Procurement Market Intelligence Report
Internet Services
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Internet Services Global Overview
Definition
Summary
Internet service providers (ISPs) offer users access to the internet and relevant services, such as domain name registration, hosting, dial-up access, leased line access and colocation. Key buyers in the market are businesses, schools and universities.
This Report Includes:
- Internet Services for Businesses
- Internet Services for School & Universities
Not in this Report:
- Other Telecommunication Services
- Phone Services
- Network Voice Services
Global Internet Services Procurement Trends
Discover the top international trends affecting procurement in the global Internet Services market.
Warning Trends
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Global Internet Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1Oceania & Southeast Asia | 72,180 |
| #2India | 25,040 |
| #3Europe | 22,425 |
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Geography Drilldown - US & Europe
Average Cost of Internet Services
United States
2025 Market Pricing$35.00 to $XXX.XX
per monthEurope
Average Price
Prices in the Internet Services market range from $35.00 to $XXX.XX, depending on Type, Location, Contract Length and Added Features. For example, lower prices are associated with Dial-up or inferior broadband ($35.00 to $250 per month), whereas higher prices are associated with Business-class internet ($100 to $450 per month) and Higher-quality broadband networks ($60.00 to $350 per month).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Internet Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Internet Services market, prices in the US have grown 2.5% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +0.1%.
United States (2022-2025)
2.5%
Compound Annual Growth RateEurope (2022-2025)
0.1%
Compound Annual Growth RateWondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Internet Services
Total cost of ownership is Low in the Internet Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.
Negotiated Before
Installation
Billed During
Maintenance
Unforeseen
Downtime
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to -0.9 in the United States. Buyer power is most positively impacted by Availability of Substitutes. It is most negatively impacted by Supply Chain Risk. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Very Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Telecommunication Networking Equipment Manufacturers
- Wired Telecommunications Carriers
- Transmission Line Construction Firms
2nd
Tier Suppliers
- Circuit Board & Electronic Component Manufacturers
- Computer Manufacturers
- Wire & Cable Manufacturers
Biggest Internet Services Suppliers in the US by Revenue
The largest Internet Services vendors by revenue in the US are Comcast Corporation, At&T Inc. and Verizon Communications Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Verizon Communications Inc | Global | NEW YORK, NY | >10,000 | 10-15 | ||||
| At&T Inc. | Global | DALLAS, TX | >10,000 | 10-15 | ||||
| Charter Communications, Inc. | National | STAMFORD, CT | >10,000 | 10-15 | ||||
| Comcast Corporation | Global | PHILADELPHIA, PA | >10,000 | 20-25 | ||||
| Cox Enterprises, Inc. | Global | Atlanta, GA | >10,000 | 5-10 | ||||
| T-Mobile Us, Inc. | BELLEVUE, WA | >10,000 | < 5 | |||||
| Lumen Technologies, Inc. | Global | MONROE | >10,000 | < 5 | ||||
| Frontier Communications Corporation | National | DALLAS, CT | >10,000 | < 5 | ||||
| Ziff Davis, Inc | Global | NEW YORK | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Internet Services market is 12.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is rising, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration is very high, with the top four suppliers in the market owning more than 75.0% of the market's revenue. This high level of market share concentration provides suppliers with significant pricing power in the market.
Supply chain risk is low in the market, which reduces the risk of price fluctuations or service disruptions.
Vendor risk is low in the market, as vendors typically have high and healthy profit margins. Stable demand trends help to reduce the likelihood of service disruption or bankruptcy as well, as internet services are a necessity for nearly all businesses in the economy.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Charter Communications, Inc.
Charter Communications, Inc. is a public company operating nationally in the information sector. The company's offerings include network voice services, wireline telephone services, push-to-talk over cellular services, cable & satellite television services and managed vpn services. Founded in 1993, the company... Subscribe to learn more
At&T Inc.
At&T Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include electronic logging devices, smartphones, office phones, air cards, mobile enterprise application platforms. Founded in 1885, the company... Subscribe to learn more
Verizon Communications Inc
Verizon Communications Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include electronic logging devices, smartphones, gps antennas, air cards, asset tracking software. Founded in 2000, the Subscribe to learn more
Comcast Corporation
Comcast Corporation is a public company operating globally in the information and accommodation and food services sectors. The company's offerings include air cards, pbx phone systems, online advertising, internet services, network voice services. Founded in 1963, the company is currently headquartered in... Subscribe to learn more
Cox Enterprises, Inc.
Cox Enterprises, Inc. is a private company operating globally in the information sector. The company's offerings include internet services, radio advertising, wireline telephone services and cable & satellite television services. Founded in 1898, the company is currently headquartered in Atlanta, Georgia,... Subscribe to learn more
Ziff Davis, Inc
Ziff Davis, Inc. is a global digital media and internet company focusing on technology, shopping, gaming and entertainment, connectivity, health, cybersecurity, and marketing technology sectors. It operates two business lines: Digital Media business, which offers content, tools, and services through its portfolio... Subscribe to learn more
Frontier Communications Corporation
Frontier Communications Parent, Inc. is a communications and technology provider. Its communications and technology services include broadband, ethernet, traditional circuit-based services, software-defined wide-area network (SDWAN), managed Wi-Fi and cloud IT solutions, voice, and Unified Communications-as-a-Service... Subscribe to learn more
Lumen Technologies, Inc.
Lumen Technologies, Inc. is a technology and communications company serving domestic and global business customers. It operates under three brands: Lumen, its flagship brand for the enterprise and wholesale markets, Quantum Fiber, which provides fiber-based services to residential and small business customers;... Subscribe to learn more
T-Mobile Us, Inc.
T-Mobile US Inc. is a public company operating in the manufacturing and information sectors. The company's offerings include gps antennas, air cards, fleet telematics systems, internet services, network voice services. Founded in 2017, the company is currently headquartered in BELLEVUE, Washington, United... Subscribe to learn more
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Procurement Management KPIs for the Internet Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Average Response Time. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Uptime and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time | Time between outage and restoration of service Number of outages or issues in a period | The total resolution time measures how quickly a suppliers support or IT team is able to correct an issue with service. Total resolution time can be used as an indicator to assess how quickly a supplier will be able to get the buyer's operations back to normal, working condition. | |
| Average Response Time | Total number of customer support tickets per period Total time to response to tickets | The average response time measures how long it takes for a buyer to receive a response from the supplier's customer support IT team. A low average response time can lead to growing inefficiency as the buyer is forced to wait for long periods to receive a response from the supplier. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Reliability
How often do you not meet your expected latency, bandwidth or uptime commitments?
What do you do internally to fix any service issues that may arise?
Supply Chain Risk
Do you use computers or software with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?
How diversified is your supplier base for equipment used in providing the service? Do you source from multiple suppliers in different global regions?
Competition
Have you been gaining or losing market share in this location?
What are your strengths compared to your competitors?
The ultimate prep for procurement negotations
View all 29 negotiation questions for this category when you subscribe.
Internet Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a general overview of their business, including the data and IT requirements they have.
Buyers should state the upload and download speeds that they desire.
Statement Of Need
Buyers should specify the exact type of internet connection required.
Buyers should specify where the internet services will be used.
Project Budget
Buyers should specify the total budget for their internet services.
Buyers should include details about per user usage expectations and limitations.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
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