I think its simple. Municipalities should at this point feel responsible for ensuring their residents have good internet access. Its also good for the tax payers, because its money going back into the government, and not into the coffers of some mega-corp who's just going to hoard it.
I think there is a balance to be had between too much government and not enough. I think its easy to sway too far one way or another as history has shown, and neither are particularly good. Corporations will run rampant just like government will, given the freedom to do so.
It's almost better to think of power as static. For some areas, if you have a smaller government, it's not a loss of power so much as a void of power, which will be filled by corporations or other large organizations.
A lot of people look at a smaller government as increasing their personal liberty, which is true for some issues, but for other areas it only means swapping out one organization for another (which may not be aligned with your interests).
I think there is a balance to be had between too much government and not enough. I think its easy to sway too far one way or another as history has shown, and neither are particularly good. Corporations will run rampant just like government will, given the freedom to do so.