# Understanding ISPs: Internet Access, Services, and Key Examples

![Internet Service Provider](https://www.investopedia.com/thmb/Ab0jb5NpO9Jy_P7tQngFtFbsBaA=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/isp.asp-edit-bba11bd375f54353b6cfcceb88f8bd49.jpg)

*— Ellen Lindner / Investopedia*

## What Is an Internet Service Provider (ISP)?

Internet Service Providers (ISPs) are key players in the digital world, connecting both consumers and businesses to the vast expanse of the Internet. These companies use various technologies—such as cable, DSL, fiber optics, dial-up, and wireless—to deliver seamless online experiences tailored to individual needs.

ISPs empower users to browse the web, shop online, communicate, and more, all for a subscription fee. Beyond basic connectivity, ISPs often enhance their value proposition by offering services like email, domain registration, web hosting, and even browser packages. Thus, ISPs are not just Internet gatekeepers; they are integral to enabling and enriching digital interactions.

### Key Takeaways

*   Internet Service Providers (ISPs) are companies that offer Internet access to consumers and businesses using various technologies, including cable, DSL, and fiber optics.
*   Tier 1 ISPs, which own extensive infrastructure, appear monopolistic in certain regions due to the high costs of building Internet infrastructure.
*   Some ISPs not only provide Internet access but also offer additional services such as email, domain registration, and web hosting.
*   Popular U.S. ISPs like AT&T and Verizon also offer services beyond Internet access, including telecommunications and media production.
*   The distinction between ISPs and WiFi providers lies in the method of delivering Internet access, with ISPs connecting homes and offices, while WiFi providers facilitate wireless connections.

## How Internet Service Providers (ISPs) Connect You Online

Initially, only government agencies and certain university departments had Internet access. The technology was developed to provide access to the general public through the [World Wide Web](https://www.investopedia.com/news/world-wide-web-inventor-thinks-tech-giants-need-be-broken/) in the late 1980s. Initially, consumers were able to gain limited access through a few ISPs—America Online (AOL) being one of the most recognized names at the time—that used dial-up connections using a phone line.

By the mid-1990s, thousands of ISPs emerged, sparking a boom. As the options for connectivity increased and speeds moved away from slower dial-up connections, the [Internet economy](https://www.investopedia.com/terms/e/ecommerce.asp) was born. Providers developed more advanced technology, allowing customers high-speed access via [broadband](https://www.investopedia.com/terms/b/broadband.asp) technology through cable and digital subscriber line (DSL) modems.

This development was supported by a complex network of connections. Local ISPs sold access to customers but paid larger ISPs for their own access. These larger ISPs, in turn, paid even larger ISPs for access. The trail leads to Tier 1 carriers that can reach every network access point without having to pay for access. Tier 1 companies own the local [infrastructure](https://www.investopedia.com/terms/i/infrastructure.asp) for Internet access.

ISPs connect their customers to the Internet, simply managing the flow of traffic between users and the wider Internet. But there may also be other services [bundled](https://www.investopedia.com/terms/b/bundling.asp) in depending on the customer's location and availability. Some of these services include:

*   Email services
*   Web hosting services
*   Domain registration
*   Browser and software packages

> **Fast Fact**
>
> As of 2023, approximately 95% of U.S. adults used the Internet, and 80% of American adults had broadband service at home.

## Exploring Tier 1 Internet Service Providers and Their Role

Consumers and businesses are accustomed to the idea that they should be able to connect to the Internet from anywhere—whether at home or while sitting in a local coffee shop. To deliver connectivity at high speed, companies have to invest in expensive infrastructure that includes fiber optic cables.

Due to high infrastructure costs, Tier 1 ISPs can seem [monopolistic](https://www.investopedia.com/terms/m/monopoly.asp) in their regions. A company might have near-total control of the market in certain areas. In the United States, companies may appear to operate in an [oligopoly](https://www.investopedia.com/terms/o/oligopoly.asp) rather than a monopoly, where two or more companies work together to achieve market returns.

Major American ISPs grew by using infrastructure inherited from the [Ma Bell](https://www.investopedia.com/terms/b/babybells.asp) telecom monopoly.

Current Tier 1 ISPs continue to invest in infrastructure, and they may well be the only players in that market until new technologies that don't depend on fiber cables in the ground emerge. Think of the likes of Starlink, an entity inside SpaceX, founded by [Elon Musk](https://www.investopedia.com/articles/personal-finance/061015/how-elon-musk-became-elon-musk.asp), which is developing a low-latency, broadband Internet system that aims to meet the needs of consumers around the globe, enabled by a constellation of low-Earth orbit satellites.

To meet the demand for faster Internet, major ISPs have heavily invested in [5G technology](https://www.investopedia.com/articles/markets-economy/090916/5g-technology-which-country-will-be-first-adapt.asp).

### Google Fiber: A Look at Alphabet’s Internet Service Experiment

Other companies have attempted to enter the Tier 1 ISP market with mixed success. [Alphabet](https://www.investopedia.com/articles/investing/081115/why-google-became-alphabet.asp), Google's parent company, ran Google Fiber as part of its Access Division.

As of 2024, Google Fiber is only available in select cities in 19 states: Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Idaho, Iowa, Kansas, Missouri, Nebraska, Nevada, North Carolina, South Carolina, Tennessee, Texas, Utah, and Washington.

## Leading Examples of Internet Service Providers in the U.S.

Many of the largest ISPs are also [large telecommunications companies](https://www.investopedia.com/articles/markets/030216/worlds-top-10-telecommunications-companies.asp) that provide a wide array of services. For example, in addition to data and broadband Internet services, [AT&T](https://www.investopedia.com/insights/how-att-makes-money/) ([T](https://www.investopedia.com/markets/quote?tvwidgetsymbol=T)) provides local and long-distance telephone service, managed networking, telecom equipment, and feature film, television, and gaming production and distribution.

Verizon Communications ([VZ](https://www.investopedia.com/markets/quote?tvwidgetsymbol=VZ)) is another ISP that has a diversified range of services. The conglomerate offers local and long-distance voice, as well as broadband video, data center and cloud services, and security and managed network services.

Some ISPs provide [special programs](https://www.investopedia.com/what-broadband-costs-and-how-to-afford-it-5184821) to help low-income families and seniors with costs. The federal government also opened an Emergency Broadband Benefit (EBB) program on May 12, 2021, to provide help to families to get these services. The EBB was replaced by the Affordable Connectivity Program on Dec. 31, 2021.

## Is an Internet Service Provider (ISP) the Same As a WiFi Provider?

No, an Internet service provider (ISP) and a WiFi provider are two different things. The main difference is that an ISP provides access to the Internet often through cable, digital subscriber line (DSL), fiber, or satellite connections. ISPs, such as AT&T or Verizon, can be wired to a location such as a home or an office building directly. By contrast, WiFi providers allow you to access the Internet through a wireless connection. With WiFi technology, a modem delivers Internet service and a wireless router connects to the modem. The Internet is converted into a wireless signal by the modem.

## What Are Different Types of ISPs?

The two main types of ISPs are cable or DSL. However, other types exist, often in more remote locations. Cable connections are used by multiple neighbors, which can affect the cable access speed. Telephone service providers offer DSL connections, which connect a DSL router to a phone jack or phone cable.

Dial-up connections are most often used in rural areas, which use a phone connection that is connected to a remote server.

## What Are Some Common ISPs?

Among the largest ISPs in the United States are Comcast, Charter, AT&T, and Verizon.

## The Bottom Line

An Internet service provider (ISP) is usually a large telecommunications company that provides Internet and other related services to consumers. Some ISPs are the only provider in a specific region, while other regions give consumers access to multiple ISPs. Consumers often seek good service, reliable speeds, and fair pricing when choosing an ISP.

> **Article Sources**
>
> 1.  Pew Research Center. “[Internet/Broadband Fact Sheet](https://www.pewresearch.org/internet/fact-sheet/internet-broadband/).”
>     
> 2.  Google Fiber. "[Where Is Google Fiber Available?](https://fiber.google.com/fiber-internet-near-me/)"
>     
> 3.  Federal Communications Commission. “[Emergency Broadband Benefit](https://www.fcc.gov/broadbandbenefit).”