[AnthonyMouse]

> Which means the profit margin is shrinking.

Not if you judge by the telcos' profitability.

The cost of transferring each bit is exponentially decreasing as network equipment tracks Moore's law. Their costs are going down, not up.

What this is really about is damaging competitors to their cable TV operations. Wail about Netflix using a lot of bandwidth, never mind that the cost of providing that bandwidth is falling as fast as the demand for it is rising, and you can put on a good show for the regulators as to why you need to destroy Netflix and push everybody back onto U-verse and cable TV.