I can't speak for the US, but that is the same model in Canada. It doesn't really work without competent regulation. In Canada this is done though the CRTC, who are all pretty much former executives of either Bell or Rogers (The two telecommunication companies with monopolies, one on Cable and the other on Phone infrastructure).
Part of this comes down to what is a "reasonable fee" and how that is determined. The other part is the actual control they exert over the infrastructure. For example a few years ago when throttling was front and center, an independent ISP complained to the CRTC that it wasn't fair competition because even though the leased the lines from the above companies, the speeds to which they could offer their clients were being throttled. At the hearing I believe it was Bell's argument that it was fair because they throttled everyone equally...
So while there are independent ISP in Canada, they are beholden to their landlords so to speak, and the rules are set forth by former landlords.
The whole Netflix VS CRTC is another example. It is basically an extension of Bell and Rogers Telecommunications (who are set to release their own competing video streaming service... nice timing that).