does a tier 1 isp provide internet service to end users directly? additionally does it host domain names for users?

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Some of them do. Certainly Verizon and XO are Tier 1 ISPs that provide these services. (I don't have specific knowledge but I'd bet many of the others do also).

The question is, why do you care? The fact that an ISP is "tier 1" is technically interesting and provides certain benefits to that company, but it provides few benefits to an end user. In fact, end users may benefit more by using a tier-2 or tier-3 company that purchases transit from multiple tier-1 ISPs. It can be argued that such a network has fewer single points of failure than a true tier-1 network.

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Well I am not 100% sure about that but after reading this Wikipedia article, I would say, they don't provide direct access to users. They don't have the infrastructure for that and it is not their purpose.

Regarding domains: Providing/hosting domains is totally independent from the ISPs. Of course they can also host domains but this would be another business area and not really related to the fact that they are ISPs.

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