Few other cities still have "nationialized" bus company. I know Lothian is not technically nationalised as wholey owed company but all intends and purposes the pension fund is part of the Local Government Pension Scheme . If lothian was spilt up and routes tendered seperatly not sure £1.70 for 20 miles would be deemed competetive. I recall a fews weeks ago was a thread about buses and how could not offer free journes as be uncompetitive. In a sense when travel 15 miles part of journey is free possibly. Its just has to be nominal fee and its how routes tendered. It may be the make up of routes tendered. Of course its much better lothian being council owed. However to say what edinburgh does or not, have to consider all the buses that operate with in the city. There is many more buses than those owed by edinburgh. As a council edinburgh does not clearly mark fares any more than glasgow does. Borders bus or horse bus or first bus in edinburgh hard to know what costs is. edinburgh as a council is invested in a bus company is a seperate issues to what edinburgh does as a council. As a council edinburgh does not always make bus fares clearer than other cities. To get from one part of lothain to another you may need a first bus.
I supose the question should be why do other bus companies make there fares a sercet. I think its because they are more varried. Lothains one fare for the whole network may be deemed an uncompetitive pratice if stage coach or someone did similar if was multi companies running the same routes. One company running most of the routes may allow it to be done for less as squeezes out compitition on profitable routes.
Stagecoach has history of being accused of uncompetitive pratices I watched a doc about it, it may be as the council own lothain bus aviod accusation uncompetive pratice. The same regulation may apply but in pratice rather than theory would a regulator be more friendly to government owed, would a council have more influence reducing complaints. If it appeared on the bbc news that lothian bus is to be broke up by regulator first minister would be demanding answers from regulation and select commitee. If stage coach lost a region no one would care possibly. That may create some protection. Also the council (and others who they had influence with)could be diffcult about allowing complainers to operate they could "lose" forms when sent in and be bureaucratically obstructive to the complainers buiness. If someone makes a complaint about stagecoach they cant obstruct in this way.