Chattanooga, Tennessee did something like that, but when they tried to expand outside of the city they were shut down

They pulled their wireless home Internet service which mostly targets rural areas where companies like AT&T never laid fiber and have started abandoning their copper networks. It's a lot harder for smaller rural communities to do municipal broadband because the costs are much higher per household. Not impossible, but more of an uphill battle. In some GOP states it's even outlawed. In NY hopefully people can get grants for them.

I have municipal fiber, it's great. Cheaper than Charter and 5x the speed.