Telecom Jargon: ISP vs. MSP vs. Aggregator vs. Agent
Can you tell an MSP from your ISP? Or does it all seem like alphabet soup? In this post, we'll go through a few key telecom industry abbreviations of relevance.

Oct 25, 2024
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Can you tell your MSP from your ISP? Or does it all seem like alphabet soup? In the telecommunications industry, all these abbreviations and technical terms are just a daily part of the job. These terms are regularly used and generally understood. However, to someone simply looking for a solution to their enterprise telecommunication needs, the industry jargon can be overwhelming. Luckily, you have the Lightyear team to help. Today, we will walk you through some of the most common telecom jargon and explain what it means for your network needs.
ISPs and MSPs: What’s the Difference?
Let’s start with two of the most common terms of confusion: ISP and MSP. While they offer similar services, the key lies in the details.
ISP stands for Internet Service Provider, which serves as the gateway for standard internet users to access the World Wide Web. You’re probably familiar with at least a few of these large global ISPs, and there will be many more in your neighborhood, state, or country.
AT&T
Verizon
Comcast
T-Mobile
China Telecom
Deutsche Telekom
BT Group
MSP stands for Managed Service Provider. MSPs are, effectively, an outsourced IT group for your company. They offer services such as:
IT Consulting
IT Support and Helpdesk
Cybersecurity
Network Management
Device Management (everything from PCs to routers, firewalls, and more)
Software Management
IT-related Hardware and Software Design and Sales
Why the Confusion between ISPs and MSPs?
As you’ve seen, ISPs and MSPs do pretty different things. Yet, it’s common for laypeople to confuse them. Why?
One reason is the sheer volume of cross-functional marketplace products for monetization purposes. ISPs, particularly, have been trying to bolster their product portfolios and attract customers with expanded services. Some of this expansion has created an overlap with areas historically belonging to MSPs.
Here are some examples of now-common ISP products that overlap with traditional MSP services, taken from the current business portfolios of larger ISPs:
AT&T Business WiFi and Internet Service:
Cloud-managed WiFi solutions
Professional installation of hardware
Compatible with any provider’s network (not exclusive to AT&T’s network)
Verizon Business Managed Network Services:
Managed LAN
Secure Gateway Service
Comcast Business Managed Services for Enterprise:
Comcast has purchased a few MSPs over the years to enhance its ISP offerings with a comprehensive suite of MSP services. Acquired companies include:
Masergy Communications
Epproach Communications
Deep Blue Communications
Some of Comcast’s Managed Services now include:
Connectivity
WiFi
Routers
Security
Voice
Business Continuity
IT Deployment Services
Other major ISPs offer similar services that blur the line between ISP and MSP. However, with a clearer understanding of these telecom terms, you’ll be better equipped to navigate this overlap and find the right ISP for your needs.
What About Aggregators and Agents?
Two other common telecom terms that often cause confusion are Telecommunications Aggregators and Telecommunications Agencies. At first glance, they may seem similar, but there are subtle differences.
Telecom Agents
Telecommunications Agents (often referred to as “agents”) are easy to understand. They function as consultancy firms, ensuring they are well-versed in the products and services available in the marketplace. They work on behalf of their customers to find the appropriate services that meet their needs.
Agents negotiate with network carriers on behalf of their customers to secure the most competitive pricing possible. However, customers still sign agreements directly with the service providers. While support requests go to the service provider, the agency can often provide a more direct service path for faster turnarounds through their relationships and network. Typically, agents earn a commission paid by the telecom provider.
Why use a telecom agent? Primarily, it’s the value of having a trusted advisor to assist with sound procurement decisions while maintaining a direct relationship with the service provider.
Why not use one? Well, they’re commission motivated, so they can be incentivized to sell you a higher-priced service or a suboptimal carrier. Also, they’re typically regional mom-and-pop type businesses, so they may not be well-suited for a larger enterprise. Given the lack of transparency in telecom, it’s often hard to know what differentiates a good vs. a bad agent.
Telecom Aggregators
Telecom Aggregators are a bit more ambiguous, making them tougher to understand. Typically, a telecom aggregator resells the services of a standard ISP.
For example, if a business orders internet services through an aggregator, the customer signs an agreement with the aggregator. The aggregator then signs a contract with the actual service provider and becomes the customer of record with that provider. In contrast, with agencies, the customer signs directly with the service provider.
This arrangement means that if a business customer experiences a network issue, they must contact the aggregator. The aggregator handles initial troubleshooting and contacts the service provider for resolution if needed. There is no direct path for the end user to interact with the service provider.
So, why use an aggregator? For many enterprise customers, consolidating services and adopting a one-stop-shop approach to procurement and troubleshooting can be very valuable.
Why not use one? For the aggregator business to work, they mark up your services, sometimes up to 30% or more. Convenience comes at a cost! Also, circuit troubleshooting and installs can be harder with an aggregator, as you’ll convey problems to the aggregator who’ll then have to convey problems to the underlying ISP, creating a “game of telephone” dynamic.
What works best for your business will depend on its unique needs. Both agents and aggregators offer valuable services, and both approaches can work well for the right organization. It’s most important to understand the pros and cons of these approaches to ensure you pick a means for telecom procurement and management that aligns best with what you need, while being understanding of the trade-offs.
One function of the Lightyear Telecom Operating System is to assist with telecom procurement in a way that avoids the tradeoffs you’d face dealing with an agent or aggregator. The platform serves as a valuable tool for navigating ISPs (and even aggregators) to find the best match for your needs with an automated, data-driven approach. Reach out to us today if this sounds interesting!
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