ISPs Assert that “Outstanding Customer Support” Is the Key Factor for Customer Loyalty

ISPs Assert that "Outstanding Customer Support" Is the Key Factor for Customer Loyalty

ISPs Assert that “Outstanding Customer Support” Is the Key Factor for Customer Loyalty


### ISPs Assert Market Rivalry Guarantees Quality Customer Service, but Detractors Disagree

In a recent submission to the Federal Communications Commission (FCC), Internet Service Providers (ISPs) and their lobbying organizations opposed new regulations aimed at enhancing customer service. They contended that the competitive dynamics of the broadband market inherently motivate ISPs to deliver superior customer support, rendering further governmental oversight unnecessary. Nevertheless, this claim has ignited a passionate debate, with consumer advocates and state regulators citing ongoing problems such as subpar service quality, restricted competition, and insufficient assistance for vulnerable groups.

#### **ISPs’ Position: Competition Fuels Quality**
Lobby groups like NCTA-The Internet & Television Association and USTelecom, which represent major ISPs such as Comcast, AT&T, and Verizon, presented comments to the FCC asserting that market dynamics inherently compel providers to focus on customer satisfaction. NCTA stated that ISPs are driven to provide “effective and user-friendly” customer support in order to keep customers in what they characterize as a “vibrant communications marketplace.”

USTelecom reinforced this perspective, emphasizing how online reviews and customer feedback influence consumer decisions. “If a provider fails to effectively address an issue, they risk losing not only that customer but also potential customers who encounter negative reviews online,” the organization remarked. They also highlighted the increasing use of artificial intelligence (AI) chatbots as a means to provide quicker and more effective customer service, suggesting that technological innovations will enhance the customer experience going forward.

#### **The Truth: Limited Options and Ongoing Issues**
Critics counter that the optimistic portrayal by ISPs does not reflect the experiences of numerous consumers. For millions of Americans, the dearth of genuine competition in the broadband sector limits their alternatives when confronting poor service. For instance, a recent study by the California Public Utilities Commission (CPUC) found that only 26% of California households can access two or more broadband providers offering high-speed services via cable or fiber. This lack of options undermines the assertion that competition can solely ensure quality service.

The CPUC also pointed out ongoing grievances regarding ISPs, such as prolonged service interruptions, billing mistakes, and challenges in contacting live customer service representatives. These complaints are not anomalies. In Oregon, the Mt. Hood Cable Regulatory Commission reported similar discontent, with residents often exasperated by automated systems, prolonged hold times, and unresolved billing conflicts.

#### **Call for Enhanced Regulations**
Consumer advocates and state officials are advocating for stronger federal and state regulations to tackle these deficiencies. The FCC’s recent Notice of Inquiry, approved in October 2024, sought public feedback on possible regulations to enhance customer service. Proposed measures included requirements for ISPs to offer live customer support within a reasonable timeframe and to create transparent standards for addressing outages and billing problems.

Advocacy groups for individuals with disabilities also contributed, urging the FCC to require accessible customer service options, including direct video calling (DVC) for American Sign Language (ASL) users. They cautioned against relying solely on AI-driven solutions, stressing the necessity of live, well-trained support teams to meet the specific needs of disabled consumers.

#### **AI’s Position in Customer Service**
While ISPs have promoted AI chatbots as transformative for customer service, critics maintain skepticism. AI tools may effectively handle straightforward inquiries, but they frequently struggle with more intricate issues or delivering personalized support. Advocacy groups have warned against excessive dependence on AI, claiming it cannot substitute the human interaction required for nuanced problem-solving.

#### **Shifting FCC Leadership and Its Consequences**
The FCC’s efforts to explore new customer service regulations may encounter considerable obstacles under its incoming Republican leadership. Brendan Carr, the FCC’s anticipated new chairman, has voiced doubts about the agency’s jurisdiction over customer service practices. In his dissenting opinion on the Notice of Inquiry, Carr suggested that such issues should fall under the purview of the Federal Trade Commission (FTC) and that the FCC should concentrate on “freeing up spectrum and removing regulatory barriers to deployment.”

Carr’s viewpoint aligns with the wider deregulatory ambitions of the Trump administration, which emphasized minimizing oversight of ISPs. Under his direction, the FCC is likely to reverse existing regulations rather than implement new ones, potentially encouraging ISPs to retain the current state of affairs.

#### **The Consumer Viewpoint**
For many consumers, the discourse around ISP customer service boils down to a straightforward query: Why does interacting with ISPs often feel so exasperating? Complaints about extensive wait times, unresponsive support, and unresolved issues are prevalent, indicating that market competition in itself has not been adequate to foster significant enhancements.

The FCC’s inquiry has spotlighted the disparity between ISPs’ assertions and their customers’ real-world experiences. Whether through federal regulations, state-level actions, or heightened public pressure, many believe that further steps are required to hold ISPs accountable and ensure that all consumers receive the quality of service they rightly deserve.