I wonder how they set this up w.r.t regulations. I was under the impression the process to setup an ISP involved a mountain of red tape. Did they get away with it because they are a non profit?
There's very little red tape involved in starting as ISP in the US. The red tape starts up to 6 months in when you hit the bi-yearly FCC Form 477 filing, though I'd say the majority of (w)ISPs are flying under the radar by simply never filing.
If you even think about offering voice services (even VoIP), then you get buried in paperwork.