The Telcos would allocate funding / resources based on their financial position and their needs.
I dunno, tbh maybe the government can do a better job at right-sizing the service and running it efficiently than the private sector could? Maybe! But it feels like most arguments along these lines would also apply to the Telcos themselves, i.e, if government can do a better job why not nationalise the Telcos?
This will raise prices
It is risky in that the work is open-ended and “wins” are hard to predict. But when they are found, they benefit everyone. And then industry can swing into action commercializing it.