Sorry, that's a load of telco apologist claptrap. Those of us who were among the first wave ISP's saw that it would be an expensive undertaking, but it wasn't that aspect that was a real problem. The real problem was that there's a natural need for a last mile monopoly, or at best, a duopoly. The people behind the NII understood that, which is why the telecoms were offered four hundred billion dollars in incentives and new opportunities to compensate them for their troubles. When the telecoms figured out that they might be able to actually provide BOTH that last mile infrastructure (not lucrative except for the incentives) AND the stuff riding on top ($$$$$$), they first argued to get the right to sell "retail" services on top of their own networks, which is probably fine, except that then they had an incentive to screw anyone else who was trying to sell services on top of their network.
Please note that I'm one of the people who "brought the Internet" to my area. I have proposals from Ameritech, our local ILEC, offering to allow us to sell DSL services on their network. The wholesale cost that they offered us, per line, was actually greater than the retail cost THEY were charging subscribers... that's not competition. That's not selling at reasonable cost.
So basically what happened next was that they made it very difficult for competitive local carriers (CLEC's) to compete. What? Your customer's line is down? We'll send a tech out to look at that. Two weeks from next Tuesday.
Then they got the regulatory permission to not sell to competitors (FiOS, U-verse). See all the battles where they basically said they weren't going to provide the service if there was a threat of competition. They said there was no practical way to provide space for competitors. Or they just refused.
All those outlying areas where the population density wasn't high enough to be "profitable"? Well EFF THEM. Their fault for living out in the sticks! Well, that's right up until some municipality gets peeved at that attitude. Look at what happened in Monticello. First, they were told "no high speed for you, suckers". So then they went to build their own. And
TDS sued them to stall them, and suddenly TDS was installing fiber in their town. Because of course if a bunch of municipalities get the idea that they can do their own Internet, that's the death of companies like TDS. So even though Monticello was building their own, suddenly TDS was in there ALSO building fiber, basically to screw over the bondholders and the city, to set an example for other municipalities that might get out of line. When THAT didn't work, then Charter Cable joined the fray,
engaging in what many have called predatory pricing.
Now, a little reality in the situation here. Last mile infrastructure is difficult and expensive. It is even more expensive in the outlying areas where there isn't a lot of population density to drive for-profit investment.
We can address these issues, as we addressed rural electrification years ago, and rural telephony. We have been successful with those sorts of things, no reason to think we can't do the same for networking. In fact, today it's simpler, because most people would agree that IP is the winner of the protocol wars. What we lack is the political will to bring this country into the modern era and get out from under the thumb of those companies who have become very profitable providing crappy service for an unreasonable price.
So with all that said, I respecfully call the proposition that "the US is a huge country" a huge load of bullchips. It certainly is, but that's not what's holding us back. It's the lobbyists and the big money interests who are preventing progress at every turn in order to continue reaping as much profit as they can from as little investment as possible, keeping competition out of the equation.