The communications system of a country needs to be held in the common interest. Private companies are not going to invest thousands of dollars to connect remote users to high-speed broadband unless the user foots the bill. A public service would be able to spread those charges over all users with a flat rate. The other option would be to have the infrastructure itself owned by the taxpayers with private companies leasing it from them to provide services like internet and telephony. It does sound a bit communist, I suppose, but the fact is that private companies have different goals than public services, which can operate at a loss for the greater good.
Mokalus of Borg
PS - Private companies sometimes take a loss for good PR.
PPS - But in general they'd rather not.
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