The issue in germany is quite different though. There is a unique legal situation where isps can use unrelated digging operations to throw in their cables if they want. This results in effectively no investment in new last mile infrastructure ever, because if you where to pay for it all your competitors would use your investement to extend their networks as well and charge lower prices, since they didn't have to pay for anything. Some cities tried to create their own networks only to be outcompeted by the telekom who immediately used the opportunity to lay their new cables for free.

It's not true though. Due to unique circumstances and regulation you usually have lots of "virtual ISPs" to choose from.

There is no real incentive to upgrade the network outside urban areas though, that's true.