This is not true. Longmont has proceeded with building out a fiber utility for its citizens [0] called NextLight. As I mentioned in another comment [1], my understanding is that Boulder city has required private telecom operators to lay city-owned fiber alongside its own.

[0] http://longmontcolorado.gov/departments/departments-e-m/long... [1] https://news.ycombinator.com/item?id=8568436