The title is sort of misleading. A municipality offering broadband service isn't really an economic actor since it can use tax receipts to subsidize the service. Offering a choice between service provided by local government and a private business isn't really the kind of competition most people have in mind when they think of healthy markets. The laws should incentivize competition between multiple telcos not between telcos and government.
Also, generally speaking, running big telco networks is hard, capital intensive, and requires a lot of expertise that municipalities don't really have. I've never used a municipal internet service that was any good.
Also, generally speaking, running big telco networks is hard, capital intensive, and requires a lot of expertise that municipalities don't really have. I've never used a municipal internet service that was any good.