This is exactly what we've been doing in Sweden the last 10 years, at least.
Local electrical companies usually offer a city wide fiber grid in small towns. Sometimes housing companies that own a few apartment buildings have their own fiber grid. And ontop of that there are communities in more rural areas that come together and pay for the work to have fiber dug to their houses.
But that's just fiber, they still need an ISP for internet service and there we usually have at least a dozen different companies to choose from.
Local electrical companies usually offer a city wide fiber grid in small towns. Sometimes housing companies that own a few apartment buildings have their own fiber grid. And ontop of that there are communities in more rural areas that come together and pay for the work to have fiber dug to their houses.
But that's just fiber, they still need an ISP for internet service and there we usually have at least a dozen different companies to choose from.