I think you guys may be confused between capping and throttling.

Right now TM is throttling our connections based on usage/protocols/whatever and that is similar to many other ISPs whether it is in the developed nations or 3rd world ones like ours. A common throttling scenario and quite hyped one back then was the Comcast throttling where people were unable to P2P or have extreme slowness in utilizing application protocols that aren't the 'normal' ones. Note that throttling is often non-transparent and ISPs do not openly discuss what is being controlled and what isn't, except unless they get pressure from the FCC or in our case, the very useless MCMC (not sure about that).

Capping on the other hand is or should be transparent. In Australia, you have ISPs selling packages with 20GB, 40GB, 60GB, 120GB and 250GB per month with peak and offpeak gigabyte pools. For many wireless carriers in the world, i.e. Verizon Wireless/Sprint and our own Celcom, 5GB is the max due to spectrum issues and congestions with the current 3G/CDMA Rev A connections. If the original poster's source is talking about capping, yes that means Streamyx will be announcing hard bandwidth caps.

Will it help? From my own experience, yes it does. Occasionally on the slower packages i.e. Hellstra's Bugpond 5GB packages, at the end of the cycles you get slow network due to people trying to burn off their allocated capacities. For the biggest ones, I've never experienced any slowness. Overall with capping and people not overloading the networks, there should be a noticeable difference.

That being said, Streamyx MUST offer decent packages and not the nonsense 5GB that our wireless telcos are offering.

The bandwidth capping is on trial. Currently some selected places are installed with the 'capping' device on their local exchange.