World Airwaves will pay the city a $10,000 franchise fee plus 20 percent of subscription revenues. The arrangement is similar to the deals municipalities strike with cable companies, said Jim Barnes, Harrisonburg's assistant economic development director for technology.

Private Internet providers have occasionally opposed government-operated broadband service. A spokeswoman for Verizon, which offers broadband service in Harrisonburg, said the company prefers private-public partnerships. "This isn't the city building one on their own. They've gone out and sought private partnership," said Christy Reap of Verizon.