Don't forget the rabid studios
Deregulating Internet service that's provided by music and movie studios is extremely dangerous. They have armies of rabid copyright lawyers that would be allowed to do pretty much whatever they please to justify their existence. They could monitor traffic, block large encrypted streams, forbid codecs that can't be inspected, and forbid peer-to-peer transfers. Throw in the rabid marketing departments and they're going to ask competitors to pay commission on customers visiting.
These aren't imaginary tactics. Some hotels monitor their guests and then demand commission from the shops they visit. CableTV and TV stations blackout shows during fights for commissions. Music and movie producers have a history of creating "Private copying levy" taxes on all recordable media. Sony distributed rootkits, has worked hard to make copyright infringement a severe crime, and even strangled to death their own line of home electronics in the name of studio profits.
The Internet and tech companies are extremely resilient by nature. If it doesn't work in the US, it will relocate to a better country.