Why Is Business Internet More Expensive Than Residential
Business Internet vs. Residential – Verizon
“Why should I pay so much for internet service? ”
It’s a valid question, especially for small-business owners squeezing as much as they can out of every scarce dollar. With fiber broadband-wired neighborhoods popping up everywhere promising low cost pricing and high speed internet, the choice between business internet vs. residential seems simple. This Quora thread sums it up: residential internet is cheaper, and now it’s almost as good as a business-level connection, so why pay the difference? You have a handful of employees, and they can easily get by on fewer Mbps than MegaCorp downtown. But, is this the right choice for your business?
Business internet vs. residential
Business internet has more features and benefits than residential, and is worth the higher cost. Residential internet often has restricted upload speeds and comes with only best-effort service agreements, while business internet demands faster upload speeds in order to perform operations. In addition, ISPs provide guaranteed service and uptimes for business internet.
Saving a few bucks now could end up costing you down the line, since the differences between business internet vs. residential are critical—would you line up at FedEx Office self-serve instead of buying your own office printer? Or have an Uber driver make your client deliveries? The choice is really that cut-and-dried.
Here are the most important factors for your business internet vs. residential consideration:
Parity
Residential, and even some business internet providers, keep prices down by offering impressively fast download speeds while glossing over their far slower upload speeds. For streaming movies and web surfing, download speed matters. If you’re creating content and need to get it to clients, upload speed really matters—the same goes for backing up your data offsite. Business internet connections usually offer identical download and upload speeds, known as parity. In residential connections, throttled upload speed is the norm: 20Mbps down, 2Mbps up is a standard package, which would be advertised as “20×2, ” or the upload speed left out completely.
Service Level Agreements
A service-level agreement (or an SLA) is a contract between a service provider and its customers stating what services the provider will furnish, as well as defining performance standards. Service providers use SLAs to manage customer expectations, as well as to clarify when they’re not liable for performance issues or outages. By being made aware these parameters, business customers (residential customers usually receive less-binding “best effort” promises) know what to expect from providers, and can compare them to the SLAs of other vendors. SLAs also define means of compensation should the service level not be met, either through credits or a refund.
Static IP
Business internet connections typically come with static Internet Protocol (IP) addresses, permanent numbers assigned by the Internet service provider (ISP). If it’s not included, you can add a static IP when you set up your service. A static IP address is also known as a fixed address. This is ideal for hosting a web site or email server from your location or for connecting to a whitelisted server so you can use a service that another business provides. Also if you have heating and air conditioning controls or video cameras at your business, you can access these controls remotely with a static IP.
Residential internet connections typically use dynamic IP addresses that are temporary and change each time the computer or device accesses the internet from your network. Your ISP will set this up so it happens automatically using a Dynamic Host Configuration Protocol (DHCP). When it comes to security, both dynamic and static IPs are comparable, as long as you have a good security program or firewall installed.
Price
The lowest cost shouldn’t be the deciding factor in the business internet vs. residential debate. Think about what your business could lose in the event of an internet slowdown or, worse, a complete outage. The initial savings of going residential could easily be wiped out by loss of connectivity and productivity, and it might end up costing you even more in the end. It won’t, however, cost you anything to compare business internet features and pricing besides a few minutes of research into what might be best for the future of your business. To help get you started, click the following link to learn more about Verizon Fios business internet.
Speed
Business internet speeds tend to be anywhere from two to five times faster than those of residential connections, meaning more people can get more done, more quickly. Twenty employees sharing a 5Mbps residential-style connection at the office can makes little financial sense when you’re counting on it to help complete transactions and make you income. And, as annoying as the dragging downloads and eternal uploads of a slower residential connection can be for you, they’re even more tedious for your customers. It may predate the internet, but the old saying “time is money” still holds up.
When it comes to learning more about speed, feel free to check out our article: How much bandwidth do I need for my business? If you’re considering what makes Fios and fiber optic connections so much faster, we recommend reading fiber optic vs. cable.
*Griffith, Eric. “The Fastest ISPs of 2017, ” PCMag, June 2, 1027
Why Business Internet Costs More Than Residential Internet
Internet packages for the home start from as little as $20 per month in Indianapolis, while internet plans for businesses cost considerably more. It might seem tempting for small businesses to choose the cheaper option and just use residential internet, but don’t fall into this trap.
There are legitimate reasons why business internet costs more than residential. Business internet caters to organizations that require faster, more reliable speeds than residential users. Many business users also need a dedicated connection, service level agreement (SLA), dynamic IP address, enhanced security, and more varied customer service options. Read on for more reasons why business internet costs more than residential.
Differences Between Residential and Business Internet
Both residential and business connections allow users to access online services, but a business service typically provides the following additional benefits.
Faster Speeds
Business services, especially business broadband and fiber optic internet, come with faster speeds than residential services. Many business owners require these speeds to execute day-to-day tasks, such as videoconferencing, posting online content, and emailing clients.
Dedicated Connection
Business broadband provides a dedicated internet connection that you don’t have to share with other users. When several groups share a connection, it can affect bandwidth, which might slow down your internet and make it difficult to carry out daily operations.
SLA
An SLA (service level agreement) is an agreement between you and an internet service provider. This contract defines the level of service that you can expect from the provider and any financial compensation you might receive if the provider doesn’t meet its commitments. An SLA provides you with clear expectations and a source for accountability.
Dynamic IP Address
You get a dynamic IP address with a business package instead of a static IP address. A dynamic IP lets you host a server or file storage so you can complete business-critical tasks at scale, such as customer data collection and ensuring your website has enough bandwidth.
Security
Business internet offers a more secure connection for businesses than residential internet. This benefit proves valuable if you collect customer data, such as names, telephone numbers, and credit card details. You will require a secure internet connection to prevent cybercriminals from stealing this data.
Customer Service
Business owners like you require more advanced customer service options than those that come with residential services. These options might include 24/7 phone, email, or live chat support, which prove useful if your internet service goes down or you experience technical problems that affect day-to-day tasks.
Why Is Business Internet a Better Option?
Business owners can use a residential internet connection, but what you’ll save on your internet bill you’ll likely pay for in downtime and poor reputation. Investing in a business connection improves productivity and performance in your work environment. If you rely on the internet to carry out essential tasks like communicating with customers and selling products online, a business connection provides you with far more scope than its residential counterpart.
Invest in a business connection to reap the numerous benefits! Contact AxiaTP to find out what business internet will cost you and how it will enhance the way you do business.
What’s the Difference Between Residential and Business …
At Allconnect, we work to present quality information with editorial integrity. While this post may contain offers from our partners, our opinions are our own. Here’s how we make oosing the right internet plan for your home can be tricky, and there’s a lot of things to consider: How many Mbps do you need? How many devices are you connecting? Is cost your biggest factor? Add in a home office or a small business you run from home, and it gets even more cording to the U. S. Small Business Administration, there were 30. 2 million small businesses (defined as fewer than 500 employees) in 2018 (the most recent available data). Of those small businesses, nearly 20 million of them had fewer than 20 you’re a small business owner or need to work from home out of an office, here’s what you need to know about internet for your home office or small business. What are your internet options? If you have a home office or small business that you run from home, you’ll have the option to choose between residential or business is business internet? Business internet refers to a specific internet connection dedicated to conducting business. It typically comes with faster download and upload speeds, more features, a robust customer service department and guaranteed service. All of these extra features, though, come with a higher price is residential internet? Residential internet is just that, the internet you use at home. Residential internet typically comes with lower starting speeds as well as asymentical download and upload speeds (meaning your download speed is much greater than your upload speed). Depending on where you live, you could get a cheap home internet connection for as little as $20/ Tip: Learn the in’s and out’s of setting up your home’s Wi-Fi network! Do you need a residential or business internet connection? Whether or not you need a residential or business internet connection depends on the needs of your home office or small business. If you’re conducting the majority of your business from home, you may want to consider a business internet connection. However, if a lot of what you’re doing at home is clerical work or a few video conference calls, a high-speed residential connection may be ’s what you need to know before you consider switching to a business internet connection:Pros and cons of business internetProsFaster starting speeds – Speeds range from 25 Mbps to 10 Gbps, whereas residential options typically range from 1 Mbps to 1 GbpsSymmetrical connection – More options for matching upload and download speeds provide a better connection for video conferencing, sharing documents, dicated line – Dedicated lines mean you’re not sharing your connection with neighbors or experiencing slowed speeds during peak timesStatic IP address – Business internet typically offers the option to have a static IP address (vs. a dynamic one that changes periodically) providing a more secure, reliable connectionService level agreements (SLAs) – SLAs are a service contract between you and your internet provider outlining performance standards, as well as how you’ll be compensated if the service level is not metDedicated customer service – Many providers offer 24/7 support for business internet customersConsHigher starting costs – Depending on your needs, business internet could cost anywhere from $60/mo. for 25 Mbps to $500/mo. or more for multiple gigs of internetDecide how much you really needBefore you consider making the switch, you need to determine how much speed you really need for your home office or small business. Run a speed test to determine what you’re currently getting and make a list of all of your online speed test results:Download Speeds 888 MbpsUpload Speeds 88 Mbps Pro Tip: For best results, use an Ethernet cord to connect your router or modem directly to your device before you run the the majority of what you’re doing involves checking email, browsing the web, maintaining a website and conducting some video conferences, a high-speed residential internet connection may be enough. Where available, a fiber-optic internet connection may be your best bet. Fiber-optic internet typically comes with higher starting speeds of 100 Mbps up to 1, 000 Mbps, is less likely to be disrupted during peak times and comes with symmetrical (or close to symmetrical) upload and download you want to see what high-speed internet options are available in your area, click “Shop internet plans” below. Follow our Resource Center for tips and tricks to maximize your speed and get the most of your connection. Written by: Samantha CossickContributor, Former Senior Content Strategist Samantha is a key contributor to Allconnect covering broadband services. She graduated with a journalism degree from West Virginia University and spearheaded the growth of Allconnect’s Re… Read more How to switch internet providers Joe Supan — 6 min read New to working from home? Here are some tips to secure your internet connection Nicole George — 5 min read The hidden internet fees you really pay with each provider (updated October 2020) Nicole George — 10 min read Latest Tuesday, November 2, 2021 Where to donate and recycle used electronics Joe Supan — 7 min read Tuesday, November 2, 2021 Report: Majority of Americans support government-run internet service Ari Howard — 4 min read Saturday, October 30, 2021 Everything you need to know about Project Kuiper, Amazon’s satellite internet company Ari Howard — 4 min read
Frequently Asked Questions about why is business internet more expensive than residential
Why is business WIFI more expensive?
There are legitimate reasons why business internet costs more than residential. … Many business users also need a dedicated connection, service level agreement (SLA), dynamic IP address, enhanced security, and more varied customer service options.May 17, 2021
Do you need business internet to work from home?
If you’re conducting the majority of your business from home, you may want to consider a business internet connection. However, if a lot of what you’re doing at home is clerical work or a few video conference calls, a high-speed residential connection may be enough.Jan 27, 2020
How much does wifi cost for a small business?
Best high-speed internet providers for small businessesProviderDownload speedsMonthly price rangeVerizon Fios Business200 to 940 Mbps$69 to $249*Frontier Business100 to 940 MbpsStarting at $55.99‡AT&T Small Business25 to 1,000 Mbps$60 to $300**Comcast Business Internet35 to 1,000 Mbps$69.95 to $499.95†1 more row
