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I lived in a community with municipal broadband (Brigham City, UT / UTOPIA fiber) and it was extremely well run. There were still private ISPs handling basically everything, it's just that they used city-owned fiber and offered very reasonable rates.

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So this is essentially the taxpayer paying to build out infrastructure that private enterprise then runs and collects profits on right? This is a good thing? Wasn't that always the argument why pharmaceutical companies are so evil, because they appropriate public research for private profit?

The infrastructure collects fees to pay for itself, generally. It isn't provided to private enterprise for free.

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