For many years, internet service providers (ISPs) have struggled with a public relations problem: their customers are generally unhappy. Whether it’s inconsistent speeds, limited choices in rural areas, or frustrating customer service, dissatisfaction has been a hallmark of the industry.
The most recent report from the American Customer Satisfaction Index (ACSI) confirms people are still discontented with their ISPs, but shows that the situation is gradually improving.
A Persistent Internet Problem
The latest annual survey from the American Customer Satisfaction Index, based on input from over 25,000 customers, sheds light on how consumers truly feel about their internet service providers. Spoiler alert: it’s not fantastic. People aren’t really thrilled with the internet they have.
ISPs still rank near the bottom of the satisfaction index, faring only slightly better than subscription TV services but trailing behind industries like airlines, hospitals, the US Postal Service, and social media platforms.
There’s some positive news for internet providers, however: customer satisfaction is on the rise. ISPs earned an overall score of 71 on the ACSI’s 100-point scale—up by three points from 2023, marking their best performance since the survey began in 2013.
The reasons why Americans continue to express dissatisfaction with their providers are multifaceted, but can largely be attributed to several key factors:
- Inconsistent Service Quality: Many consumers complain about fluctuating internet speeds, service outages, and limited high-speed options, especially in rural areas. The promise of fast internet often doesn’t match reality, leading to widespread frustration.
- Customer Support Issues: Poor customer service has plagued ISPs for years. Long wait times, unhelpful responses, and difficulty in resolving issues have left customers feeling undervalued and ignored.
- Limited Competition: Many regions in the U.S. are dominated by just one or two major internet providers, leaving consumers with little to no choice. Without competition, ISPs lack incentives to improve their offerings or lower their prices. This is especially true in rural areas where monopolies or duopolies are common.
A closer look at the data, however, shows that not all ISPs are the same.
Unsurprisingly, Faster Internet Is Better Internet
For the second consecutive year, the ACSI differentiated customer satisfaction between fiber and non-fiber internet services. Not surprisingly, fiber ISPs, known for offering faster and more reliable connections, scored 76, significantly outpacing non-fiber ISPs, which scored 68.
Despite these higher ratings, only about half of US households have access to fiber, according to the Fiber Broadband Association. While both national and regional telecom providers are working to extend fiber coverage, its expansion remains slow, primarily benefiting larger urban and metropolitan areas.
In fact, internet speeds are one of the most important areas of improvement for ISPs.
Providers are beginning to roll out faster fiber-optic connections, which offer more consistent and reliable speeds than traditional broadband. This shift to fiber has been slow, but as it reaches more areas, customers are beginning to notice a difference. Some major ISPs have increased their customer satisfaction scores by up to 5% due to these enhanced offerings.
Additionally, streamlined customer service efforts are beginning to pay off. Several major internet providers have introduced AI-driven customer service systems, reducing wait times and offering more consistent troubleshooting. This may seem like a small change, but for customers who have spent hours on hold or have been bounced from one representative to another, this efficiency makes a noticeable difference.
The Impact of Competition (or Lack Thereof)
Another important factor to consider is the role of competition—or the lack of it. In areas where there is more competition between ISPs, customer satisfaction tends to be higher. This makes sense: when customers have multiple providers to choose from, ISPs are forced to compete by offering better services, faster speeds, and lower prices.
However, in much of the country, particularly in rural areas, consumers often have only one or two options for their internet service. The monopoly-like hold of certain companies leads to higher prices and poorer service, as there’s little incentive for ISPs to improve.
According to the Federal Communications Commission (FCC), about 30 million Americans still live in areas where they have only one choice for broadband service. This lack of competition explains, in part, why customer dissatisfaction remains so high in these regions. Legislative and regulatory efforts are underway to address these gaps, with initiatives aimed at expanding broadband access and encouraging more competition. Still, the pace of change is slow, leaving millions without much hope of an immediate improvement.
Can a TechnoFix Improve Things?
One of the biggest potential game-changers in the ISP landscape is the rollout of new technologies, such as fiber-optic internet and 5G wireless. These technologies offer significantly faster speeds and more reliable connections compared to traditional broadband.
Fiber-optic internet is slowly being expanded by ISPs in urban and suburban areas, but it’s still unavailable to much of the rural population. However, where fiber is available, customers report much higher satisfaction rates. In fact, fiber customers consistently rate their service up to 10% higher than those with standard broadband.
Similarly, 5G technology is starting to offer more viable options for high-speed internet, especially in underserved areas. 5G can provide speeds comparable to fiber and has the added advantage of being wireless, which could make it easier to deploy in rural and remote regions. Early adopters of 5G home internet have given it positive reviews, although the technology is still in its infancy and needs time to develop.
A Long Way to Go
While the improvements in technology and customer service are encouraging, it’s clear that there’s still a long way to go before customers feel truly satisfied with their ISPs. One major challenge is the sheer demand for internet service. As more aspects of life move online, the pressure on ISPs to provide consistent and affordable service is only increasing.
Furthermore, customers are becoming more savvy and less tolerant of poor service. As alternatives like satellite internet and fixed wireless solutions become more widespread, consumers are likely to seek out better options, even if they cost more. This puts additional pressure on traditional ISPs to step up their game.
However, without significant changes in the regulatory landscape to encourage more competition, the improvements may be slow to reach everyone. The FCC has announced plans to expand rural broadband access and promote competition, but these initiatives will take time to bear fruit.
The ACSI report makes one thing clear: while most people are still unhappy with their internet service providers, the situation is slowly getting better. Incremental improvements in speed, customer service, and the introduction of new technologies are helping, but it will take a much broader effort to address the root causes of dissatisfaction.
