This is the result of free markets. Some markets can be completely free and still result in monopolies. Some markets have natural tendencies towards monopolies,

This is the result of free markets. Some markets can be completely free and still result in monopolies. Some markets have natural tendencies towards monopolies, and will inevitably become dominated by monopolies unless (ironically) regulations artificially create conditions under which competition can exist. In the case of ISPs, the most pragmatic resolution is not to artificially create a free market but to classify them as utilities. This is an acknowledgement that they exist in a market which tends towards regional natural monopolies, and allows them to enjoy those monopolies, but prevents them from exploiting their status too much (for example, by using their natural monopoly in one market to affect another market). I don't even know who their hypothetical competition would be- my understanding (which could be wrong) is that there is nothing preventing such competition, it's just very difficult to go up against an entrenched incumbent. Google Fiber is great, but if that was Google's only business they wouldn't last very long. The only counterexamples I can think of are the legal battles where ISPs have effectively shut down attempts to establish municipal broadband, which is terrible, but I don't think that's the kind of competition you're referring to.