It’s that time of year again when my internet service provider (ISP) sends me the inevitable email that it’s time to upgrade my internet connection or keep the same old cable services. While I have always been a fan of cable internet, after the era of cord-cutting and shifting to remote work, having fast and reliable internet is more important than ever.
For small business owners, this question may be at the forefront of their minds as fiber internet connections expand to more locations in the future. Therefore, if you are choosing between fiber and cable internet, this article will provide background information and key considerations to help you understand this shift and decide which type of internet is right for you.
Understanding fiber & cable internet
Not to take us back to science class, but if you know anything about the difference between the speed of light and electricity, you know that light travels faster in an enclosed space than electromagnetic waves in a wire. Therefore, the primary difference between cable and fiber internet is the type of cables they use to transmit data.
While fiber internet utilizes fiber optic cables to transmit data through light pulses, cable internet uses coaxial cables that transmit data through electric signals. So, it makes sense why fiber internet is often promoted as a much faster and more reliable service.
Key differences between fiber & cable internet for SMBs
When comparing fiber vs cable internet speeds, fiber internet provides upload and download speeds of 250 megabits per second (Mbps) up to 2 gigabits per second (Gbps), which is great for cloud computing, sharing files and media, or communicating via video calls. In contrast, cable internet often provides fast download speeds but significantly slower upload speeds.
Fiber internet is less susceptible to interferences that affect cable internet and service providers, such as network congestion or damage to internet cables. Because fiber optic cables utilize glass or plastic fibers to transmit light pulses, they are more durable than the coaxial cables and copper wiring typically used for cable internet. This also means that choosing fiber internet reduces the likelihood of experiencing downtime from hardware damage or severe weather.
Cable internet is transmitted through electric signals with a set bandwidth shared amongst users in a particular geographic region. This means that when many people use the same cable internet network, the internet speed will slow down because there is only so much information that can be transmitted simultaneously. In contrast, fiber internet offers dedicated bandwidth, which is more beneficial for small business owners who require a reliable service.
Cable vs fiber internet | Cable internet | Fiber internet |
|---|---|---|
Best for |
|
|
Download speeds | ~100 Mbps to 1 Gbps | ~250 Mbps to 2 Gbps |
Upload speeds | ~10 to 50 Mbps | ~250 Mbps to 2 Gbps |
Reliability | Moderate reliability is influenced by cable quality, weather, and network congestion | Low latency and high reliability with few outside influences |
Security & scalability of fiber vs cable internet for business use
While the speed and reliability of an internet service provider are primary concerns for many business owners, security and scalability must also be considered. This is particularly important because cable and fiber internet plans provide different long-term growth potential and data protection during communication and information sharing.
Data security is a primary concern for businesses, as they are often more vulnerable to cyberattacks. Both cable and fiber internet support data encryption protocols, allowing the secure transmission of information. However, fiber internet provides greater physical security because it is more difficult to intercept data transferred through a fiber optic cable. This difference in infrastructure also makes it a more secure choice for businesses that manage sensitive customer data or payment information.
Compared to fiber internet, cable internet has limited scalability due to its reliance on coaxial cables and shared network resources, which limit bandwidth capacity during peak hours. In contrast, fiber internet is highly scalable because its infrastructure supports higher bandwidth capacity.
As more companies invest in expanding fiber optic networks, it is increasingly likely that this type of internet service will become more widely available and affordable. Therefore, even if you don’t think fiber internet fits into your plans right now, it could in the future.
Fiber vs cable: Which is more cost-effective for your SMB?
Although fiber and cable internet offer many benefits, they also come with costs. For most small business owners, budget is the primary consideration when selecting a new service or provider. When choosing an internet service, you must factor in the monthly subscription, installation expenses, and the cost of any communication technology, such as voice-over-internet-protocol (VoIP) phone systems or devices.
Installation & setup costs
From the initial setup, cable internet is usually more affordable and widely available than fiber internet. When setting up cable internet, the primary things that you need are a modem and a router to access your network. Most residential and commercial buildings already have a coaxial outlet, which makes the setup process much easier for those who work from home or SMBs that need to install cable internet quickly.
However, setting up fiber internet can vary depending on your infrastructure. If your building already has fiber internet installed, setup can be relatively fast and affordable. If your business requires the installation of a new cable, that will add to the time it takes to start your service and the setup cost. While fiber optic cables are more common in urban or suburban areas, buildings are less likely to have the wires installed in rural areas. So, where you conduct business plays a crucial role in calculating your setup costs.
Ongoing monthly costs
When calculating the monthly cost of internet service, small business owners can choose between residential and business services and fiber and cable options. While residential internet service may work for solopreneurs, opting for a business internet plan is often beneficial because it provides enhanced security features and priority customer support, even if it typically comes at a higher cost.
For residential plans, cable internet generally offers lower monthly costs than fiber internet, typically from $20 to $150 per month, depending on the provider. However, business internet tends to have a higher starting cost. However, there are many options for cable internet providers, such as Spectrum, Comcast, and Cox.
By comparison, fiber internet has a higher monthly fee than cable internet, with plans ranging from $50 to $200 monthly, depending on your internet speed and provider. Companies like Verizon Fios, AT&T Fiber, and Google Fiber are dedicated to making affordable fiber internet available to more communities.
If Google Fiber is available in your location, there are multiple plans for SMBs. (Source: Google)
For example, Google Fiber offers a fiber internet service plan starting at $70 monthly for 1G of service. When considering long-term business plans, fiber internet is also considered a highly scalable and reliable service ideal for businesses seeking a future-proof telecommunications solution, despite higher initial or monthly costs.
How to choose the right internet for your business
Any business with a VoIP phone system could benefit from fiber internet because of its faster speeds and higher reliability. However, several key factors must be considered when choosing the best option. Explore the following tabs to learn more about how your business type, communication needs, and geographical location influence your internet choice.
Frequently asked questions (FAQs)
Yes, you can switch from cable to fiber internet without any downtime, but scheduling is important. To ensure a seamless transition, schedule your new service to start before your old service ends. This way, you won’t have to worry about downtime or troubleshooting any potential issues.
Whether fiber internet is worth the cost for a small business owner depends on your workspace and communication needs. It would be beneficial if you are using multiple devices simultaneously or managing a complex phone system. Additionally, many internet providers offer a variety of plans to suit different budgets and business requirements, so it is possible to find a provider that works for you.
Communication technology is essential for running an effective business, and fiber internet offers faster speeds and more reliable service for phone systems using voice-over-internet-protocol (VoIP). This means you can reduce the chances of downtime and enhance the speed of your information sharing for more productive and effective business communication.
Bottom line
When choosing between fiber vs cable internet, it is important to consider the benefits and costs of each service. While fiber internet provides faster and more reliable service, it often comes at a higher price than other plans and isn’t available in every area. In contrast, cable internet is widely available and comes at a lower cost, but it isn’t the fastest option on the market regarding communication.
Although fiber internet represents the future for many providers, the internet service you choose will depend on your current connection, budget, location, and business needs. Therefore, before making any changes to your service, do the research to get the most out of your internet.
