Depends on the market. It's not very common to be true specially in large countries where transport costs are high and competition is not much (yet). If the question is in the context is Singapore (or even the UK, Germany etc) then things are not that hard due to small size. Remember that for the majority of users, traffic flow is
Google/Facebook/
Netflix/Akamai/few more for 95% of their usage. If they are present near to you, it's not that hard.
In theory, Jio/Airtel could have different pricing for Delhi/Mumbai/Chennai (and a few other cities with caching nodes) but then it would create all sorts of confusion, marketing issues etc. Airtel used to have different prices for different cities during DSL days.
Comcast in the US has
caps in certain markets of as low as 1.2TB and they would charge extra for actual unlimited data. AT&T has caps (
reference). I think on FTTH in certain markets they do not have any for now. Still, American providers at large have fewer/no capping issues because of much better ARPUs. With Indian retail pricing, it's actually tough and hence if cost can be saved, providers will do their best to save. The US has more competition on wholesale, long-haul dark fibre but much lower on retail. We have the opposite!
So some of this has to happen to change this situation:
- More competition on transport specially from non-telcos who aren't competing in the same retail space. Some companies have come up but it's still a work in progress. More non-telco dark fibre is needed on the long haul which can be leased by ISPs.
- Policy change: Active infra sharing still has issues. So if an ISP has access to dark fibre, they cannot share it / lease its capacity to others. ISP license = lit fibre only to offer "internet service". Selling point-to-point links, DWDM waves, layer 2 transport...just anything non-internet is not legal and requires an extra expensive license with its own set of paperwork and long-term cost of maintaining it.
- Cheaper IP transit (specially for small to mid-sized players). IP transit pricing varies wildly specially for lower commitments.
- Some sort of shared common last mile infra. (read about how the Stokab network did in Stockholm). In the absence of that, everyone is putting their own last mile, burning cost, there is much lower density on the last mile due to so many parallel rollouts, plus middle mile management to reach Delhi/Mumbai/Chennai for peering, plus IP transit arrangement, plus managing CPE cost ....all with massive competition and very low commitments (3 months or 6 months).
Unless these fundamentals change, issues will keep coming in one or other form.