It's a country with the population of Sunnyale. I'm not sure it could support much competition.
No idea where Sunnyale is or what their population count is, but Iceland has 4 major ISPs and a bunch of smaller ones too. Competition's already proven.
For infrastructure, especially in smaller markets, it seems like a public monopoly would be the most cost efficient - even if you contracted out periodic private operational and upgrade contracts.
Didn't almost all of Ma Bell end up inside the deathstar eventually anyway? [0]