It doesn't actually happen at the exchange. It happens at the other end of the BT Wholesale system, where they pass it over to the individual ISPs.
The ISP rents MSILs at that/those point(s), and they pay by the maximum Mbps that their MSILs can handle. There isn't a direct clash between ISPs in the way ukhardy described - though his method was a very good way of illustrating the effect.
ISPs basically look at their number of customers, and working on the basis that although a high percentage may be connected at any given time the traffic for each comes in bursts.
Let's take two extremes. Think sending and receiving emails, or clicking on a link to a page on a site. They expect say only 1 in 20 people to click a new page link at the same time.
If we assume all 20 are connected at 8Mbps, the therefore need only to provide 400kbps each (total 8Mbps) at the handover point. Most of the time it will work fine.
The problem (at the other extreme) comes when 15 of the 20 want to watch live Wimbledon, or snooker at the moment, and the other five are streaming Netflix.
The more expensive the ISP, in overall cost of the service and bundles, the more simultaneous handover capacity per customer they budget for.