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Internet Service Provider Agreement

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Internet Service Provider Agreement

This Agreement is made (date), between , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Service Provider, and , of , referred to herein as Subscriber.

Whereas, Subscriber desires to engage Service Provider to obtain an Internet connection through Service Provider's network;

In consideration of the matters described above, and of the mutual benefits and obligations set forth in this Agreement, the parties agree as follows:

I. Payment for Service.

A. Subscriber shall pay any setup charges and any one-time fees and the first period of service concurrent with the execution of this Agreement and prior to installation of service. Subscriber shall pay when invoiced any costs or fees billed by Service Provider to Subscriber for additional services or merchandise provided. Bandwidth and usage charges will be billed on the calendar month preceding the invoice date based on the previous month's usage. Subscribers will pay for all costs associated with the use of their accounts, whether authorized or not.

B. Payments to Service Provider are nonrefundable. No refunds shall be given for canceled accounts, returned merchandise, or installation fees unless the account, merchandise or installation was clearly defective and nonworking. Cancellations of accounts must be made by e-mail, U.S. mail, or fax and shall terminate at the end of the account period.

II. Customer Provides Own Equipment. Subscriber is responsible for providing any and all equipment and services needed to access the system of the Service Provider.

III. Appropriate Use Policy.

A. Becoming a subscriber or user of Subscriber constitutes an Agreement to abide by this Agreement and the acceptable use policies set out in this Section. All references to Service Provider in this Agreement include the Service Provider’s system, network, and its employees. All references to Subscriber include any party authorized under this Agreement.

B. Subscriber may not use the Service Provider system and services in any way that violates United States federal, state, local, or international law or the rights of others. This prohibits, but is not limited to, any actions of Subscriber which are threatening, obscene or defamatory, which violate trade secret, copyright, trademark or patent rights, which violates rights of privacy or publicity, which result in the spread of computer viruses or other damaging programs or data files, or which violate any export restrictions (including making nonexportable information or software available to foreign nationals as may be prohibited by law). Service Provider will cooperate fully with law enforcement agencies if criminal activity is suspected.

C. Subscriber shall obey any acceptable use policies for sites, newsgroups, mailing lists, etc. accessed via the Service Provider system or network. Subscriber shall not probe, monitor, breach the security of, or otherwise interfere with any host, network, or system without the explicit authorization of the administrator of the host, network, or system.

D. Subscriber shall not forge, conceal, disguise, or otherwise attempt to alter the identifying characteristics of electronic transmissions originating from Subscriber's account.

E. Subscriber may not send unsolicited bulk e-mail. As a guideline, mailing more than (number) messages simultaneously or in close proximity to individual recipients with whom the sender has no preexisting relationship or who have not otherwise consented to receiving such e-mail will be considered an unacceptable transmission which may result in termination of Subscriber's account. Any actions which Service Provider, at its sole discretion, believes to be an attempt to circumvent the intent of this prohibition shall be treated as a violation of this provision. Such transmissions and the fallout from such transmissions cause significant damage to Service Provider in terms of resources and staff time as well as reputational damage. Such damages are difficult to calculate in a precise amount. Should Subscriber distribute such e-mail or messages, Subscriber agrees that in addition to any remedies provided under this Agreement, Subscriber shall be liable to Service Provider for $ as liquidated damages. Should actual damages be ascertainable in excess of $, Subscriber will be liable for the actual damages. Subscriber shall also be liable for costs and attorneys' fees incurred collecting any such damages from Subscriber. Furthermore, should Subscriber contract for bulk e-mail or message posting services to advertise a service or Web site offered by Subscriber through the Service Provider system or network, Subscriber shall be treated under this section as if Subscriber personally sent such e-mail or posts through the Service Provider system or network.

F. If Service Provider finds or suspects, in its sole discretion, Subscriber is in violation of any rules set out in this section as an acceptable use policy, Subscriber's account may be immediately restricted, suspended or permanently be canceled.

G. Service Provider reserves the right to modify the rules at any time by publishing such modifications over the service and sending notices to each subscriber and user or by posting changes to the Service Provider’s Web site.

IV. Appropriate Use of Connection. Subscribers are explicitly not permitted to set up Internet hosts or daemons on their computers through their accounts with Service Provider. Untimed dialup account holders are not permitted to share or otherwise let others use their accounts in any way. An untimed dialup account is not a dedicated account and shall not be configured to become or otherwise act in any way like a dedicated account. Subscribers are instructed to disconnect from the Internet when not actively using it for more than (number) minutes at any time. Subscribers may not be connected more than (number) hours in a row. Interpretation of this clause is at the sole discretion of Service Provider employees.

V. Termination for Improper Use. Infractions of this Agreement or the acceptable use policies set forth in this Agreement by Subscriber can result in immediate deletion of accounts without reimbursement. Service Provider may make exceptions in the case of individual abusive users of business accounts. This decision is left entirely to the discretion of Service Provider employees.

VI. Modification of Service. Service Provider reserves the right to modify, add, or remove all services and features of the system at any time. Current subscribers will receive adequate notice of such changes.

VII. Disclaimer of Warranties. SERVICE PROVIDER DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE FOR THE SERVICES TO BE PROVIDED BY SERVICE PROVIDER UNDER THIS AGREEMENT.

VIII. Limitation of Liability. Under no circumstances, shall Service Provider or anyone else involved in administering, distributing or providing Service Provider services, be liable for any indirect, incidental, special or consequential damages, including, but not limited to, loss of revenues or lost profits, or damages that result from the use of or inability to use Service Provider services, mistakes, omissions, interruptions, deletion of files or e-mail errors, defects, viruses, delays in operation or transmission, failure of performance, theft, destruction or unauthorized access to Service Provider records, programs or services, even if Service Provider has been advised of the possibility of such losses. Because some states do not allow the exclusion or limitation of liability for consequential or incidental damages, in such states, Service Provider's liability is limited to the greatest extent permitted by law. In no event shall Service Provider's liability to Subscriber exceed the aggregate amounts paid by Subscriber to Service Provider for Service Provider services during the previous (number) months.

IX. Indemnification. Subscriber agrees that it shall indemnify, defend and hold harmless Service Provider and its officers, directors, employees, agents and shareholders from and against any costs, expenses (including, among other expenses, reasonable attorneys' fees and expenses), losses, damages (specifically excluding consequential, exemplary, special, indirect or punitive damages), suits, claims, or liabilities incurred and arising from or relating to Subscriber's use of Service Provider services.

X. Termination of Service.

A. Service Provider has the right to instantly cancel with or without warning all unpaid or not fully paid subscriptions. Any remaining unpaid subscription dues will be billed to Subscriber including extra fees for bounced checks. Bills unpaid more than (number) days may be sent to a third party for collection and may incur a collection fee.

B. In the event of account termination or cancellation, Subscriber will have (number) business days to access any remaining materials stored with Service Provider. Service Provider will forward e-mail free of charge for (number) days.

XI. Assignment. Subscriber shall not sell, transfer or assign this Agreement without the prior written consent of Service Provider. Any unauthorized transfer or assignment shall be null and void; provided, however, that any such assignment shall not relieve Subscriber of its obligations under this Agreement.

XII. Severability. The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

XIII. No Waiver. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

XIV. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

XV. Notices. Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

XVI. Mandatory Arbitration. Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

XVII. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

XVIII. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

XIX. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

XX. Compliance with Laws. In performing under this Agreement, all applicable governmental laws, regulations, orders, and other rules of duly-constituted authority will be followed and complied with in all respects by both parties.

By:

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What an Internet Service Provider Agreement Covers

An Internet Service Provider Agreement is a contract between a connectivity provider and a customer that defines the services to be delivered, performance expectations, pricing, term and termination rights. Typical contents include a detailed service description (bandwidth, IP addressing, managed services), a service level agreement (uptime and remedies), billing terms, maintenance windows, data handling and privacy obligations, liability and indemnity allocation, amendment procedures, and dispute resolution. The agreement creates enforceable rights when executed in writing or electronically consistent with ESIGN or applicable state electronic signature law.

Why a Clear ISP Agreement Matters

A clear Internet Service Provider Agreement sets measurable expectations, limits exposure, documents pricing and remedies, and reduces operational and billing disputes. It preserves regulatory and contract compliance and makes escalation, change orders, and termination predictable for both parties.

Why a Clear ISP Agreement Matters

Who Typically Prepares and Signs This Agreement

Typical users include commercial customers, small businesses, managed service providers, and enterprise IT teams requesting defined connectivity and managed services.

  • Internet service providers offering fiber, cable, DSL, or wireless connectivity to business customers.
  • Managed service providers packaging connectivity with monitoring, security, and support obligations.
  • Corporate legal and procurement teams reviewing SLA, liability, and renewal terms before signing.

Different stakeholders prioritize different clauses: operations focus on SLA metrics, finance on billing and credits, and legal on indemnities and governing law.

Key Roles Involved

ISP Account Manager

Drafts and negotiates the service description, pricing schedules, and change order processes. Coordinates with engineering to confirm delivered circuit details, documents maintenance windows, and tracks outages to support SLA credits and operational remedies.

Corporate Counsel

Reviews indemnity, limitation of liability, data protection, and termination provisions. Confirms governing law, dispute resolution, and that electronic execution will satisfy ESIGN and relevant state e‑signature rules for enforceability.

Security and Compliance Considerations

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Timestamped actions, IP and audit log
Access Controls: Role-based access and MFA
HIPAA Support: BAA available for covered entities
Certifications: SOC 2 Type II, ISO 27001
Data Residency: Configurable storage regions per agreement

Common Contract Risks and Penalties

Breach Liability: Statutory and contractual damages possible
Service Credits: Limited to SLA terms
Regulatory Fines: Privacy or telecom fines risk
Termination Exposure: Early termination fees may apply
Negligence Claims: Operational failures can trigger suits
Reputational Harm: Customer churn and public damage

Frequent Preparation Mistakes to Avoid

  • Vague service descriptions often lead to disputes when actual throughput, public IP allocations, or peering arrangements differ from customer expectations.
  • Missing SLA metrics such as MTTR, availability percentage, or credit calculation methods causes ambiguity in remedies after outages.
  • Inconsistent billing terms and unclear early termination charges increase invoice disputes and collection cycles.
  • Failing to specify data handling, backups, or security responsibilities creates regulatory risk for customers in regulated industries.

Practical Examples from Real Deployments

Real-world examples show how clear Internet Service Provider Agreements reduce disputes, accelerate service activation, and simplify billing reconciliation across customer and provider teams.

Optica Ventures LLC

Optica standardized ISP agreements to align technical specifications with billing and escalation procedures across multiple carrier contracts.

  • Reduced disputes and clarified remedy calculations.
  • With a single template the operations team tracked outages against SLA metrics, vendors applied consistent credit formulas, and legal approvals were faster because governing law and indemnity language were standardized across agreements.

Martin Properties

Martin Properties used electronic execution to close multi-site connectivity orders while coordinating construction and installation schedules.

  • Field activation synchronized with contract milestones.
  • Electronic signatures and integrated acceptance checklists allowed field teams to confirm circuit performance at turn-up, reducing invoice disputes and shortening the time between order and revenue recognition while preserving a clear audit trail.

Step-by-Step: Completing the Agreement

Follow these step-by-step actions to complete and execute an Internet Service Provider Agreement accurately, reduce rework, and ensure enforceability.

  • 01
    Gather Details: Collect party names, addresses, circuit and IP details.
  • 02
    Define Services: Specify bandwidth, interfaces, and maintenance windows.
  • 03
    Set SLAs: State uptime targets, credits, and measurement methods.
  • 04
    Execute: Obtain signatures and preserve audit trail per ESIGN.

How Electronic Execution Typically Works

These steps outline how to send, sign, and archive an Internet Service Provider Agreement using an eSignature workflow.

  • Upload Document: Add final contract and exhibits to the platform.
  • Place Fields: Insert signature, initials, and date fields.
  • Set Authentication: Choose email, SMS, or two-factor verification.
  • Send & Track: Distribute to signers and monitor completion status.

Key Clauses Every Professional ISP Agreement Should Include

A professional Internet Service Provider Agreement should address technical scope, performance guarantees, billing, security, liability allocation, and change management in clear, measurable terms.

Service Scope

Detail delivered services including physical and virtual interfaces, bandwidth tiers, IP addressing, peering arrangements, managed services, and any third-party carrier responsibilities to avoid scope disputes.

Service Levels

Include measurable uptime percentages, measurement windows, exclusion events, remedy formulas for credits, escalation paths, and reporting cadence so performance assessment is objective and actionable.

Billing & Payment

Define recurring fees, one-time charges, invoicing schedule, late payment interest, dispute resolution for billing, and procedures for prorated charges after upgrades, downgrades, or outages.

Security & Privacy

Specify responsibilities for customer data, logging, access control, incident notification timelines, encryption standards, and whether a Business Associate Agreement or other privacy addendum is required.

Liability & Indemnity

State limitations of liability, caps, exclusions, indemnity scope for third-party claims, and insurance requirements to allocate risk consistent with each party's commercial exposure and regulatory obligations.

Change Management

Outline change order procedures, acceptance testing for service alterations, timelines for implementation, pricing adjustments for upgrades, and the process for documenting mutually agreed amendments to the agreement.

Suggested Digital Workflow Settings

Recommended digital workflow settings and configurations to prepare, authenticate, and route an Internet Service Provider Agreement for efficient electronic execution.

Field Configuration
Template Name Standardized template with modular exhibits
Conditional Clauses Enable show/hide based on selected services
Automated Reminders Set reminders at 3, 7, and 14 days
Authentication Method Email link with optional SMS or 2FA

Platform Integrations and File Formats

Platforms, integrations, and supported formats for electronic execution, tracking, and storage of Internet Service Provider Agreements.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • Formats: PDF, DOCX, HTML supported
  • Authentication: Email, SMS, two-factor options

Key Dates and Notice Periods to Track

Key dates, notice periods, and response windows to track during implementation, billing, and termination of an Internet Service Provider Agreement.

Agreement Effective Date:

Date services and obligations begin.

Service Commencement:

Physical turn-up and proof-of-performance date.

Billing Cycle Start:

Date first invoice is issued and recurring schedule.

SLA Breach Notification:

Customer must notify provider within defined cure period.

Termination Notice:

Advance written notice required per contract clause.

Milestone Sequence from Negotiation to Renewal

A sequential milestone view showing negotiation, execution, activation, and renewal steps for an Internet Service Provider Agreement.

01

Negotiation

Finalize technical scope, pricing, and liability language.

02

Execution

Signatures obtained and electronic audit trail recorded.

03

Activation

Provider completes provisioning and documents turn-up tests.

04

Renewal Review

Assess performance, pricing, and make amendment decisions.

Baseline eSignature Pricing and Capabilities

Compare baseline pricing and core capabilities across common eSignature vendors for Internet Service Provider Agreement execution.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Practical Tips for Accurate and Efficient Completion

Adopt standardized templates and clear operational practices to reduce negotiation cycles and execution errors on ISP agreements.

Use Clear SLA Metrics
Define precise uptime percentages, measurement intervals, MTTR, and credit formulas so performance events and remedies are objective and immediately actionable for both parties.
Standardize Templates
Maintain a master template with modular exhibits to speed legal review and ensure consistent allocation of liability, insurance, and data protection obligations across transactions.
Confirm Signing Authority
Include an explicit authority statement in the signature block and verify signer authority in procurement or vendor onboarding records to prevent later disputes about validity.
Preserve the Audit Trail
Retain timestamps, IP addresses, authentication records, and the completed PDF to document intent, attribution, and the exact content executed by all parties.

Frequently Asked Questions

Answers to common questions about enforceability, notarization, HIPAA considerations, amendments, and cross-jurisdictional issues relevant to Internet Service Provider Agreements.


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