The folks at Save Muni Wireless declare interim victory: The people against a provision of the house bill which didn't make it into the senate version wanted to preserve the rights of cities and towns in Texas to determine whether or not municipal cable, telecom, and broadband was appropriate.
Texas has a large number of counties with no broadband service or a single provider, and many of the smaller municipalities were concerned with the full ban. The initial bill would seemingly have required airport authorities run by municipalities to cancel Wi-Fi contracts with private companies based on a pretty conservative reading: meaning no Wi-Fi at DFW, Dallas Love, Austin, Bush Intercontinental, and others. That provision was watered down in later house drafts.
The bill failed not because of the municipal part, but because, along with another bill, the senate and house couldn't agree on how to reconcile them. Included in the bills was a proposal to eliminate local cable franchise control, which the telcos wanted to allow them easier entry into the television market without having to negotiate local deals with each town, and deregulation elements that would free incumbents from a number of responsibilities while releasing them from tariffs.