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waterheater | 2 years ago
An ISP usually has a neighborhood hub where local lines connect and feed into the broader infrastructure. I'm betting that ISPs have a pricing model using a "neighborhood utilization ratio" factor, calculated as houses-served-in-neighborhood over total-number-of-houses-in-neighborhood. To cover known network infrastructure expenses (equipment replacement, technician labor costs, etc.), the pricing needs to work out, but low service demand in a given service area for the same infrastructure requires those fixed costs be borne by the few people using the service.
Many infrastructure services typically are more expensive in a rural area, presumably due to this effect but spread over a larger geographic area because population density is lower.
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