Internet service providers (ISPs) defended their customer service practices following a Federal Trade Commission (FTC) review that scrutinized the industry’s practices.

USTelecom, representing major ISPs, submitted comments emphasizing their commitment to “excellent customer service,” citing competition and innovation as the primary drivers of continuous improvement. Unfortunately, the conclusion is probably news to many of the companies’ customers.

ISP Defense: Service Excellence in a Competitive Market

In their response to the FTC, ISPs argued that the competitive broadband landscape incentivizes excellent customer service. Citing a 2020 report, USTelecom highlighted that 90% of consumers value customer service in choosing and remaining loyal to a brand. They also pointed to billions invested in infrastructure—$94.7 billion in 2023 alone—as evidence of their dedication to meeting customer needs.

One member provider reportedly implemented advanced tools to improve the customer experience, including real-time speed testing, technician tracking, and proactive satisfaction assessments. The comments also extolled artificial intelligence (AI) as a game-changing technology that can streamline interactions, reduce wait times, and address simple queries while escalating complex issues to human agents.

ISPs insist that the competitive nature of the broadband market forces them to prioritize customer satisfaction or risk losing customers to rivals. USTelecom argued against additional regulation, saying the above factors mean existing regulatory frameworks provide sufficient consumer protection..

The Consumer Perspective: A Contradictory Reality

Many ISP customers would likely dispute the companies’ claims, as ISPs consistently rank among the least popular industries in the US. Critics argue that ISPs’ monopolistic control in many regions limits meaningful competition, leaving customers with little recourse if they’re dissatisfied with service.

Common complaints include long wait times, poor communication, and unresolved technical issues. While USTelecom asserts that AI and other technological advancements improve service, customers often report frustration with automated systems that fail to resolve their concerns.

Additionally, industry claims of “highly competitive markets” clash with the reality in many rural and underserved areas, where consumers face limited options and often subpar service quality. This lack of competition undermines the assertion that ISPs are driven to improve by market pressures.

FTC Review: A Question of Accountability

The FTC’s review of customer service practices stems from widespread consumer dissatisfaction and concerns over how ISPs manage their interactions with customers. While the industry advocates for minimal regulation, critics argue that stronger oversight is needed to protect consumers and ensure accountability.

Proposals to integrate AI into customer service have sparked mixed reactions. Proponents argue it could enhance efficiency, but detractors warn it could erode personalized service, exacerbating consumer frustration. The FTC’s findings will likely influence whether more stringent rules are implemented.

Conclusion

ISPs’ claims of “excellent customer service” contrast sharply with the industry’s poor reputation among consumers. While companies highlight competition and innovation as driving forces for improvement, customer experiences often tell a different story. As the FTC evaluates the state of customer service in the broadband sector, the gap between industry claims and consumer realities remains a critical issue. Whether regulatory intervention is necessary to bridge this divide will be a focal point in the ongoing debate.