A local co-op is a fully private entity that has no power over non-members, while a municipality is a governmental structure with powers of local ordinances and

A local co-op is a fully private entity that has no power over non-members, while a municipality is a governmental structure with powers of local ordinances and taxation. On a more practical level, a local co-op ISP is a single-goal entity, whose participants are persons interested in that goal (getting good Internet connectivity). A municipality has many tasks, and municipal broadband would be just a small part of it.