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Are they 'stealing' my service?

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It's my understanding that there is just so much bandwidth to go around and that at peak usage times when internet speeds take a dump it's because everyone in your area is using the net. So is it true that even if everyone on my block is paying the same amount for Internet service, if I sit down to use my iPad at peak times it could be slow as a snail because at the same time a neighbors six kids are each on their own iPad watching Disney movies? So in effect, if we're all paying say $50/mo for Internet service, in those moments my neighbor is getting $45 worth while I'm getting a slow $5 worth, true?

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