I generally agree at a local/municipal scale but that generally doesn't scale well and is often relatively unstable if it is not operated as an mostly isolated entity given the strong conflict of interest of officials involved easily and often leads to regulating private industry out of existence.

Where do you see that being the case with broadband? There are many examples of private sector monopolies, but I've never heard of private sector broadband being regulated out of existence.

For telco stuff specifically it's more that local governments love to rentseek from the incumbents. The faustian bargain is that the telcos pony up and in exchange the government, usually local, makes it nearly impossible for new players to enter. Some of those policies might end up making it harder for them to operate but it's harder still for competitors. The same is true when hospital networks try to expand beyond state lines. The reasoning goes if I can't expand why should they?