Let's get some reality into this argument since the cause and effect is totally bogus.
1) The reason many companies don't upgrade their infrastructure is the cost of laying new cable is totally ridiculous. The cost of pulling the cable is only part of the problem. The other part of the problem that adds thousands to tens of thousands per customer is the onerous regulations each city has. Many of those regulations are in place to prevent competitors from coming into an area. It's also why Google has cancelled most of their fiber installations.
2) Other technologies such as wireless over unlicensed frequencies instead of licensed frequencies are demonstrating speeds up to 250Mbps today and working on even faster speeds tomorrow, up to 5Gbs. This costs about $200-$250 per household, just pennies compared to fiber or copper. Unfortuntately, the FCC, at the urging of Senators, Congressmen, and the cellular industry, keep auctioning off the frequencies that would allow smaller operators to compete against them.
The answer isn't having government run anything. They are rife with corruption, inefficiency, and bureaucracy. Anyone who thinks this is a good idea has never worked with any government agencies.