From an article in the local paper about Lancaster, Pennsylvania's Google Gigabit Application:
Brogan said that if Lancaster is selected, it would not run afoul of the state Telecommunications Act. That law prohibits cities from establishing municipal broadband networks except if existing providers indicate they have no immediate plans to offer similar services.
She said the city already has a letter from Verizon clearing the way for the Google application.
Oh good, glad the city secured permission from one private company to ask a different private company to build infrastructure. In the words of Yakov Smirnoff, "What a Country!"