The first-mover advantage has resulted in telecoms capturing their markets in major cities. The question is just how free are these markets?
In my city, for example, the city has a contract with a cable operator that basically states that any competitor wishing to enter the city must provide services in all the areas the first-mover provides service. The argument is that this "levels the playing field" among competition while also forcing telecoms to cover areas of the city they may not otherwise lay fiber lines. But in practice it adds a huge barrier to entry for any subsequent companies.
Ultimately I think it comes down to governments making decisions in the best interests of their constituents and not creating these kinds of deals. Let customer demand dictate how much service will be provided in the various segments of the municipality.
In my city, for example, the city has a contract with a cable operator that basically states that any competitor wishing to enter the city must provide services in all the areas the first-mover provides service. The argument is that this "levels the playing field" among competition while also forcing telecoms to cover areas of the city they may not otherwise lay fiber lines. But in practice it adds a huge barrier to entry for any subsequent companies.
Ultimately I think it comes down to governments making decisions in the best interests of their constituents and not creating these kinds of deals. Let customer demand dictate how much service will be provided in the various segments of the municipality.