Starting a small ISP based out of extreme dissatisfaction with huge, evil incumbents is something that I encourage any plucky upstart to do. If you don't like Comcast, Charter, RCN, etc, if you have sufficient clue, go do it yourself. Just don't try to do it with $20,000 and some good wishes, because something with much deeper pockets like Webpass will come along and obliterate you.
The point that I am rather bluntly trying to get across to these folks is that if they're going to invest significant amounts of their personal time/engineering resources into it (unpaid labor?), that they should treat it like a serious business and not a nonprofit. Raise sufficient funds, somewhere in the $500,000+ range to start, to build a network that actually does meet five nines through sufficient diversity in topology and routing.
Compared to random YC companies that seem to raise $1m to $5m to do some vaguely defined web2.0 SAAS thing, the amount of money that a group of people need to raise to build the core of a serious ISP is not huge. Elsewhere in this thread I threw out a figure like $750,000 in beginning CapEx if they're serious. For some good reasons, however, it's easier to get $5m of series A funding from a VC for a pure software development business than a wholly-owned-facilities-based startup ISP.
Even if you completely ignore things like colocation costs, IP transit costs, IX/peering costs, office rental, office utilities and overhead, running a serious ISP with live, clued in humans watching the network takes a lot of money per year for salaries.
3 to 5 NOC persons for 24x7x365 NOC phone coverage. At a certain point if you peer with the big boy ASNs they will expect a live human to answer the phone at 3am when something unusual happens in traffic between your mutual networks. That live human needs to be somebody who has the equivalent of 'enable' on your peering router and sufficient clue to wield it.
2 network engineering/architecture positions, multiply by expected fully loaded yearly salary and benefits package for each person.
at least 2 field technicians
vehicles, vehicle insurance, tools for technicians
At NYC salaries? In a greenfield scenario, I could easily spend $900,000 a year in just payroll and benefits, just to begin to attempt to duplicate what some other serious ISPs already have in place for manpower.
And again that is before you spend one dollar on equipment.