None of the newspaper coverage of this has clearly brought out the fact that the request for proposals is for citywide internet services for the CITY OF MINNEAPOLIS. (My impression is that this is the result of how some of the city spokespersons are representing it.) There are secondary questions that apply to business and residential services, but all of the system requirements are for municipal services.
That said, they're still seeking a bid to let a private owner connect the whole city, with access to city infrastructure and right of way. That owner will have a natural monopoly over citywide wireless. The plan also includes extensive fiber optics, so ultra high speed access (like Windom) may also be a part of this natural monopoly (because it's not likely there's a large enough market to support multiple networks.)
Private ownership need not mean for-profit corporation ownership. Philadelphia's network will be privately owned, by a non-profit organization. It's not funded by any city money (not even tax-exempt bonds), but rather by foundation grants and bank loans. It will generate revenue to pay back the loans by selling network access at wholesale. ISPs can compete at the retail level for residential and business customers. The non-profit also has a mission to provide low cost internet access and computers to low income households.
The OneCleveland project is private - the network is owned by Case Western Reserve University. Right now it's selling wholesale access to other city institutions (schools, hospitals) but the goal is to have free wireless throughout the city.
UTOPIA in Utah is owned by a consortium of municipalities. Again, it will sell access to the network at the wholesale level, allowing competition of ISPs at the retail level.
I'm giving Minneapolis the benefit of the doubt that "private" does not necessarily mean a for-profit telecom. But I intend to closely observe the proposal review process.
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