One way to address the private utility companies' argument -- that a publicly owned utility has a natural advantage over for-profit companies -- is to change the corporate structure of the utility so that it's no longer publicly owned.
For instance, it might be converted into a for-profit company, with the city retaining a portion of the shares, or into a cooperative (as many utilities, particularly those in rural communities, are incorporated). In fact, it could even sell off its shares in times of need to finance other municipal needs.
If it's converted into a cooperative, it would become 100% member-owned, and any profits would not go to outside shareholders, as with a publicly traded company, but would instead go back to its member-owners in the form of lower costs.
The more I think about it, the more I think this is the way to go for other cities of a similar size. Clearly, Comcast/Verizon weren't very interested in laying down their own fiber there if the city beat them to it. And once a utility company (in this case, publicly owned) has an effective monopoly in a certain area, it's going to be hard for others to introduce competing infrastructure. BUT, I would think that the ability to then sell the publicly owned utility would have significant value to the municipalities.
For instance, it might be converted into a for-profit company, with the city retaining a portion of the shares, or into a cooperative (as many utilities, particularly those in rural communities, are incorporated). In fact, it could even sell off its shares in times of need to finance other municipal needs.
If it's converted into a cooperative, it would become 100% member-owned, and any profits would not go to outside shareholders, as with a publicly traded company, but would instead go back to its member-owners in the form of lower costs.
The more I think about it, the more I think this is the way to go for other cities of a similar size. Clearly, Comcast/Verizon weren't very interested in laying down their own fiber there if the city beat them to it. And once a utility company (in this case, publicly owned) has an effective monopoly in a certain area, it's going to be hard for others to introduce competing infrastructure. BUT, I would think that the ability to then sell the publicly owned utility would have significant value to the municipalities.