If the municipality provides the fibre to each house to a local data centre, then private companies can rent space in the data centre to provide services. You s

If the municipality provides the fibre to each house to a local data centre, then private companies can rent space in the data centre to provide services. You still get a choice between ISPs (some may want a proper internet provision, perhaps with BGP handling and no contention on the uplink, others may be happy with a company that provides a wifi access point that also irradiates a public SSID. Presumably the former will cost more, but that's fine) Basically the local road (the fibre) is paid for by the local city and run on behalf of the residents, the local road transports people (packets) to the airport (municipal data centre), where the ISPs pay landing fees to take people where they need to go at different rates for different services, with competition between ISPs, and pretty easy entry costs, ensuring high standards, low prices, and plenty of choice.