In Switzerland, some cities have started to break this up, and it's wonderful: Responsibility is split between the local utility and telcos. The utilities are

In Switzerland, some cities have started to break this up, and it's wonderful: Responsibility is split between the local utility and telcos. The utilities are responsible for the last mile (just as they are for power and water), and provide a fiber connection from the customer to one of several points of presence per city. Telcos rent space in these PoPs. They get to skip the expensive last mile and focus on Internet connectivity. In places where FTTH is available, a wonderful ecosystem of mini-ISPs has sprung up, serving different niches. Some focus on integrated multi-play (Internet/TV/Phone/etc.) setups, others offer affordable quick connections without the bullshit. Choice and competition are alive and well, despite (or because?) part of the infrastructure is publicly funded.