I’m ok with both, but prefer co-ops because the members get direct voting on large decisions by default, rather than a proxy vote via an appointed government worker who answers to the municipal government.

That said, there is no reason these can’t be one and the same, the local government could fund the establishment of a regional co-op and maintain audit and some other limited authority over it.

I also support long-distance fiber infrastructure being built and maintained by worker’s co-ops that would then get paid for service by the regional ISPs. Worker members would be highly motivated to maintain good uptime, and hiring/training members who live local to the fiber lines in remote regions would be possible with the incentive of worker ownership. Once built it is a long term maintenance and security business with steady return, perfect for a worker’s co-op that could be financed with private capital at decent ROI.