This is not exactly true. The three keys to government regulated industry are:
enterance/exit - we regulate who can enter the market
rate - we regulate what they can charge
complaint - there is a formal complain process
Complaints are a big deal. It usually takes a large number of complaints to get something done, but they aren't small change - regulated monopolies aren't completely useless.
That said, I really don't understand the arguments that cheap WiFi networks stifle innovation. Are there not hundreds of technologies for broadband (ie in Japan, etc) that we don't have over here? Why is my DSL still 1.5m/256? Why have I been paying $50/month since we got it 3 years ago? (Don't answer that!)