The problem as I see it is that a utility company should not be entitled to make 30-40% profit margins on a necessity. I would argue cable television is a frivolous privilege (especially with the amount of crap on it), gasoline does not have that much margin. At one time you could argue cell phones were a luxury. But given they and the internet are now people's increasingly only choice to communicate (landlines are to be phased out in the next decade), it does seem that the European model is better which is to control the infrastructure and let companies compete on price to access.
If you argue cable is a frivolous privilege...I'd have to go the same route for an iPhone with a data plan. (sort of like comparing over the air TV to cable/satellite)
There are plenty of cheap cell phones around...and plenty of cheap cell plans to go with them. But I don't think hi speed data access through a $700 phone that's being subsidized by a cell company would quality as a primary needs utility....
I do agree our approach to dividing up the spectrum and encouraging wasteful competition on infrastructure was a big mistake. But that horse has been of the barn a long time.