But the same rule that basic cost equals hardware + setup + energy + maintenance also applies to the upstream provider, and their upstream provider, all the way along the selected route including the biggest interchange touched. The economic arrangements are different, but the cost base is just that.
Sure, and they purchase very expensive equipment to cover the peak bandwidth demand then spread out those capital costs in the form of a monthly bill.
If you want more bandwidth, it's "free" as long as there is room available, otherwise the whole chain needs to upgrade so as not to degrade the service of other customers. On a competitive market, the margins available and the prices should tend to go as tight as possible and the economics will lead to pay for usage.
