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The classification of an Internet Service Provider (ISP) is primarily based on its infrastructure, network size, and the scope of services it provides. A Tier 1 ISP is characterized as having a large network that is extensive enough to connect directly to the global internet backbone without needing to pay for access to any other networks. They typically own and operate their own global network infrastructure and have peering agreements with other Tier 1 ISPs, enabling them to exchange traffic freely.

On the other hand, a Tier 2 ISP generally connects to one or more Tier 1 ISPs for access to the broader internet and may also have its own regional infrastructure. A Tier 3 ISP, often referred to as a retail ISP, typically relies on connections to Tier 1 or Tier 2 ISPs for internet access and primarily serves end users, selling internet services directly to consumers or businesses.

The classification of ISPs into these tiers helps to understand their role and the type of internet access they provide. A Tier 3 ISP is classified as one that provides services to the end-users and often has limited interconnection capabilities compared to higher-tier ISPs. In contrast, Tier 1 and Tier 2 ISPs have more expansive and interconnected networks.

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