

I mean, kinda? Sure, there are fixed costs per customer, and it ultimately doesn’t matter if one guy has access to (and uses) a 1Gbps versus 1Mbps service… But when you have millions of customers that you want to serve those speeds to reliably, there’s an insane difference as you need way more expensive equipment and stuff.
And yeah, more bandwidth has gotten cheaper. But again - for such a critical service, it should be very cheap and minimum speed isn’t really a factor. So if they could make it 1/3 cheaper by cutting the speed to 1/5, that’d be a win for a lot of people.
Sure, but the fixed costs are really low (mostly administrative and one-time installation related stuff which you could potentially just charge for separately) and the ongoing costs per customer are close to zero.
Also really depends on where you live; I guess for NY it’s a really good deal.