By Lewis Loflin
In July 2012, CenturyLink received $2.1 million from the Federal Communications Commission’s Connect America Fund to expand broadband access to approximately 2,000 residents in Southwest Virginia. The initiative aimed to address connectivity gaps, with the FCC estimating that 744,000 Virginians lacked broadband service at the time. WJHL.com, July 26, 2012
This followed over $150 million in regional broadband investments since 2000, including $120 million from the Virginia Tobacco Indemnification and Community Revitalization Commission. Bristol Virginia Utilities (BVU) led efforts through its OptiNet division, promising high-tech job growth to reduce poverty. Yet, by 2012, measurable economic impacts remained limited, with employment centered on low-wage sectors like retail and call centers.
In August 2012, DialAmerica announced plans to hire 100 part-time workers at its Gray, Tennessee, facility, supporting fundraising for nonprofits and customer service for financial and travel clients. The company held open houses on August 7 and 14 at its KLM Drive location, encouraging applications via www.dialamerica.com/careers or contact with Donna Cody (johnsoncityrec@dialamerica.com, 423-283-4759).
Regional call center wages in 2012 averaged $8–$10 per hour, often without benefits, falling short of a living wage. Despite expectations that broadband subsidies would attract high-tech industries, call centers dominated Tri-Cities’ job growth. These roles frequently involved high turnover and limited career advancement, offering little relief for the working poor.
Public investments in broadband were intended to diversify Southwest Virginia’s economy, moving beyond traditional sectors like manufacturing and mining. However, substantial subsidies to telecom providers and businesses often supported existing low-wage industries. Call centers, benefiting from tax incentives and grants, expanded in areas with low labor costs, reinforced by local policies favoring business over wage growth.
By 2012, the region’s $150–$200 million in broadband spending had not produced significant high-tech employment. Instead, companies like DialAmerica leveraged infrastructure to establish or expand call centers, competing with other communities for contracts. This dynamic sometimes led to job displacement, as firms relocated to areas offering greater incentives, leaving wages stagnant.
BVU sold OptiNet to Sunset Digital in 2016 for $50 million, reducing debt but ending its telecom role. Now a city utility (electric, water, sewer), BVU no longer drives broadband initiatives. Virginia’s $1.48 billion allocation from the Broadband Equity, Access, and Deployment program (2024) has improved connectivity, yet job trends remain unchanged. The Virginian Review, July 26, 2024
[](https://virginianreview.com/271257/)In 2025, Tri-Cities’ economy relies on retail, hospitality, and call centers, with wages averaging $12–$15 per hour. High-tech jobs constitute less than 1% of employment, and counties like Washington and Sullivan have seen 2–5% population declines since 2010. While broadband access nears universal coverage, its economic promise—high-paying, stable jobs—remains elusive.
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
Southwest Virginia’s broadband investments highlight a disconnect between policy goals and outcomes. Funds intended to foster innovation often supported industries requiring minimal infrastructure, like call centers. Limited oversight of subsidy use and a focus on connectivity over job quality contributed to this trend. As federal and state programs continue, balancing access with economic development remains a challenge.
Originally posted August 2012. Updated April 15, 2025.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting with drafting and refining this article. The final content reflects my own analysis and edits.
