Yes, comparatively to a lot of stuff (like food for example), internet connectivity is cheap in Switzerland.

To take 2 countries where I have been living in the last 10 years, if you compare internet prices and average income in Switzerland and Spain, Swiss citizens end up in a favorable situation compared to Spanish ones.

That's right. Swiss wages are at least twice the European average (actually much more than that, but let's keep it conservative). If we exclude home rent and healthcare costs, the vast majority of things definitely don't cost twice as much. Switzerland ranks among the highest in Europe in terms of purchasing power, that's the figure that matters when determining how expensive a country actually is.