The only logical option
The only thing that makes sense is the local city build their own "open access network". Problem solved. They don't have to get approval - they can approve themselves. They can then get Sprint, AT&T, Verizon, Level 3, etc, etc competing as their backbone.
You can't really have 4 networks sprawled across the town with 4 lines going to each house. That's such a waste of resources.
Furthermore some of you forget there is competition. In mobile internet. Why invest in Fiber network (eg FiOS) when 3g/4g is skyrocketing?
How many of the general consumers care about real fiber internet? It seems not too many.