It's not illegal; that's incorrect. The type of franchise that requires universal buildout (with a number of caveats) is a cable franchise, with the intention

It's not illegal; that's incorrect. The type of franchise that requires universal buildout (with a number of caveats) is a cable franchise, with the intention that everyone has access to TV services, not broadband. And the standards for new entrants into a cable franchise are generally less onerous (or provide time to get to universal coverage).