> Them wanting people to believe that this will lower the cost of internet service is laughable. Have TV ads lowered the cost of cable?

It's a very important point; this false argument is often used. In truth, in the marketplace, goods are not priced at 'cost-plus'; i.e., they aren't priced by taking the cost to the vendor and adding a profit margin.

Goods are priced at the point that will maximize profit for the vendor; economists would say at the point that maximizes marginal profit. Colloquially, they charge as much as they can.

The fact that the vendor has another stream of income from Product B doesn't cause them to reduce their prices for Product A. Microsoft doesn't cut the price of Windows because they are making so much from Office.