When a state law and a federal conflict one of them has to win. If the federal law is within the powers delegated to the federal government then it will (yeah, yeah, as if there are any in practice limits to federal law these days...).
In this case there's a federal law stating:
The Commission and each State commission with regulatory jurisdiction over telecommunications services shall encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms) by utilizing, in a manner consistent with the public interest, convenience, and necessity, price cap regulation, regulatory forbearance, measures that promote competition in the local telecommunications market, or other regulating methods that remove barriers to infrastructure investment.
If that and a state law preventing the deployment of "advanced telecommunications capacity" conflict then to the courts it will go to determine which one trumps the other and if that one even applies to the case in question. And in an ideal world if the federal government has the authority to create such a law.