The municipal broadband provider in Chattanooga, Tennessee is now offering 10Gbps Internet service for $299 a month.

The Electric Power Board (EPB) of Chattanooga already offered 1Gbps downloads and uploads for $70 a month. The 10Gbps symmetrical service announced yesterday is available to every home and business in the utility's 600-square-mile service area "with free installation, no contracts and no cancellation fees," EPB's announcement said.

EPB is fighting a state law that prevents it from expanding its Internet service to surrounding communities. EPB asked the Federal Communications Commission to preempt the state law that limits municipal broadband projects, and the FCC did so. However, the state of Tennessee is fighting the FCC ruling in court in order to preserve its anti-municipal broadband law.

Comcast, which unsuccessfully sued EPB to prevent it from building the fiber network in April 2008, eventually upgraded its service in Chattanooga to better compete against EPB. Comcast in April said it would offer 2Gbps fiber-to-the-home service in Chattanooga. Comcast's service costs $300 a month, with fees of up to $500 for installation and $500 for activation. However, Comcast is offering promotional pricing of $159 a month that lasts for three years in Chattanooga and other cities.

EPB is one of the first municipal broadband providers to upgrade speeds from 1Gbps to 10Gbps. The city-run Fibrant in Salisbury, North Carolina, announced its 10Gbps move last month, saying it would cost about $400 a month.

EPB said it is using Alcatel-Lucent’s TWDM-PON technology to make the 10Gbps speeds available over fiber. The provider is also making 3Gbps, 5Gbps, and 10Gbps business products available at varying prices.