"The ISP's network can only handle so much data traffic, so it has become necessary for them to apply data caps in certain areas."
This is a frequently used justification for data caps, and it never has and never will be true. Instituting an all-encompassing monthly cap in order to conserve bandwidth is nonsense. Bandwidth can be seen like a freeway... More lanes means more cars can travel on it at once, just like higher bandwidth can handle more simultaneous connections.
So follow my analogy here: Imagine, for a moment, that a Department of Transportation was run like a ISP. Would restricting the amount of miles everyone is allowed to travel per month or the amount of fuel everyone is allowed to consume per month reduce traffic during rush hour? No, it would not. People would instead limit their driving to the most necessary, like to/from work (e.g. rush hour).
So if you are having extreme congestion issues, what ways to the various DOT's around the US work? They *encourage* people not to drive during rush hour. A good example would be HOV lanes for car-pooling. People that consolidate their driving into less vehicles are rewarded by a theoretically faster lane of travel.
So if ISPs do suffer from the supposed bandwidth woes they claim, a monthly data cap would do nothing. If they really wanted to lessen congestion during peak times, they would instead encourage people to not use the internet during those times. Cellular telecom companies know this well... Remember "free nights and weekends"? That was your cell phone company encouraging you to wait until off-peak (less congested) times in order to make phone calls.
How could that translate to ISPs? Well, two ways I could conjure: 1. Keep the monthly data caps, but exempt off-peak usage from that cap, like cell phone companies did. 2. Remove the data-cap and instead offer higher speeds during off-peak hours. Both ideas have the same thread in common: People are encouraged to use the internet less during peak times of the day.
Those ideas are not revolutionary, but we will never see them. Why? Because data caps are entirely about profit and nothing to do with actual congestion. ISPs, including cellular ISPs like Verizon Wireless, use reasons like "bandwidth" as weak justifications for needlessly monetizing their heavier users and increase profits. That's all it is.