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Surprised Utah of all states supporting a community owned enterprise

Not me. Because of Mormonism, I'd bet Utah simply has more community than most other places.

We have a decently well run state government here.

Municipal ISPs are banned in cities with populations over 50k by the state of Utah so it's not that great.

Is there an actual practical reason for this that would explain it or is it just lobbying?

Most places in the valley already have Google Fiber and it's still expanding, if that's valuable information to you.

Google is barely better than anyone else in the market. Don’t treat them as your friend.