Inspired by the Engadget/PBS piece[1], it seems that an open auction with a few conditions might produce the best results:

  1) Winner may sell wholesale only (i.e. independent ISPs
     must lease the right to offer the fiber for retail sale).

  2) Lowest per bit price for leasing wins the auction
     (or maybe there is a better metric?).

  3) Add some type of incentive for local governments to 
     help build-out the last mile (or maybe such a deal
     would trigger the initial auction?).

This is by no means a comprehensive list, but I think it would get us closer to better/cheaper broadband.

[1] http://www.engadget.com/2011/06/28/why-is-european-broadband...