If there were competition, the broadband companies would be going out of their way to roll out something bigger and better than the next guy. Except, all too often, a broadband company gets a monopoly in a city, raise their prices while cutting their services. They have zero incentive to roll out any improvements. They rarely even bother with doing basic maintenance. Upgrades and repairs cost money, that cuts into profits. It's not like the market has anywhere else to go.
A taxpayer funded project isn't a barrier to future infrastructure improvements. Monopolies are a barrier to future infrastructure improvements.