Providing internet connection?

Is it as simple as how I think:

For example when people purchase a 1mbps line I.E ADSL - is it that ADSL have a 1 MBPS and with a contention ratio of 20:1 have 20 people on the one line?

And thats simply it - some how that it connected to home phones - which is then connected to modems - is that how it works - anyone mind explaining for me?

Regards

Steve

 

 

 

 

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