Their network is under provisioned. They sell an apartment building 300mbps connections to all 8 tenants, but only have a 1Gb connection. To make sure that link isn’t always saturated, they impose a data cap to make you not want to use the bandwidth you’re paying for. On top of that everyone’s connection is crippled during hours like the evening when everyone is using it. As a bonus, they can sell you cable TV on top, so you don’t hit your data cap watching shows.
Because businesses exist to make money, so they have to balance charging as much money to the customers as they can without losing them to a competitive company. That used to mean that they had to treat customers with respect and make them want to stay with the business, but now they’ve realized that they can just pay lawmakers to let them have a monopoly, allowing them to charge as much money to the customers as they want without worrying that they’ll leave, since there’s either no competition for them to leave to, or the competition is using the same strategy, so leaving wouldn’t fix anything anyway. Free market, baby!
ISP shittiness aside, ISPs do actually pay for Internet backbone access by the byte. Usually there are peering agreements saying “you take 1tb of traffic from us, and we’ll take 1tb of traffic from you”, whether that traffic is destined for one of their customers (someone on Comcast scrolling Instagram), or they’re just providing the link to the next major node (Comcast being the link between AT&T’s segment of the US backbone and Big Mike’s Internet out in podunk Nebraska).
And normally that works pretty well, until power users start moving huge amounts of data and unbalancing the traffic.
It still shocks me that they cap usage. There is no reason at all to do this. Why are they doing it?
Their network is under provisioned. They sell an apartment building 300mbps connections to all 8 tenants, but only have a 1Gb connection. To make sure that link isn’t always saturated, they impose a data cap to make you not want to use the bandwidth you’re paying for. On top of that everyone’s connection is crippled during hours like the evening when everyone is using it. As a bonus, they can sell you cable TV on top, so you don’t hit your data cap watching shows.
Are you kidding? Lol. It’s money. The answer is always money.
Queue nip flaps and rubbing.
The only reason its ever been, money
Because businesses exist to make money, so they have to balance charging as much money to the customers as they can without losing them to a competitive company. That used to mean that they had to treat customers with respect and make them want to stay with the business, but now they’ve realized that they can just pay lawmakers to let them have a monopoly, allowing them to charge as much money to the customers as they want without worrying that they’ll leave, since there’s either no competition for them to leave to, or the competition is using the same strategy, so leaving wouldn’t fix anything anyway. Free market, baby!
ISP shittiness aside, ISPs do actually pay for Internet backbone access by the byte. Usually there are peering agreements saying “you take 1tb of traffic from us, and we’ll take 1tb of traffic from you”, whether that traffic is destined for one of their customers (someone on Comcast scrolling Instagram), or they’re just providing the link to the next major node (Comcast being the link between AT&T’s segment of the US backbone and Big Mike’s Internet out in podunk Nebraska).
And normally that works pretty well, until power users start moving huge amounts of data and unbalancing the traffic.
It’s illegal for them to cap it in some jurisdictions (e.g. Massachusetts, where I live).