Your comment was dead, but I vouched for it because I believe your second paragraph has value. I'd ask you consider removing the first part, which is unnecessarily snarky and doesn't address the point (how is this better than an oligopoly).
I would personally believe that if there are issues with quality of service or price or whatnot, this governance style allows for a much better opportunity of addressing issues. Versus being run by a very large monopoly that honestly may not care that much about the ongoing needs of a 1200 population town (read: small revenue source) in the future.
A competitive environment would be better if possible, but failing that, I personally would take a municipal broadband system with a good degree of accountability built into the town governance over an oligopoly.