Really, he's calling for the FCC to prevent rent-seeking by local ISP monopolies by allowing the option of municipal networks. It's a really good idea; you can tell because of how stridently Comcast/Verizon/AT&T oppose it.
I far prefer to just obsolete the big providers and to implement internet as a real public utility. Even if private companies end up contracted to provide it in some cases, those would be regulated monopolies, not regulated free market businesses.
I far prefer that we build the case that even a city's own infrastructure would unlikely work without the internet, and that they should have at least some infrastructure that does not rely on commercial providers.
San Francisco's water power plant on the Russian River is a great example of this, it provides power for muni trains and electrified buses, maybe _some_ streetlights and a few other public things. If we have a full PG&E failure, we might still have running trains and lit streets. I'm not sure it doesn't all flow into the same grid, SF being one of the oldest power grids, but if that isn't fully the case now, there is enough power independence to ensure that such a thing would work.