Utah already has something like this called UTOPIA (http://www.utopianet.org/about-utopia/). The participating cities run fiber optic lines. The city pays for the fiber optic lines (lots and lots and lots of political controversy about this!) then subscribers can pick and choose what services and from which providers they want. I'm in a participating city and love it! Unfortunately politics, both the governmental and the organizational types, are constantly threatening the viability of UTOPIA (http://www.utopianet.org/press/).
>UTOPIA (Utah Telecommunication Open Infrastructure Agency) is not an Internet service provider. UTOPIA operates on an open access model, which means we own and manage the infrastructure, but lease the lines to private Internet Service Providers, who then deliver services to subscribers. This allows you to choose the provider that best meets your needs.
>UTOPIA (Utah Telecommunication Open Infrastructure Agency) is not an Internet service provider. UTOPIA operates on an open access model, which means we own and manage the infrastructure, but lease the lines to private Internet Service Providers, who then deliver services to subscribers. This allows you to choose the provider that best meets your needs.
edit: added press link