for Corporate America that owns the Government it's called legal Monopoly
Or its called supply and demand.
Are you willing to pay the price for goods served? If so then the price fits. Apply this basic economics prinicple to any provider of goods/services and it works out.
Sometimes I cannot believe the nerve of folks saying "I want my multimegabit internet connection for 20 bucks a month!" when they have no idea the capital nor the labor involved in servicing such a connection. The capital outlay on the termination and routing gear required for a ds3 or multiple OC3 connections is not that high (< 200K) but with all networks that is just a fraction of the cost.
Support is the big killer, here's where the ongoing expense comes into play because there is very little ROI on an employee.....sorry, its a headcount thing. Manning support lines and the engineers to grow it aren't cheap.
Why do you think the mom-n-pop ISPs are going under left and right the last 7 years? Because they cannot provide a service at a price the market will bear. Sure you can skimp on the labor (hire cheap), sure you can skimp on the hardware, sure you can skimp on the management and provisioning software required to run a service oriented internet connection.
But at the end of the day you will not make a profit by doing so, because your competitors are doing it better and cheaper and realizing the economies of scale.
A good, strong mangible network requires little in the means of support. But the problem is you have to have a generally large network to realize these expense savings. Otherwise you have 10 engineers at 160K a piece running around trying to fix Suzie's DHCP problem.
Still if some believe that they should have multimegabit Internet connections for less than a grand/mo they can keep believing it. I'll stick to reality.
To put it in perspective one is saying "I want to make long distance phone calls to anywhere in the world, and I want 24 simultaneous calls, and I want it to be a flat charge having nothing to do with actual usage"
No I don't work for an ISP but I have built several and fully understand the cost involved and the fact that most ISPs are hemeraging cash severely right now because of the market. They can't cut cost anymore, the only thing they can do is manage their income and service...cutting bandwidth to prevent the top 1% of subscribers from eating 90% of their bandwidth is a step in the right direction.
Previous statistics are based on personal expience and not fabricated.