Local bus deregulation currently survives in the UK because there is a captive market that is willing to pay high enough levels of bus fare to keep the route viable. This has failed in most of Surrey, for example, because the captive market is too small, possibly due to very high levels of car availability, as well as rail competition and heavy traffic. You would have thought that America would have bus deregulation, as it is the home of capitalism, but in actual fact they don't, presumably because it would not be profitable. American buses are typically heavily subsided with very low fares (typically $1-$2 a single trip including transfers). In America, even poor people usually have cars, so they can't rely on the captive market to generate enough revenue.
Similarly I don't think local bus deregulation would work in, say, the Netherlands, because the fare rises needed to make the service run without subsidy would probably force everyone onto bikes and cars.