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Why is Business Internet More Expensive than Residential?

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I can’t help but notice that discussions on the price of internet seem to be popping up all over: blogs, tech discussion boards and with my own Bandwidth Pool customers. I think a lot of it has to do with the recent attention to broadband given by Google Fiber as well as states’ attempts to change legislation with the goal of improving internet infrastructure across the United States. Regardless of the source of the chatter, I continue to notice that a lot of people don’t seem to fully understand the core differences between residential, small business and enterprise internet service and the reason why there is a difference in price for each type.

I’ve been lucky enough to have a front row seat on this topic: having built a wireless and wireline ISP myself. Here’s a little background on why certain services are more expensive in the hopes this can help you make the best internet decision for your needs.

Let’s start by highlighting the three major types of internet access: residential, small business and dedicated access (DIA).

• Residential (pricing between $10 and $100 per month) – Commonly referred to as cable internet or DSL, these services are primarily offered by the local cable or phone company. The service is considered shared and ‘best-effort’ in terms of speed and reliability.

• Small Business (pricing between $50 and $400 per month) – Also commonly referred to as cable internet or DSL and offered by the local cable or phone company, these services are essentially the same as residential. The largest difference comes in the fact that it’s a step above ‘best-effort’ speed and reliability and includes services like a static IP, service level agreement and less oversubscribed nature of its availability. We’ll discuss these in more detail below.

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Posted in: Internet Buying Resources

Tagged as: bandwidth business internet internet pricing residential internet

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