishingagain. Marketingplanning,whetheryou’reaneworexistingcompany,startswithaself-analysis,areviewof yourbusinessmodel,andmostimportantly,setting objectivesandgoals.StartwithastandardSWOT analysis.DetermineandevaluatetheStrengths, Weaknesses,Opportunities,andThreatsinvolvedin yourbusiness.SeeFigureG2.

1. Defineyourstrengthsandcapitalizeon them: Reputation(brand),marketing,manufacturing,technicalcapability,integrity,experienceetc.Yourreputationversusmarket perception.

2. Improveuponweaknesses: Focusonprominentweaknessesandwhatweaknessesthemarketperceives.

3. Exploitandbenefitfromeachopportunity: Listwaysinwhichtotakeadvantageofopportunities.

4. Mitigateanythreats: Isityourcompetition, politics,manufacturingcapabilities,changein technology,trainedemployees,shiftingmarket needs?

offerthebestpotentialforgrowthandprofit,while maintainingsalesandorclientsacrossavarietyof existingproductsandservices.

Defineyourbusinessgoals.First,focusonthree measurablebenchmarkstoachieveinthenextsixto 12months.Then,namethesinglemostcriticalactivityyoumustdoconsistentlytoachieveeachgoal. Foreachgoal,identifythecriticalactivity,information,orskillsetthatwillensureyourabilitytoreach yourgoal.Afewcustomergoalandobjectivecategoriesmightinclude:Attractnewcustomers,Sell moretoexistingcustomers,Expandproductlinesand orservices,Increasebrandawarenessandreputation, Increasewebsiteorstoretraffic,andGopublic.

FigureG2 -SWOTAnalysis

Theobjectiveistousetheinformationfroma SWOTanalysistohelpfocusandoptimizemarketingandsalesresourcesandpotentiallyinternalresources.Thegoalistoincreasesalesinareasthat

BudgettheFishingTrip

Conceptually,marketingshouldbeaprofitcenter, notacostofdoingbusinessoroverhead.Asageneralrule,smallbusinesseswithrevenueslessthan$5 millionshouldallocate7-8%oftheirrevenuestomarketing,ifyouwanttogrowyourbusinessmoreaggressively.Otherwise,5%wouldbeadequate.Larger companiesshouldallocate6-12%.Astartupbusiness intheearlybrandbuildingyearsshouldbudgetbetween12-20%,whichcouldberelatedtoprojected sales.SeeFigureG3.

FigureG3 -MarketingBudget

Splityourbudgetbetweena) branddevelopmentcosts (whichincludeallthechannelsyouuse topromoteyourbrandsuchasyourwebsite,blogs, seminars,salescollateralmaterial),andb) mar-

16 Spring2020WilsonCountyTrendsCumberlandUniversity

ketingyourbusiness (salespromotion,advertising, publicrelations,eventsandtradeshows).

Theabovepercentagesassumeyouhavemargins intherangeof10-12percent(afteryou’vecovered yourotherexpenses,includingmarketing).Allocationsalsodependonthebusinessyou’rein,thesize ofit,anditsgrowthstage.Ausefulguidelineisthe 80/20rule.Invest80%ofyouradvertisingbudget andeffortinprovenpromotionsand20%intesting newvariations.

ChoosetheRightBait

Aneffectivedigitalmarketingstrategyshouldinclude somemixofthefollowingdigitalmarketingalternatives:

• EmailMarketing: Electroniccommunications toyourmarket,viatheInternet

• DatabaseMarketing: Usingfilesina databasetocommunicatetoaspecificaudience

• PayPerClickAdvertising(PPCads): Sponsoredadvertisementsthatappearon searchengines,thatyoupaythepriceforeach timeaprospectclicksonittogettoyourwebsite.

• SocialMedia: Brandingandmarketing throughpostingrelevantinformationandconnectingwithyourmarketonsuchoutletsas LinkedIn,Facebook,Twitter,InstaGramand more

• Website: TheelectronicdoorwaytoyourbusinessontheInternet.

WebSiteDesign

Therearemanythingstoconsiderindesigninga greatpromotionalwebsite.Importantconsiderations include:

• SearchEngineOptimization(SEO): Optimizingyourwebsite,soitattractstheoptimum amountofprospectsseekinginformationona productorservicefromGoogleorothersearch engines

• KeyWords: wordsusedonyourwebsiteto attractprospectssearchingforproductsorservicesonabrowserlikeGoogle

• MetaTags: Titleembeddedinawebsitepage thatwillattractInternetsearchenginesseeking informationonthatsubject,productorservice

• MarketSegmentation: Communicatingyour valuepropositiontospecificmarketprofilesso thatyourmessageismoreaudienceappropriateandtargeted

• GoogleDatabasedAnalytics: Usedtotrack thewebsiteactivityofitsvisitorsandtoprofile them

• Cross-Linking: Offeringlinkswithsupportinginformationonpageswithinyourwebsite aswellaslinkingtootherinformationalwebsitesincreasessitestickiness(prolongingvisitor time),viabilityandexposure

• Ranking: Thepositionthatyourwebsiteis listedinGoogleorothersearchengineswhen ausersearchesforinformation

• ClickThroughRate: Thepercentageofpeoplevisitingawebpagewhoaccessahypertext linktoaparticularadvertisement.

• BounceRate: Thepercentageofvisitsin whichapersonleavesyourwebsitefromthe landingpagewithoutbrowsinganyfurther.

• Dashboard: Aninformationmanagementtool foryourwebsitethatvisuallytracks,analyzes, anddisplayscriticalperformanceindicators, metrics,andkeydatapointstomonitorthe healthofabusiness.Theyarecustomizableto meetspecificneeds.And,

• OrganicSearchandDirectSearch: Organic traffictoyourwebsiteconsistsofvisitsfrom searchengines,whiledirecttrafficismadeup ofvisitsfrompeopleenteringyourcompany URLintotheirbrowser.

Websiteoptimizationisvital.You’llneedtohave searchablekeywordsoneverypage,aswellasMeta tags(searchengineslookforMetatags),thiswill helpinyourrankings.Usecross-linkinginfofrom

LabrySchoolofScience,Technology,andBusiness 17

pagetopageonyoursiteaswellaslinkstoother relevantsites.HavesubmissionstoGoogleandother popularsearchenginesinplaceandmakeuseofand setupaGoogleAnalyticsDashboard.Renewwith majorupdatestoyoursiteeverycoupleofyears. Keepthesiterelevant,succinct,visuallyexciting,and mostimportantly,easytonavigate,andyouwantto makeitseamlessforyourprospectstofindinformation.Generally,websitesshouldbeupdatedregularly andgivenaface-lifteveryfewyears.

SocialMedia

Usesocialmediaforbranding,andcommunicating withyourprospectsasfrequentlyaspossible andtobuildtraffictoyourwebsite.Picksocialmediachoicesthatmatchyourprospect’scharacteristicsandprofiles.Althoughthereissomecrossover, LinkedIn isprimarilyusedforbusiness-to-business communications,whereas Facebook ismainlyused forconsumerengagement. YouTube isanAmerican video-sharingwebsitewhereyoucanpostvideosthat entertain,inform,teach,andinstruct.Videosarean effectivetoolforyourwebsiteaswell.Forquick, shortcommunications,use Twitter (limit140words) and InstaGram,whichallowsuserstoeditanduploadphotosandshortvideosthroughamobileapp ownedbyFacebook.ItistheleadingSocialMedia applicationtoday.

websitevisitorsanddatacharacteristicsabouttheir behavior.Itisthewho,-what-why-whenofyourmarketingprogram.Initsmostsophisticatedform,itcan providecustomersegmentation,conversionrates, tracksalesactivity,andmore. Everysiteshould haveaGooglevisitordashboardsetup. CommonDashboardanalysisincludes-Trackingweekly, monthly,andyearlyvisitors.Itwilltrackvisitoractivityandisaninvaluabletoolforqualifyingyour marketingprogram.Anewpostonsocialmedia,an emailblastnewsletter,orothereventscangenerate visitorstoyourwebsiteoroutsideinfluenceslikeholidays,ortradeshow.

TopChannels

ATopChannelsChartvisualizeswhereandhow yourprospectsorvisitorsfoundyou.Forinstance, thischartshowsalmost50%comingfromOrganic Search.OrganicSearchiswhenyousearchwitha keywordorphraseinGoogle,andyouclickonalistingontheGooglelistingpage.DirectSearchisvisitorswhoalreadyknowwhoyouareandhaveyour emailaddressandtypeitin:mostlikelycustomers orfrequentvisitors.PaidSearchisfromvisitorswho cometothesitebyclickingonanadthatthewebsitecompanypaysfor.Areferralcomesfromanother websitethathasyourlinkonit,likeabusinessorganizationorclub.TheDisplaysectionshowsthe resultsofregularonlineadvertising.

FigureG4 -TopChannels

ThisinformationtellsyouwhetheryourSEOis working,orhowmuchvalueyou’regettingfromPPC adsordirect.Anexamplegoalfordirectwouldbeincreasingsalesfromexistingcustomersorfundraising foracollegealumniassociation.SeeFigureG4.

GoogleAnalytics isthereportcardofyourdigitalmarketingprogram’sperformance.GoogleAnalyticsisthemostwidelyusedsystemfortracking
18 Spring2020WilsonCountyTrendsCumberlandUniversity

AudienceView

Aninvaluableskyviewofvisitorcharacteristicsthat chartsnewandreturningvisitors,howmanypage viewsoccurred,sessiondurationandbouncerates, aswellaswhatcountriesvisitorsarefrom.SeeFigureG5. Insummary,

• Profileyourcustomersandprospects.

• Findtherightvehiclestotakeyoutothem.

• Defineyourvalueproposition.

• Developfocusedmessaging&branding.

• Writeaplanwithclearobjectives&goals.

• Executeyourplan,review&adjust.

• Keepintouch.Keeptrack.

• Planyournexttrip.

Remember,taketheseeightsteps,andthenuse theappropriatetoolstohelpmakeyourdigitalmarketingplansuccessful.

Goodfishing!

FigureG5

TackleBoxMarketingCommunications LocatedinMt.Juliet,Tennessee, TBMCisamultidisciplinarybrandingandadvertisingconsultingbusinessthatcustomizesitsresourcesandusesthelatestmarketingtoolstofitthespecificobjectives andneedsofitsclients.IncludedamongTBMC’snationalclientelearePLXInc (designersofopticalinstrumentsfortheaerospaceanddefenseindustries),Leaner,MeanerandGreener,Inc. (resourcemanagementconsultants),MixingDynamics(processingequipment),CrysalliArtisanWaterSystems (filteredwaterdistributor),SolutionsProfessionalBuildings(healthcareofficespaceprovider),andothers.

LabrySchoolofScience,Technology,andBusiness 19
-GoogleAnalytics

FeatureArticle:

BroadbandInternetinWilsonCounty

Introduction

WilsonCounty’sfutureiscloudy.Bythat,wedon’t meanmurky.Andit’snotabouttheweather.We’re talkingabouttechnologyclouds-wideareacomputernetworks.Therearemanyarisingtechcloud netsintheDigitalInformationAgeofthe21stCentury.Cellularphonenetworks,GPSnetworks,Satellitenetworks,privatebusinessnetworks,militarydefensenetworks,andothers.Andthecloudwithperhapsthegreatestcoverageandimpactofall,the publicInternet.

TheInternet(aka“InternetofThings”,orIoT)is ascomplexasitislarge.Thepowerandreachofthe publicInternetareevolvingandexpandingatadizzyingrate.Cloud-baseddatastorageandapplication processingarerevolutionizingtoday’sbusinessoperationsandreshapingconsumerbehaviors.Foranever wideningarrayofcloud-basedapplicationsthatimprovethelivesofindividualsandenablenewmodels ofcommerceforthebusinesscommunity,usersare attachingthemselvesindrovestothecloudInternet.

AccessingtheInternetisacriticaldesireandchallengetoeveryone.Inadequateaccesstothecloudinfersalikelycompetitivedisadvantageforbusinesses andentailsperhapsalesserlifestyleforconsumers.

TounderstandtheInternet“bigpicture”,wenote threekeyinterdependent,interlocking,piecesthat

mustfitsnuglytogethertoconstitutetheInternet techenvironment:

• EndUsertechnology,

• Cloudtechnology,and

• Cloudaccesstechnology.

EndUserTechnology aretheuserowneddigitalgadgetry.Smartphones,tablets,laptops,video gamingboxes,smarthome/officedevices,andso on.Users(e.g.,organizations,managers,consumers) decidewhattypeofcomputer,computersystem premisesequipmentandotherdigitalassetsarerequiredtobestaccomplishtheirtasksandobjectives (e.g.,beproductive,makeaprofit,havesatisfied customers,beentertained,etc.)

CloudTechnology consistsofthecomputernetworkhardwareandsoftwareneededtophysicallyconfigurethecloudandofferservicestoitssubscribers. Cloudcomponentsincludesuchthingsasnetwork controllers,packetswitches,copperandfiberoptic cables,wirelesstransmittersandreceivers,network basedservers,etc.

Finally,thereis CloudAccess Technology.Thisistheall-important tiewhichbinds(connects)users’digital devicestothecloud.Cloudaccesstechnology,CAT23 forshort,issometimesreferredtoas

23 Nottobeconfusedwith“cat5(category5)”twistedpairwiring,whichisatechnicalnameforlandlinetelephonewire.

PullingFiberOpticCable(photocourtesyofAT&T)
20 Spring2020WilsonCountyTrendsCumberlandUniversity

an“edgetechnology”asitexistsandoperatesat theperimeterrimofthecloud.Anolder,moretraditional,terminologyforCATis“lastmile”,noting theapproximatedistancebetweenthenetwork’sterminatingswitchandusers’premisesequipment.Of thethreecomponentsofthecloudenvironment,one canarguablysaythatcloudaccesstechnology(Internetaccessservice)receivesmostoftheattention ofusers,networkproviders,andpublicpolicymakers intheirongoingdiscussions.

CATsUpClose

ACATisnotasimplecreaturetoownorcontrol. Itisamulti-facetedtechnologywhosecriticalrole canbeadverselyaffectedbythemannerinwhichit isprovisioned.ACATcanbethoughtofashaving threeimportantlayersatechlayerand2impact layers.Thefirst,orlower,layerreferstotheCAT’s physical“accessmedia”hardwareusedtotransmit dataandinformationviacoppercables,fibercables, orbywirelessradiosignals.

Thesecond,ormiddle,layerreferstothetransmissionqualityandservicecapabilitiesmadepossible bythefirstlayer-e.g.,speed,responsetime,reliability,datasecurity,etc.Thethird,orupper,level referstotheend-userapplicationmadepossibleby theITcapabilitiesofthesecondlayer,e.g,constructingandaccessingwebsites,engaginginelectronic commerce,attendingelectronicmeetings,participatingindistancetraining/educationprograms,observingvideostreamingcontent,etc.

ThemostpowerfulCATontheblockisthe “broadband”CAT,oneinwhichtheInternetconnectionspeedbetweenusersandthecloudisvery fast.LikeinNASCARracing,Internetaccessspeed isthetoppriority.Noteverythingusersdoonthe Internetwillrequireafastconnection,butagrowing percentagedo.

FCCDefinitionofBroadband

Historically,theterm“broadband”hasbeenvariouslydefinedtomeandifferenttransmissionspeeds

invarioustechnicalcontexts.Duetoarelativelack ofconsensusbythescientificcommunityconcerningtheterm,thefederalgovernment(specifically, theFederalCommunicationsCommission,orFCC) hastakenuponitselftheroletopreciselydefinea suitablyfastminimumInternetaccessspeedtobe consideredbroadband.Thisobjectivehasprovento besomewhatofamovingtarget,however.Given ongoingimprovementsincomputerandtelecommunicationstechnologies,thenotionofa“fast”transmissionspeedhaschangedovertime.Infact,the FCChasredefined(increased)thetransmissionspeed benchmarkdefinitionof“broadband”threetimes since1996.

Since2015andstillineffectasofthiswriting, theFCCdefinesanInternetServiceProvider’s(ISP) Internetaccessserviceas“broadband”aslongasthe “asynchronous”offeredserviceprovidesaminimum downloadspeedof25Mbps(millionbitspersecond) andanuploadspeedof3Mbps.Downloadspeed referstothetransmissionofdatacomingoutofthe Internetcloudtothesubscriber.Uploadspeedrefers todatatransmissionfromtheuser’sdeviceintothe cloud.

Notably,accessmediamatters.Datatransmits fasterover“fixedwiremedia”suchascopperorfiber, thanoverwirelessmedia,suchascellularphonenets, orbysatellite.Inrecognitionofcurrentstarkdifferencesbetweenwirelineandwirelessaccessmedia,the FCCproposedinlate2017tosetalowerbenchmark for“mobilebroadband”of10/1,insteadofcontinuingwiththe25/3standard24 .TheFCCproposalto definealowerbenchmarkforwirelessbroadbandthan forwire-basedfixedbroadbandwasnotwellreceived bytheITtrademediasothesamebroadbandaccess speedminimumstillappliestobothwire-basedand wirelessInternetservices25

WhyDoWeNeedBroadband?

Askingwhyusersneedbroadbandisakintoasking whyracecarenthusiastswantabigengineunderthe hood.Forspeedbaby.Asconsumersorbusinesses usetheInternettodomoreandmorethings,many

24 InquiryConcerningDeploymentofAdvancedTelecommunicationsCapabilitytoAllAmericansinaReasonableandTimelyFashion,GNDocketNo.17-199,13thSection706ReportNoticeofInquiry,page7,FederalCommunicationsCommission,Adoptedand Released:August8,2017,availableathttps://transition.fcc.gov/Daily Releases/Daily Business/2017/db0808/FCC-17-109A1.pdf

25 Thenowemerging5GmobileservicesbeingpromotedbycellularserviceprovidersmaycloseoreliminatethecurrenttransmissionstandarddebatebetweenfixedbroadbandandmobilebroadbandInternetservices-assumingthatunexpectedcostsorraised healthandenvironmentalconcernsdon’timpedeitsdeployment.

LabrySchoolofScience,Technology,andBusiness 21

ofthese“things”increasinglyrequiremorecomplex, oftentimeshighcomputermemoryintensive,media types.Fastertransmissionspeedmeansasharper image,smoothermovement,andlessscreendelay. Inarecentonlineadvertisementforbroadbandservice,perhapsAT&Tdescribesaswellasanyonethe requiredInternetservicebitratesthatareneeded tosupportvarioustypesofpopularonlineapplications26 :

• BasicInternetuse:.5to3Mbps

sendingemails

browsingtheweb downloadingtextssuchase-books

• ModerateInternetuse:6to18Mbps

downloadinganSDvideo downloadingmp3songs streamingshortSDvideos

connecting2-3devicesatonce

• HeavyInternetuse:25+Mbps

streamingSDorHDshowsandmovies onlinegaming downloadingmultiplesongsatonce connectingnumerousdevicesatonce.

SincetheInternetfirstbecomeahottechnology commoditybackinthemid-1990s,anevolvingpublic adoptionandtransitiontonewmediahasoccurredstartingwithmonochrometextandnumericaldata, thentobasicsoundandcolorimages,thentobasicvideoandhighfidelitysound,andnowtoreally “goodquality”videoandadvancedmultimedia.

Forconsumers,theneedforfasteraccessspeed totheInternetmaybeassimpleasnotingthatall the“goodTVshowsandmovies”aremovingover totheInternet.Viewersareincreasinglydeserting theoldtraditionaltelevisionbroadcastingandcable networkvenuesdominatedbysuchwellknown“contentproviders”asABC,CBS,NBC,CNN,HBO,etc. andmovingovertoInternetplatformswherewefind suchIoTbasedcontentprovidersasNetFlix,Apple

TV,Hulu,Disney,etc.-whereviewershavemore channelcontrol,programflexibilityandinteractivity. Themassmigrationofviewersfrombroadcastand cablenetworkplatformstotheInternetisobvious andirreversible.

ArecentsurveybySurveyMonkey27 comparing cable/satelliteTVtoInternetstreamingTVviewer behaviorfound,forexample,that

• Halfofthosetodaywhowatchonlycableor satelliteTVareseniorcitizens;

• Overaquarterof18-29yearoldspreferInternetprogramming;

• 60%ofthosewhocurrentlyusebothcable/satelliteTVANDInternetTVarethinkingofcancelingtheircable/satelliteTVservice withinthenextyear;

• Morethanhalfofallsampledviewersbelieve thatstreamingservicesarecheaperthancable/satelliteandathirdsaythatstreamingis moreconvenientforon-demandprogramming thancable/satelliteservices.

Cloud-basedvideoisheretostay.Notonlyisthe TVvieweraudiencemovingovertotheInternetbut thegeneralvideocommunityhasbecometheIoT’s mostprominentusergroup.Forbetterorworse, forconsumersandbusinessusersalike,information gathering,disseminationandanalysisisincreasingly visualinnature.Inthecomingyears,thetotalof allformsofdigitalvideoisexpectedtoreach86% oftotalInternettraffic28 .AstheInternetbecomes thedominantplatformforvideo-basedentertainment,video-basedlearning,video-basedconsumer andbusinesstransactionsandsoon,thoselacking broadbandaccesswillbeillequippedtoparticipate in,andbenefitfrom,anincreasinglyvideomediadominantsociety.

22 Spring2020WilsonCountyTrendsCumberlandUniversity
26 https://www.attplans.com/resources/difference-mbps-and-mbps/ 27 https://www.surveymonkey.com/curiosity/how-do-consumers-feel-about-streaming-services-vs-cable/,retrievedonJuly8, 2019. 28 TheImportanceofBroadband:WhyThisMatters byDianeKruse,NEOConnect,2017

EconomicandCommunityImpacts

BusinessesandmunicipalitiesneedandwantbroadbandInternet.A2012study29 commissionedby theKaufmanFoundationreviewedeconomicdevelopmentimpactsofbroadbandtechnologyintheU.S. Thestudyincludedpositivesurveyresultsandtestimonialsregardingsixkeysocio-economicoutcomes:

• Attractingnewbusinessestoacommunity,

• Makingexistingbusinessesmoreprofitable,

• Revivingdepressedbusinessdistricts,

• Increasinghomebasedbusinesses,

• Revivingdepressedcommunities,and

• Improvingpersonaleconomicdevelopment.

Additionally,a2017reportonbroadbanddeploymentinTennesseestatedthat“communitieswithoutbroadbandhavedifficultyattractingandretainingbusinessesandthatalmost45%ofsurveyeddevelopmentagenciesreportedthatbusinesseseither frequentlyoroccasionallychosenottolocateintheir communitiesbecauseofinsufficientbroadband”30

FCCOversight

BecauseofthepotentialadversecommunityandeconomicimpactsresultingfromtechnologicaldisparitiesinlocalpublicITinfrastructures,theFederal CommissionsCommission(FCC)monitorsthenumberofISPsoperatinginvariousregionsofthenation.Alsobeingmonitoredarethetypesofavailable publicservicesandwhatmediaplatformsarebeing deployed.

Theeconomicmindsetisthis.Threeormore ISPspresentandcompetingagainstoneanotherina selectlocalarea(e.g.,federalcensustract)isgood. OnlytwoISPspresentisnotsogood.Andinaworse scenario,onlyoneISPispresent-anunfortunatesituationastheCATserviceprovidermaybetempted toactinamonopolisticmanner,resultinginlocal

higherpricesandlowerqualityofservice.ThetypicalremedyforalocalISPmonopolyismunicipal regulation,theeffectivenessofwhichdependsonthe locallawsandpublicpolicy.

Worsestillarecaseswhereeither1)noISPis present31 ,or2)thoseISPsthatarepresenthavenot yetinvestedintheCATinfrastructureneededtoprovideadesiredlevelofpublicInternetservicequality andconnectspeed.Examplesofthesescenariosincludethelackofcellulartowers,oruseofoutmoded celltechnologyinselectlocalities-resultinginsocalledservice“deadzones”,adearthofadvanced mobiledataservices(includingInternetaccess),etc.

Perhapsthemostnotablecurrentlocalpublic technologyofconcerntotheFCCisthelackinglocal deploymentoffiberopticcablingtechnology.

FixedBroadbandDefined

AvarietyofalternateISPservicetechnologiesand transmissionmediacurrentlyexisttoaccesstheInternet,thoughnotallareavailableineverylocalarea. ThemostimportantoftheseInternetservicesfallunderthecategoryofwhatissometimesreferredtoas “fixedbroadband”.

FixedbroadbandisamajorFCCInternetservice categoryofinterest.ThetermreferstoISPCAT servicesinwhichsubscribersaccesstheInternetat broadbandspeedsfromfixeduserlocations(e.g., homesorofficebuildings).Arelatedterm,Fixed InternetService,orFixedInternet,referstofixedlocationaccessserviceswhethertheserviceisprovisionedatbroadbandspeedoratlowersub-broadband bitrates.

FixedInternetservicesincludethefollowingaccessmediatypes:

LabrySchoolofScience,Technology,andBusiness 23
• ADSL, • Cable, • FixedWireless, • Fiber,and • Satellite(e.g.,roofmounted). 29 “Drivingeconomicoutcomeswithbroadband”,Chapter16inBuildingtheGigabitCitybyCraigSettles,self-publishede-book, 2013,retrievedathttp://www.ourbroadbandfuture.com/uploads/3/6/3/1/3631947/settles-building-the-gigabit-city.pdf 30 BroadbandDeployment,AvailabilityandAdoptionInTennessee,ReportoftheTennesseeAdvisoryCommissiononIntergovernmentalRelations,January2017 31 Here,wearereferringtoterrestrialbasedISPs,whichincludescellularaswellascablebased(copperorfiber)ISPs.Satellite ISPsare,ofcourse,availabletoeveryoneontheplanet,butvulnerabilitiestoweatherdisturbances,inherentlatencydelayand pricing,promptmanypotentialsubscriberstoconsidertheserviceplatformonlyasalastresort.

Theterm“InternetService”,orInternetAccess Service,usuallyreferstotheaccessmediaandspeed usedtoconnectasubscriber(e.g.,aconsumeror business)totheInternet.Thespeed(i.e.,service quality)atwhichausercanaccesstheInternetdependsinpartonwhichspecifictypeoftransmission mediatheusersubscribes.

Therearethreetransmissionmediaoptions-copperthattransmits electricalsignals,wirelessthattransmitsradiosignals,andfinally,fiber opticcabling(fiber,forshort)that transmitslightsignals 32 .Data transmittedovercopperisgenerally fasterthanbyradiowave.Anddata transmittedoverfiberisfasterthan overcopperorwirelessmedia.Radio waves(andhence,allwirelessplatforms)havetheaddeddisadvantage ofbeingmorevulnerabletoenvironmentaldisturbances.

InternetServiceProviders(ISPs) todaymostlyprovision4typesof copperbasedInternetservicesand 3typesofwirelessInternetservices. CopperbasedInternetservicesincludeDSL(orADSL33 ),cable,electricpowerline,ortraditional/other copper.Wirelessoptionsincludecellularmobile,fixedwireless,andsatellite.

WhendecidingonwhichtypeofInternetservice(s)toofferinagivenregion,ISPsconsideravarietyoftechnicalandmarketrelatedfactors,including transmissiondistances,terraintopologies,populationdensities,localresidentialandeconomicgrowth trends,timetorecoupupfrontcapitalinvestment, futurerevenuepotential,publicsubsidies,governmentsupport,etc.

InternetServiceinWilsonCounty

ThegoodnewsisthateveryoneinWilsonCountycan subscribetoabroadbandInternetservice,thoughnot allviawirelineaccess.

Internetserviceprovider(ISP)accesstechnologiescurrentlybeingofferedinWC’surbancityand townareasofLebanon,Mt.JulietandWatertown arelistedinTable4.ThetablealsogivesthenumberofISPsthatprovideurbanInternetserviceviaa particularaccessmedia.

TherearealmosttwodozenISPprovidernetworksofferingInternetserviceinWC’sLebanonand Mt.Julietcityregions,alongwith10providernetworksinWatertown.MtJulietandLebanonaverage downloadspeedsare47.14mbpsand45.09mbps, respectivelywhileWatertown’saverageisestimated at11.71mbps.ThedownloadspeedsofWC’stwo largesturbanareas,LebanonandMt.Juliet,comparefavorablywiththeestimatedoverall45.1mbps ISPaveragefortheentirestateofTennessee.

LebanonhasalotofDSLISPs(5),afewCableISPs(2),andseveralfiberISPnetworks(4).Mt JuliethasanequalnumberofCable,DSLandFiber ISPsat3each.AmongwirelineISPs,Watertown has2DSLserviceproviders,1cableISPandnofiber ISP.ForthecopperaccessISPs(mostlyT-carrier services),bothLebanonandMt.Julietarewellrepresentedat3and5,respectively.

UrbanvsRuralWilsonCounty

AccordingtorecentFCCdata,thereareatleast3 ISPsoperatinginWCwhichprovidebroadbandInternetservicesto99.68%ofthecounty’surbanresidents.Thereare2ISPspresentthatofferbroadbandtotheremaining.32%ofurbanWC.ForWilson County’sruralresidents,atleast3ISPsarepresent thatprovidebroadbandInternetto88.93%oftheruralpopulace,and2ISPsprovidingbroadbandtothe

32 CopperbasedInternet(access)serviceoptions includetheprovisioningofInternetservicevia1)coaxialcablewhichuses thickgaugecableTVcabling(akacableInternet),2)landlinephonewiring,whichusesthingaugecategory5coppertelephone wire(akaDigitalSubscriberLine,orDSLInternet),3)electricalutilitypowerlines(powerlineInternet,whiletechnicallypossible,has decidedlybeennixedasaserviceofferingbymostISPs),and4)“other”traditionalpoint-to-pointtransmissionservicessuchas1.5 MbpsT1,45MbpsT3,ISDNprimaryrate,etc.

WirelessInternetserviceoptions include1)mobileInternetserviceswhichconnectportableuserdevices(e.g.,smartphones)via cellphonetowers,2)satelliteInternetserviceswhichusesmallsatellitedishesmountedonbuildingorhomerooftops,and3)fixed wirelessservices,whichusestationary(fixed)line-of-sighttransmittersexternallymountedonbuildingsorhomesthatcommunicate withfixedwirelesstowers.

33 Inthisreport,thetermsDSLand“ADSL”areusedinterchangeably.ADSLstandsforasymmetricdigitalsubscriberline. Asymmetricsimplymeansthatthedownloadanduploadspeedsaredifferentfromoneanother.

24 Spring2020WilsonCountyTrendsCumberlandUniversity

remaining11.07%.

IfweexcludesatelliteInternet,whichisavailable to100%ofWCresidents,broadbandInternetisavailableto95.21%ofcountyresidentsthroughatleast onefixedbroadbandservicetype.About4.79%of WCresidents,mostlythosewholiveinruralareas, donothavebroadbandaccesstotheInternetexcept throughsatelliteInternetservice.

WilsonCounty’sISPserviceofferingsfollownationaltrendsinthattheportfolioofavailableInternet accessservicesisdifferentforurbanvsruralregions. Internetaccessmediacommonlyavailableinurban areasincludesDSL,CableandFiber.Forruralregions,theavailableInternetservicemixismorelikely toincludeDSL,SatelliteandFixedWireless.

AlthoughTable4showsthatWC’surbanareas areinrelativelygoodshapewithhealthylevelsof ISPcompetition,theruralpartsofthecountyare facedwithsomesignificanteconomicandtechnical challenges.InFigureR8,wecomparethepercentage ofvariouskindsoffixedbroadbandInternetservices thatareavailabletoWCresidentslivinginurban vsruralpartsofthecounty.Theseurban/ruralregionaldifferencesaredescribedingreaterdetailinthe followingsectionsoneachtypeoffixedbroadband service.TheFCCdataisbasedona2017county populationtotalof136,436persons,79,692ofwhich areclassifiedasresidinginurbanWCand56,744as livinginruralWC.

WilsonCountyCensusTracts

TheFCCmapsreferencedinthisreportshowthe numberofISPsthatarepresentwithineachofWilsonCounty’s21censustracts,bothurbanandrural34 .Federalcensustract35 IDnumbersandlocationsforWilsonCountyareshowninMap1.Since

censustractsaredesignedtoincludeanaverageof 4000peopleeach,largergeographiccensustractsin Map1areviewedasbeingmoreruralwhereasmuch smallergeographictractsareconsideredasurbanareas.

Map1: WilsonCountyTN2010CensusTracts Source:U.S.CensusBureau

ISPCompetitioninWC

Todepictthelocalpresenceandcompetitivelevelof ISPs,theFCCusesavisualcolorspectrumcoding scheme,showninLegendA.LegendA’sprogression throughthecolorspectrum,fromlighttodarkerhues ofyellow,green,blueandblack,depictsanincreasinglylargernumberofcompetingISPsintheselect area36 ofinterest.LegendAshouldbeusedtointerpretthecolor-codedFCCmapsandFigureR9.

Maps2through6consideronlyISPInternet serviceswhichprovideatleasttheFCC’sdesired minimum“25/3”broadbandconnection.25/3is FCCshorthandnotationfor25mbpsminimumdown-

34 TheFCCdesignatescensusblocksasurbanvs.ruralbasedondefinitionsusedinthe2010U.S.Census.TheCensusBureau identifiestwotypesofurbanareas:1)UrbanizedAreas(UAs)of50,000ormorepeople;and2)UrbanClusters(UCs)ofatleast 2,500andlessthan50,000people.“Rural”encompassesallpopulation,housing,andterritorynotincludedwithinanurbanarea. (source:https://www.census.gov/programs-surveys/geography/guidance/geo-areas/urban-rural.html)

35 Designedforuseinconstitutionallymandateddecennialnationalpopulationcounts,censustractsaresmall,relativelypermanentstatisticalsubdivisionsofacountyconsistingonaverageofapproximately4000people(maybeassmallas1200oraslargeas 8000people).Censustractscanbefurthersubdividedintoblockgroupsandcensusblocks.(Source:U.S.CensusBureau)

36 AccordingtothecolordefinitionsofLegendA,ayellowcensustractimpliesthattherearenoISPspresentthatprovideInternet serviceataselectedaccessspeedorusingaselectedmediatype.Greenishtractsindicateanon-competitivesituation(only1ISP present).Lightblueregionsareessentiallyduopolistic(2ISPs).CompetitiveISPenvironmentsexistintractscoloredasblueand darkerhues(3to6ISPs).Black(12ormoreISPs)wouldindicateessentiallyaperfectcompetitivelandscape.Afinalpointabout theFCCLegendAistonotethatcolor-basedindicationsthatimplythereare“x”ISPspresentdoesnotnecessarilyimplythateach ISPpresentoffersservicetotheentirecensustract.Forexample,while2ISPsmaybeshownasoperatinginthesametract,in actualitytheymaybeservingdifferentdividedcustomerlocations-sothatonly1ISPisactuallyofferingservicetoaparticular subtractlocalityorneighborhood.

LabrySchoolofScience,Technology,andBusiness 25

loadspeed,accompaniedby3mbpsminimumupload speed.

Likethenationatlarge,mostbroadbandservices inWCtodayareprovidedprimarilythroughcopper basedtechnologies(e.g.,cableorDSL)orwireless (e.g.,fixedwirelessorsatellite)thoughwithvarying levelsofpriceandservicequality.

LegendA -NumberofBroadbandISPsbyColor CodeSource:FederalCommunicationsCommission

Ingeneral,WilsonCounty’scompetitivelandscapeforfixedbroadbandservicesisverygood,depictedinMap2bycountywidebluecolorhues,indicating3ormorecompetingISPswithineachcensus district.

InacloserlookMap2,however,wenotethat thebluehuesonthenorthwesternsideofWCare darkerthanthebluesonthecounty’ssoutheastern side.UsingLegendAtointerpretthiscolordisparity, weconcludethatpeoplelivingonthewesternside ofWC,fromthecountyseatofLebanon,towards Nashville(i.e.,urbanWC),havemorecompetitive choicesforfixedbroadbandInternetservice(shown bythedarkblues)thandopeoplelivingontheeasternsideofLebanon,whohavefewerchoices(i.e., ruralWC,asshownbythelightblues).

FigureR9givesInternetconnectspeedsforWC’s fixedInternetserviceproviders.Overall,WCcurrentlyhasatleast3ISPsthatprovide25/3broadbandInternetserviceto95.21%ofthecounty’sresidents.Forfaster100/10broadbandservice,54.8% ofWCresidentsareservedby2ISPswhile32.11% onlyhaveasingleISPofferingtheservice.9.49%of WCresidentsliveinacensustractpartofthecounty where100/10fixedbroadbandisnotavailable.

Howdofixedbroadbandcompetitionlevelsand servicecoveragecompareamongthethreemostpopularISPaccessmediatypesinWilsonCounty-that ofDSL,CableandFiber?Map3showsthenumber ofISPsthatprovidebroadbandInternetserviceusingDSL(Map3-A)versusCable(Map3-B).Map5 showssimilarinformationforfiber-basedInternetservice.ConfirmingtheresultsofFigureR8,thesemaps showthatDSLbasedInternetservicedominatesthe ruralareasofWCwhilecableandfiberopticbased Internetservicearemoreprevalentinurbanareasof thecounty.

BroadbandDSL37

AccordingtoMap3-A,withfewexceptions,25/3 broadbandDSLisavailableineverycensustract inWCthoughperhapsonlythroughasingleISP. LowcompetitivelevelsofDSLserviceisnotsurprisingsinceDSLprimarilytakesadvantageofexisting “legacy”phonewiringinfrastructureleftoverfrom thepre-cellularregulatedmonopolydaysoflandline phoneservice.ButwhilemostofWCiscodedgreen, broadbandDSLisnotavailableineverycensustract regioninthecountyasnotedbythefewpatchesof yellow.NorisbroadbandDSLnecessarilyavailableto everyresidentiallocationwithinaDSLservicecensustract.Forexample,whileMap3-Ashowsthatall MtJulietandLebanoncensustractshavebroadband DSL,uponcloserexaminationoftheWCenlargementinMap4,onenotesthespottyservicecoverage ofbroadbandDSL.ThisWCDSLcasepointstoan oft-criticizedflawfoundintheFCCdata,notonlyfor broadbandDSL,butforalloftheotherfixedbroadbandalternativesaswell,thattheFCCdataactually overestimatestheavailabilityoffixedbroadbandservice,forthenationaswellasfortheresidentsof WilsonCounty.

UnavailabilityofbroadbandDSLserviceinWilsonCountyincludesaparcelofeasternWClandborderingDavidsonCounty,justnorthofHayesRoad (censustract303.08),aswellasWClandborderingtheeasternsideofSmithHillRoad(censustract 303.04).AccordingtothemostrecentFCCdata(releasedinDecember2017),broadbandDSLisavailableto52.28%ofWCresidentsthroughasingle ISP.BroadbandDSLisunavailableto46.28%ofthe county’sresidents.

PossiblereasonsforlackofbroadbandDSLserviceinsomepartsofWC(andelsewhereintheU.S.) mayberelatedtoISP/telephonecarrierbusinessde-

37 ThetermsDSLandADSLareusedinterchangeablyinthisreport.DSLisabroadertermreferringtodigitaldataservices whichtransmitoverphonelines.ASDListhemostcommonlyrequestedDSLservice.“Asymmetric”DigitalSubscriberLinerefers tothefactthatthedatatransmissionspeedsaredissimilarforuploadvsdownloaddirections.

38 AnotherreasonforlackingavailabilityofbroadbandDSLinselectlocationsisthe“localloop”distancelimitationfordata

26 Spring2020WilsonCountyTrendsCumberlandUniversity

Map3:

Source:FederalCommunicationsCommission

Source:FederalCommunicationsCommission

Map2: NumberofFixedBroadbandProvidersinWilsonCountyTN,2017
LabrySchoolofScience,Technology,andBusiness 27
(A)ADSL (B)Cable
NumberofADSLandCableBroadbandProvidersinWilsonCountyTN,2017

Map4: NumberofADSLBroadbandProviders(Enlargement)inWilsonCountyTN,2017

Source:FederalCommunicationsCommission

Map5: NumberofFiberBroadbandProvidersinWilsonCountyTN,2017

Source:FederalCommunicationsCommission

28 Spring2020WilsonCountyTrendsCumberlandUniversity
LabrySchoolofScience,Technology,andBusiness 29 (A)NorthofI-40 (B)SouthofI-40 Map6: NumberofFiberBroadbandProviders(Enlargements)inWilsonCountyTN,2018 Source:FederalCommunicationsCommission

FigureR8

Urban vsRural Broadband Coverage byMedia Typein Wilson County TN,2017 Source: Federal Communications Commission

FigureR9

Numberof ISPsServingWilson CountyTN Residents byAccess Speed, 2017 Source: Federal Communications Commission

30 Spring2020WilsonCountyTrendsCumberlandUniversity

LebanonMt.JulietWatertown

Cable231 DSL532 Fiber43 FixedWireless11 MobileBroadband555 Powerline/Copper35 Satellite222 Totalno.ofprovidernetworks222110 Avgdownloadspeed(Mbps)45.0947.1411.71

No.residentialISPs886 No.businessISPs14133 No.mobileISPs555

Table4: NumberofISPsinWilsonCounty,TNbyAccessTechnologyType,2019 Sources:broadbandnow.com,FederalCommunicationsCommision

cisionsnottoupgradeorinvestinnewDSLinstallations38 -asinthecaseofnewresidentialdevelopments,aswellasISPdecisionstofocusonhigher demandhighspeedwireless(e.g.,5G)andfiberoptic basedservices.

BroadbandDSLisavailableto49.02%ofurban WCthroughasingleISP.Theserviceisunavailable, however,totheremaining50.17%ofWC’surbanresidents.Interestingly,thepictureisbrighterforrural countyresidentswherebroadbandADSLisavailable to56.85%ofruralWCbutthroughasingleISP,with theserviceavailabletoanother2.32%by2ISPs. BroadbandADSLisunavailableto40.82%ofrural WC.

BroadbandCable

Map3-BshowstheserviceavailabilityandcompetitivelandscapeforbroadbandCable.BroadbandCableisavailableto87.17%ofWCresidents,though throughasingleISP39 .Theserviceisnotavailable to10.59%ofWCresidents.

thosewholivenorthofroute265andonthewesternsideofInterstate840.Broadbandcableismostly unavailabletoresidentsinruralcensustract309.04 whichistheregionsouthofroute265andeastof I-840.ExceptforWatertownanditsimmediatesurroundingarea,broadbandcableisgenerallynotavailabletothoseresidingsouthofroute265(censustract 310)andontotheeasterncountyline.

BroadbandcableisawinnerinurbanWCwith theserviceavailabletoawhopping98.15%ofthe community,thoughthroughasingleISP,withanother.82%residingincityareaswhere2ISPsoffer thebroadbandservice.Theresidentialmarketfor broadbandcableissmallerinruralWCwherethe broadbandserviceisavailableto71.75%ofthepopulacethroughasingleISP,andanadditional4.23% ofruralresidentslivinginareasservedby2ISPs. Broadbandcableisunavailableto24.02%ofrural WC.

SimilartothecaseforbroadbandDSL,therelativelylowlevelofcompetitionforbroadbandcable isnotsurprisingandmaybelargelyduetolocalities traditionallybeingservedbyasinglecableservice transmissionoverthingaugephonewiring.Thegreaterthedistanceofaresidencefromthelocalservingtelephoneswitch,the moreexpensiveitistoprovisionDSLservice,thecaseofruralareasnotwithstanding.

BroadbandCableisavailableinWCprimarilyto

39 OnemightwonderwhyagreaterpercentageofWilsonCountyresidentscansubscribertobroadbandInternetserviceover cablethanoverthetelephonewiringusedforDSL.ThesimplereasonfortheservicedisparityisthattheInternettransmissionspeed capacitydecreasesasthedistancebetweentheISPswitchandthesubscriber’shomeorofficeincreases(aka“thelastmile”).Thus, intheruralregionswherethisdistancemaybegreat,WCresidentswholivefarfromtheISPcloudmaystillbeabletosubscribe toanInternetDSLservicebuttheavailableconnectspeedmaybelessthan25/3andthus“notbroadband”.

LabrySchoolofScience,Technology,andBusiness 31
ISPAccessType

provider.MostcableTVsubscribersareofferedcablebasedInternetserviceasaddedservicebythe samecarrieralthoughtheservicemaybeprovisioned tothesubscriberthroughaseparatecoaxialcable connection.

BroadbandWireless

TherearethreewirelessInternetservicesthatarecapableofbroadbandspeeds:Mobile(cellularphone dataservice)andtwofixedwirelessoptionsSatelliteandFixedWireless.Mobiledatadeviceusers andSatellitesubscribershave100%broadbandservicetractcoverageinWilsonCountyandTennessee. BothwirelessInternetservicesarecompetitive.

ThemostpopularurbanISPserviceofferingin WilsonCountyisMobileBroadband,meaningInternetaccessviacelltowersto/fromaperson’ssmartphone,tabletorotherportablemobiledevice.While bothurbanandruralInternetusersmayalsosubscribetoMobileBroadband,it’smostlyruralresidentswhosubscribetoSatelliteBroadband,awirelessmediafraughtwithservicingissuesincludinglatencytransmissiondelays,weatherdisturbances,servicepricingandcapsonInternetdatausage.Urban residentsinWCandotherdenselypopulatedregions arenotlikelytosubscribetosatelliteservicesdue tothepresenceofotherInternetservicealternatives thatarelesscostlyandofbetterservicequality.

Mostcurrentmobilebroadbanddevicesuse4th generation(4G,aka4GLTE)transmissiontechnology,withfaster5thgeneration(5G)servicesrolled outbyISPsinselecturbanlocationsaroundtheU.S. includingnearbyNashville.

Whilethetransmissionspeedsof4Gtechnology canexceedtheFCC25/3thresholdminimumfor broadband,avarietyoftechnicalandenvironmental factorscanreducemobileInternetaccesstoconnect speedsbelowtheFCCbroadbandminimum.Forreliablebroadbandserviceandoftentimesprovisioned abovethe25/3minimum,mostuserswouldprefer afixedbroadbandInternetserviceconnectionovera mobilelink.

FixedWireless

FixedWirelessserviceissometimesprovisionedasa broadbandserviceandsometimesatsub-broadband speed.Thereare50listedFixedWirelessproviders inTennesseewitha21.4%servicecoverageofthe state40 .In2018,AT&Tannouncedanexpansion ofitsFixedWirelessservicetoitsruralbasedcustomersin18states,includingselectruralareasof Tennessee41

PopularinMidwesternstates,andcurrentlypromotedwithmaximumdownloadspeedintherangeof 10-12mbps(AT&T,Verizon),50mbps(RiseBroadband)or100mbps(EthericNetworks)42 ,onewill notethatFixedWirelesstechnologyistechnicallycapableoftransmittingatgigabitspeed,thoughlineof sighttransmissionisrequired.

Accordingto2017FCCdata,thenumberof FixedWirelessresidentialusersinWilsonCountyis essentiallyzero.ThenumberofFixedWirelessbusinesscustomersinWCisunknownbutprobablylow. Notably,atleastoneISP(UnitedCommunications) isexpandingintoWilsonCountythatactivelypromotesfixedwirelessservicestoruralcommunities, thoughcurrentlynotatgigabitspeeds.

FixedWirelessisoneoffewalternateInternetaccesstechnologiesthatcantechnicallycompetewith fiberopticcablecapabilities43 .Afixedwirelesstrans-

ofTennessee”,PostedbyAT&TTennesseeTeamonAugust09,2018,availableathttps://engage.att.com/tennessee/blog/?PostI d=4849

42

“ProsandConsofFixedWirelessBroadbandInternetAccess”byBradleyMitchell,Livewire,August092019,availableat https://www.lifewire.com/fixed-wireless-broadband-internet-access-818318

UbiquitiAirFiberFixedWirelessMount (photocourtesyofCumberlandUniversity)
32 Spring2020WilsonCountyTrendsCumberlandUniversity
40 Source:broadbandnow.com 41 Source:“AT&TExpandsAccesstoHighSpeedInternetinBenton&HenryCountiesandotherRuralandUnderservedAreas
Source:https://www.allconnect.com/internet/fixed-wireless 43

mission“tower”replacestheneedtolayFOcable, whichincertaincircumstancesmayrepresentasignificantcostsavings.Incertainpartsofthecountry, someurbanregionshaveconsideredFixedWireless asapermanentortemporaryhighspeedbroadband servicealternativetofiber44

WillFixedWirelessbecomeanimportantbroadbandaccessoptionforruralareas?Someanalysts claimasignificantfutureforthisInternetaccesstechnology.

“Fixedwirelessinternetalreadycoversnearlyhalf theU.S.population,butmanyprovidershopetocontinueexpandingtheirnetworkstobringtheservice tomoreareas.AT&Thasrecentlyannouncedtheir fixedwirelessservicenowcoverspartsof18states andthecompanyhopesto“makeinternetaccess availableinover1.1millionlocationsbytheendof 2020.”Verizon’sfixedwirelessinternet–LTEInternet(installed)–isalreadyavailableinmostlocationswhereVerizon4GLTEserviceisoffered.As Verizonrollsouttheir5Gnetwork,newfixedwirelessplanswithfasterspeedsmaybecomeavailable inselectareas.Otherfixedwirelessproviders,such asRiseBroadband,alsohopetocontinueexpansion andbringfixedwirelessbroadbandtomoreareas. RiseBroadbandrecentlyannouncedplanstopreserve theirnetworks,currentlyin16states,withplansto expandtomoremarketsincomingyears.” 45

BroadbandFiber

JustlikebeingofferedaFordFocusoraFordLincolnTownCar,mostofuswouldnaturallypreferto drivetheTownCar,withitshighervehicularperformance,featuresandquality.Similarly,choosing amonganInternetservicesubscriptionofferforDSL, CableorFiber,theclearandobviouschoicewould beforFiber.Fiberopticcablescarrylightsignals,in-

comparablyfasterandmoresecurethanelectricalor radiosignalstransmittedovertheotheraccessmediaalternatives.Broadbandbyfibermeansgigabit (abillionbits)persecondtransmissionspeed.

Map5showswherefiberInternet46 serviceis availableinWilsonCounty,indicatedbythedarkand lightgreenareasofthemap.FiberInternetservicein WilsonCountyisprimarilyavailableontheurbaneast sideofLebanon(includingMtJuliet)goingtowards Nashville,andismostlyunavailableonthewestern ruralsideofthecounty.AccordingtoFCCdata, abouthalf(48%)ofWC’stotalpopulationliveina fiberInternetserviceareaservedbyoneISP.Fiber Internetisunavailabletoslightlymorethanhalfof WilsonCounty’sresidents(50.93%).

AccordingtoFCCdatareleasedJune2018,fiber optic-basedInternetserviceisunavailabletoalmost 75%ofallU.S.residents.Thedataalsoestimates thatslightlyover25%ofthenationcangetfiber internetthroughonelocalprovider,1%canchoose fiberfromtwoproviders,and.03%resideinareas wherethreeormoreprovidersofferfiberservice.For

outlines-fixed-wireless-efforts-in-iowa-highlights-growing-interest-in-expanding-wireless-broadband/

46 Intoday’sFiberInternetinstallations,thefiberopticcablingisusuallyterminatedeitherat1)anoff-premiseslocation-near, butoutside,thehomeorofficebuilding,orelse2)tothepremiselocation-insidethehomeoroffice.Apopularserviceofthe off-premisescaseisFiber-to-the-Node(FTTN).AcommonserviceofthepremisescaseisFiber-to-the-Home(FTTH).Inbusiness scenarios,FTTHisoftenreferredtoasFiber-to-the-Building(FTTB).InFTTN,fiberisruntoanearbyoff-premiseshubwhichuses eitherawirelesssignal(e.g.,Wifi)orconventionalcoppercoaxcable/twistedpairwiring(Cable/DSL)configurationtoconnectto theuser’scomputer.Stillinusetoday,FTTNwasanearlyISPfavoriteduetoitsrelativelylowerinstallationcostandbeingableto servemultiplehomesorbusinessfromthesamehub.WithFTTH,theISPrunsfiberdirectlyintothehomeorofficeandterminates thefiberopticcableataportona“fibermodem”(whichreplacesthecable/DSLmodem),thenrunningacopperEthernetcable theremainingfewfeettotheuser’scomputer.

Rackmountwithfiberopticcableconnectors (photocourtesyofCumberlandUniversity)
LabrySchoolofScience,Technology,andBusiness 33
44 See,forexample,“WindstreamOutlinesFixedWirelessEffortsinIowa,HighlightsGrowingInterestinExpandingWireless Broadband”byJoanEngebretson,Telecompetitor,July02,2019.Availableathttps://www.telecompetitor.com/windstream-
45 Source:https://www.allconnect.com/internet/fixed-wireless

WilsonCounty,broadbandfiberInternetisavailable throughasingleISPto68.39%ofthepeoplelivingintheurbanareasofthecounty.Anadditional 1.25%areservedby2ISPs.Broadbandfiberisunavailableto30.35%ofurbanWC.ForruralWCresidents,broadbandfiberisavailableto22.55%ofthe populacethroughasingleISP,withanadditional 1.39%providedtheservicebytwoISPs.Broadband fiberInternetiscurrentlyunavailableto76.06%of thepersonslivinginruralareasofWilsonCounty.

Figures6Aand6BprovideenlargementsofFigure5toshowspecificareasoffiberavailabilitywithin eachWCcensustract.Interestingly,Figure6Bshows aturquoisebluecoloringforalandparcellocated incensustract309.03betweenGladevilleandSuggs Creek,justsouthofroute265andtothewestof I-840.AccordingtoLegendA,thisindicatesthe presenceof2ISPsofferingbroadbandfiberinthis region,unlikethesurroundingareasoftract309.03 whichhaveatmostasinglefiberISPpresent.

BusinessFiberInternetinWC

AccordingtoFCCdatareleasedDecember2017,the 3largestfiberbroadbandbusinessserviceproviders inWilsonCountyareAT&T,TDSandCharterSpectrum.InLebanon,businessfiberservicecoverageincludesAT&T(16.6%),Windstream(2.65%),SpectrumBusiness(1.57%)andCenturyLink(.6%).In MtJuliet,thelargestfiberISPsareTDSBusiness (33.7%servicecoverage),AT&T(14.3%)andCenturyLinkBusiness(1.6%).Watertownhadnofiber businessISPasofthe2017FCCdatarelease.See Table5.

AT&T

AT&ThasbeenanactivetelecomserviceproviderinWilsonCountyfordecades.

From2016to2018,AT&Tinvested morethan$15millioninwirelineand wirelessnetworkinfrastructureinWC. Duringthesametimeperiod,13wirelessupgradesweremadeinWCby

AT&Taswellas1newcelltowersite.AsofMay 2019,100%ofWCwascoveredbyAT&T’sMobile Broadbandnetwork.AsofJuly2019,therewere8 AT&Twifihotspotsinthecountyaswellas6local retailcenters.Interestingly,AT&Tstatesthatthere are256employeeretireeslivinginWC.47

TDS

Wisconsin-basedTelephone andDataSystems,Inc. (TDS)hasoperatedinTennesseeandWCsince1975 investing$432millionintheregion.MostofTDS’ presenceinWilsonCountyisintheMt.Julietarea. TDScurrentlyclaims94%fibercoverageinMt. Julietwithaccessspeedsupto1gigabytepersecond. Theremaining6%ofMt.Juliethasaccessspeed upto100mbps.Thereareabout11,000MtJuliet residentsusingTDSbroadbandservices,10,100for Internetand7,000usingTDSbroadbandforvideo applications.48 , 49

CharterCommunications

Telecomnetworkservices providerCharterCommunicationsInc.offersitscableTV,Internetandwirelessservicestoconsumers andbusinessesunderthebrandingnameSpectrum. SincemergingwithBrightHouseNetworksandTime WarnerCablein2016,CharterCommunicationshas growntobecomeoneofthetopthreelargestU.S. Internetproviders.Charter’sInternetserviceareaincludes102.7millionresidentsandspans44states. TheyhavethewidestcoverageinCalifornia,Texas, NewYork,and41otherstates.InTennessee,Charter Spectrumserviceisavailableto1.8millionpeople,or about31%ofthestate50 .Spectrum’sprimarybusinessInternetservicepresenceisintheLebanon,TN area.

34 Spring2020WilsonCountyTrendsCumberlandUniversity
47 InformationprovidedbyAT&T,August2019 48 InformationprovidedbyTDS,September2019 49 “TDScelebrateslaunchof1Gigabithigh-speedInternetserviceinMt.Juliet,Tenn”,January30,2015,updatedFebruary 2019,retrievedfromhttps://tdstelecom.com/about/news/categories/tds/1gig-service-in-mt-juliet.html 50 Source:broadbandnow.com

MTEMC-UnitedPartnership

Apromising broadbandregionalinitiativelaunched August2018 inWilson Countyisa partnership

betweentheMiddleTennesseeElectricMembership Cooperative(MTEMC)andUnitedCommunications

(United)51 .MTEMCisthelargestelectricalcoopin TennesseeandisthepublicelectricutilityforWilsonCounty.UnitedisanISPthatoperateswithin thestateofTennessee.Thecompanyoffersfiber broadband,fixedwirelessandDSLInternetservices, withaparticularservicingfocusonruralareas.A majorobjectiveoftheMTEMC/UnitedPartnership initiativeistoexpandbroadbandInternetservice coverageinruralportionsofWCandothernearby ruralcounties.

BesidesitsexpansionofbroadbandInternetservicecoverage,UnitedisalsoassistingMTEMCwith

51 InformationreportedontheM/UPartnershipcomesfromadiscussionmeetingheldAugust9th,2019withseniorexecutives fromMTEMCandUnitedCommunications.Seealsoinformationlinksathttps://www.tennessean.com/story/news/local/williams on/2018/08/24/rural-broadband-middle-tennessee-electric-membership-united-communications/1087476002/andhttps://www.mt emc.com/content/state%E2%80%99s-largest-electric-cooperative%C2%A0partners%C2%A0%C2%A0local-internet-service-provide r-expand

Maximum

InternetService

LebanonBusinessISPs

Average

AT&TDSL,IPBB99.7%100Mbps69.34Mbps

SpectrumBusinesscable90.7%300Mbps91.28Mbps

AT&Tfiber16.6%1Gbps

DTCDSL16.3%50Mbps

ComcastBusinesscable11.04%987Mbps114.79Mbps

GTTCommunicationsDSL,copper3.38%6Mbps

Windstreamfiber2.65%500Mbps

SpectrumBusinessfiber1.57%1Gbps

MegaPathcopper1.0%+3Mbps

CenturyLinkBusinessfiber,copper0.6%+1Gbps

MtJulietBusinessISPs

ComcastBusinesscable100%987Mbps55.72Mbps

AT&TDSL,IPBB45.3%100Mbps

TDSBusinessfiber33.7%1Gbps

AT&Tfiber14.3%1Gbps

SpectrumBusinesscable6.4%300Mbps76.9Mbps

Windstreamcopper3.1%+1.5Mbps

CenturyLinkBusinessfiber,copper1.6%+1Gbps

XOCommunicationscopper1.2%+10Mbps

VerizonBusinesscopper1.0%+3Mbps

GTTCommunicationscopper.2%+

WatertownBusinessISPs

DTCDSL100%50Mbps

AT&TDSL,IPPB65.9%25Mbps

SpectrumBusinesscable40.3%300Mbps54.56Mbps

Table5: WilsonCountyBusinessInternetServiceProviders,2019 Sources:broadbandnow.com,FederalCommunicationsCommision

LabrySchoolofScience,Technology,andBusiness 35
Provider(ISP) InternetAccess Technology City Coverage
Business Download Speed
Business Download Speed

thedevelopmentofSmartGrid.MTEMC’sSmartGridisaself-healingelectricservicesgridconsistingofMTEMC’selectricgridcoupledwithafiber opticnetworkoverlayforimprovedandfastercommunicationandtelemetrydatatransfer-toimprove electricprovidergridmanagement,morequicklyresolvepoweroutages,automateelectricalroutingand reroutingactions,providesubscriberswithelectric usagereports,aswellasenableotherimprovements incustomerservice.

Uniteddoesnotcurrentlyprovideresidential broadbandInternetserviceinWilsonCountybut planstointhenearfuture.UnitedplanstoprovidebroadbandInternetservicetounconnectedWC residentsandbusinessesthroughuseofeitherfiber opticcablingorfixedwirelessservices.United’sgeneraltechnologyplanistodeployfiberInternetinWC andtheninterconnectthenewlocalfiberopticlines totheISP’sexistinggigabit“backbone”fibernetwork.Whiletechnicallypossible,theM/UPartnershipdoesnotinvolveprovisioningofUnited’sbroadbandInternetservicesoverMTEMC’scopperwire basedelectricgrid.

Unitednotesthatitwillinvestsomeupfrontcapitalmoniesinexpectationoffutureservicesubscriptionsenabledbyitsbroadbandexpansions.TheM/U PartnershipwillalsoconsiderapplicationstoTennessee’sBroadbandAccessibilityGrantProgram52 , thefederalConnectAmericaFund53 andotherpublicinvestmentprogramsdesignedtobringbroadband Internetandrelatedtechnologiesandservicestounderservedrurallocations.

TheM/UPartnershipis“multi-year”innature withnospecifictimeschedulesorcompletiondates yetannounced.

ConnectAmericaFund

ToensurethatbroadbandInternetaccessisavailable toeveryU.S.residentandeveryregion,federaland stategovernmentshaveinitiatedvariouspublicinfrastructuredevelopmentgrantprograms.TheFCC,

forexample,hastakenafederalleadershiprolein developingandsupportingthenation’spublicbroadbandinfrastructure.

High-speedInternetaccess,orbroadband,iscriticaltoeconomicopportunity,jobcreation,education, andcivicengagement.Buttherearetoomanyparts ofthiscountrywherebroadbandisunavailable.In urbanareas,97%ofAmericanshaveaccesstohighspeedfixedservice.Inruralareas,thatnumberfalls to65%.TheFCChastakenanumberofstepsto expandbroadbandacrossAmerica,includingestablishmentoftheConnectAmericaFund54

Map7: RuralLocationsEligibleforCAFIIFunding inWilsonCountyTN(darkareas)

Source:FederalCommunicationsCommission

TheConnectAmericaFund(CAF),alsoknown astheUniversalServiceHigh-Costprogram,isthe FCC’sprogramtoexpandaccesstovoiceandbroadbandservicesforareaswheretheyareunavailable. ThroughCAFPhaseII,theFCCprovidesfunding tolocaltelephonecompanies55 tosubsidizethecost ofbuildingnewnetworkinfrastructureorperformingnetworkupgradestoprovidevoiceandbroadband serviceinareaswhereitislacking.Companiesthat acceptCAFPhaseIIsupporthavesixyearstoplan andprovidebroadbandtoconsumers,althoughnot everyhouseholdisguaranteedaccess.Thedeploy-

52 See,forexample,https://www.tn.gov/ecd/rural-development/tennessee-broadband-grant-initiative/tennessee-broadband-acc essibility-act-article.html

53 See,forexample,https://www.fcc.gov/general/universal-service-high-cost-areas-connect-america-fund

54 Retrievedfromhttps://www.fcc.gov/about-fcc/fcc-initiatives/bridging-digital-divide-all-americans.Forgeneralinformationon theConnectAmericaFund,seealsohttps://www.fcc.gov/consumers/guides/connect-america-fund-phase-ii-faqs.Foraninteresting articleonpublicvsprivatecarrierbroadbandfunding,seehttps://www.fiercetelecom.com/special-report/at-t-frontier-others-accept1-5b-caf-ii-funding-despite-fcc-s-changing-broadband

55 IncumbentLocalExchangeProvidersinWilsonCountyincludeAT&T,DTCandTDS(2007).

36 Spring2020WilsonCountyTrendsCumberlandUniversity

mentscheduleisdeterminedbytheserviceprovider, nottheFCC.

CAFPhaseIIfundingisdesignedtoensurethat consumersinrural,insular,andhigh-costareashave accesstomoderncommunicationsnetworkscapable ofprovidingvoiceandbroadbandservice,bothfixed andmobile,atratesthatarereasonablycomparable tothoseinurbanareas.StartedinMay2015,and basedoncompetitivebidproposals,CAF-IIisasix yearfederalfundawarding1.675billiondollarsannually.Map7depictsrurallocationsinWilsonCounty (shownindarkpurple)whichareeligibleforCAF-II funding.

ReflectingmostofMap7’seligibleareas,Map8 depicts2015CAF-IIfundedbroadbandruralareas (showninblue)forWilsonCountyandsurrounding regions.CAF-IIfundinginTennesseewasawarded toISPsAT&T,CenturyLinkandFrontier.AT&T wasWC’sprimaryCAF-IIfundedISP.

residentsimprovetechnologyliteracy56

The2017broadbandInternetlegislationimpactedWilsonCountythroughafirstround fundedISP-DTCCommunications,whichreceived $1,725,000fromthebroadbanddevelopmentprogramtoservepartsofSmithandWilsoncounties. Supportedbythegrant(whichrequiresmatching fundsfromtherecipient),DTCannouncedplansto extenditsfiberopticserviceareatounderservedareas,includingpartsofWCnearWatertown57

USDA’sReConnectLoanandGrantProgram

Map8: CAF-IIBroadbandBuild-OutCommitments inWilsonCountyTN,August2015

Source:FederalCommunicationsCommission

TennesseeBroadbandAccessibilityAct

AcomplementarymeasuretotheConnectAmericaFund,Tennesseestategovernmentannouncedin 2017legislationtoincreasebroadbandaccesstoTennessee’sruralpopulace.TheTennesseeBroadband AccessibilityActof2017,provides$45millionover threeyearsingrantsandtaxcreditsforISPstoassist inmakingbroadbandavailabletounservedhomes andbusinesses.Theplanalsoprovidedsupportto Tennessee’sprivate,nonprofitelectriccooperatives toprovideretailbroadbandserviceandmakegrant fundingavailabletothestate’slocallibrariestohelp

InMarch2018,CongresspassedtheConsolidated AppropriationsActof2018,whichestablishedanew broadbandloanandgrantpilotprogram,nowcalled theRuraleConnectivityPilotProgram(ReConnect Program).TheActappropriatedabudgetauthorityof$600,000,000tobeusedonanexpeditedbasis.TheReConnectprogramisaresultofPresident Trump’sInteragencyTaskForceonAgricultureand RuralProsperityestablishedinApril2017toidentify legislative,regulatory,andpolicychangesthatcould promoteagricultureandprosperityinruralcommunities.TheReConnectProgramoffersuniquefederalfinancingandfundingoptionsintheformof loans,grants,andloan/grantcombinationstofacilitatebroadbanddeploymentinareasofruralAmerica thatdon’tcurrentlyhavesufficientaccesstobroadband.

Interestingly,USDA’sReConnectprogramdefines“broadband”as10Mbpsdownstreamand1 Mbpsupstream(10/1),differentfromtheFCC’s 25/3definitionofbroadband.Theapparentendresultofthisaccessspeeddisparityistoreducethe numberofgeneralqualifyingregionsintheU.S.so astobetterfocusonruralareaswiththegreatest publicITinfrastructuredisadvantages.

Includedamongthefirstroundoffoursuccessful awardeesinTennesseewasaproposalsubmittedby UnitedCommunicationsInc.requesting$3,287,500 infundingtodeployafiberbroadbandnetworkinruralWilson,Rutherford,WilliamsonandMaurycounties.Thetotalfundedserviceareasoftheaward include2,716households,andonecriticalcommu-

LabrySchoolofScience,Technology,andBusiness 37
56 “Gov.Haslambroadbandplanoffers$45Mingrants,incentives”, Tennessean,January26,2017 57 Seehttps://tnecd.com/news/haslam-rolfe-announce-nearly-10-million-in-grants-through-the-tennessee-broadband-accessibility -act/Seealso,https://www.lebanondemocrat.com/article/utilities/

nityfacilityspreadover48squaremiles.Thetotal projectcostis$6,575,000,whichincludes$3,287,500 inmatchingfundsfromtheMTEMC-UnitedPartnership.TheWilsonCountyportionofthegrantaward isdepictedinMap9andincludes445households (about1,125residents),encompassingabout10.79 squaremilesofthecounty.ThenewfiberinfrastructuremaybeinplaceasearlyasSpring2121ofnext year58

establishedcooperativebroadbanddevelopmentprogramstoencourageISPstoexpandtheirhighspeed serviceareasintorurallocales.WilsonCountyhas participatedinsuchprogramsandwillundoubtedly continuetodosointhenearfuture.

PhysicalEconomy’sITPull

Publicsubsidiesaside,WilsonCountyisfortunateto possessresourcesandcircumstancesthatwillhelp drivethedevelopmentofitslocalpublicITinfrastructure.

WhiletheInternetisapowerfuleconomicengine initsownright,onecannotignoretheequallyimportantroleoftheInternetinhelpingtofacilitate physicalcommerce.Inthenation’straditionaleconomyinvolvingthemanufactureanddistributionof physicalgoods,physicalsupplychainsmustexistin ordertobringmaterialsandpartstothefactoryand thentodistributefinishedgoodstoendmarkets.

Map9: USDAReConnectGrantAwardinWilson County,2020

Source:U.S.DepartmentofAgriculture

CurrentandFutureOutlook

InternetserviceinWilsonCountyisevolvingona parwiththerestofthecountry.Peopleandbusinessesresidinginthecounty’sgrowingurbanareas, LebanonandMt.Julietinparticular,areoffereda varietyofbroadbandInternetservicesfromwhichto choose.Thereare,however,someservicingissues, fiberInternetavailabilityforone,whichallsuburban/ruralcountieslikeWCmustcontinuetowork on.

SinceISPsusuallyoperateasfor-profitentities,it isnotsurprisingthattheywouldchoosetofirstinvest in“lowhangingfruit”areas,i.e.,denselypopulated urbancenterswithconcentrationsofpotentialcustomers.ThereissomeunderstandableISPhesitation ininvestinginmoresparselypopulatedareaswhere thereturnoninvestmentislesscertain.Fortunately, governmentagencies-local,stateandfederal,have

Thenation’ssupplychainindustries,especially warehousingandtransportation,areundergoingmajorIT-basedstructuralimprovements,incorporatingsuchgame-changingemergingtechnologiesas GPS,RFID,inventorydrones,autonomousvehicles, etc.Thesenewtechenhancementstophysicalsupplychainsareradicallyempoweringthedownstream physicalflowsofrawmaterials,parts,andproductswithcost-reducingadvancedupstreamdataand communicationscapabilities.

WilsonCountyisastrategicallyimportantmidtransitlocationandfacilitatoroflargesupply chains59 inthenation’sphysicaleconomy.Hence, thecountyisamajorregionaldrawtoITcompanies andInternet/cloudserviceprovidersthatprovidesupporttoevolvingnationalandglobalsupplychains.

Notably,itisthecustomerendofcorporatesupplychainsthatiscurrentlyundergoingthegreatest technologicalchange. “E-commerceretailhasbecomethefastestgrowingtradesectorandhasoutpacedeveryothertradeandmanufacturingsector since1999Astechnology,e-commerce,andglobalizationbecomemoreintertwined,buyersandsellers areincreasingtheirconnectivityandthespeedwith whichtheyconductsalestransactions.” 60

38 Spring2020WilsonCountyTrendsCumberlandUniversity
58 Sources:U.S.DepartmentofAgriculturenewsrelease,February13,2020,Arcgis.com,and“USDAlookstoboostcounty’s ruralInternetwith$3.3Mgrant”,p.1,February18-19,2020, LebanonDemocrat 59 See,forexample,“WilsonCounty’sSupplyChainIndustry,” WilsonCountyTrends,Spring2019,pages14-19. 60 “Economicimpactofe-commerce”byChrisG.Christopher,Jr., SupplyChainQuarterly,CSCMP,November2019

ThesupplychainindustryintheU.S.iscurrentlyallabuzzconcerningconsumerfulfillmentcenterswhicharecurrentlyundergoingmajortransitions tolargersizeandincreasingelectroniccapacityand sophistication61 .ThesesupplychainindustrydevelopmentsplaytoWC’sstrengthsinregardstoavailableopentractsoflandneededtoaccommodatethe increasingsizefootprintsoffuturefulfillmentcenters locatedstrategicallyalongsidemajorinterstatethoroughfares(e.g.,I-40).

WilsonCounty’scityofMtJulietpromotesitself as“CitybetweentheLakes”,areferencetothelocaltopography.Well,notingthephysicaleconomic importanceofInterstate40whichcrisscrossesWilsonCounty,ANDthegrowingdigitaleconomicimportanceofWC’sevolvingbroadbandInternet“electronichighway”,mightanappropriate21stcentury monikerforWilsonCountybethe“CountyBetween theHighways”-onephysical,theotherelectronic?

Therapidgrowthinelectronicconsumertransactionsofphysicalgoodsisincreasingthephysical demandforsupplychaindistributionlogistics,which inturnisincreasingthedigitalbusinessdemandfor informationtechnology,cloud-basedplatformsand Internetservices.Thiseconomictiebetweenthenation’sphysicalanddigitaleconomieswillhelptodrive thedevelopmentofWC’slocalITindustryandpublic ITinfrastructure.

AppreciationandThanks areexpressedtoCUfacultyandstaff,aswellasotherindividualsandorganizations fortheirgeneralsupportandformaterialsusedinthisreport.Inparticular,wewouldliketothankthe TennesseeDepartmentofEconomic&CommunityDevelopment,TennesseeDepartmentofRevenue,Middle TennesseeElectricMembershipCooperative,UnitedCommunications,AT&T,TDS,WilsonCounty,Cityof Lebanon,CityofMtJuliet,andtheWatertownChamberofCommerce.

TheLastWord

ThreebeggarsarebegginginMetropolis.Thefirstonewrote“beg”onhisbrokensteelcup.Afteroneday hehadreceivedtenbucks.Thesecondonewrote“beg.com”onhiscup.Afteronedayhehadreceived hundredsofthousandofdollars.SomeoneevenwantedtotakehimtoNASDAQ.Thethirdonewrote “eBeg”onhiscup.BothIBMandHPsentvice-presidentstotalktohimaboutastrategicallianceand offeredhimfreehardwareandprofessionalconsulting.LarryEllisonclaimedonCNBCthateBeguses95% Oracletechnology.i2announcedbegTradeMatrix,ab2bindustryportaltooffersupplychainintegrationfor thebeggar.AndCiscojustannouncedthatvirtuallyalleBegtrafficrunsovertheirequipment.

LabrySchoolofScience,Technology,andBusiness 39
61 “HowEcommerceisTransformingToday’sSupplyChain,” RakutenSuperLogistics,October9th2019

WilsonCountyTrends

ACumberlandUniversityPublicationfromthe LabrySchoolofScience,Technology,andBusiness

1CumberlandSquare LebanonTN,37087

ListofFigures,Maps,andTables

RecentTrendGraphs

FigureR1-NumberofBusinessEstablishmentsbyIndustryinWilsonCountyTN,2017vs2018....................3

FigureR2-AverageWeeklyWagebyIndustryinWilsonCountyTN,2018.........................................3

FigureR3-TotalPersonsEmployedinWilsonCountyTN,2018..................................................4

FigureR4-TotalRetailSalesbyCategoryinWilsonCountyTN,2018............................................4

FigureR5-MonthlyRetailSalesinWilsonCountyTN,2018......................................................4

FigureR6-MonthlyAutos,Boats&AircraftSalesinWilsonCountyTN,2018....................................6

FigureR7-MonthlyRetailSalesbyCategoryinWilsonCountyTN,2018..........................................6

FigureR8-UrbanvsRuralBroadbandCoveragebyMediaTypeinWilsonCountyTN,2017......................30

FigureR9-NumberofISPsServingWilsonCountyTNResidentsbyAccessSpeed,2017..........................30

HistoricTrendGraphs

FigureH1-NumberofEstablishmentsbyITIndustryTypeinWilsonCountyTN,2008-2018.......................9

FigureH2-AverageWeeklyWagebyITIndustryTypeinWilsonCountyTN,2008-2018..........................10

GuestArticleGraphs

FigureG1-MarketSegmentation...............................................................................15

FigureG2-SWOTAnalysis....................................................................................16

FigureG3-MarketingBudget..................................................................................16

FigureG4-TopChannels......................................................................................18

FigureG5-GoogleAnalytics...................................................................................19

Maps

Map1-WilsonCountyTN2010CensusTracts.................................................................25

Map2-NumberofFixedBroadbandProvidersinWilsonCountyTN,2017.......................................27

Map3-NumberofADSLandCableBroadbandProvidersinWilsonCountyTN,2017............................27

Map4-NumberofADSLBroadbandProviders(Enlargement)inWilsonCountyTN,2017........................28

Map5-NumberofFiberBroadbandProvidersinWilsonCountyTN,2017.......................................28

Map6-NumberofFiberBroadbandProviders(Enlargements)inWilsonCountyTN,2018........................29

Map7-RuralLocationsEligibleforCAFIIFundinginWilsonCountyTN(darkareas)............................36

Map8-CAF-IIBroadbandBuild-OutCommitmentsinWilsonCountyTN,August2015..........................37

Map9-USDAReConnectGrantAwardinWilsonCounty,2020..................................................38

Tables

Table1-No.ofEstablishmentsandEmployeesbyITIndustryTypeinWilsonCountyTN,2008vs2018...........10

Table2-AverageWeeklyWagebyITIndustryTypeinWilsonCountyTN,2008vs2018.........................11

Table3-Who’sWhoinWilsonCountyTN’sITIndustry,2019..................................................13

Table4-NumberofISPsinWilsonCounty,TNbyAccessTechnologyType,2019................................31

Table5-WilsonCountyBusinessInternetServiceProviders,2019................................................35

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