Memphis's solution to the next big digital divide

What if there was a way to encourage fiber upgrades to those communities without direct government expenditures? Internet service providers (ISPs) have often complained that cities put up barriers and add costs to fiber deployment; what if cities reduced or removed those enough to change the economics and induce new fiber builds? That is exactly what Memphis (TN) has done. Only 24% of Memphis households have access to fiber, largely from AT&T. There is little indication that AT&T will expand that, leaving 76% of the city reliant only on Comcast for wired broadband. To address that divide, the city recently passed an ordinance creating incentives for private investment in fiber, so long as the investor builds in low-income areas as well as more affluent ones. The primary incentives involve waiving future right-of-way fees and expediting city processes. Based on the proposed ordinance, the city already has one private investor willing to commit to expanding fiber access to 85% of Memphis households, including a full investment in low-income areas. The city also anticipates that the effort will lead to a range of partnership arrangements among the city, philanthropy, the business community, and the new ISP to increase adoption—and therefore revenue—in low-income areas. Not only would this be a plus for the residents and the ISP, but the city anticipates the effort will also help transform city communications, public safety communications, and public services.