said by jmck:
again it's benefitting them to say it's not being sold at a loss. assuming it is then it's likely being sold at an even cost which isn't proving anything.
At $70/month with no speed guarantees, I think it is pretty safe to conclude that they will eventually be making a fair profit on it. Similar service in Hong Kong costs as little as $35/month and in Japan you can have it for ~$50/month in some areas.
As far as KC "funding" Google Fiber, the only conditions Google had were free access to easements and the city generally staying out of Google's way. Local incumbents did try to have GF shut down by saying free easement was an unfair advantage.