On July,19 2005 the Palo Alto City Council voted to put the city funded FTTH project on hold. " and encourage staff to track
the progress that other municipal utilities make in
financing similar or related projects." At the time, there were ~80 subscribers receiving 100 Mbps service at $85/month. On July 26, "The council voted 5-1 to have the city staff
study partnering with a private company to provide high-speed Internet
access, telephone service and cable television to residents and
businesses.
The move came despite a "near certainty" warning that the city would likely be sued if the city built such a network."
The considerations for these actions seemd to be financial as the technical aspect of the project worked well.