The most common business internet connections are Ethernet over Copper and Fiber Optic connections, which includes Ethernet over Fiber. While copper connections have typically been preferred for their affordability and accessibility, and fiber optic for its high bandwidth and scalability, this is evolving. The increasing affordability and availability of fiber optic connections are making them competitive even at lower bandwidths.
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Copper connections were adopted early on and became widely available due to the FCC’s Universal Service policy, which aimed to provide universal access to telephone service using copper lines. While intended for analog voice calls, these copper lines can also be used for digital services like DSL, T1, and Ethernet over Copper.
Developed after World War II, T1 was initially used for telephone company connections and was compatible with existing copper lines. It became available nationwide and more affordable over time. However, its original bandwidth of 1.5 Mbps is now insufficient for many applications.
While T1 lines can be combined to increase bandwidth (bonded service), this approach lacks cost-effectiveness as the price doubles for double the bandwidth. The maximum bandwidth achievable with this method is limited, typically 10 to 12 Mbps.
Ethernet over Copper (EoC) also utilizes copper lines but employs advanced modulation techniques to provide higher bandwidths, starting at 3 Mbps for the same cost as a 1.5 Mbps T1 line. EoC can offer speeds up to 20, 30, or even 50 Mbps. However, bandwidth decreases with distance from the central office.
Fiber optic service offers the highest bandwidth capacity with no distance limitations, allowing for speeds of 10, 100, or 1,000 Mbps regardless of distance. Options include traditional SONET fiber services starting at 155 Mbps and Ethernet over Fiber (EoF) with speeds from 10 Mbps to 10 Gbps. The maximum bandwidth is defined by the installed port size, commonly either 100 Mbps or 1,000 Mbps.
Despite its advantages, fiber optic service adoption was initially slow among small and medium-sized businesses due to limited availability and high costs. However, this is changing rapidly. The demand for fiber has grown significantly with increased office automation and the shift towards cloud-based services. Mobile broadband, initially supported by T1 lines, requires greater bandwidth for LTE, leading cellular companies to quickly install fiber optic cables to their towers.
The emergence of competitive network providers is another contributing factor. These companies, independent of traditional telecoms, are establishing regional and national fiber optic networks, often based on MPLS or IP technology. Their focus on acquiring new customers is driving competition in the market.
As a result, the availability of fiber optic service is rapidly increasing, and prices are dropping significantly. A 10 Mbps symmetrical fiber optic connection can now be purchased for two to three times the cost of a T1 line. Furthermore, the cost increase for higher bandwidth options is no longer as steep, with 50 or 100 Mbps fiber optic services available at less than twice the price of a 10 Mbps connection in many areas.
If you previously dismissed fiber optic service due to high prices, it’s worth revisiting. The current market offers significant deals on fiber optic bandwidth services. Check pricing and availability to explore the options available.