Understanding ISP Insights: Installation Timelines, Customer Satisfaction, and Pricing

In recent years, conversations around automated provisioning and Network-as-a-Service (NaaS) have taken center stage in the world of internet service providers (ISPs). But what does this technology evolution mean for enterprise customers, particularly when it comes to critical aspects such as installation timelines, satisfaction with communication, and pricing models? Lightyear’s CEO and co-founder, Dennis Thankachan, sheds light on these topics in the latest episode of the TeleGeography Explains the Internet podcast.

Internet Circuit Installation Timelines: The Data

According to Lightyear’s Enterprise ISP Experience Guide, the median installation time for dedicated internet access (DIA) circuits is about 85 days. While this timeline might seem competitive on paper, off-net installations requiring new construction take significantly longer—often stretching to as many as 227 days at the 90th percentile. This delay underscores the logistical challenges faced by ISPs, particularly when infrastructure upgrades are required. For enterprise customers dealing with tight project schedules, these extended wait times can prove frustrating and costly, highlighting the need for efficient communication during the provisioning process.

Customer Satisfaction: Communication is Key

Surprisingly, installation speed isn’t the primary driver of customer satisfaction in the ISP market. Lightyear’s data shows that the quality of communication during the installation process has a far greater impact on Net Promoter Scores (NPS). When ISPs communicate proactively, provide clear next steps, and address delays openly, customers tend to award high ratings—sometimes even five out of five stars—despite lengthy installation waits. Conversely, poor communication leads to significantly lower satisfaction levels, even if installations are completed quickly. On average, carriers scored an impressive 4.16 out of 5 in NPS ratings, emphasizing the importance of managing expectations and maintaining transparency with clients.

Understanding the Pricing Dynamics

One of the key findings from Lightyear’s report revolves around pricing disparities between DIA circuits and broadband internet. The median price for a 100-megabyte dedicated internet access circuit is approximately $500 per month, translating to $5 per megabyte. On the other hand, broadband services for the same bandwidth cost a significantly lower $140 per month, or $1.40 per megabyte. This major price difference reflects the higher reliability and quality of DIA services, which are typically symmetric, dedicated, and delivered over fiber, in contrast to the best-effort nature of broadband connections, which can degrade during peak usage hours.

Telecom Lifecycle Management: Beyond Activation

Lightyear emphasizes that telecom lifecycle management extends far beyond circuit activation. It encompasses everything from managing active services to decommissioning outdated circuits. Enterprises are increasingly focusing on managing networks in line with changing technologies, hybrid work adoption, and cost-optimization strategies. These challenges have driven a heightened need for ISPs to streamline every aspect of their offerings, from communication to flexibility in their service models, ensuring enterprises remain agile and competitive in a fast-evolving digital landscape.

As the telecom industry continues to evolve, the findings from the Lightyear Enterprise ISP Experience Guide highlight critical lessons for both ISPs and enterprises. For service providers, robust communication strategies and proactive customer engagement can make or break customer relationships. For businesses, understanding the nuances of pricing models, installation timelines, and lifecycle management is essential to navigating an increasingly complex connectivity landscape.