I agree that a smaller municipality would be more successful, but not because they are smaller.
The municipality is a more concentrated interest, and more motivated to deliver on a solution that works for their constituents.
Compare that to the federal government needing to execute a national “Interstate Highway for broadband” mega-project. The federal government can and has executed these kinds of projects, but it needs to consider different things than the municipalities.
Extending the highway metaphor, a smaller municipality can pave local roads just as quickly as the federal government can build highways.
Efficiency is not a perfect function of government size.