Why can't private companies build duplicate lines and compete? It seems to me that what's keeping broadband prices high is government-enforced monopolies, usually awarded to a private company. Allowing government itself to have a monopoly won't fix the problem.
So ISP-One digs up your town and lays lines. A year later, Deux Tubes observes fabulous profits being earned by ISP-One and comes along to dig up your town again.
I submit that your neighbors wouldn't allow several companies to repeatedly dig up roads, driveways and lawns. Also, at some point you just can't add another set of lines in the ground.