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The ISP sets up rack-cabinets full of equipment in central buildings where the “last mile” fiber terminates, close to the neighborhoods that they service. Each ISP that provides service to the area needs to have their own equipment there. This is how they differentiate and how one ISP can do 1Gbps while another might be able to do 2Gbps. Simply because they have installed different equipment. The fiber itself can of course support much more

Thats likely true in some places, here though there's no local ISP hardware. (I expect they're in national data centres level).

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