If it were a public/private key pair, and you could generate it on the sim card during manufacturing, the private key would never need to be anywhere but the sim card. Maybe that's infeasible because of seeding, but even if the private key was generated on the manufacturing/programming equipment and stored on the sim card, it wouldn't need to be stored or transmitted and could only be intercepted while the equipment was actively compromised.
Even if SIM cards were to feature an asymmetric private key: What would you do with it? How would you look it up, and what would you use it for? There is simply no provision for end-to-end encryption in the phone network at the moment.
If there were, it would be a different story, of course, but I doubt that will ever happen.
For all person-to-person calls, my family and friends have long switched to FaceTime and WhatsApp, which are both encrypted. Why would I pay per minute for a less secure and lower fidelity (HD voice usually does not work internationally) channel?
That said, I really would prefer if the POTS were better secured, given that SSNs and payment card numbers are transmitted over it all the time.
the data in transit is encrypted beyond anything the ISP has control over, so if the ISP provides lawful intercept they have fulfilled their obligation to the TLA because they let them see the data. it's not the ISP's fault that you and I encrypted the data. this isn't TLS encryption.
if that's not clear enough, then someone else will have to step in as I have taken as far as I can