Network routing can be a little hard to explain, but yes, it's largly determined first by your ISP (typically called a last-mile ISP in the USA) which is then connected to a larger network. Simply, ISPs have ISPs too (Internet backbone providers), like Level 3, Cognet, Savvis, Verizon, NTT, etc. Content is typically cheapest if the ISP's ISP doesn't need to connect to something it doesn't own. ...it's sorta like having roaming charges for a cellphone.
What I'd recommend doing is running a traceroute to the servers you play on. Assuming that's mostly Balmung, like your user info says, you're on the Aether datacenter, which your client accesses at 204.2.229.9. Then, post in this thread in the FFXIV Technical Support section with the details.
Reporting Issues Resulting from the North American Data Center Relocation
To get the traceroute logs, you can run the following in your command prompt. It'll make a file on your desktop for you. It can also give you a better idea of where your connection might be failing. Or where it's going.
Most of the time, the core internet networks are gonna either be just an IP address or they'll have a regional-based name, so you can track the location that way. If you see a sudden spike in latency, that's where the issue is. If it's within the first/second hop, that's probably your home connection. If it's within the first few hops (you'll probably see your ISP's name here), then it could be their fault. If it's hit larger ISP ISP networks, you can try having your ISP's support file a support ticket for that ISP, but it's unlikely unless they're receiving a service outage or a massive amount of complaints. (Or they already have by the time you're affected). If it's happening on the last couple hopes, then it's on SE's side and likely affecting a large amount of users. ...and by then, we usually see a support topic on it.tracert 204.2.229.9 > Desktop\ffxiv_balmung_tracert.txt

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