Earlier quoted context omitted.
You're confusing the last mile transmission capability with the cost of transferring the data in and out of the network. Let's say you and I go in to business together and build a microwave wireless internet service. There is commodity equipment available that can push 100 mbps pretty easily. We buy a microwave transmission tower and central office from a company that is going out of business at a rate that cannot be…
We have to pay for every single bit our customers transmit. What about all the bits your customers receive? You sound like you're at least somewhat familiar with peering agreements, so I'd like to know how that part works. If your customers are mostly receiving instead of sending, wouldn't those bits be paid for by the ones sending the bits? For that matter, why can I get 200GB/mo at 50mbit/s plus a server for $20 fr…
The ISP has to maintain and upgrade thousands of miles of physical plant to deliver data to customer's homes in the geographic regions they cover. For a typical cable ISP for instance there's about 3-5 miles of copper between your modem and the the fiber node and typically dozens of miles between the fiber node and the provider's headend/datacenter where they uplink to the Internet -- which incidentally for smaller rural ISPs may itself be hundreds of miles away from competitive rates on data. Going back to the cost of maintaing/upgrading the infrastructure a small plant of only ~1000 miles typically requires at least a dozen full time employees simply to maintain it day to day and that's not including things like management, network engineers, customer service, technical support, equipment, contracted labour, customer installation, etc. On top of that you've got the cost of leasing access to the poles/underground conduits and the cost of powering the 3-5 miles of plant plus whatever operational costs you have to put gas into your fleet of vehicles, the cost of the vehicles themselves, insurance, etc. When you put this all together you're looking at some pretty huge overhead on the consumer side of Internet access plus whatever profit the company wants to make to justify all of the above. It's not a charity after all.