Types of business internet connection: Which is best for your small business?

The internet is the lifeblood of today’s businesses, whatever their size. It’s where your brand thrives, where you reach customers, generate revenue, collaborate, and source information. Which is why having the right type of connectivity is paramount, high-speed internet is no longer a “nice to have”, it’s a must. Your productivity, communication, customer service and operations all depend on it.

In this guide we dive into the vast ocean of business internet connections, walk you through the options, and equip you with the questions to ask when hunting for your next broadband provider.

The different types of business connectivity

Because we use the internet so frequently, we rarely think about where it comes from. So let’s take things back to basics and cover every type of business internet connection, from broadband to ethernet, along with the pros and cons for your business.

Broadband internet connections

ADSL (Asymmetric Digital Subscriber Line)

ADSL transmits data via copper-wire telephone lines, providing an always-on broadband connection.

Pros:

• Cost-effective, one of the cheaper options for connectivity (c. £20–£60 per month)
• Universally available, if there’s a telephone line, there’s ADSL

Cons:

• Slow connection speeds, typically slower (download speeds of 3–100 Mbps), making ADSL an unpopular choice for many businesses

ADSL is generally only suitable for businesses with very basic needs, e.g. web browsing. If you’re willing to sacrifice speed for low, predictable pricing, it could work for your small business.

Fibre optic internet (FTTC & FTTP)

Fibre broadband uses fibre-optic cables to transmit light signals over thin strands of glass or plastic. It comes in two types. Fibre to the Premises (FTTP) runs fibre all the way to your router, so there’s no copper interference to slow it down. Fibre to the Cabinet (FTTC) runs fibre only to the green street cabinet, with the rest relying on copper telephone cables (like ADSL), so it’s typically much slower than FTTP.

In summary, you get what you pay for. Businesses wanting fast, reliable connectivity should opt for FTTP, but it’s more expensive and not always available. FTTC is a cheaper option for those who can’t get FTTP, with speeds still faster than ADSL.

Wireless internet connections

Cellular internet (4G/5G)

Anyone with a smartphone uses cellular internet regularly. FaceTiming, navigating, searching on the go.

Pros:

• Wireless internet access in most places
• Doesn’t require a router or Wi-Fi
• Limitless range

Cons:

• Only for mobile devices
• Can be expensive overseas or if you exceed your data allowance
• Can be unreliable, you must be in range of a cell tower, and it can be slow in busy areas

If you give your team work devices, we recommend smartphones with cellular data plans, great for working on the go and as an emergency backup (you can tether other devices via personal hotspots). But its unreliability and restrictions mean it shouldn’t be your only source of connectivity.

Dedicated internet connections

T1/T3 lines

Dedicated internet access is a connection entirely dedicated to your business. T1 and T3 lines are common dedicated digital transmission systems. T1 is more affordable and suited to basic needs, T3 is faster, pricier and better for higher bandwidth requirements.

Pros:

• Reliability, bound by SLAs, including guaranteed bandwidth and download speeds
• Speed, you’re guaranteed the speed you purchase, as it’s reserved for you alone
• Security, data travels point-to-point rather than over a shared copper line
• Scalable, start with exactly the capacity you need and scale up or down

Cons:

• Cost, usually more expensive than business broadband
• Set-up, installation can be complex and costly, and availability depends on your location

Ethernet leased line

An ethernet leased line is another form of dedicated access, delivered by fibre-optic cables.

Pros:

• High bandwidth and speed, you don’t share bandwidth with other businesses
• Reliable, fibre-optic cables provide a stable connection with less downtime
• Upload/download speed, designed for high speeds, ideal for cloud-based services
• SLAs, strict SLAs mean faults are fixed quickly

Cons:

• Cost, one of the more expensive connectivity options

Shared internet services

Shared internet is when multiple businesses share one connection, e.g. in a co-working space or shared office building.

Pros:

• Cost-effective, you usually pay the building manager for only a proportion of the connection
• Flexible, the building, not you, is tied into the provider contract

Cons:

• Limited, you have little say in the provider, so may face issues with reliability, bandwidth sharing and security

Choosing the best internet connection for your small business

There are a vast number of options, and each has its own advantages and limitations. When deciding, weigh up speed, latency, uptime, reliability, scalability, security and cost. First, though, determine your requirements, what you need and what your budget is. Here are the top questions to ask yourself.

What type of internet connectivity does my business need?

Read these in the context of your business, use them as a guide, always tailoring to your unique requirements and budget.

1. What are my needs and priorities? Identify your key requirements and rank them, speed, reliability, cost, scalability.
2. How important is reliable uptime? Evaluate how much downtime would impact productivity and customer satisfaction.
3. What are my current and future bandwidth requirements? Consider how many users you have and what they do daily, and how that might change. Planning to hire, expand or adopt new tech? You’ll need something that scales.
4. What is my budget? Use your priorities to balance the features you need against what you can afford, factoring in installation fees, monthly charges and equipment costs.
5. What level of reliability and performance do I require? Consider upload/download speeds, latency and consistent connection quality, and set performance benchmarks.
6. What is the long-term cost-effectiveness of each option? Weigh ROI and the impact on productivity. A cheaper option with lots of downtime may cost more overall.
7. What security measures and optimisation do I need? Understand how to secure the connection, optimise performance and troubleshoot common issues.
8. What are the commitment terms? Leased lines are often on 3-year contracts (the fibre is installed into your building, sometimes under the road), while FTTC is usually 12-month terms with low upfront cost, research before you sign.
9. What is my cloud usage? If you only use the cloud for email or VoIP, usage is low. But if you’re storing and sharing files, it’s much higher, you’ll need good upload and download speeds, or you risk slow saves and duplicate file versions.

Comparison table for each type of business internet connection

To help inform your decision, here’s a comparison showing each type of business connectivity and how they compare, from speed to suitability for different business sizes.

What’s next?

If you’d like further advice on the different types of business internet connection, and which is best for your business, please contact us.