> That is utter nonsense.

Hardly. Some level of cross subsidisation happens in all service of this nature. Depending on use youre either paying or receiving

Most Providers and customers just ignore it as inconsequential though.

The reasoning the gave still doesn't pass the smell test. If it's as they say, then they wouldn't increase the price they would tariff the traffic. Like other providers.

Don't increase prices and claim it's to help the little guy.