The Technology Suits had an article recently about the new municipal offering from Huntsville, Alabama that leaves open the options of helping the underprivileged and still allows for te private sector. http://www.technologybizdev.com/2005/08/30/finally-a-free-municipal-wifi-offering-that-makes-sense-huntsville-al/

There is nothing wrong with governments encouraging developments, but they have enough problems without trying to run a network.