ISPs grant access to the internet by providing the necessary infrastructure for browsing your favorite websites, sending emails and performing online tasks at record-breaking speeds.

You’ve probably heard of the big players like Comcast, AT&T and Verizon for home use and CenturyLink or Cox Business for corporations. These giants may seem to be the only options on the market, but local ISPs offer a unique blend of services that can often match or even outperform their big-name counterparts.

An ISP offers more than just internet

First and foremost, ISPs provide services for accessing and using the internet. They come in multiple forms, such as commercial, community-owned, non-profit or privately owned. ISPs hit the public market in the 1980s and created new digital opportunities for businesses and individuals alike.

They play a crucial role in making the internet accessible by offering highly technical services that connect computers to the internet, ensuring users can surf the web, stream videos, play online games and more.

ISPs can be categorized into three tiers based on the network’s size, scope and control.

Tier 1 ISPs

Tier 1 ISPs are the top internet providers with a global presence. They own networks that span across countries and continents, ensuring seamless international connectivity.

Unlike lower tiers, they don’t incur costs for data transit as they exchange traffic directly with other Tier 1 networks. Notable examples include AT&T, CenturyLink and Arelion.

While tier 1 ISPs are much more expensive than lower tiers, they offer a powerful and reliable connection, which is critical for businesses with high traffic and bandwidth needs.

Tier 2 ISPs

Tier 2 ISPs bridge the gap between global and local connectivity. They maintain agreements with Tier 1 ISPs and other Tier 2 ISPs to ensure data reaches areas they don’t cover directly.

For instance, a Tier 2 ISP like Cogent Communications might pay AT&T (a Tier 1 ISP) to route some of its traffic across the globe while also exchanging traffic directly with another Tier 2 ISP like KPN to enhance regional connectivity.

This blend of paid and free peering ensures a wider network reach.

Tier 3 ISPs

These are the smallest ISPs, usually operating within small regions or single countries. They purchase all their internet connectivity from Tier 1 and Tier 2 ISPs. Examples include local broadband and telephone companies.

Imagine a hypothetical local bookstore, located in a small town in the U.S. They only need the internet to process transactions and manage their inventory.

They would likely use a Tier 3 ISP, such as a local broadband company, which provides them with basic internet connectivity. This Tier 3 ISP purchases its internet access from larger, Tier 1 or Tier 2 ISPs, allowing the bookstore to stay connected despite being in a small, localized area.

Additional services ISPs provide

Beyond providing internet access, ISPs offer additional services that add value for their customers.

Email accounts

Most ISPs offer email accounts to their users as part of the internet package. This service includes email storage, spam filters and virus protection.

Unified Communications as a Service

Some ISPs offer UCaaS, which integrates communication services like messaging, voice and video calls and web meetings into a single platform.

Web hosting

ISPs often offer web hosting services, which allow individuals or businesses to make their websites accessible via the World Wide Web.

Virtual private network

Some ISPs offer VPN services for enhanced security and privacy. A VPN creates a secure, encrypted connection, which is particularly useful when using public Wi-Fi networks.

TV and telephone services

Many ISPs offer bundled services, which can include digital television and landline telephone packages. These bundles can be cost-effective for users who need multiple services.

Moreover, many ISPs offer VoIP services. If you want to use VoIP services, I recommend starting with a VoIP speed test to ensure your network is strong enough. This will help you avoid common VoIP issues before spending any money.

In some cases, it may be beneficial to consider specialized VoIP providers. These providers often have more robust infrastructure dedicated to VoIP systems, which can result in better call quality and lower costs.

Local ISPs vs national ISPs

A local ISP is a company that provides internet services within a specific geographical area, such as a city or region. In contrast, a national ISP, like Verizon, offers services across the entire country, boasting a vast network and a wide range of services.

Benefits of a local ISP

• Personalized customer service.
• Quick issue resolution.
• Community support.

Choosing a local ISP can lead to a more individualized service experience. Its close proximity allows for quick resolution of issues, reducing downtime.

Furthermore, by choosing a local ISP, you’re likely supporting a business that gives back to your community, fostering local economic growth.

Drawbacks of a local ISP

• Limited coverage.
• Potentially slower speeds.
• Limited service offerings.

While local ISPs offer certain advantages, their coverage is geographically limited, which could be a drawback if you move or need internet access in different locations. Additionally, their speeds and service options may not compete with those of larger, national ISPs.

Benefits of a national ISP

• Widespread coverage.
• Better infrastructure.
• High-speed internet.
• Variety of services.

Opting for a national ISP like Verizon can ensure reliable, high-speed internet across a wide coverage area. The variety of services and packages they offer allows customers to choose a solution that best fits their needs.

Drawbacks of a national ISP

• Less personalized customer service.
• Potential for higher costs.
• Contractual obligations.

While national ISPs offer extensive coverage and high-speed internet, their large-scale operations can sometimes lead to longer wait times for customer service. Also, the cost of their services may be higher, and they often require customers to commit to long-term contracts, which might lack the flexibility that some users prefer.

How to select the right ISP

Selecting the right ISP can be a daunting task, given the multitude of options available. Here are some key considerations for consumers looking for simple home internet:

• Availability: Not all ISPs serve all areas. Check which ISPs provide service in your location.
• Speed: Depending on your internet usage, you may require different speeds. For basic browsing and emailing, a speed of 5–10 Mbps should suffice. However, if you frequently stream videos or play online games, you might need speeds of 100 Mbps or more.
• Price: The cost varies widely based on the speed and type of connection. Basic home internet services can range from $20 to $60 per month. Be sure to understand what’s included in the package and whether there are any additional fees.

Businesses have similar considerations but also additional factors to keep in mind:

• Data caps: Some ISPs impose limitations on the amount of data you can use in a month. Businesses, especially those that rely heavily on cloud services or video conferencing, should opt for plans without data caps.
• Bundled services: Many ISPs offer bundled services like email, web hosting and VoIP. These can be convenient, but it’s crucial to assess the quality and cost-effectiveness of these services.

There are instances when businesses might want to consider providers other than their ISP for bundled services. For example, if an ISP’s VoIP offering is expensive or lacks desired features, businesses might explore specialized VoIP providers. These providers often offer more advanced features and competitive pricing.

Choosing the right ISP involves balancing various factors, including availability, speed, price and additional services. Both individuals and businesses should carefully assess their specific needs to make an informed decision.