said by Crookshanks:Sure it does but it doesn't cost them how much they like to claim it does. The providers are making a killing on broadband and charging insane amounts compared to what it really costs them to get those bits to you. They also stretch out doing required upgrades as much as possible.
There's also a difference between a co-location center and residential last-mile connections. The former provides economy of scale and requires scant infrastructure investment. The latter requires infrastructure from the ISP all the way to your doorstep.