What if the municipality owned, laid, and maintained the physical conduit/poles/enclosures but not the actual network physical plant itself, which is then deliberately designed to be replaceable so commercial providers fish through the cabling they want to municipally-owned physical hubs that are equipped and operated by the providers? The municipalities already have the resources and staff to do so relatively competently from water, wastewater and electrical grid deployment and maintenance. Most of the cost of last-mile deployment is the physical laying, but if that is shifted to a public utility while fishing cables (at most) is left to the providers, then might the providers see dramatic increased incentives to compete on quality of service and price?
[1] http://www.quora.com/What-is-the-lifespan-of-fiber-optic-cab...