By: John Shepler
When choosing business internet services, bandwidth is important, but understanding the difference between dedicated and shared connections is crucial.
What Does Dedicated Mean?
Dedicated bandwidth is exclusively for your use. This might seem obvious, but the recent rise of shared bandwidth makes it worth clarifying. The cost-effectiveness of shared bandwidth often makes businesses reconsider their need for a dedicated line.
Cost Considerations
Shared bandwidth is significantly cheaper than dedicated bandwidth at similar speeds. However, opting for shared bandwidth solely based on price can negatively impact employee productivity due to a slow and unreliable connection.
T1 and DS3
Dedicated bandwidth was the business standard for a long time. When businesses transitioned from slow dial-up connections to broadband, T1 (1.5 Mbps) and DS3 (45 Mbps), both repurposed telephone lines offering dedicated and symmetrical bandwidth, became the preferred options. These services remain popular and reasonably priced for both point-to-point and internet connections.
Unlimited Usage
Dedicated lines offer unlimited usage. Whether for continuous, high-volume data transfers, like remote data center backups, or less demanding tasks like emails and web browsing, the maximum data transfer per month is the line rate multiplied by the total seconds in a month. Unused bandwidth remains idle as no one else can utilize it.
Symmetry: A Key Feature
Symmetrical bandwidth ensures equal upload and download speeds, a standard feature of commercial telecom services. While essential for PBX phone lines, it’s also beneficial for activities requiring substantial data transfer in both directions, such as connections between offices, video conferencing, and cloud computing.
Asymmetrical and Shared Options
Asymmetrical bandwidth, often shared, gained popularity with residential broadband. Shared bandwidth involves dividing a large dedicated line among multiple users, with each user paying a fraction of the total cost. This approach is more cost-effective for individual users who don’t need high bandwidth constantly.
Cable and DSL
Cable and telephone companies capitalize on the fact that most users aren’t online constantly. They divide a large dedicated line among many users, each contributing a small fee that collectively covers the cost of the main line.
The Price of Bandwidth
Shared bandwidth often boasts download speeds ten times higher than dedicated lines at the same price, but upload speeds are significantly lower. This is generally acceptable for standard internet use but unsuitable for tasks demanding equal upload and download speeds.
Performance Fluctuations
Shared bandwidth speeds are unpredictable. Your actual speed can fluctuate depending on the number of users online and their internet usage, making it an unreliable option for bandwidth-intensive applications.
Network Challenges
Shared bandwidth can lead to network congestion, impacting internet speed and reliability. Additionally, latency (delays in data transfer) and jitter (variations in latency) can disrupt VoIP calls and video conferencing, particularly on satellite connections known for high latency.
Fair Usage Policies and Limitations
Shared bandwidth, even if advertised as unlimited, often comes with “fair usage” policies. Exceeding a certain usage threshold can result in reduced speeds, service interruptions, or additional charges. These limitations are absent in dedicated lines.
Modern Dedicated Services
Ethernet over Copper and Ethernet over Fiber are progressively replacing T1 and DS3, offering dedicated, symmetrical bandwidth. Multi-tenant Wide Area Networks (MPLS) provide cost-effective long-distance connections with guaranteed bandwidth and symmetrical speeds.
Choosing the Right Solution for Your Business
Small businesses with basic internet needs like web browsing, email, and credit card processing can benefit from cost-effective shared bandwidth. Similarly, freelancers and small office/home office users with limited budgets might find shared bandwidth suitable.
Medium and larger businesses often opt for dedicated lines, especially when inconsistent internet performance can disrupt productivity. This is crucial for businesses relying on VoIP, HD video conferencing, remote data center connections, or cloud-based services. Dedicated point-to-point lines and MPLS networks provide superior bandwidth, latency, jitter control, and quality of service compared to public internet connections.
Making the Decision
Choosing the best internet option involves assessing your needs and comparing costs and performance of available services. Online tools and consultations with network specialists can help you determine the best fit for your organization.
