"Recent reports estimate that those numbers have risen to over 65,000 residential customers and about 5,500 commercial customers so far in 2015.48 This represents about a 45 percent share of the local residential market for broadband, video, and telephone service. 49 Despite being available to all potential customers, only about eight percent – or fewer than 5,500 – of residential customers that purchase Internet access subscribe to its signature gigabit service.5"
This venture is only 5 years old(2011) and the bond has a maturity length of 25 years! Lastly only 162 million out of the bond issue was used to build out the fiber network, the rest was used to build a smart grid.
I think in such a situation I would perhaps try to play on people's pride and make an emotional appeal.
And/or sell equity to customers. Some are happy to hold part of an enterprise they believe in, and will accept submarket returns. Come to think of it, a cooperative wouldn't be too different.
The source of the funding is a bond, not a subsidy from the power company.
In 2014, the GON increased its revenues from $80.7 million to $99.9 million.53
Revenue from Internet access sales in particular saw a net increase of about $17 million,54 much of which was due to residential customer growth.55 Overall, residential services accounted for two-thirds of EPB Fiber’s revenues in 2014.56 Expenses and transfers to the city of Chattanooga totaled $84.7 million.57"
This sounds OK to me, what am I missing?
Why is it important that their electricity monopoly subsidized anything? How is that any different than any other new enterprise that has gotten funding from a VC? You don't hear anybody criticize that some star up is only possible because they got money from an investor. How is the source of funding relevant?