Earlier quoted context omitted.
Presumably those competitors won't have access to fiber to the home. Besides the fact that it doesn't make sense to roll out separate fiber for each provider it is clear that municipal owned fiber would decrease barriers to entry and therefore increase competition. You simply cannot expect good outcomes in situations of monopoly/oligopoly regardless of who the monopolists are.
Why would this prevent anyone else from accessing fiber to the home? I thought the whole neat reaction from the Austin, TX fiber announcement was that ATT was planning on doing just the same.
Regarding ATT/Texas: Having a competitor is not what economists mean when they refer to competition.