And as Einstein once stated, if you can't explain it simply, you don't know it (not verbatim). Being a fan of simple yet awesome explanation on this issue, I present you an analogy with water: Verizon Charges: 1. Netflix pays Verizon for broadband use. 2. Customer's Pay Verizon for broadband use. The Scam: Netflix is pushing their data out like water coming out of a open fire hydrant. Verizon should be putting a FIRE HOSE between Netflix and You because both sides are paying for broadband (really they should be doing it because the end user is paying for high speed but they want to have their cake and eat it too). Instead Verizon is using a GARDEN HOSE to purposely limit the speed, so they can connect 8 Garden Hoses to 1 Fire Hydrant and charge more people for the same pipe. It worked fine for them for many years because most people were never using the actual bandwidth they were paying for... because all people did was Facebook and Email. So they would be paying $50 a month for 10mb speeds, and hardly ever break past .5mb. So they were making a ton of money without having to invest in infrastructure that could actually support 10mb speeds for all users. But now that has changed because everyone wants to use their 10mb Fire Hydrant... and their aint enough Fire Hydrants to go around.