First problem is the cost of the infrastructure for such a huge space. We did offer to subsidize it to a point and the companies took the money without delivering. As usual, no repercussions.
Second problem is very few politicians, in office or wishing to run, will listen to the citizens and prefer taking money from corporations to maintain the status quo.
It's a bigger issue than it seems on the outside.
Did you hear anyone talk about broadband during this year's presidential election?
While it's hard to hear much about policy plans over the personal, historical, and character attacks this cycle, yes, I've heard Clinton promoting her "broadband for all" plan, as well as seen some criticism of and debate about it in the press, etc.
Here's an article from earlier this month: http://arstechnica.com/tech-policy/2016/10/hillary-clinton-v...
I don't know if the comparison should be valid. Over the past 100 years the US has done incredible things. From developing the first transistor to applied atomic power to the first man on the moon, and more relevantly to your point, it expanded the German Autobahn model and took it to a continental scale.
If America wanted to do it, it eventually could be done - and many people around the world still believe this idea to be true.
Edit: What I think is interesting to add is that defense and national pride or prestige were indeed significant factors in these developments through the decades.