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The incentive is called election.
Think privatize, think Enron.
I believe it was google, can't remember for sure, wanted to provide free wi-fi access all around the city. The only catch is that when you sign on, you are automatically directed to google's special homepage where they make their money on advertising. It's kinda like Juno and Netzero ISPs a couple years back that gave out free dial-up internet as long as you sat there and stared at their internet ad banner while you were logged on. I had it and that thing was annoying so i payed a few bucks to upgrade.
Similar setup here. If you want the ad-free version, you are going to have to get comcast or SBC.
Nobody is elected "wireless accountability guy", so he can't lose his non-job. The Mayor? I doubt anyone would blame the Mayor for such a thing, or that it would cost an election. Local councilmen (if SF has such a thing, I don't know how SF local government works)? Likewise, none of them are really accountable for it; they have no real power over it, and who's going to vote someone out over that?
Elections are great at keeping politicians accountable for major things that people hold them personally responsible for. Wireless access just isn't one of those things.
"It would be nice if everyone had X" is not a sufficient argument for the proposition "the government can and should provide X", let alone "the government would do better providing X itself".
If you want a chance of making headway here, suggest government incentives for people to make their own 802.11 wireless networks publicly accessible, as is increasingly popular with restaurants and coffee-shops.
The last thing I would want to see is for a city to contract with one company. As WOOF complains about Comcast, THE problem with cable is that you get one choice of company, depending where you live. You end up with high prices, a bunch of channels you don't want, and a company that probably isn't very well run because it barely has to compete to survive.