I don't know where the border between "toy for the private sector" to "public utility" lies, but I'm sure that the Internet crossed over a long time ago (assuming it was truly ever not there to begin with). Considering that the Internet grew out of a government-funded project, I see the current situation as nothing more than a virtual land grab with ISPs essentially squatting territory and paying the government enough to distract them from realizing that land all belongs to the government anyway and they could be evicted at any time.
--Patrick