Didn't Verizon do something like this in Pennsylvania? I remember people here whinnying and whiny about it. I thought I would never hear the end of it but I guess I have.
PA set a mandate for its largest telcom providers that they must have 100% broadband coverage 1.5Mb/s. Verizon and Embarq by 2010, others by 2011. They gave tax breaks = to the cost in 2006 to finance it.