This article reports on a financial study that suggests community broadband projects could cut telecom and cable TV costs in a community by up to 48% because of increased competition. This is a pretty compelling reason for a community to invest in broadband--everyone saves money. The article also indicates that telcos and cable companies could benefit from community broadband because they could reach more customers more quickly.
And that is exactly the point. I'm not a fan of "pure muni" buildouts, where the local government picks one telephone provider, one TV provider, and one Internet provider and then resells those services. In the fast moving telecom/broadband services market, do you really think government bureaucrats are able to pick the winners in the marketplace for the next ten years?
I couldn't do it, and I don't think too many others could either. A better option is for the community to build and operate a digital roadway and transport system that lets any qualified service provider sell services, and to let the buyers of services figure out who offers the best deals.
And those cost savings? If you extend the cost of telephone, cable TV, and Internet services over twenty years, it turns out your community will save, depending on size, anywhere from tens of millions to hundreds of millions of dollars. All that money can then be used for other purposes in the community, like business expansion and new jobs, rather than stuffing it in envelopes every month and sending not only out of the community but out of the state.