Business DSL vs. Cable Internet

What is business DSL internet?

DSL, which stands for “digital subscriber line,” uses the same landlines used for phone calls. Wherever there are landlines, there can also be DSL internet. As a cost-effective and widely accessible means of internet access, many companies still choose DSL. 

However, DSL connection speeds can be very slow, especially for business purposes. Although DSL was a vast improvement over the original dial-up internet, it’s now slower than other connection types. DSL moderate download speeds range from 10 Mbps to 25 Mbps, so it will support only relatively basic business internet requirements. This means DSL is probably not the right choice for businesses relying on data and software.

Joe Warnimont, a writer at HostingAdvice, advised businesses not to dismiss DSL too quickly though. “Cable internet is not always faster and easier to use than DSL,” he said. “In reality, you may find DSL speedier, as long as you’re close to the provider’s data center. Location matters for DSL.”

So, if you’re in an area with good DSL infrastructure and low congestion, DSL can give you a surprisingly smooth experience. Don’t just rely on the advertised speeds. Try running a few performance tests in your area to see what speeds DSL can really deliver. 

What is cable internet?

Cable internet uses coaxial cables, not phone lines, to get the internet to a user’s location. This means it is also widely accessible. If you can connect your office to the cable network, you can also connect it to cable internet.

That’s good news for businesses needing faster connections than DSL. While cable internet tends to cost more, it typically beats DSL in dollars per Mbps, especially on the higher end of the spectrum.

Cable is also more cost-effective and accessible than fiber-optic internet. While fiber optic might have the edge in speed, cable internet might be a more realistic and affordable option for many small business owners.

Cable vs. DSL speed

Cable internet is faster than DSL, but how much faster? And what does “Mbps” mean? Here’s a breakdown of how internet speed works, and how cable and DSL differ.

Megabits per second, or Mbps, describes download or upload speeds. When you see this term advertised with an internet plan (usually touting how fast it is), it usually refers to download speed. For example, you might encounter a DSL internet plan offering a download speed of 10 Mbps.

To better understand what numeric values like 10 Mbps stand for, it’s important to gauge what can be done at those speeds. For an internet connection providing 10 Mbps download speeds, a user of a single device should have no trouble with video conferencing calls, listening to music, using social media or playing games. For businesses, this means running lightweight cloud services and browsing the web.

However, the number of devices connected to the network (and what those devices are doing) matters. If you use one or two devices, 10 Mbps might be sufficient. As you add employees with workstations and their own mobile devices, 10 Mbps might not be enough.

Considering DSL is capable of 100 Mbps, it is probably suitable for many small businesses whose employees browse the web and use basic software, even if a couple of employees use more than one device.

However, businesses that rely on cloud-based data capture and contextualization, such as those heavily dependent on Amazon Web Services, would likely need higher internet speeds. [Read related article: Microsoft Azure vs. Amazon Web Services: Cloud Comparison]

For these purposes, a business might need more than 1,000 Mbps, which DSL cannot provide. Cable internet can reach those speeds, and it can do it for a lower cost than fiber-optic internet can.

“One key difference between DSL and cable internet lies in their performance for businesses,” says Georgi Todorov, founder and CEO of Create & Grow. “DSL tends to offer more consistent speeds since it’s a dedicated line, but it often lags behind cable in terms of maximum speed. Location is also critical, as DSL is more widely available in rural areas, while cable dominates urban and suburban markets.”

One common misconception is that higher speeds always equate to better performance, offered Todorov. “Businesses should evaluate actual usage patterns to avoid overpaying for unused bandwidth,” he said.

Cable vs. DSL pricing

If cable internet is so much faster than DSL, why is DSL still around? A big reason is price; DSL is more cost-effective than cable internet. Because it can achieve useful speeds like 100 Mbps, many small businesses find it suitable for their purposes.

Let’s look at how DSL and cable internet differ on four important criteria:

DSL generally costs anywhere from $39.99 to $64.99 per month, depending on the location of the business and the provider. The price has edged steadily downward over recent years by around 10 percent. However, if you plan to expand to more than a few devices, DSL internet might not be your long-term answer.

In the meantime, cable prices have fallen faster, up to 20 percent in some cases. Mediacom and Xfinity’s starter $19.99 a month cable plan is remarkable, as many other providers’ starter plans are double. Faster plans, offering 100 Mbps and higher connections, can cost up to $180 or higher per month.

Cable internet often comes with a service agreement, generally with a one- or two-year commitment. Sometimes, these service agreements include promotional pricing for a certain period of time, like three or six months, which results in a rate hike when the promotion ends. This is less common with DSL internet, so businesses should be aware that the rate they pay initially might not remain the same with their cable ISP.

Cable internet or DSL: Which one should I choose?

When deciding which is the best business internet service provider for your business, consider whether you’d benefit most from cable or DSL internet. This involves examining your business’s needs. 

To help you make your decision, carry out a usage audit. List the online tasks your team does every day, like video calls, file transfers or remote server access, and estimate how much bandwidth each task needs. This will help you figure out the minimum speed and reliability you require.

You might want to enter your ZIP code on sites like Speedtest to get an idea of individual ISP performance in your area as part of your decision-making process.

Finally, if you run a seasonal business, particularly if you host your own website, ask each provider if you can scale speed up and down depending on the time of year. This way, you only pay for the extra speed when you need it and save money during quieter times. For example, Warnimont has seen seasonal businesses successfully negotiate for a “bandwidth on demand” model, where they only pay for the busy times. “Some ISPs offer variants of this setup, where your performance and speeds automatically increase during peak times, then you save money during the slower periods,” he said.

As a general rule of thumb though, choose DSL internet if your business …

• Has no near-term plans to expand.
• Does not rely heavily on the internet.
• Needs the internet only for web browsing and basic software uses.
• Wants predictable, low-cost pricing.

Choose cable internet if your business …

• Plans to add more employees and/or devices.
• Relies on a lot of cloud-based storage, software and data analytics. [Related article: 10 Tips for Choosing the Right Web Hosting Company]
• Requires faster internet speeds but doesn’t have access to fiber-optic internet.
• Can absorb the cost of long-term contracts and rate increases.

Consider how fast your internet speeds need to be to avoid paying too much for bandwidth you won’t use — or, worse, realizing too late that you don’t have enough bandwidth to meet your needs. 

If you’re struggling to choose between DSL and cable, try a short trial. Some providers offer month-to-month plans and/or limited-time money-back satisfaction guarantees. Even testing it for a week can show you whether the speeds and stability work for your team.

The impact of future technology

If fiber internet is available in your area, it’s worth considering this option for your business.  Ben Midanek, chief marketing officer at Kinetic by Windstream, told business.com, “Fiber internet typically delivers the same speeds for downloading and uploading, but legacy copper-based technologies like Cable and DSL typically have much lower upload speeds.”

The rise of 5G is also playing a transformative role, especially in mobile and remote operations, according to John Meyer, CMO of Gateway Fiber, “While 5G is not as fast or as reliable as fiber internet, its high-speed, low-latency characteristics are a viable option in places where fiber is not yet available,” he said.

If you’re in an area where fiber or 5G is just around the corner, ask potential suppliers about taking out a short-term contract. This way, you can switch to the faster option and not have to pay early termination fees.

Stella Morrison contributed to this article.