The LUS Fiber network owned by the city of Lafayette, Louisiana, was profiled in this nine minute video from the FTTH Council Conference. LUS Fiber has been an inspiring network - overcoming tremendous opposition from Cox cable and AT&T (formerly BellSouth). It has long offered what I consider to be the best deal in broadband in the nation - $28/month for 10Mbps symmetrical.
And it has been incredibly innovative -- offering 100Mbps to all in-network transfers. So if my buddy and I are on opposite sides of town and only pay for the most basic connection, we can transfer files between each other as though we were on the same local network in our houses. This idea is being copied by other communities as well.
Access to tax-exempt financing does not begin to explain the sizable rate differences between municipal and private cable providers. It explains only about one percentage point of the 20, 30, or 40 percentage points that private cable rates were above those of municipal systems.