No, No No No!!!! It doesn't matter if they are a wolf in wolf's clothing! They have a service to sell, and users should be free to to use it if they so choose.
What we should be against is any subsidization, special treatment, or monopolistic practices, always rooted in government. It is a fact, that monopolies can only exist for any great length of time with the help of a government law or regulation insuring their monopolistic status (with only one notable exception: The London DeBeers Corporation) .
It's a fact? Can you even come close to supporting that assertion? We have anti-trust laws specifically because players in a capitalistic system are incentivized to gain as much market share as possible up to 100%.
A monopoly exists and extorts their customers by jacking up prices, or delivering goods and services of a less than desirable quality. Barring any regulation preventing new competition, a competitor will always enter the market; because someone will have a business plan to either lower the cost, holding the quality constant, or raise the quality, holding the cost constant. In the US, capital is not a barrier to entry, as some investment house, or other financial mechanism is always looking to exercise their capital on a solid business plan.
What? Capital is not a barrier to entry because anyone with a good business plan will always be able to find funding? That sounds nice on paper, but I don't think it works that way in the real world. I don't know how much it would cost to try to break into the cable TV business, but I expect it's in the hundreds of millions. Who is going to put hundreds of millions on the line for someone with just a good plan? Not with my money!
That is how free markets work. When there is good competition, you have the highest available quality, and the lowest cost, the market will bear.
Choice is good, so long as the costs are realized, and not passed on to tax payers, who are then forced to be come a customer (via a lack of options, or because their taxes have already paid or partially paid for a good or service).
These councils need to get out of the business of "selecting" the internet provider and let the free market run its course. The outcome will always be what the customers choose, which is usually a variety of competitors, and thats a good thing!
Choice is good, I agree. But then you say as long as all these things that happen, don't happen. When will libertarians get it through their heads that governments create the framework for markets and that "free" markets do not exist? Econ 101 works because it makes all kinds of unrealistic assumptions about supply and demand and competition and consumer information. You sound like you have come up with the way it should work, and overlaid that on the way it does work.