I have the same inherent concern, but I start from the premise that the internet as as important as roads or power. Second of all, these telcoms have a natural monopoly by being assigned the MSO (which there is massive collusion between cable providers to allow, its basically like a mafia boss meeting) and the LEC laws. So best case you have a government granted duopoly. Third, we've seen successful deregulation to breakup these monopolies in the past all over the world.
The model that interests me is allowing the municipality to own the local infrastructure and then internet providers pay for access to the last mile.
I am absolutely a free-market capitalist, but the problem is we've already strangled broadband with regulation. We have to rethink the model, it's not working nearly as well as it should be.