If its a utility company that has a monopoly then you have to use their service whether you want to or not. It already happens now with things like cable TV providers. Or internet pipes like Comcast
If a company is both bad and in a monopoly, you don't have to search very far to find that the cause is government itself that protect them.
The allocation of TV channel, cable and water conduct and even electricity cable, is business of the state.
Most of these infrastructure is financed by the tax payer, and you are severely restricted to own your cable or channels by law.
These is property of the state, granting themselves the right to decide how to allocate "fairly" the scarce shared resource that a private party is forbidden to provide.
This create an artificial scarcity that only big companies (or with good enough connection) can afford, protecting them from competition.
You have nice story about such monopolistic crappy companies, like Bell, where the state helped them to kill their competitor by preventing the development of their own network. (either with legal restriction or subsidies to bell)
Quoting Rothbard
...by this definition, monopoly is a grant of special privilege by the State, reserving a certain area of production to one particular individual or group. Entry into the field is prohibited to others and this prohibition is enforced by the gendarmes of the State.
The only business that can give rise to a monopoly are those benefiting of network effect (telephony was in this case).
Preventing competitor by law of intellectual property the monopoly of developing this to Bell did not helped.
But even with such attempt after the patent expired, competitors were attacking Bell but Bell was then protected by the state with tax payer money and politicians.
Now let's see Myspace, MSN ? these benefited from network effect but died after all, not helped by the state. (well I think I already made this case some month ago on this forum :p)