Mayor Bob Corker announced a major development in his digital vision for the city of Chattanooga today - a new high-speed Internet connection operated as a non-profit public-private entity.

MetroNet will provide super-speed Gigabit Ethernet (Gig-E) connection to the Internet for businesses in the downtown and Southside, the mayor said at a news conference at City Hall.

MetroNet is a venture by Mayor Corker’s office and EPB, "bringing state-of-the-art, Gig-E service to businesses in Chattanooga."

He said MetroNet’s Gig-E service will provide businesses with nearly six times greater speed than what is currently available in the Chattanooga market (via DSL or T1 lines). Gig-E service is currently available only in about 20 major cities nationwide, including New York, Chicago, Dallas and Washington, D.C., it was stated.

There was criticism of the move by Patsy Hazlewood, BellSouth district manager, who said it unfairly competes with the private sector.

She attended the press conference and spoke up at one move, saying BellSouth and others already offer Gig-E service in Chattanooga.

Mayor Corker said the new service will offer much lower prices and be a strong economic development tool for the city. He said, "For us to have all these assets and not use them for the benefit of taxpayers and the community would be a shame."

Ms. Hazlewood, who is also a Chamber of Commerce leader, said the new group can offer lower prices because it is "subsidized."

The mayor said officials of MetroNet are in talks with another data firm, U.S. Lec on possibilities he said could benefit the private firm.

Mayor Corker said, “MetroNet’s connections immediately advance Chattanooga’s broadband capabilities years ahead of other cities our size. MetroNet is a major economic recruiting tool that will attract out-of-town businesses to Chattanooga, as well as increase business productivity for existing companies in our city.”

Officials said MetroNet’s low-cost broadband connection "is the result of a unique public-private partnership aimed at stimulating economic growth through technology. Capitalizing on the abundant amount of fiber optics available in Chattanooga, Mayor Corker’s digital vision for the City has been built upon by EPB. Originally, EPB provided the city with a fiber optic network circling the central business district and agreed to connect business customers in these targeted locations for economic development purposes."

Chattanooga-headquartered CoVista and its chairman, Henry Luken, have made significant contributions to the venture, including the donation of switching devices to be installed inside customer buildings, the provision of support services and seed capital, it was stated. Mr. Luken was at the press conference and is on the board of the new group.

The mayor's office said that together with the seed capital from UTC and economic development organizations, the City has significantly reduced the expense of connecting businesses to the fiber optic ring, often known as “the last mile.”

The City of Chattanooga, Chamber of Commerce and River City Company "will feature MetroNet as a selling point for attracting out-of-town businesses that rely on large amounts of broadband access and yield high-tech jobs. Now fiber optics and MetroNet’s broadband access service are more accessible and cost-effective for businesses with large computing or digital needs wishing to capitalize on the benefits of these technologies," the mayor's office said.

“Fiber optic lines throughout the country are going unused and lying dormant,” said EPB Board of Directors Chairman, Joe Ferguson. “Through MetroNet, Chattanooga is able to capitalize on the fiber resources and expertise that EPB has in place to make our City more attractive to the types of companies we would like to recruit to do business here.”

MetroNet will offer its super-speed Gig-E connectivity service at rates that are approximately 50 percent less than other services currently available in Chattanooga. Through MetroNet, businesses that compute large amounts of data and digital images are provided service at more than six times the speed of a T-1 connection. Local Internet providers will be able to offer value-added services to MetroNet customers, including website hosting and design, e-mail, and security, a press release said.

Amy Walker Cherry of the mayor's office said the group hopes to line up five major firms and 79 smaller ones in its first year.

She said it is not for every company, but will especially help firms that deal with a lot of data at high speed, including web hosting companies.

Mr. Luken said the line will be able to move data "the same speed in both directions."

Chattanooga as the only city of its size in America competitive with major technology hubs like Austin, Silicon Valley, Boston, and Atlanta, it was stated.

“Through the great partnership with EPB and Henry Luken, we now can use MetroNet as an economic tool to draw businesses that are looking for a presence in the Southeast to our city, especially technology companies,” Mayor Corker added. “These companies bring with them great, high-paying jobs for citizens of our community.”

MetroNet is a non-profit organization offering 10 Mbps connectivity at $425 per month and 100 Mbps connectivity at $4,000 per month. It is governed by a Board of Director’s consisting of Mayor Corker, Ms. Cherry, Mr. Luken, Harold DePriest, Bill Chapman, Dr. Bill Stacy, Donna Williams, Matt Huggins, Kim O'Leary, Billie Queen, Dr. Thomas Zacharia and Dr. Linda Fletcher.

The service is expected to be available to companies along its service area in the downtown business district in July.

For more information call 423-648-MNET (6638) or visit MetroNet online at www.chattanoogametronet.com.

Patsy Hazlewood meets the press after mayor's news conference.
- Photo2 by John Wilson