The last mile infrastructure in the 90s was heavily regulated, and in fact it was those increases in regulation that had a huge part in democratizing the Internet.
Up until the mid 80s, telcos would only allow devices that they had approved to be connected to their networks. That's why you had acoustic coupler modems until then. The device that made an actual, electrical connection to the phone company's network had to be one of their approved phones. They maxed out at 1200 baud (most of the time much lower ~100baud).
Then with the breakup of the bells, and subsequent regulation forcing them to open their networks and allow unapproved devices as long as they didn't have a demonstrated adverse effect on the network.
So yeah, the FCC wasn't regulating AOL in the 90s, they were regulating the last mile: the Bells, GTE, etc. That's where the value in government regulation is, and that's where we want it now as well.
My ideal situation, IMHO, would be nationalized last mile, with a host of choices of companies handling the peering from the local office to the internet. You then pay the peering company, and they pay rent to the gov for the last mile. By reducing the barrier to entry (by making it so that any company can easily attach to last mile fiber) you increase competition. That's unlikely to in the current political climate however (to say the least).