The people get the government—and regulations—it deserves.
Personally, I'm *almost* with OFCOM on this one. (Not that OFCOM have any teeth, so nothing they say is of any great consequence.) The internet is just a pipe. There's no reason why companies *shouldn't* be able to offer "Premium Internet Video Service! All you can eat!" as an optional extra.
However, there needs to be a choice between ADSL, cable, etc. At present, cable still has very little coverage outside urban areas—and even London has a few gaps; I used to live on a small street in Brockley, SE4, which was surrounded by streets stuffed with cable, but had none of its own. This needs to be addressed as a matter of urgency. The new government's decision to stick with such a low minimum standard—2Mb/sec—is also unacceptable.
Infrastructure needs to be taken back under national ownership and rolled-out to all. No ifs. No buts. And it needs to be the best-of-breed too: fibre-optic, end to end. This gives ample headroom to allow for ever faster and better services.
This approach would also help ease congestion in major cities as it becomes much more viable for businesses to move outside major conurbations, and for many employees to work from home more often. This reduces (but obviously won't eliminate) CO2 emissions as well as the need for more, and wider, roads and railways. It increases productivity—no need to spend great chunks of your working life sitting in a car or standing in a train—and reduces stress and related health issues.
It's a win-win, no matter how you slice it.