I'm not sure you have the history quite right; at least in Califonia, the mandated LLU was alive and well[1] for incumbent telephone carriers (ILECs), but the FCC had decreed that it applied to ILECs and not cable operators; and eventually (after much complaining and lawsuits from ILECs) decided it applied to noone, because ILEC + Cable + Satellite + Power line (hah) was a competitive marketplace.

[1] not exactly well -- when the ILEC regularly offers individual customers service at rates under the wholesale rates; and the regulators don't do anything; that's not really working well.