Tenn. Comp. R. & Regs. 1220-04-06-.04 - DEPLOYMENT SCHEDULES

(1) In order to develop rational deployment strategies for each of the service capabilities, counties are classified according to their demographic characteristics as urban, suburban or small urban, and rural. Under the Plan, the various service capabilities are to be deployed as follows:

(a) Full deployment of intelligent network capability (CCS#7) in the five urban counties in 1991, and in the rest of the State by 1993.

(b) Deployment of ISDN in 1991 in the urban areas, moving to full deployment by 1998. In the suburban counties, deployment will start in 1993 with rapid initial buildup and full deployment by the year 2000. Similarly, deployment will start in rural counties in 1994 with a rapid initial buildup, leading to full deployment in the year 2000.

(c) Offer broadband capability in the urban counties starting in 1995, in suburban counties starting in 1997, and in rural counties starting in 1999. In all cases, broadband is planned to grow slowly at first, reaching 10 percent penetration in the urban areas, 5 percent in the suburbs and 2 percent in the rural areas by the year 2000.

(2) These deployment schedules are designed to require additional expenditures by the telephone companies that do not fluctuate too much from year to year. The total additional cost over the ten- (10) year period is just under $400 million, with the highest cost, close to $100 million, incurred in 1991. Translating these into estimates of revenue requirements, the increase fostered by the Master Plan is an average of about $50 million per year, ranging from $27 million in 1992 to $67 million in 1999. These cost increases represent an approximate eleven and one half percent (11.5%) increase in capital expenses and a four and three quarter percent (4.75%) increase in revenue requirements over the life of the Plan. These estimates do not reflect any of the operational savings or new service revenues which will flow from accelerated deployment.

(3) Not included in the costs is a plan to deploy fiber interoffice trunks to all wire centers serving more than 1,000 access lines by 1993, and to all wire centers by 1995. Although not needed for the service capabilities defined above, this deployment will allow provision of broadband private line services to every county in the State by 1993 and to every wire center by 1995. It is expected that the additional costs of this deployment will be small since a great deal of added fiber trunk capacity is already included in current plans.

Notes

Tenn. Comp. R. & Regs. 1220-04-06-.04

Original rule filed August 3, 1992; effective September 17, 1992.

Authority: T.C.A. §§ 65-2-102 and 65-4-104.