All you need is a private company that is committed to building and sharing the "first mile" infrastructure at reasonable prices. I don't think you'll ever see widespread building of FTTH by cities because the engineering and maintenance of the network is beyond the capability of most city staffs.
The business case for open access is actually quite compelling. Let's say you are
Paxio and you spend a ton of capital to pass or connect every home in a city. Say only 30% of the users take your service -- that's a lot of wasted capex.
Now say you allow competing service providers to use the connection for a fee. The network sees ever increasing utilization and it saves capex for all providers. Getting the balance of prices for retail vs. wholesale network access is crucial, but the model could reshape the way services are delivered.
