What Is an Internet Service Provider (ISP)?
An Internet service provider (ISP) is any company that provides Internet access to consumers and businesses. The Internet is provided through a variety of channels, including cable, DSL, fiber optics, dial-up, and wireless, with most ISPs offering all options. Most large telecommunication companies, such as mobile and cable companies, are ISPs.
ISPs make it possible for their customers to surf the web, shop online, conduct business, and connect with family and friends—all for a fee. ISPs may also provide other services, including email services, domain registration, web hosting, and browser packages.
An ISP may also be referred to as an information service provider, a storage service provider, an Internet network service provider (INSP), or any combination of these three based on the services offered by the company.
Key Takeaways
- > An Internet service provider (ISP) is a company that provides web access to businesses and consumers.
- > ISPs may also provide other services such as email services, domain registration, web hosting, and browser services.
- > An ISP is considered to be an information service provider, storage service provider, Internet network service provider (INSP), or a mix of all of them.
- > Internet use has evolved from only those with university or government accounts having access to nearly everyone having access, whether it’s paid or free.
- > Access has gone from dial-up connections to high-speed broadband technology.
Understanding Internet Service Providers (ISPs)
Internet service was originally limited to government agencies and specific university departments. The technology was developed to provide access to the general public through the World Wide Web 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.
The number of ISPs increased to several thousand during the mid-1990s, and the boom was on. As the options for connectivity increased and speeds moved away from slower dial-up connections, the Internet economy was born. Providers developed more advanced technology, allowing customers high-speed access via broadband technology through cable and digital subscriber line (DSL) modems.
What Are Tier 1 Internet Service Providers?
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.
Because of the high cost of investment, Tier 1 ISPs often appear like a monopoly in their regions. A specific company may appear to have near-total or total control of the market in a particular area. In the United States, companies may appear to operate in an oligopoly rather than a monopoly, where two or more companies work together to achieve market returns.
This idea is reinforced by the fact that some of the major American ISPs became so prominent by using the infrastructure that they inherited from the original telecom monopoly that was Ma Bell.
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 the likes of Starlink, an entity inside SpaceX, founded by Elon Musk, 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.
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 typically look for good service and reliable speeds at a fair price point when considering which ISP to choose.