So I just did a clean install of Windows 10 Home ver.1607(Anniversary Update) and Service Host: Local System was consuming so much bandwidth from the Wi-Fi network that it did not even let my windows phone have a stable internet access. Isolating the different services under Service Host: Local System it was observed that Delivery Optimization is the culprit and hence to resolve the issue as suggested by multiple forums: "Disable: Updates from more than one place in Updates and Security" to my surprise the Delivery Optimization service did not even flinch. The only thing that provided a temporary fix was to set the wireless connection as metered. But due to that I cannot obtain device drivers etc. from Windows Update. Even tried installing Windows again but the experience was still downright pathetic. Need urgent help with this issue!
Update:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\DeliveryOptimization\Config
REG_DWORD: DODownloadMode value set to 0
Even that did not help