Meanwhile, EPB, the electric utility in Chattanooga, recently secured a $26-million loan to fund triple-play services over its existing FTTP network. Like CDE Lightband, EPB helps justify the cost of fiber deployment by using the network initially for remote meter-reading. EPB expects to complete the network upgrade for telecom services this summer, launching service early next year. Its goal is to reach 80% of its utility customers in three years and all 167,000 of them in five years. And its plan assumes a 35% to 45% take rate.

AT&T may avoid those muni fiber markets for a time, said Teresa Mastrangelo, principal analyst with BroadbandTrends.com, citing the bandwidth disadvantage of the carrier’s FTTN architecture relative to FTTP. “Consumers in those markets are likely to stick with their local operator, plus they have the added benefit of FTTH rather than FTTN,” she said. “However, like all consumer products, price will be a factor, and if AT&T should offer U-verse in some of these markets, they might offer a bundle of services that are too good to be true, particularly with the wireless product bundled in.”

A spokesperson for EPB said that company hasn’t ruled out an eventual wireless bundle, either, and pointed to the superior bandwidth of FTTP as an important differentiator.

AT&T declined to estimate when it might launch services in any particular market.