"Actually providing a service is a cost, and therefore they want to reduce it as much as possible without driving away customers."

Brilliantly summarized. I recently had intermittent issues with my crappy Comcast (only viable option, where I live now) Internet connection. The technician who came over, after viewing my ping logs and things, immediately decided I was onto something, and was awesome. Like really awesome. He was representing the very best a very bad company. Felt bad for him. I directly told him "If you can, get another job, somewhere else [equivalent pay, benefits of course]."

I've had similar experiences with my [monopolistic, US] cable provider. Everyone who has come out to do any service has been surprisingly competent and very willing to do more than what needs to be done. I had a guy come out this past Sunday who didn't like the angle the cable was coming out the wall panel (sharp turn against furniture), so he moved the coax connection inside the wall. The only way I can figure it is they are heavily incentivized to solve it right the first time, so they like to cover all the bases.

"Building more won't enable them to charge their customers more"

Why not? If I'm noticing slowdowns due to saturation, and my ISP said "we're expanding in your area and upgrading equipment, capacity, etc, but it's going to add another $9/month on your bill" of course I'd pay it. A) I'd have no choice and B) I want better service.

And if you noticed slowdowns due to traffic shaping and your ISP with their government-enforced monopoly said, "We're racketeering. It's going to add another $9/month on your bill." of course you'd pay it. You'd have no choice.

Building more capacity and offering better service doesn't really enter into the picture in most American cities.

Point to even a single example or you earned every downvote you get.

I know a lot of people hate the "government," but it's no more rational than hating "corporations." Which government? Why? My impression of US government ISPs from college campuses is that most leave a wide open pipe for pretty much free use with few exceptions. Many forget that the Internet was entirely given away to private interests by the government. Most public ISPs are understaffed and may at worst limit something by accident while targeting illegal activity.

I suspect few people will - and there's a limit to this, if they add $9 every few months for a different service, eventually you will refuse to pay $$$/month for the service.

Imagine if every speed upgrade from 56k modems had also come with a price increase.

Every few months? That's not what he said.

No, it's not, but if they can increment prices once, why not again? If they can announce extra billing for "infrastructure upgrades" every few years, why not more frequently?

Boil the frog as fast as possible. After all, where would it go?