Except you almost never want to pull fiber when you can help it (fiber is far more fragile than copper). In the scenario you describe, instead of burying a conduit, you would just bury a jacketed fiber bundle containing hundreds of fiber threads, even if you only need a couple dozen right now. This is where the term "dark fiber" comes from. Also, in this scenario, if a fiber cable "goes bad", you can just swap out another, unused cable.
Regardless, the architecture you propose would be incredibly expensive for ISPs to implement on any large scale - so much so that it would create significant barriers to entry for any new entrant, and a big incentive for horizontal consolidation. Ideally, the utility ISP would provide route tunneling from a specific port on their demarc switch representing a home to a specific provider at a NOC at the edge of their network. This does create some bottlenecks, but it's better than having 5 ISPs have to put 1,000 switches all over a city just to cover all the homes. Coverage is the entire problem that causes a monopolistic situation - so let the shared service provider worry about coverage.
Even still, I'm not sure of the value that ISPs provide in such a scenario. It seems like a commoditized service with very little in the way of competitive advantage - which means that advertising dollars will be the biggest differentiator (similar to how it is today).
Good points, thanks for contributing your domain knowledge. So the issue seems to remain: fiber can be made in different ways to accommodate different signaling technologies, and what we lay down into the ground and run through buildings today might not be what we want to use 5/10/15 years from now. Is there a potential way to economically mitigate that, and at the same time turn Internet access into a public utility so the bulk of the initial capital costs are somehow only paid once by the utility?
Regardless, the architecture you propose would be incredibly expensive for ISPs to implement on any large scale - so much so that it would create significant barriers to entry for any new entrant, and a big incentive for horizontal consolidation. Ideally, the utility ISP would provide route tunneling from a specific port on their demarc switch representing a home to a specific provider at a NOC at the edge of their network. This does create some bottlenecks, but it's better than having 5 ISPs have to put 1,000 switches all over a city just to cover all the homes. Coverage is the entire problem that causes a monopolistic situation - so let the shared service provider worry about coverage.
Even still, I'm not sure of the value that ISPs provide in such a scenario. It seems like a commoditized service with very little in the way of competitive advantage - which means that advertising dollars will be the biggest differentiator (similar to how it is today).