The internet is just a series of comnected networks. Your local ISP is just providing a connection from your home to a higher level regional network. If you had the time and money you could contact the higher level network company and negotiate a connection to them yourself without needing an ISP company.

So thats what this guy did. He negotiated a connection to a regional provider and installed the equipment and lines for the connection. Most people don't do it because it takes a lot of money and regulatory approvals for the lines. Its normally less expensive for each person to pay an ISP because then the costs are shared among all the customers.