Which Business Internet Service Type Is Right for Your Business?

Business internet service types

When it comes to business internet, organizations have seven connection types to consider. Some are extremely slow, while others are lightning fast. Here’s more about each option. 

Dial-up internet

Dial-up internet uses a standard phone line and an external or internal modem to convert an analog signal into a digital one. It connects to the internet with speeds ranging from 28 to 56 kilobits per second (Kbps). Traditional telephone companies still manage dial-up internet service across the country. The data moves along the same lines as landline telephones, so phone calls and internet access can’t occur simultaneously.

If you accessed the internet in the 1990s, you probably remember the distinctive sound of dialing up and the incredibly slow speeds by today’s standards. Although dial-up is the least-expensive internet service option, its usage has declined dramatically. Dial-up usage as a proportion of U.S. internet users has been under 1 percent since 2015, according to the National Telecommunications and Information Administration.

Some internet service providers still offer dial-up service. For example, NetZero and Juno provide accelerated dial-up that promises up to five times the standard dial-up speed.

However, for business purposes, connecting to the internet through a dial-up modem, even through an “accelerated” connection, is not recommended due to its exceedingly slow speeds and lack of reliability. This outdated technology has been replaced by business broadband.

Satellite internet

Research and development funding efforts continue to pour into satellite internet. This long-standing technology still has the best potential to deliver high-speed, low-latency broadband to every corner of the world. Satellite internet is often a good broadband service option for businesses that operate in remote locations.

Rob Frieden, academy professor and professor emeritus at Penn State, noted that satellite internet will likely complement the next generation of terrestrial broadband development and offer cost and competitive advantages in some niche markets.

“In some applications, satellites will provide the only viable option, or one that costs at or below the terrestrial options,” Frieden explained. “Examples include broadband in remote, sparsely populated locales that cannot support fiber or terrestrial wireless. With Starlink now serving 4 million subscribers, low-Earth-orbit satellite constellations should show commercial viability.”

There are three major competitors in the sector:

• Starlink: SpaceX’s Starlink, the fastest satellite internet option, offers speeds of up to 220 Mbps. So far, the company has deployed about 7,000 satellites in orbit, which are part of a plan to put up to 42,000 into orbit. These satellites work in combination with ground transceivers to connect anyone with clear access to the sky.
• Hughesnet: Speeds on Hughesnet reach 100 Mbps.
• Viasat Business: You can get speeds of up to 150 Mbps with Viasat.

Potential challenges of satellite internet

While satellite broadband offers coverage in remote areas, it has long struggled with data capacity limitations, according to Ed Chandler, a professor emeritus at the Milwaukee School of Engineering.

“The use of satellites for internet communications is currently quite limited when measured as a percentage of the total volume of data transferred over the internet,” Chandler explained. “This is because satellite links do not have the data capacity to support the data volume that is more readily supportable using multiple cable links.”

However, Chandler noted that in certain cases, satellite internet can still be a viable solution. 

“The exception to this general rule, from an economic perspective, is when the total traffic volume from and to a particular geographic area is not very large, but the area is remote,” Chandler said. “[This makes] it difficult to justify cable installations when satellite coverage, even with its data capacity limitations, can more easily and economically provide acceptable internet access.”

DSL internet

Digital subscriber line (DSL) introduced broadband internet to the general population in the early 2000s and remains the only high-speed internet service option for many rural and small-town businesses and homes.

While DSL runs through the same telephone lines as dial-up, it’s more than 100 times faster and, unlike dial-up, remains “always on.” DSL relies on a different frequency than dial-up, which means you can use the phone line for both voice calls and internet access simultaneously without interference. 

Considered an aging technology by today’s standards, DSL is reasonably reliable and tops out at around 100 Mbps. However, most users should expect speeds of around 25 Mbps consistently.

DSL data speeds are physically limited by the distance between the phone line and the main distribution point. The closer you are to the main distribution point, the faster your available service will be.

Fixed wireless internet

Fixed wireless internet, a point-to-point wireless connection, requires a directional radio antenna on both ends of the signal to send and receive data. Download speeds typically range from 25 to 100 Mbps.

Unlike most standard home and office Wi-Fi antennas, fixed wireless technology is designed for outdoor use and relies on large broadcast towers and receivers. Several different radio antennas are available to accommodate various signal distances, weather conditions and bandwidths, thereby helping to optimize performance. 

Fixed wireless internet service is becoming increasingly popular for businesses that operate in select small towns and rural areas where traditional broadband services — such as DSL, cable and fiber-optic internet — are unavailable.

Cellular internet

Cellular internet is a convenient option for retail businesses that use the internet primarily for customer transactions through point-of-sale (POS) systems. Wireless internet performance via a cell phone may vary depending on your service provider and device, with speeds typically available at 4G and 5G levels. Cellular internet is also referred to as LTE internet.

The term “4G” refers to the fourth generation of cellular networks, which can deliver speeds of up to 100 Mbps. However, the typical speed is closer to 20 Mbps. The term “5G” refers to the fifth generation of cellular networks, which can exceed 1 Gbps. However, typical 5G-specific download speeds range from 142 to 226 Mbps, depending on the provider.

Square, Lightspeed and Clover are some of the best mobile POS systems for small retail businesses. They integrate seamlessly with cellular internet service.

Cable internet

Cable internet evolved from the existing coaxial cable television infrastructure to deliver reliable high-speed internet access to homes and businesses nationwide, much like DSL piggybacks off of dial-up.

Called a “last-mile technology,” cable internet systems transmit data through a modem at the customer’s physical location and a cable modem termination system located at a cable provider’s facility, often grouped into hubs for efficiency.

For the past decade, cable internet has dominated the high-speed broadband landscape. While it is now nearing the end of its dominance as the gold standard in true high-speed broadband access, cable remains a very good option for businesses in areas where fiber is not yet available.

For daily use at small and midsize businesses (SMBs), a cable connection is an ideal baseline for sufficient download speeds of up to 2,000 Mbps, though upload speeds are typically slower. With so many options for speed and data limits measured by the gigabyte, prices for cable internet service vary significantly.

Fiber-optic internet

Fiber-optic internet is an exciting development. Fiber-optic providers offer industry-leading data speeds, with download and upload speeds of up to 1 Gbps — a level only fiber-optic networks can deliver commercially. The fastest service levels can reach 5 Gbps.

Each fiber-optic cable houses hundreds of optical fibers formed by stretching glass or plastic to a diameter just one-tenth that of a human hair. Each fiber can transmit data at roughly 70 percent the speed of light. Fiber internet signals also benefit from not relying on electricity, unlike the copper coaxial cables used for cable broadband internet access.

As a result, power outages have little or no effect on fiber internet performance. There’s also no need to worry about electromagnetic interference from nearby electrical equipment.

Although fiber is widely available in many urban centers across the country, current coverage is limited to around 51 percent of the population.

Google, Verizon, AT&T and Spectrum are among the companies expanding their fiber infrastructure nationwide. At higher speeds, fiber pricing is comparable to cable and may even be more cost-effective than cable packages exceeding 100 Mbps.

If you operate an internet-reliant business in an area with existing fiber internet infrastructure — especially if you need to purchase office hardware or equipment for long-term use — a fiber-optic connection is the best choice.

Defining an acceptable internet connection

According to the Federal Communications Commission (FCC), a standard broadband internet connection must have a minimum download speed of 100 Mbps and a minimum upload speed of 20 Mbps. This is an updated benchmark established in March 2024. Before this change, the FCC had defined broadband as 25 Mbps for downloads and 3 Mbps for uploads since 2015.

While this update better aligns with modern internet needs, many businesses in small towns across rural America still struggle to find reliable high-speed service. According to FCC data, approximately 24 million Americans can’t access fixed broadband connectivity (even at the previous benchmarks), and about one-third of Americans don’t subscribe even when it’s available. 

Upload and download speed benchmarks help ensure internet quality and prompt infrastructure improvements. However, Frieden cautioned that strict speed requirements could have unintended consequences.

“If a benchmark establishes minimum fiber-optic transmission speeds, then remote areas may lack service even if a cheaper terrestrial wireless or satellite option could work, albeit at speeds well below fiber-optic rates,” Frieden explained. “Most, if not all, internet users would rather make do with substandard service than nothing at all.”

Use the FCC’s National Broadband Map to check coverage for your area.

The right internet service and speeds for different business tasks

Determining the best internet speed for your business can be challenging. SMBs that rely heavily on video conferencing and other data-intensive activities should seek out cable or fiber-optic internet connections with at least 100 Mbps — the FCC’s minimum broadband download speed. This speed enables small teams to manage online communications and tasks without interruptions or dropped conference calls.

As a general guideline, here’s what you can expect to accomplish at different internet speeds:

Neil Cumins contributed to this article.