My sense is there is some cost savings at these lower tiers, but more importantly it would prevent ISPs from jacking prices up while using higher speeds as the rationale ("Look, we just tripled your speed, and it only costs double!"). ISPs would be less likely to double prices without any service improvement. But since many people don't care about the service improvement, it's an illusory benefit for them.
If pricing stayed even close to fixed my gigabit internet would cost well over $10,000mo, considering back in the day I was paying SBC for less than a meg for more than I'm paying for a gigabit today. And that's before adjusting for inflation, those 90s dollars are worth way more than 2023 dollars.
The cable company now needs to both increase speeds _and_ lower prices to even keep their existing customers. This is a good place to be, as a customer.
Because you keep paying for it. It's not like you're going to not pay for internet, and you probably don't have many alternative options.
At least they're giving more speed instead of just doubling the cost with no increase in service
The big upfront cost is trenching. The rest is potatoes. If you think the "big heroes" of an ISP are the router wizards, oh boy. It's the permit people. A ransomware gang has nothing on the uppity council of a town of 4000 people.