some might call that government
some might call that government
Most of the problems with modern government can be understood as a case of severe feature creep.
If that statement stopped holding true (as it sometimes does in the real world, with block associations that are compulsory) then yes I'd say it's equivalent to government in all the important ways.
That generally doesn't work out very well. If the incumbent keeps half the customers, the cooperative then has almost all of the same expenses but half as much revenue. And so does the incumbent. So costs per customer are double until one of them goes out of business.
This is what's happening now in the areas that have a legacy telephone company and a legacy cable company. The telephone companies have essentially given up on upgrading their infrastructure and are just milking what already exists until the cable companies put them out of business, because coax can carry more traffic than telephone wire. And neither of them is interested in installing fiber while the other still exists, because it would force the other to either do the same or slash prices, either of which is worse for both of them than the status quo.
So, the coop actually has a pretty unfair advantage, but as long as it's local communities, I'm mostly okay with it. And as to local communities, larger cities are more disconnected than smaller towns. So there's some difference there. The coop doesn't have to be setup to recover initial outlay... it depends on the structure and how it's setup with the local municipality. As to the incumbents, they were also largely funded via tax dollars for initial outlay, and instead of planning for reinvestment/growth, they've chosen not to do so, and deserve to see upstarts encroaching on them.
But it's more complicated than that because the more local a government is, the easier it is to walk away from and the less crap it can do without strong negative feedback. It is more like a co-op, albeit it one that can change the rules on you after you've made a sizable investment. And one where people who've invested nothing have the same amount of say that you do!
Are member-owned and worker-owned just variations on a theme?
https://www.amazon.com/Democracy-at-Work-Cure-Capitalism/dp/...
In gold rush area along Highway 49 in Califnornia you have two prominent Coop/Local solutions .. Plumas Sierra Telecom who provides service to Plumas, Sierra and (I believe) Lassen county with different broadband options... PSREC has been adding fiber options.
Down towards Volcano/Sonora/Hwy 88, you have Volcano Communications.
In each case, rural communities stepping up where AT&T/Comcast and others step aside. These are endeavors I happily support.