Rules & Regulations of the State of Tennessee
Title 1220 - Tennessee Public Utility Commission
Subtitle 1220-04 - Division of Public Utilities
Chapter 1220-04-06 - Ten Year Master Plan for Technology Deployment by Telephone Companies
Section 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:

(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.