Did they ever realize it was because of their outrageous prices? Price gouging bastards.
That story started in early 2000s when Michael Powel (FCC Commissioner and a disciple of right wing economic politics) decided that less competition would mean better service. Rules were changed that basically said every region will only have two internet providers. Smaller providers such as Covad, PSINet, and Cavalier were literally driven out of business. Basic concepts that created innovation and competition (ie net neutrality, content providers verse data transporters, etc) were trashed to enrich the rich and powerful.
Just recently, the last of the small competitors are gone. And so the big providers are now doing another price increase. For example, Verizon is starting to eliminate DSL service in regions where the competition no longer exists. Force consumers to upgrade from their $30 or $45 per month plans to FIOS equivalent now exceeding $50 per month.
And so America has failed from the world leader in internet service to about 21st. And Michael Powel is not paid big bucks as the chief lobbyist for the cable industry.
Why is Comcast making so much money to build the three tallest buildings in Philadelphia, buy NBC, buy universal studio, almost buy a cell phone company, force surcharges on data providers such as Google and Netflix, and try to buy Time Warner? No competition means they can charge all they want.
Prices. S Korea (a world leader in innovation) provides 100 Mb for $20 per month. Why is America typically 20 or 50 Mb for at least 2.5 times more money? Michael Power, et al are successfully destroying net neutrality and other market forces that once meant profits come from innovation - not paying off politicians.
By destroying free market competition, American internet service has both diminished and become many times more expensive - when new technologies and the resulting innovations say prices should be dropping.