Muni's should make a level playing field. We have the tech to do it, a single fiber per home/business (ok maybe more for business) can with cheap passive gear provide 8+ different connections (bidirectional CWDM). So the muni's role is the physical plant they provide a point for all comers to connect possibly a L2 network for others to build upon and to provide baseline services.
Part of all that is to stop thinking in IPv4, it's trivial for a town to get enough IPv6 IP's to hand out /64 or greater to everybody. That makes it trivial for a single firewall to connect up multiple networks and route correctly. So you might end you with a muni network the connects muni services, schools etc etc. Your ISP who may or may not bundle cable phone etc but you could get IP based phone/cable from others and still have 4 free CWDM bands for later expansion.