“Why is business fiber more expensive than residential fiber?”

If you’re not aware of the differences, the cost variance doesn’t make sense. A connection is a connection, right? Wrong.

There are several factors that differentiate the two. Businesses upgrading their services should consider the benefits of a business-class fiber connection. Because who wants to just “Keep Up With the Joneses” when you can be the Joneses?  With business-dedicated fiber, your organization can lead the pack and gain a competitive edge.

Business Fiber

SLA

  • An SLA guarantees your business receives the service and speed as promised by the provider.
  • If your connection degrades, the SLA gives the customer an opportunity to negotiate the terms and pricing of their service agreement.
  • Business SLA also comes with an MTTR (mean time to repair) that guarantees someone will be onsite fixing the issue within 4 hours.

Static IPs

  • Business internet service offers static IPs.
  • Static IPs are needed for hosting your own infrastructure like file and mail servers.
  • Static IPs are more reliable and secure.

Symmetrical

  • Business fiber is symmetrical.
  • Symmetrical means you can upload as fast as you download.
  • Symmetrical connections are crucial for businesses that backup data to offsite centres and utilize cloud services.

Dedicated Bandwidth

  • Business fiber bandwidth is dedicated.
  • Dedicated means your connection goes directly and only to your office location. You don’t share with neighbouring businesses.
  • The result is faster speeds, less latency, and packet-loss.

Residential Fiber

No SLA

  • Residential bandwidth is shared. This means that service agreements can only be an estimate. 
  • Speeds will vary depending on the time of day and amount of online users. So, home connections do not come with an SLA.
  • Small business/residential services do not come with an MTTR guarantee. Some repairs can take days instead of hours.

Dynamic IPs

  • Residential internet demands usually don’t require static IPs.
  • Dynamic IPs are the norm. They move and change without notice.
  • Dynamic IPs are less reliable and not as secure.

Asymmetrical

  • Residential internet is mainly used for streaming movies, loading websites and downloading music.
  • Download speeds are more important than uploads, so residential internet is usually asymmetrical.

Shared Bandwidth

  • Residential fiber is shared between hundreds or even thousands of neighbours pulling bandwidth from the same port.
  • When everyone is online during peak hours, it will slow down your own connection.
  • The result is slower speeds, more latency, and packet-loss.

The Bottom Line

Just because a connection is called “fiber”, it doesn’t mean you’re getting the fast, reliable, and secure service associated with the name. Businesses with 20+ employees all uploading to the cloud and using SaaS will want a true, dedicated business-class fiber connection.