The private sector will never be able to meet the demands governments would make in order to build a working broadband network and the subsequent smart grid because their profit motives cannot internalize the social benefits of the new grids and technology. Unfortunately the private sector will only build the infrastructure in profitable densely populated areas neglecting rural areas. The state must therefore fill the gap, either by subsidizing private firms to provide service to unprofitable areas, or to service them itself. Furthermore, it can provide the service more freely and more fairly in order to guarantee that citizens get the services they deserve and need to succeed in the 21st century.