I think you're overlooking the age of exploration, funded mostly by private interests, and things like the first transatlantic cable.
Compare what we've got with countries where the government owns the physical medium and leases it to a variety of bit-carriers--it's tough to argue against that kind of observable evidence.
There are plenty of cases where government stewardship of the playing field--with private companies competing on that playing field--works out for the great benefit of the citizenry.