Is a Baby Bell vs. free WiFi turf war interfering with Katrina recovery efforts?

Via Dan Gillmor and Dave Winer, the Washington Post has a story detailing how the New Orleans' plans to blanket the city with free WiFi may have stepped on enough of Bellsouth toes to cause the local Baby Bell to withdraw its offer to help the city's police department get back on its feet.  Says the Post story (see Angry BellSouth Withdrew Donation, New Orleans Says):

....regional phone giant BellSouth Corp. withdrew an offer to donate one of its damaged buildings that would have housed new police headquarters, city officials said yesterday.....City officials said BellSouth was upset about the plan to bring high-speed Internet access for free to homes and businesses to help stimulate resettlement and relocation to the devastated city....BellSouth spokesman Jeff Battcher disputed the city's version of events.