In today’s hyper-connected homes, where every smart speaker, streaming device, and video call demands reliable internet, the gateway to a better experience might just your internet service provider (ISP). According to Parks Associates’ latest study, Home Networking Products: Mesh, Wi-Fi 7, and the Competitive Landscape, ISPs are no longer just selling service, they’re also owning the hardware game.
Parks Associates’ research found that of 8,000 US internet households that were studied, over 5,600 respondents either leased, purchased, or received their equipment from their ISP. With the launch of the Wi-Fi 6E and Wi-Fi 7 routers, the trend of customers owning their own equipment has changed significantly since 2022 and 2023, per the study. A big factor in more customers acquiring their equipment from their ISP is due to newer technologies being more expensive.
With the new generation of Wi-Fi equipment, customers are enjoying the performance boost without breaking the bank. Most ISPs offer the equipment in free bundles or affordable leasing and financing programs. White-labeled ISP routers, particularly from providers like Vantiva/Technicolor, are now the top “brand” reported by consumers. Customers using ISP-provided hardware reported Net Promoter Scores (NPS) three times higher than the overall industry average.
“Customers look to their ISP for their home networking equipment, looking for free product offers, leasing and financing agreements, and product discounts. ISP white-labeled routers are the number one ‘brand’ consumers report purchasing, with satisfaction as measured by NPS above the industry average,” said Kristen Hanich, Research Director, Parks Associates. “Consumers are looking for devices that deliver key features and functionality and increasingly see ISPs as a preferred channel.”
Here is a breakdown of how consumers are getting their hardware:
Parks’ study found that Amazon eero and Google Nest Wifi are top brands for consumers who choose to forgo ISP options. These devices deliver high satisfaction, especially for consumers prioritizing ease of use and aesthetics. Additionally, TP-LINK stands out for its strong feature set at a budget-friendly price, making it a favorite among tech-savvy users who want more control without breaking the bank.
With one-third of router owners reporting having a mesh system, just over half are using pods or nodes to extend coverage, but the growth is stalling. Newer Wi-Fi 6 and 6E routers have coverage and performance that are strong enough in many average-sized homes that consumers aren’t rushing to add extra nodes. The move to Wi-Fi 7 reinforces this trend as even higher speeds and better multi-device management continue to hit the mainstream.
This study underscores a major shift in how ISPs have gone from just the internet pipe to the home networking hub. With Wi-Fi 7 on the rise and consumer loyalty tied closely to router performance, we’re likely to see even more innovation and competition in this space.