It is a difficult problem. Governments have a number of built in advantages over private companies trying to deliver the same services. I say this while being,

It is a difficult problem. Governments have a number of built in advantages over private companies trying to deliver the same services. I say this while being, in general, a supporter of the ability for municipalities to provide broadband if they choose to do so. There are a number of complex opposing factors in allowing them to do so though. For example, Boulder has required companies leasing space on the public right of way to install, at the company's expense, fiber to be owned by the city. (http://www.branfiber.net/Conduit%20Lease%20Agreement%20between%20Zayo%20and%20the%20City%20of%20Boulder.pdf http://www.branfiber.net/Conduit%20Lease%20Agreement%20betwe...) Basically, Boulder can force competitors for it's own broadband service to subsidize their own competitor. These are non-trivial problems to overcome.