I am interested to see how this project proceeds. The article mentioned that the service will be built in conjunction with the city, suggesting a Public Private Partnership (PPP). Previous efforts with using PPPs to build municipal broadband services have faltered in conflict (lawsuits alleging anticompetitive activities) with the incumbent providers.
This happened in Philadelphia, IIRC, and more recently in North Carolina. http://arstechnica.com/tech-policy/news/2010/11/the-price-of...