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They have to accommodate the back end hardware to keep up with increased flow -- its not all last mile network.
And i am talking about data a necessity - basic usage to survive in 2017 america is not beyond emails and online form applications. So once they offer basic packages to meet the necessary demands of all people. Why shouldnt they be able to charge whatever they want for the luxury aspects? Are you saying video streaming, file sharing and game hosting are must have entities to survive?
Your definition of luxury is arbitrary, is what I’m saying. ISPs could easily argue that anything over 5Mbps is luxurious and they should be able to charge 30$/month for video streaming, and 40$/month for gaming without getting latency injected, and 50$/month if you want to FaceTime with your grandma. But how does it serve the overall economy to let them abuse their oligopoly position to extract such egregious rent?
It would be one thing if there was healthy competition in the ISP market but there isn’t. If the US had local loop unbundling (divorcing the infrastructure owner from the service provider) like the UK or France or whatever then market forces would sort these issues out. But we don’t.

