Large capital requirements and high fixed costs create barriers to entry. Barriers to entry create reduced competition. Reduced competition leads to complacency. Complacency leads to poor customer service and slow reaction to change. These lead to customer dissatisfaction. That leads people to vote with their feet. That leads to insufficient use of pre-existing, expensive capacity. That leads to operating losses. Operating losses lead to bankruptcy.

Airlines, railroads, baseball teams, and the US auto industry are all examples of this syndrome.

An industry with high fixed costs and high barriers to entry MAY be a natural monopoly, in which case I believe the solution is a single provider combined with government regulation. Do you really want ten different competing companies digging up your yard to lay ten different sewer lines so you can chose among sewer service providers so you can save $0.50 per month until the ongoing investments bankrupt all the competing providers and you end up with a house full of sewage?

Flame away.