The City Council voted 8-0 on Tuesday night to approve a $210 million Fiber-To-The-Home venture by EPB.
Councilman John "Duke" Franklin was absent.
The EPB board is expected to approve a bond issue for the program at its meeting next month, and the City Council must also approve the bond issue before it is launched.
The city-owned agency plans to install a fiber-optic network throughout its service area over five years and go into the cable TV business.
EPB officials said the service will be cheaper and much faster than the current Comcast service.
Comcast is fighting the proposal. A state cable TV group has filed suit to block the EPB venture.
EPB President Harold DePriest said the firm's plan is not illegal because he said it will not use electric system funds to pay off bonds.
He said EPB is confident that costs will be covered by sales of cable TV and Internet service.
Mr. DePriest said opponents of the plan were trying to slow down the process. He said that would drive up costs for EPB and allow the local cable firm to retain its customer base here longer.
One option available to the City Council would have been to call for a referendum. EPB officials said that would have slowed up the process by about two years. They said they have been getting overwhelming support in surveys.
The Tennesssee ISP Association sent a letter to the city earlier Tuesday expressing its opposition to the EBO plan.
Ken Russell, TISPA president, said the model being followed by governments going into the broadband business was proving unworkable with losses to the government agencies that get involved as well as forcing out private firms.