ISPs are buying long and selling short or whatever it is called. They buy transit at some higher priced and fixed (10 Gb/s or whatever) and resell it to users at advertised speeds that are a major fraction of whatever the local uplink is. If you buy at 10 Gb/s and sell at 1 Gb/s you obviously can't sell to more than 10 users without somehow limiting something.
So data caps are a way to isolate the harmful effects of those who use a lot of bandwidth from those who just use it rarely. It's standard market segmentation.
You can pay more and get more, or get a business account.
So data caps are a way to isolate the harmful effects of those who use a lot of bandwidth from those who just use it rarely. It's standard market segmentation.
You can pay more and get more, or get a business account.