That would be the ideal, but infrastructure issues such as this can't be handled by a "free market" acting all by itself.
That's because whoever owns the land the infrastructure runs through can block progress, and the free market solution of competing elsewhere doesn't work. Land access is inherently limited by real world access problems that don't obey free market ideology.
A free market for public utilities would start from the public, i.e. government, OWNING said infrastructure outright and then allowing private corporations to lease the right to use it to provide service. Only the government has the legal right to eminent domain so it can build roads and public utilities and generally seize land for the common good - private corporations would have to negotiate with every landowner whose property needs to be crossed, and that is obviously unworkable in the real world.
From the current situation - which is a hodge podge of municipal services, private corporate services, agreements that limit competition, coupled with land access needs only eminent domain can provide - the only way to arrive at this paradise of "free market competition" is for the government to nationalize the entire thing, void all contracts with private service providers, and recreate the rules to allow competition among service providers by renting/licensing the infrastructure that is owned by the public. Otherwise it would take decades for existing agreements to expire or be renegotiated, and any improvement still have to rely on access and easements and various forms of eminent domain anyway.
I cannot imagine the unending howling of the libertarian-type crowd if this were to happen. They complain that various governments have created this situation (municipalities giving exclusive deals to cable providers) but government power had to be there in the first place or there wouldn't be any infrastructure at all.