That example doesn't apply here. The utility covered the cost by selling bonds. Municipalities use bonds to fund the building of toll roads and other long term projects without tax dollars.
Of course, internet service is a utility and so should be underwritten by the state, just like other critical infrastructure with benefits shared by all, so the point about mispricing risk--while valid--is a critique of government-run projects generally, but no more applicable here than in the building of bridges and roads.