I'm reading this as a side-effect of just how absolutely hated broadband companies like Comcast and Verizon are. They've spent decades ignoring consumers, doing exactly what they don't want, providing shoddy service, providing shoddy support, doing absolutely fuck all other than continuously raking in money.
Now they want us to help them by stomping out government competition? Fat chance. They'll just have to do what they did with net neutrality: spend years and years planting people in agencies and political positions to push their self-interests. I hope they do and I hope it backfires.
I doubt they can blow a million on lobbying in every city that starts talking about municipal broadband, so I'm guessing if this trend continues they're going to switch focus to attempting to outlaw it entirely. Certainly possible, but it seems like a harder target than dismantling net neutrality.