Standing Out in a Crowded Market: How ISPs Can Differentiate Broadband Services

By Samuel Kornstein – Managing Director, Strategy & Analytics
 

[This article was originally published in ACA Connects’ March 2025 edition of Independent Communications News]

Historically, most US households had just one or two ISP options – often trading off between slow speeds, data caps, or unreliable service. Now consumers have more options than ever.

Over 55% of U.S. households now have access to fiber-to-the-home (FTTH), with overlapping builds bringing two or more fiber providers to many neighborhoods.

Meanwhile, FWA from T-Mobile, Verizon, and AT&T is the fastest-growing broadband segment, reaching 10.8 million subscribers by Q3 2024, while Starlink’s expanding LEO satellite network offers high-speed connectivity to nearly any location.

With near-ubiquitous MSO coverage as of 2024, 92% of households now have two or more choices for 100/20 Mbps service, and 70% have more than three.[1]

Differentiation Strategies for ISPs

To stand out in this market, ISPs must go beyond price and speed, focusing on unique value propositions and better service. We’ve observed ISPs deploying a range of innovative strategies to elevate their offerings in the market.

Customer Experience Guarantees

Some ISPs now offer service-level agreements for residential customers. For example, the “AT&T Guarantee” is a recent fiber and wireless customer commitment that promises 99.9% uptime, five-minute response times for support and expedited technician visits. If service is down for more than 20 minutes, bill credits are automatically applied to customer accounts. Such guarantees, once seen only in business contracts, signal a strong commitment to reliability and customer service.

Backup Internet Options

Ensuring always-on connectivity is another way to differentiate. Increasingly, providers offer automatic failover solutions that kick in if the primary connection goes out. Xfinity launched a “Storm-Ready WiFi” device that automatically switches to a cellular network during an outage, along with a Battery Backup for extended uptime[2].

Similarly, other ISPs are leveraging multi-path redundancy, from wireless links to satellite backup, to keep customers online 24/7—a valuable selling point for remote workers and businesses.

Low-Latency Connections

With online gaming, video calls, and VR applications, latency can matter for some as much as download speed—prompting innovative ISPs to prioritize infrastructure upgrades to offer the lowest latency connections possible.

AT&T promotes its low latency fiber and 5G networks by sponsoring esports leagues,​ and now offers plans marketed towards professional gamers and streamers[3]. Positioning networks as best for real-time applications can drive a loyal niche of high-end users.

Converged Wireless Bundles

Bundling home broadband with mobile service has become a top strategy for providers to add value and reduce churn. Cable operators have launched their own mobile offerings via MVNO deals to create seamless connectivity bundles. One such offering, Spectrum Mobile, has reached 10 million lines by packaging low-cost mobile plans with home internet[4]. Carriers like Verizon and T-Mobile cross-sell home internet to their wireless subscribers at a discount[5][6]. By simultaneously serving home and on-the-go needs, these converged offers act as a key differentiator for ISPs.

Premium Wi-Fi & Smart Home Features

Reliable connectivity is as important as ever, leading ISPs to invest in better in-home equipment and services. Many now provide managed Wi-Fi solutions—such as mesh Wi-Fi systems and proactive network optimization—instead of leaving customers with individual basic routers. Early adoption of new Wi-Fi standards is part of this strategy. Charter has begun deploying Wi-Fi 7 routers to deliver multi-gig speeds and lower latency[7]. Additionally, ISPs are integrating smart features like security cameras and IoT controls.

Winning in a Competitive Market

As competition intensifies and the broadband market nears saturation, ISPs must innovate beyond the basics to thrive. Differentiation through value-added services—reliability, superior support, or integrated home connectivity—is now essential. Providers that excel in these areas can build stronger customer loyalty and stand out in an increasingly competitive field.

Experts like Cartesian help ISPs develop growth strategies and execute innovative differentiation plans. By embracing a customer-centric, service-rich approach—and leveraging expert guidance when needed—ISPs can gain a competitive edge that drives success.

Contact Cartesian

With over 35 years of experience, Cartesian can help ISPs stand out from the crowd. Contact Cartesian today to learn more.