Is your new business in need of internet service for the first time, or does your existing business require better access? You might suspect you could be getting more for your money, and you’d probably be right. Let’s explore the current business internet service options to determine the best fit for you.
The long-standing favored business internet connection for professionals has been the T1 line, recognized for its high reliability and consistent 1.5 Mbps upload and download speeds, referred to as symmetrical bandwidth. Not all internet connections offer this symmetrical bandwidth or guarantee the same level of consistent speed. The T1 line is a dedicated bandwidth service, meaning you have a dedicated 1.5 Mbps for your exclusive use, a feature not all internet connections provide. Service reliability is often assured through a Service Level Agreement (SLA) outlining the timeframe for resolving line issues and the remedies if the provider fails to meet the agreement.
T1’s widespread availability adds to its popularity. It might surprise you to learn that T1 technology, also known as T-Carrier, was developed over 50 years ago. Its use for internet connections is a more recent application. Initially designed for telephone trunk lines, T1, in both its uses, is delivered through one or two pairs of twisted copper telephone wiring, a readily available infrastructure in almost every business location.
The two primary drawbacks of T1 are its relatively high cost compared to basic data services and its 1.5 Mbps bandwidth limitation. While 1.5 Mbps was substantial for most businesses a decade or two ago, today, it’s sufficient for smaller businesses but falls short for medium to large companies. A workaround for this limitation involves combining multiple T1 lines to achieve a total bandwidth ranging from 3 to 12 Mbps.
A comparable but more recent technology, Ethernet over Copper (EoC), is rapidly gaining popularity. While it also uses multiple telephone wiring pairs for signal transmission, its functionality differs slightly. T1 bandwidth consistently remains at 1.5 Mbps regardless of distance, even in remote areas. EoC offers higher bandwidth closer to the central office and lower bandwidth further away, generally within a several-mile radius. If your business is within the coverage area, EoC can easily provide speeds of 10, 20, 30, or even 45 Mbps, and in some cases, up to 100 Mbps. Cost-effectiveness is another significant advantage of EoC, offering double the bandwidth at the same price as a T1 line or the same bandwidth at half the cost of bonded T1 lines.
Small retailers, particularly chain stores and franchises, have long relied on two-way satellite internet. Satellite internet is operational anywhere with a clear view of the southern sky, even in remote locations with a power source. Although the cost difference is narrowing, satellite internet often proves more affordable than T1. However, it has limited bandwidth, and its latency, or time delay, makes it unsuitable for telephone or two-way video applications. It does, however, function well for point-of-sale terminals and general internet access.
Similar to T1, satellite internet faces competition from a newer technology: 3G fixed wireless. This business-grade internet service, comparable in bandwidth to T1 lines or satellite, utilizes the broadband capabilities of the cellular phone network. Unlike basic wireless aircards, 3G fixed wireless uses a specialized antenna and modem system, enhancing reliability and making it viable in most business locations across the nation and in Canada. The cost is roughly half that of T1 service, making it ideal for point-of-sale terminals, and it comes equipped with PCI-level security for credit card transactions.
For applications requiring more bandwidth, Ethernet over Fiber or SONET fiber optic services can provide speeds up to 10 Gbps. It’s important to note that this level of bandwidth comes at a higher cost and is not universally available. Construction expenses to connect a specific building often pose a significant obstacle.
Two noteworthy asymmetrical, shared bandwidth services are DSL and Cable broadband. Designed for the consumer market, these services are significantly cheaper per Mbps than dedicated telecom services. However, this affordability comes at the price of shared bandwidth, where multiple users share the same bandwidth pool, resulting in fluctuating speeds. These “information services,” unlike telecom services, do not have SLAs. Despite this, cable business broadband can deliver download speeds of 100 Mbps and upload speeds of 10 Mbps for approximately the same price as a T1 line. If cable service is accessible to your business and cost is a primary concern, this option might be a better fit than other connections.
Trying to decide the best option? A practical approach is to compare the availability, features, and pricing of several business internet services based on your location and specific requirements. The range of recently available services and their cost reductions compared to previous years may surprise you.