A Business Internet Service Buyer's Guide

Business Internet Service

Business Internet Services

The foundation of any successful business today relies on having reliable internet access to streamline operations and facilitate communication.

Internet access has become a fundamental necessity for day-to-day business operations. The key to a smoothly running business often lies in having a dependable internet service that offers both speed and reliability. Naturally, you want to select an internet service provider (ISP) that can offer high-speed and trustworthy service at the most competitive rates. But can you find everything you require in one provider?

Understanding the Basics Business internet services encompass the range of internet solutions provided by ISPs for commercial use.

ISPs serve as the gateway to the internet, transmitting data from internet servers to your business’s computers. Several methods exist for connecting to the internet, with the most common being dial-up, DSL, cable, and wireless services.

Business internet providers typically offer an array of features tailored to enhance business functions and communication, such as:

  • Web hosting
  • Streaming video
  • Voice over IP (VoIP) services (check our VoIP Buyer’s Guide)
  • Video conferencing
  • Virtual private networking (VPN)
  • Bundled phone and internet packages
  • Free domain names, web hosting, and email addresses
  • Complimentary static IP addresses
  • Priority network access
  • Priority customer support
  • Free antivirus and spam protection

Categories of Internet Service

Residential, Small, and Large Business Internet

Before deciding on a plan or provider, it’s beneficial to distinguish between residential and business internet accounts. If you’re self-employed or work from home, you might consider upgrading to a business account for faster connections and greater uptime (reliable service). For businesses with expanding numbers of internet users requiring more bandwidth, dedicated services versus shared services should be considered.

Residential

Most residential internet accounts are shared services, with multiple users sharing the connection. Connection speed and reliability can vary depending on the number of simultaneous users. For instance, residential connections tend to be slower during evenings when more users are active on their home networks but faster during daytime work hours when users are on their workplace networks.

In summary, residential internet accounts typically offer:

  • Shared service (multiple users on one line)
  • Slower connection speeds during peak hours
  • Variable reliability based on user load
  • Data download limits
  • Maximum download limits
  • Restrictions on running servers

Residential internet pricing can range from $10 to $100 per month, depending on the provider, location (rural or urban), and selected features.

Small Business

Small businesses often opt for plans similar to residential packages but with some enhancements. Like residential connections, small business internet is delivered via cable lines or DSL and is provided by local cable or phone companies. The key difference lies in improved connection speed and user reliability, as you’re paying for an upgraded version of the residential package.

Small business plans usually include benefits such as a static IP address, a service level agreement, and less oversubscription. Costs can range from $50 to $400 per month, depending on factors like the number of users, business location (rural vs. urban), and desired connection speed.

With most business internet accounts, you can expect:

  • Unblocked ports for a wider range of inbound/outbound data
  • Fewer restrictions on running servers
  • The ability to self-host websites
  • A static IP address instead of a dynamic one
  • Improved technical support
  • Faster technical assistance scheduling
  • Custom features such as additional email inboxes, free domain name registrations, web hosting, antivirus services for multiple computers, collaboration software, and more.

If you’re self-employed, work from home, or own a small business, it’s advisable to inquire with your local cable/DSL providers about their business packages. Though these packages may come at a higher monthly cost, they can often be well worth the investment in terms of both time and money.

Large Business

Large businesses and corporations typically favor dedicated internet access (DIA). This entails a dedicated line transmitting a specific amount of bandwidth solely for the business. DIA is considered one of the most reliable forms of internet access, offering 99.9% service reliability and no oversubscription issues. Additionally, dedicated accounts receive top priority for customer service and technical support. However, this level of service comes at a cost, ranging from $300 to $5,000 per month depending on factors such as location, user count, bandwidth, speed, and ISP rates.

Bandwidth

Understanding Bandwidth

Bandwidth is synonymous with data transfer rate, representing the volume of data an internet connection can transmit within a given time frame. Bandwidth is typically measured in bits per second (bps).

Increasing bandwidth allows for the transfer of more data over the internet. When selecting an internet service provider, you’ll choose a specific bandwidth package. The amount of bandwidth you select, in conjunction with the number of users and their online activities, will affect the quality and speed of your internet connection.

Differentiating Mbps and MBps

Bandwidth is expressed in various units, including bytes, kilobytes, megabytes, and gigabytes. ISPs may use different terms to describe bandwidth, so it’s important to understand these terms and be able to calculate or convert between them to effectively measure bandwidth.

For instance, you may notice your internet service seems slow, with a speed test showing 5 Mbps (megabits per second). However, your service provider indicates your average speed is typically 5 MBps (megabytes per second). These two values are significantly different.

Keep in mind that there are 8 bits in a byte, enabling you to convert between these readings. In this case, 5 MBps is equivalent to 40 Mbps (5×8=40). Conversely, 5 Mbps equals 0.625 MBps (5/8=0.625). So, if your speed test indicates 5 Mbps, you may experience slow service and should check your Service Level Agreement (SLA) for bandwidth guarantees.

Determining Your Business’s Bandwidth Needs

In short, your required bandwidth depends on your internet usage (e.g., web surfing or digital streaming) and your budget.

For low-data usage activities like email or web browsing, whether you have a 50Mbps or a 100Mbps connection won’t significantly affect your connection quality. However, bandwidth becomes critical when you need to perform multiple activities simultaneously. For instance, simultaneous tasks such as computer backups, uploading large files, video streaming, and web browsing will consume more bandwidth. When you reach your bandwidth limit, you may experience connectivity issues and delays.

Think of bandwidth like adding extra lanes to a highway. While the speed limit remains the same, more vehicles can travel at that speed simultaneously.

Before purchasing bandwidth, consider these factors:

  • Your current data requirements (e.g., web browsing, data entry, streaming video)
  • Expected changes in data requirements over the next five years
  • The number of users in your office
  • Plans for business growth, including the expected number of additional users
  • The distance between your office and the Internet Service Provider (ISP)
  • The option of bundling phone and data services for potential cost savings
  • Your budget constraints

Feel free to consult your local service providers for available options or consider engaging an internet service broker to navigate the complexities of telecom services.

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