What Is Fiber-Optic Internet for Business?

What is fiber-optic internet?

Fiber-optic internet is a type of high-speed internet service that uses either single-mode fiber (SMF) or multimode fiber (MMF) cables to deliver a reliable internet connection to your business.

Fiber-optic internet is widely regarded as one of the fastest internet solutions, providing speeds significantly faster than what other types of internet networks can handle. Many of the best business internet service providers offer fiber-optic internet as an option.

How does fiber-optic internet work?

Fiber-optic cables use light signals to transmit data at high speeds and with great reliability. The light — which sends and receives data more efficiently and with less signal degradation than signals sent through copper lines or coaxial cables — is transferred via the thin glass core inside each cable. 

“Fiber-optic internet uses glass fibers to send data as light, offering fast and reliable connections over long distances, even with heavy usage,” said John Golden, assistant vice president of product management and development at AT&T.

Golden explained that light is sent through cables as pulses representing binary signals. “These pulses are then converted back into electrical signals at the destination so that devices like computers and routers can process them,” he said.

Fiber-optic cables are extremely thin — often less than the width of a human hair. In addition to their glass core, they contain a protective outer layer of plastic or glass around the core called cladding. The cladding helps contain light signals within the fiber, preventing signal loss and reinforcing the connection’s high speeds.

Lit vs. dark cables

The cables used for fiber-optic internet traffic can either be lit or dark.

• Lit cables are active and in use, which means you can send and receive internet traffic over them. Your service provider sends you the equipment you need to connect to the cables.
• Dark cables have been laid for future network expansion but are not yet in use. They require activation and have higher upfront connection costs, but their benefits include dedicated bandwidth for your company and more control over the network.

How is fiber-optic internet installed?

Fiber-optic cables are often buried underground, but some can be placed along telephone poles above ground. The infrastructure must be in place before your business connects to fiber-optic internet. Here’s how to approach the installation process: 

1. Determine if fiber-optic internet is available in your area. Before installation, you must confirm whether fiber-optic internet is supported at your location. You can verify that by searching online for providers near you that support and install fiber-optic internet. Golden noted that ISPs will know about existing connections and the feasibility of running new connections to a specified location.
2. Schedule installation. After determining that your business can access fiber-optic internet, schedule installation with a trusted provider. You can opt for a dedicated or shared fiber-optic internet connection. “Shared connections are multiple connections on the same fiber,” Golden said. “Dedicated is an exclusive internet connection not shared with other businesses.”
   
   • Dedicated: A dedicated fiber-optic connection is reserved for your business and its activities. Dedicated connections often have less lag, deliver consistent speeds, and provide greater control over network devices. The installation process is typically more expensive, complicated, and time-consuming, however, because it requires a direct path from the provider’s network to your router, a suitable power source, and equipment to ground the fiber-optic cables properly.
   • Shared: A shared fiber-optic connection splits the service between your business and other businesses in your area. Sharing a fiber-optic connection can lower costs, but your connection may experience slowdowns during peak times (although it will still be faster than other internet connection types). Installation is also simpler, because the infrastructure is already in place. To prepare a shared fiber-optic connection for your business, the ISP will install splitters to distribute the signal to different businesses, ensuring each company receives service.
3. Set up the connection internally. After selecting a dedicated or shared fiber-optic connection, the next step is to set it up in your company’s space. Ensure that the fiber-optic equipment is placed in a secure location, because it should not be exposed to heat, humidity, or dust. The ISP will install the equipment and test the connection to ensure optimal performance before completing the installation.

How fast is fiber-optic internet?

Fiber-optic internet can deliver speeds of up to 10 gigabits per second (Gbps), although most business fiber-optic internet connections typically reach around 1 Gbps.

A fiber-optic connection’s speed depends on the provider’s offerings and whether your connection is hardwired or reliant on a business Wi-Fi setup. Even at 1 Gbps or lower, your company can quickly transfer large files, stream video, run cloud-based software, and conduct other high-bandwidth tasks more efficiently than with other types of high-speed internet.

How much does fiber-optic internet cost?

The cost of fiber-optic internet depends on the ISP, the minimum guaranteed speeds, and your location, among other factors. Prices typically start at about $50 per month, but they can run into hundreds of dollars for the fastest connections. You may also incur additional charges, including installation fees, equipment purchases, or monthly equipment rental costs.

Golden emphasized that fiber-optic internet costs depend on multiple external factors, including whether fiber infrastructure is already in place at the business location. “Fiber can sometimes initially have a cost for a router or construction fees if fiber is not yet available,” he said. 

Benefits of fiber-optic internet for business

Aside from its superior speed, fiber-optic internet offers a host of benefits to businesses.

• Support for high-bandwidth tasks: Fiber-optic internet is great for data-intensive applications. If your business relies on livestreaming for social media, frequently transfers large files, hosts webinars, or runs other high-intensity tasks simultaneously, fiber-optic internet can support these demands efficiently without significantly impacting overall internet speed.
• Faster uploads: Files typically upload and download at different speeds, because most internet networks are designed with faster download speeds than upload speeds. (The FCC’s broadband benchmark sets minimum download speeds at 100 Mbps and upload speeds at 20 Mbps, respectively.) Fiber-optic internet addresses the need for faster upload speeds. Unlike other high-speed internet providers, fiber-optic networks offer nearly symmetrical download and upload speeds, ensuring smoother data transfers.
• Multidevice usage support: With other internet connection types, multiple devices using the network simultaneously can slow down overall speeds. Fiber-optic internet minimizes the slowdowns, maintaining consistently fast speeds even with high device usage.
• Less latency: Latency is the time it takes for an internet signal to travel. This period, measured in milliseconds, helps determine your internet connection speed. Because fiber-optic cables offer superior data transfer efficiency compared to copper-based cables, they have significantly lower latency than other high-speed internet types.
• Improved reliability: Most fiber-optic cables — especially those buried underground — are not affected by wind, storms, rain, snow, or other elements. That means a storm is less likely to knock out your internet connection, resulting in more uptime for your business and employees who rely on fast, reliable, and stable internet connectivity to do their jobs.
• Improved security: Golden noted that fiber-optic cables use light to send data, making the overall data transfer process more secure. Unlike copper cables, fiber-optic cables are harder to penetrate, adding an additional layer of security for protecting sensitive data. 

How does fiber-optic internet compare with other high-speed internet types?

As you evaluate your business internet options, you’ll likely come across a variety of offerings. Here’s how they compare with fiber-optic internet. 

Fiber-optic internet vs. cable

Cable internet uses the same coaxial cables that transmit television to deliver internet service to your business. The copper-core cables use electrical currents to transmit data from the ISP to your business. Access to cable internet is widespread: If your company already has a cable TV hookup, adding cable internet is generally easy.

Cable internet connections can support fast speeds, reaching 1,000 Mbps and beyond, but they are still not as fast as fiber-optic internet. Cable internet also does not support symmetrical download and upload speeds — fiber-optic internet is much better at that.

“Cable internet uses copper wires to send data as electrical signals, which can weaken over long distances and need extra equipment to maintain quality, adding complexity and potential issues,” Golden said.

Fiber-optic internet vs. dial-up

The primary difference between fiber-optic and dial-up internet is how each is delivered. Dial-up internet uses phone lines, while fiber-optic internet uses dedicated cables.

Dial-up internet was one of the first available technologies to deliver internet to businesses and homes, but it is now one of the slowest. Due to their technical limitations, dial-up modems cannot support speeds beyond 56 kilobits per second (Kbps).

The adoption of new and emerging technologies has made dial-up internet a less popular choice over time, but dial-up is still the only option for some businesses and homes in rural areas where fiber-optic and other high-speed internet services are not yet available.

Fiber-optic internet vs. DSL

Digital subscriber line (DSL) internet was innovative when it was first introduced. The connections separate the internet from voice traffic so you can use the phone and connect to the internet at the same time. That’s a must for today’s businesses, many of which rely on the internet to stay connected and perform daily business functions.

Like dial-up, speed is the major difference between DSL and fiber-optic internet. DSL speeds typically do not exceed 100 Mbps — a far cry from fiber-optic speeds.

DSL can be challenging if your workforce frequently downloads or uploads large files or streams content. Multiple devices using the network simultaneously may also overburden DSL connections, greatly reducing the already slower speeds they offer.

DSL is more affordable than fiber-optic internet because its infrastructure already exists through the phone lines. It’s also more readily available than fiber-optic internet because it uses established networks.

Does your business need fiber-optic internet?

Deciding whether to proceed with fiber-optic internet depends on your company’s needs and the price you’re willing to pay. For small companies on a budget, the higher cost may not be worth the speed.

Fiber-optic internet may be your best option if your organization regularly uploads and downloads large files, participates in video conferences, or relies on cloud-based software that requires high-speed internet.

It all depends, however, on whether fiber-optic internet is available in your area. As an emerging technology with infrastructure still being built out, you may not be able to access it easily. For more information, check with your local ISP.

Jeremy Bender and Stella Morrison contributed to this article.