said by S_engineer:If they're not about making money, well then they should lower the costs relative to the newly imposed caps. Here would be an example; if Cogeco had a cap that was 100 GB and they are lowering it to 5GB, then your bill should reflect that by being one twentieth of what it was.
So a $75 Cogeco bill would be 3.75....if they truly weren't in it for the money.
That is not strictly accurate. Their cost is composed of 2 components - A Fixed Cost and a Variable Cost. The fixed cost is the cost of being able to deliver the bandwidth while the variable cost is the cost of actually delivering the bandwidth. There is a cost even if I never use the connection. Thus to compute the bill, you must first factor out the delivery capability cost before you reduce the cost of the capped bandwidth. If we set the fixed cost at $15, then that 100GB costs $60, a 5GB cap is $3, and the new bill with a 5GB cap is $18 (not $3.75).
