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How can the infrastructure be built for free? Volunteer labor and donated capital?

He means without subsidizing from the government. EPB would cover the CapEx

EPB is owned by the government of Chattanooga, TN.

But makes a profit and would fund the expansion with its own money, not tax payers'.

My takeaway from this is that Comcast and AT&T will be paid $45m by the government to develop the infrastructure.

Whilst this EPB company will invest their own money for the infrastructure.