There is special wizadry. I can throttle xbox (hell microsoft and sony already do it to thier services), and other over used services with minimal impact on those services and free up headroom for other internet traffic like http. https. ssl. voip, etc. giving all my customers even at peak times a good reliable connection. if I don't throttle services, everyone grinds to a halt as certain services p2p, etc will eat up as much of the bandwith they can.
you have a pipe coming into an isp. you then have network algorythms you use to see what percentage you can oversell that capacity to your customers. If you wanted a 1:1 ration you'd have $700 internet fees, such as a business class line, you have a consumer line so its more 10:1 oversold capacity which is fine. this goes to your cell tower analogy which is correct.
do you know what the cell companies do during these peak times to try to get everyone on? yup, they throttle services that eat up bandwith to make the network usable again.
I have answered this and a variation of this 100 times. It's never happened, and the one or two times it was tried the FCC levied heavy fines on the ISP. And sure it does. look at the new budget 10mb lines cablevision et all are coming out with. those are heavilly managed with services like non-peered video providers getting limited bandwith. it has to be done.
ATT gophone, they restrict video to 360, this knocked out face time because Apple requires 720p. gophone was a heavilly discounted unlimited plan, under NN, it's illegal, so poor people end up paying more for a limited plan and overages.
Ok, so are you arguing for net neutrality or the Net Neutrality rules put in by obama? Lets make sure we are on the same page here. The principles are not the same as the rules.
I'll answer anything you want. I appreciate the discussion as it's free from the crap I usually deal with on this topic. if I missed something let me know. tier 1 traffic shaping isn't done to any degree that you or I would notice. this argument, of NN is at the provider level. here's an interesting article.
https://arstechnica.com/tech-policy/2011/05/new-shaperprobe-tool-detects-isp-traffic-shaping/
again. if I missed a question let me know, I'd be happy to answer.