You can probably go further than that. Municipal services can be unbundled and can operate without a geographical monopoly. This is already widely done for cable and telecoms in the US and UK and for electricity and gas in the UK. Some countries do it for water and sanitation services. There are examples worldwide of it being done for transportation, refuse collection, health and education. Arguments that such services are a 'natural monopoly' are usually promoted most strongly by those who wish to operate that monopoly with government protection.