As a constitutional matter, municipalities do not have any independent existence; they are organs of the state governments. Municipal governments only have whatever powers states choose to give them, and the federal government may not commandeer a state government. So if a state chooses to deny its municipalities the authority to sell Internet access (or sell it below a certain price), then no declaration from the FCC can give the municipality that power, nor require the state to give a municipality that power.
So, all this vote means is the FCC majority has decided to waste a bunch of taxpayer dollars losing a lawsuit.
Just like states are only part of the country? States were abusing their authority to disbar municipalities due to business buying their votes. A very monopolistic action. They should actually go all RICO on them and throw their boards of directors in jail.