Well, I wouldn't entrust critical infrastructure to the private sector which.. blindly optimizes shareholder value and sells your data anywhere. Germany's train privatization also comes to mind,.. or US healthcare - worse service for more money.
We pay for utilities directly. Also, even it if it was funded from state budget(s), there are known and working controls to make publicly funded <> state controlled.
Not how things that are "banned and/or tightly regulated like utilities are" are funded.