Wilson, North Carolina decided a couple of years ago to build it's own municipal fiber network after it got tired of begging incumbent providers for better services and getting turned down. Now the fight is being taken to the state legislature, where the incumbent providers are trying to get laws passed to prevent local governments from getting involved in telecom efforts but to also prevent local governments for applying for broadband stimulus funds. This is also happening in Pennsylvania.
Part of the problem is that Wilson selected a municipal retail model, which means residents and businesses buy their telecom services directly from the city, and incumbents typically fight this approach vigorously. An open access, open services model like those used with projects like The Wired Road and nDanville lets incumbent providers use the new community-owned digital road system to sell services--buyers of telecom services purchase directly from private sector providers, not the local government.
Wilson has started a blog on the issue.