Do it like Utah did. They built out the fiber network and maintain it. They sell connections to it to the residents at a rate that pays the bills. ($30 a month).
Then they opened it up to ISPs to use. Not one- there are a dozen you can choose from. All private companies- no government entities at all. And, since they truly have to compete with each other with no "gentleman's agreements" to stay out of each other's yard (looking at you Comcast, Verizon, and Clearwire), the prices are great and the customer service ROCKS HARDCORE.
I pay a total cost of $70 a month for 150MB with no data caps. I can go to 1GB with no caps for another $25- but true, unrestricted 150Mb is far far far better than I ever had before with Comcast's 150Mb. I can have every device in the house streaming movies and still download games/patches on Steam in minutes.
This is what Obama is talking about here. Not whatever nightmare pipe dream you are imagining. It has happened, when the action was able to outrun the monopoly's attempt to outlaw the competition. And in every case, it has been a roaring success.
Wanna know something amazing? Comcast out here dropped their pricing, raised caps a lot, and will give you silky smooth customer service when calling on an account out here. Fucking imagine that. having to compete.