That nobody else came calling (or offered deals as good as Google's) is not Google nor Provo's fault.
From a taxpayer perspective, they get to stop paying for the upkeep on what is currently an unprofitable system. And those who keep paying for it get a significant upgrade.
Cities may also provide "franchises" so that only one telco or cable operator gets the right to lay cable pathways, and all other companies are denied the rights. This is usually coupled with the company picking up the cost for actually building and maintaining the rights-of-way (ie, actually building the manholes/conduits, or whatever). There's thousands of cities, and many hundreds (if not thousands) of companies in the game, so its expected that there are many different variations between each municipal area.