[knjoy]

The issue is profitability (similar to the post office problem) -- if your house is in a rural area with low density, it's not worth it for a private industry actor to bid on your linkage. In many parts of the US, the only ways to get mail is through USPS (FedEx & UPS just don't service unprofitable routes). However I think internet access is a human right and a public good no matter where you live or can afford to live (imagine raising children who would never have access to at least broadband-level speed -- how would they function in a 21st century economy?) - and the infrastructure can only be provided equitably if the government steps in and subsidizes away the profitability problem.

[snisarenko]

That's a good point. The law can have an exception for communities that get less than 5 bids. If that happens the gov't builds the infrastructure.

[foobarian]

I don't follow. How do you propose that the gov't build the infrastructure? A: get bids, award the task to highest bidder... :)

Profitability should be automatically part of the bid. It doesn't mean the bidders pay the government, it could be the other way around too.