Also, fiber would probably be pretty cheap once the infrastructure was already in place. A single phase overhead power line is often provided for free to new homes and underground service runs about $3.50/foot so I imagine fiber would be similarly cheap.
http://www.lincoln-twp.org/forms%20policies/New%20Water%20Co...
$2,520 is what they charge for water; not sure what it is for wastewater - they may not have a public sewer system - but it's about $3,500 where I live. It used to be $150 (seriously, not a typo) and people got really upset when they raised it by a few thousand dollars all at once a few years ago.
I guess it's not a very densely-populated area and the state is surrounded by water so that might explain why it's so cheap.
https://arstechnica.com/business/2015/08/how-a-small-city-of...
Assuming the city can get a 4% bond, and depreciates the asset over 20 years, about $27 of that $40 goes just to depreciation and interest.
That cost is actually fairly typical. What isn't typical is an 83% uptake rate. Average for municipal providers is about 54%, and average for private FTTH providers like Verizon is 30-35%. If your uptake rate is 35% instead of 83%, your monthly cost in depreciation and interest alone jumps to $64. That's before the cost of bandwidth, maintenance, customer service, etc., which typically eats up about half the monthly bill.
And given that most providers will make you pay to run a line to your house, you don't exactly have a leg to stand on
Also, nobody advocating for "treating telecom like a utility" is actually advocating for that. Try looking up the cost of a county water/sewer hookup sometime. It's not free, and your $50/month water bill doesn't pay for it. I'm paying off a $30,000 bill to get "public utility" water and sewer access. That's pretty typical.
If we required every house builder to pay thousands of dollars up front to install fiber people would be frothing at the mouth.