“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.
- 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.
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.
- 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.
- 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 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.
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.
- 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.
- 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.