The number of people working from home is on the rise — especially for those running a business. It should come as no surprise that many households across the country are considering purchasing a residential or a business internet plan. If that sounds like you, here’s a breakdown of the key differences between the two services so you can make the best choice for your household and business needs.
Symmetrical Connections
There are two different speeds: upload and download speeds. Upload speeds refer to the velocity at which your internet connection can upload data, such as documents and videoconferencing. Download speeds refer to the rate at which you download materials, such as emails and videos on your favorite streaming services.
Business internet plans tend to be symmetrical, meaning the download and upload speeds are the same. This parity ensures you benefit from incredible speeds regardless of your internet needs. If you know you’ll download content most of the time, a residential plan is usually enough to get the job done. However, the demands of a modern business mean you’re better off with matching download and upload speeds.
Note that symmetrical speeds are only possible via a fiber-optic internet connection, which is the type that most businesses use.
Static IP
An internet protocol (IP) address is a unique address that identifies a device on the internet or a local network. Business internet connections usually come with static IP addresses or permanent numbers assigned by the internet service provider (ISP). The benefit of using a static IP address is that it’s usually better for functions such as hosting a website or email server and using a whitelisted server, which allows you to use services provided by another business.
In contrast, residential internet connections use temporary IP addresses that change each time you use the internet. If your business doesn’t require any functions facilitated by a business connection, a residential service might be good enough for you. Since both types are similar in terms of security, there’s no advantage in choosing one over the other if you’re worried about hackers and the like.
Dedicated Connections
Dedicated connections are another feature that differentiates business internet from residential. Also known as dedicated internet access (DIA), a dedicated connection is a private connection for your business’s exclusive use, which helps eliminate lagging and buffering.
On the other hand, residential internet connections employ shared internet access (SIA). Multiple users share the same bandwidth under this model. That means that while you and the neighbors on your block might have your own internet service, you’re all sharing the same bandwidth, which can affect internet performance if the amount of users is high.
Technical Support
Few things are as frustrating as when you need customer service, but it’s after hours, which, of course, is exactly when you need help. You won’t have to worry about such a problem when you purchase a business internet plan, though. Unlike residential plans, business internet plans have access to technical support that’s available almost 24/7 year-round.
The rationale for this distinction is that, as you can intuit, a business must have internet access at all times. In addition, business types tend to enjoy higher-quality assistance in technical matters.
Service Level Agreements
Business internet plans include service level agreements. These agreements stipulate terms and conditions, such as performance standards and the services that will be provided. A clear understanding of what you’re getting can help you operate your business connection to the best of your ability.
Residential internet connections don’t have service level agreements. Instead, they have “best effort” promises that are less binding and sometimes misleading.
Data Caps
Data caps are limits on how much internet data you consume. Business internet plans aren’t bound by any data caps, meaning you and your employees can browse to your heart’s content. On the other hand, some residential internet plans come with data caps, which can be a headache for large households with multiple devices. However, plenty of ISPs don’t impose data caps on their residential plans.
Price
The most influential factor for most people when deciding between a residential or business plan is price. Business internet plans are more expensive, and while they offer all the other sweet perks listed above, most people conclude the high cost is not worth the price tag. Residential internet plans are usually much more affordable, especially if you avail yourself of some special discount or promotion. Spending a significant amount of money on internet service is not always the best idea for people whose businesses are still in the early stages.