The problem with expecting a government to run any kind of service whatsoever is that they have no incentive at all to make good use of money. As far as the government is concerned, throwing taxpayers' money at a problem makes it go away, and all they have to do to get more money is raise taxes; while the government in question is in power, there's bugger-all the voters can do about such robbery.
A company has to worry about making a profit. If there's only one company you get the same problem as with government 'services': they can charge as much as they like for crap service. Competition between companies, however, encourages efficient use of money.
Combining the advantages of distributing the bill over the entire country and the advantages of competition would probably result in government subsidisation of the most popular company, but the 'most popular' would probably be the cheapest, ie. the one being subsidised in the first place.
Government-run services are ultimately doomed to failure, or at least waste a ****load of taxpayer (not government, taxpayer) money. Private monopolies will do the same, only worse. Privatisation with government subsidies will continue the trend. The best thing to do is encourage competition between several companies, not favouring or hindering any, except maybe with advertising.