Tier 3 prices will be cheaper. Tier 3 are usually resellers that typically only cover a certain area. Tier 1 on the other hand is like sprint which is part od the internet backbone. Something to consider to if you go with tier 3 and there is a problem it may now be something they can resolve, they may have to work with their tier 1.
As far as service goes that depends more so on the company rather than being tier 1 or 3.