its not just governments. I used to live at an apartment complex and when I was there, they signed a 5 or even 10 year technology contract with a cable company, exclusively. they wired our building and we had to buy service from them. zero choice in the matter.
what was funny (not ha-ha funny) was that in the middle of silicon valley, we had some of the worst service I've ever seen. 20 years ago I moved from boston to the bay area and stereo tv was pretty common at the time, and yet our pay-tv (mtv was semi watchable at that time) was all in mono and the vendor would not upgrade since he signed a many-year contract and had no MOTIVATION to upgrade anything!
silicon valley and we could not get stereo encoded tv shows. that's just an example and I'm sure its long since been changed by now, but this shows what you get when you sign exclusive contracts that last many years with someone who clearly does not want to invest one penny more than he has to.
even if townships allow multiple isp's in, apartment complexes still sign contracts with just one vendor and you are stuck with them for years and years.
regular people have no say in this. the only say you have is to put up your own sat dish (for tv, at least) and have that ugly thing take up your personal balcony space. as for internet, you have pacbell dsl (which is now dog-slow by modern standards) and you have one cable co that will service your area. that's it.
and its been this way since, well, forever. for as long as mainstream broadband has been around, at least.