[Naac]

>> Really should be billed on a combination of peak utilization and total consumption.

Why?

>> Having the ability to download at 1Gibps for a few minutes a day is a lot less strain than downloading 24x7 at 1Gibps

It's not a strain on the hardware, its that the ISPs have to give you a dedicated pipe, which is what they're already selling.

>> Such complex billing models are pretty common with electrical utilities

That's false. For example, you do not get billed by how large your water pipe is, only how much water you use.