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Musk Secretly Used Starlink to Foil Ukrainian Drone Attack on Russian Ships
(www.thedailybeast.com)
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Notice that your example is local government and not federal. Once the Feds get involved, regulatory capture takes over.
Fair with regards to Chattanooga, and regulatory capture is certainly a problem to account for. But I also mentioned the United States Postal Service, whose existence demonstrates that it doesn't have to be that way.
E: Also, I shouldn't neglect to mention that the entities that would carry out regulatory capture on the US government also tried and continue to try it with Chattanooga, and have been unsuccessful, which also demonstrates that it doesn't have to be that way.