Because the major internet providers refused to provide such service in the towns in question.
*The real irony, of the situation is that a recent report, by local newspaper IndyWeek indicates that the city first approached Time Warner Inc. and Embarq with a request for faster internet for residents and local businesses. The cable companies refused, unwilling to cut into their profit margins. So the city took it upon itself, and in the end found out it could sell the service to citizens at a fraction of the cost.*
Some local enterprenuer missed the boat- The governemnt should have sent it out for bids instead of doing it themsleves.
But now that it is done, how do they get rid of it? Is it in the local government charter to provide such services?