Yeah, but I also remember that my phone bill was $7/mo back in regulated days. Yep, long distance cost extra, colored phones cost extra, caller id cost extra, etc, but basic service was under $10/mo. And when something broke, Ma Bell sent someone out to fix it. For free.
Current phone situation is not really parallel. Phones can be based on AT&T wires, cable modem or cell technology. Similar connectivity options for internet with DSL, cable modem, dial up, 802.11a wireless and 3G/4G cell technologies.
Back in the 80s, before the break up, companies were doing cheap long distance by bulk leasing AT&T lines or by building their own. Nobody was terribly interested in providing alternate LOCAL service although there were a few experiments made. I'd have to say that internet can't get much more open than it already is.
Cable also has multiple choices with traditional cable, DISH, DTV, FIOS and the newly expanded OTA in metro areas. There is also the emerging TV over IP we are seeing, which is exactly what you are describing. That's what is being protected by the net neutrality regulations.