Look at how AT&T went after municipal internet in Tennessee:

Ars: Tennessee kills muni-broadband expansion bill after AT&T opposition
Tennessee lawmakers have defeated a proposal to expand municipal broadband, with one state representative accusing fellow elected officials of caving to pressure from lobbyists. "It's a testament to the power of lobbying against this bill and not listening to our electorate," Rep. Kevin Brooks (R-Cleveland) told reporters after the vote, according to a Times Free Press.