How many networks have you seen have their licenses turned down?
Then count how many had them approved but then couldn't afford to build or finish their network.
The infrastructure is VERY expensive to build and it's not like phone, electric, or water where you're almost guaranteed 100% homes passes subscription rate. Even the big 3 cable companies are lucky to get 50-60% subscription of their most BASIC services, HSI is maybe 30-40% of those basic subs, so maybe 25% of all the customers they can service.
Now you want to toss in another competitor into the mix... most have found it doesn't work as the money isn't there to pay off the original investment let alone upgrade it within a reasonable time frame...
The government can't fix what economics won't pay for.