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What Is the Best Internet Speed for Your Business?

Determine how much internet speed you need to run your operations.

Mark Fairlie
Written by: Mark Fairlie, Senior AnalystUpdated Jan 09, 2025
Gretchen Grunburg,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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Every business today is an online business. Whether you’re a corner flower market or a sophisticated digital operation with numerous employees collaborating in real time, you likely need an internet connection to run some aspect of your company. But how fast should your internet be? Connectivity speed is a critical question to ask when buying business internet

When evaluating how fast your internet should be, consider the type of business you run, your data management requirements, the number of customers you have, and the number of employees who need access. We’ll explain more about business bandwidth to help you determine the right speed for your organization’s needs.  

>> Read Next: How to Start an Online Business, According to ChatGPT

How do you measure internet speed?

Internet speed can be measured in several ways. The most important are bandwidth and upload and download speeds. 

What is bandwidth?

Bandwidth is an internet connection’s maximum capacity over a specific amount of time. Bandwidth is measured in megabits per second (Mbps). Eight bits of data equals one byte. 

In theory, the higher the number of megabits per second, the faster the internet speed. 

Other factors influence internet speed, however, including the number of people using the network, the shape and size of your office, and your business’s internet-related activities.  Notably, the speed at which you upload and download files will differ (more on this below). 

Bandwidth is calculated assuming that only one device is downloading or uploading files at any given time. If your bandwidth is 300 Mbps but two devices are connected to the network, for example, each device may have a maximum bandwidth of 150 Mbps. That said, many of the best internet service providers prioritize specific applications or devices over others, so that is not always the case.

Did You Know?Did you know
When evaluating internet service provider features, note that advertised “up to” speeds don’t always match real-life performance — especially when many people are online simultaneously. Try running speed tests at different times of the day to determine your actual speeds.

What are upload and download speeds?

Upload and download speeds are the primary factors businesses should consider when selecting an internet plan.

  • Upload speeds: Upload speeds are how long it takes for data, such as a file, to be sent from your computer to another location, such as another computer or a cloud storage service. The average recommended upload speed to complete most business operations, such as making VoIP calls over the internet or live streaming on social media, is 5 Mbps, but certain tasks may require faster speeds. [See our picks for the best document-management software.]
  • Download speeds: Download speeds are how long it takes for your computer to receive information. Every online action you take — whether watching a video or accessing a website — requires fast, stable download capabilities. Minimum speed requirements depend on your business’s activities. Some tasks may require download speeds as high as 50 Mbps.

A strong 4G LTE connection should suffice for most businesses’ uploading and downloading needs, particularly if your team is spread out over multiple locations. Broadband speeds of 100 Mbps or higher are often necessary, however, if employees frequently upload or download large files or perform other bandwidth-heavy tasks from a single location.

Ben Midanek, chief marketing officer at Kinetic by Windstream, stressed that a business’s typical online activities require robust upload and download speeds. “High-usage activities, like video calls or streaming, could impact internet speed, along with the number of connected devices on a network running concurrently,” Midanek said. “The goal is to ensure there is enough bandwidth to meet business needs and [that you’re] not stuck with an underperforming internet connection that leaves employees waiting and frustrated.”

Jae Ro, a data center and electronics specialist at Signal+Power, emphasized the importance of adequate upload speeds for businesses with remote work plans that require secure remote access. “Employees accessing company data via VPN rely on their organization’s internet upload speed to get the information they need,” Ro said. “Download speed is important, but a firm’s ability to quickly upload data to their employees’ devices is equally vital for productivity.” 

TipBottom line
Visit the FCC Broadband Speed Guide to help determine the download and upload business broadband speeds you need for data-intensive tasks, such as sending and receiving large files. You can also check out the InMyArea online tool to discover which ISPs are available to you.

What are the types of internet connections?

Various internet service types for businesses serve specific purposes and offer different speeds. The type of internet connection you should pursue depends on your area’s infrastructure, your business location, and your use cases. 

Here are the five most popular internet categories and the speeds you can expect for each.

  • DSL: DSL stands for digital subscriber line. A DSL connection runs through your landline business phone system. Download speeds max out at around 100 Mbps, but actual speeds may vary depending on your distance from the provider’s central operations. Upload speeds can reach up to 20 Mbps, but they’re often significantly slower — particularly in rural areas.
  • Cable: Cable internet uses the same wiring that delivers cable television to your home. Download speeds typically range from 50 Mbps to 1 Gbps, but some providers offer speeds as high as 6 Gbps in select areas. Upload speeds generally top out at 50 Mbps, but they can vary depending on the provider. If you’re weighing cable versus DSL, note that cable is much faster, but DSL is often less expensive.
  • Fiber optic: Fiber-optic business internet uses fiber-optic cables instead of copper wires like its cable equivalent. Fiber-optic cables use light signals to deliver data to and from your devices. Download speeds typically range from 100 Mbps to 8 Gbps, and upload speeds are symmetrical, meaning they match download speeds. Midanek noted that fiber is the only type of connection that currently offers matched upload and download speeds.
  • 5G internet: Using the latest cellphone technology, 5G speeds typically range from 100 Mbps to 1 Gbps for downloads and 10 to 50 Mbps for uploads, but some providers offer speeds as low as 20 Mbps in areas with weak signals. The actual speeds you achieve with 5G depend on the signal strength in your area and the service plan you pay for. It can be especially useful in areas with limited or no physical broadband infrastructure, but it is not yet available nationwide in the U.S.
  • Satellite internet: Satellite internet uses radio waves to communicate with satellites in space to deliver internet connections. Download speeds typically range from 25 to 350 Mbps, while upload speeds are generally around 3 Mbps to 20 Mbps, depending on the provider. Keep an eye out for existing providers investing in low-Earth orbit (LEO) satellites, such as Telesat. The satellites won’t replace existing geostationary satellites, but the combination of the two could offer faster, more flexible, and potentially more affordable connectivity. Investment and regulatory challenges are currently delaying widespread deployment, but rapid growth is expected within the next five years. 
FYIDid you know
If you’re debating relying on a mobile hotspot versus satellite internet for remote business connectivity, note that satellite internet is more expensive and isn’t as fast or flexible as a mobile hotspot.

How fast should your business internet be?

For years, the Federal Communications Commission (FCC) recommended that business internet connections have at least 25 Mbps download speeds and 3 Mbps upload speeds to conduct everyday tasks such as emailing, exchanging files, using cloud-based software, and videoconferencing. In 2024, however, the agency updated its recommendation to 100 Mbps download and 20 Mbps upload speeds.

Business internet speed requirements vary significantly among companies, and your speed needs will likely increase as your enterprise grows and you adopt more data-intensive processes. 

“Different sectors have varying demands, so consider how your business operations will be impacted by internet speed,” Ro said. “For example, a software company will likely need significantly higher internet speed than a small retail business.”

Consider the following factors when determining your internet speed requirements:

  • What type of business do you operate?
  • Do you regularly upload and download large files?
  • Are your internet needs limited to sending emails and communicating with customers?
  • To what extent does your business depend on fast internet speeds?
  • How many employees will use the network at any given time?

Ro emphasized the importance of carefully analyzing your team’s internet usage. “The number of people using the internet simultaneously directly impacts the required bandwidth, as well as the upload and download speed,” Ro said. “Furthermore, it’s not just about how many users you have, but also the types of online activities they perform.”

Many businesses, for example, work with one of the best CRM software platforms, ERP software, and data storage tools. Those operations should prioritize a stable, high-speed internet connection. “Likewise, businesses using Internet of Things devices need to accommodate the data traffic generated, requiring additional speed and bandwidth,” Ro said. 

Midanek agreed that evaluating your unique business needs is crucial when determining the bandwidth speeds you require. “For businesses with just a few people using the internet for basic tasks like browsing and email, speeds of 100 Mbps may be sufficient,” he said. “If your business relies on the internet for bandwidth-intensive activities such as videoconferencing, file sharing and document management, cloud-based collaboration, or security systems, speeds of 1 Gbps or greater will ensure smooth and reliable performance.” 

FYIDid you know
The FCC’s broadband speed benchmark increase announcement also included a long-term goal of 1 Gbps download and 500 Mbps upload speeds.

How fast should your connection be for different tasks?

Use the following chart to get an idea of the ideal internet speeds based on the number of devices used and the online tasks you need to perform.

Task

Number of users or devices

Ideal speed

Online browsing, email usage, and research

1 or 2

5 Mbps

Downloading large files, business communication like VoIP, and basic business Wi-Fi use

3 to 5

25 Mbps

Videoconferencing and streaming, numerous POS system transactions, and frequent file-sharing

5 to 10

75 Mbps

Video conferencing, frequent cloud computing, and data backups

10 to 15

150 Mbps

Seamless streaming, conferencing, and server hosting

15 to 20

250 Mbps

Multiple servers hosted, heavy online backups, and constant cloud-based computing

20 to 30

500 Mbps

Extreme speed operations with zero interruptions

30 or more

1,000 Mbps (1 Gbps)

If you’re still unsure how much bandwidth your business requires, consult your ISP. Many providers offer online calculators and tools to help determine the right speed and bandwidth for your business needs.

Other performance factors to consider when selecting broadband

Several other performance factors are important considerations when selecting the best internet speed for your business. 

  • Latency: John Meyer, Gateway Fiber’s chief marketing officer, pointed out that latency — the time it takes for data to travel between its source and destination — is also crucial to internet performance. “Often, businesses assume high speeds guarantee quality, ignoring latency and reliability,” Meyer said. “To avoid this, find a provider with low latency and jitter, particularly for services like VoIP or video conferencing.”
  • Uptime: Meyer also stressed that uptime is a critical consideration when choosing an ISP. “Choose a provider with a solid reputation for uptime, and consider the conditions in their service level agreements,” Meyer said.
  • Updated hardware: Meyer also recommends that businesses ensure their hardware, including their Wi-Fi setup, is up to date. “Can it handle the demands of your growing company? What about your Wi-Fi setup? How many devices can it accommodate?” Meyer asked. “Finally, anticipate growing needs by equipping the IT department with the resources to stay ahead of technology upgrades to maintain the company’s competitive edge in the market.”
  • Future needs: It’s essential to choose a connection type that can grow with your business. Fiber’s infrastructure makes it easier to upgrade your bandwidth later without changing providers or dealing with long downtime. That way, you’ll be prepared as your processes start using more data.
  • Continually evaluate your situation: The key is to avoid overspending while ensuring you have enough bandwidth to maintain productivity and sales. Check your requirements regularly — at least once or twice a year — to ensure you’re getting the best value while keeping up with your business needs.

Stella Morrison contributed to this article. 

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Mark Fairlie
Written by: Mark Fairlie, Senior Analyst
Mark Fairlie brings decades of expertise in telecommunications and telemarketing to the forefront as the former business owner of a direct marketing company. Also well-versed in a variety of other B2B topics, such as taxation, investments and cybersecurity, he now advises fellow entrepreneurs on the best business practices. At business.com, Fairlie covers a range of technology solutions, including CRM software, email and text message marketing services, fleet management services, call center software and more. With a background in advertising and sales, Fairlie made his mark as the former co-owner of Meridian Delta, which saw a successful transition of ownership in 2015. Through this journey, Fairlie gained invaluable hands-on experience in everything from founding a business to expanding and selling it. Since then, Fairlie has embarked on new ventures, launching a second marketing company and establishing a thriving sole proprietorship.
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