No, the theory is that government should provide things, not necessarily just the necessities, to citizens where for-profit companies wouldn't
But what about instances where private for-profit companies provide poor quality unreliable service? Should a municipality, if petitioned by the citizens, respond "We're sorry, but a private company is already providing that service."?
We live in a rural community. People consider themselves lucky to get DSL. There is no cable option. Some people get long range WiFi. We consider ourselves to be extremely lucky because we can get 3mb DSL service. The service is, for the most part, fairly reliable, but we have periods of very poor throughput and lots of dropped packets. The local telco has shown very little interest in building out to provide faster more reliable service.
Our local co-op owned power company is looking seriously at building out a strong, fast, reliable broadband system. They already have a good chunk of fiber in place throughout the area for use by the county and a few businesses. They want to build out using wireless solutions for the last mile. Except for a few "Wi-Fi is damaging my brains" type people, the local folks are strongly in favor of it.
Rural infrastructure problems are exactly the areas where the standard municipality Vs business issues break down. Businesses don't see enough profit to warrant expanding or even maintaining the services. If municipalities don't step in, then people have to do with substandard service or no service at all.