It does in theory at least protect the next Netflix. A small upstart couldn't afford to pay Comcast, AT&T, Verizon, etc to give their traffic priority. Where the bigger services could.
A much bigger issue IMO is the last mile. Verizon, Comcast, AT&T etc have lobbied for years in many states to get laws passed to stop the local government from building their own networks. Can't have the government competing with the Telcos and Cable Cos. In many states it is illegal to the local government to provide network connectivity. In less dense areas you have shitty service and no hope of Google fiber or something else ever coming. Verizon and AT&T want you to use LTE. Verizon is letting copper die on the pole and in the ground. They just want to sell / maintain the FIOS foot print and sell wireless where FIOS isn't. The cable companies don't want competition nor do they really want to offer decent services in these areas. Much more profit to be had using decades old crappy plants and systems then spending millions to upgrade. They answer to the stock holders and don't give a crap about customers who have no real choice. DSL sucks unless you live like half a mile from the CO or remote DSLAM.
Not sure if being classified as a utility maybe starts to open up the possibility of the local governments in these states being allowed to run fiber (or have another company do so) and either sell directly or allow many other companies to sell over this fiber.