Saint Louis, MO
ISPs do not pay by the GB
This is what is so silly about the entire cap thing. In no way and on no level do ISPs pay by the GB, they pay by peak Mbps. Virtually all commercial transit bandwidth is bought by the 95th percentile method (just google it), which essentially means they pay a rate based on the peak Mbps during the month. The same goes for the hardware. They have to have enough hardware to handle the peak load(Mbps). Gbs downloaded during off peak hours cost the ISPs (HSI side) absolutely nothing extra. The hardware has to be in place to handle peak times (no extra cost here). The transit links have to be in place to handle the peak times (no extra cost here either). So where are these mysterious extra costs?
The ISPs who are capping have to face the fact that when they increase tier speeds (Mbps), they also have to be able to handle the load.