This isn't quite accurate. A bunch of municipalities would like to run their own broadband but are prevented from doing so by successful lobbying from the CableCo's which occurred at the state level[0,1,2,3]. So crony capitalism, sure, but it's not at the hyperlocal level.

(In general, I perceive that many of our cities are run better than the states they are in.)

0. https://consumerist.com/2014/08/28/how-isps-compete-with-mun...

1. https://arstechnica.com/tech-policy/2014/02/isp-lobby-has-al...

2. https://www.cio.com/article/2447188/more-cities-and-towns-wa...

3. https://www.govtech.com/network/Comcast-Time-Warner-Merger-W...