No, the problem is not enforcing competition after privatisation.
Here in France the PTT (minstry of posts, telephone and telecommunications) used to have a monopoly. When they were part privatized as France Telecom a competition authority was setup who insisted that the new France Telecom allowed competing companies to have access the the existing network (that had been funded by the state).
As a result we now have multiple ISP's in almost all locations, providing multiple competing broadband solutions (ASDL, FTTH, Cable...) for prices of around 20-30 EUR/month.
Capitalism -- it works, as long as government is prepared to stand behind the capitalists with a big enough stick.