Who needs the price them out at the middle layer, just use the monopoly to undercut prices till they go under then raise them back up. No investor in their right mind would overbuild because of that.
Look at what is happening to Utopia? Both Comcast and USworst (Now centurylink) both offer sweetheart deals to everyone that can get Utopia service, in fact prices are less than half the rest of the state. No one can reasonably compete against an entity that can simply price service below cost to drive you out of business.