I wonder if it will make it easier for the government to spy on people.
Absolutely. If it is a public utility that means it is part of the (a) government, with reporting requirements to assess fees, and that means tracking usage. . .the more you use the more you pay, kind of like a huge step backward (AOL back in the early days but with the government tracking you).
They will track your usage (like eleteric and gas meters do, too include websites and your posting data), and because it will be a utility, they will control web access. . .North Korea, anyone?
....aaaand make the post office in charge
Gulags to be filled with disobedient enemies of the ObamaReich.