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Fiber-optic internet offers businesses fast speeds, low latency and reliable connectivity.
Selecting the right business internet type and plan is a crucial decision. You may consider various service types, including cable, DSL and satellite, but fiber-optic internet may be an attractive option. Fiber offers fast speeds and reliable performance, but it often comes at a higher cost.
We’ll break down fiber-optic internet, how it works and how it compares to other internet service types to help you determine if it’s the right choice for your business.
Fiber-optic internet is a type of high-speed internet service that transmits data through thin strands of glass or plastic using pulses of light. Fiber networks typically use single-mode fiber (SMF) to carry data over longer distances, while multimode fiber (MMF) is more commonly used for shorter connections within buildings and campuses.
Fiber-optic internet can support extremely fast speeds and high bandwidth, making it an attractive option for businesses with demanding connectivity needs. Many of the best business internet service providers offer fiber-optic internet as an option.
Fiber-optic cables use light signals to transmit data at high speeds and over long distances with relatively little signal loss. The light travels through the thin glass core inside each fiber.
“Fiber-optic internet uses glass fibers to send data as light, offering fast and reliable connections over long distances, even with heavy usage,” explained John Golden, former 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.
Optical fibers are extremely thin — roughly comparable to the width of a human hair. Each fiber consists of a glass core surrounded by glass cladding and a protective outer coating. The cladding has a lower refractive index than the core, which helps keep the light traveling through the fiber instead of escaping and reduces signal loss.
Fiber-optic cables can be either lit or dark.
Fiber-optic cables are often buried underground, but some are installed along utility poles above ground. The infrastructure must be in place before your business can connect to fiber-optic internet.
Here’s how to approach the installation process:
Fiber-optic internet can deliver multi-gigabit speeds, although the options available to your business depend on your provider and location. For example, AT&T Business Fiber offers speeds up to 5 Gbps, while dedicated fiber connections can support much higher speeds.
Your advertised speed isn’t necessarily the speed you’ll see on every device. A hardwired connection will usually get you closer to your plan’s full speed than a business Wi-Fi setup. With Wi-Fi, your router, distance from the access point, network traffic and even the device you’re using can affect performance.
Even at 1 Gbps or less, fiber provides plenty of bandwidth for many businesses to transfer large files, stream video, run cloud-based software and handle other bandwidth-intensive tasks.
Fiber-optic internet pricing varies widely depending on the provider, speed, location and type of service. Shared business fiber plans can cost anywhere from tens to hundreds of dollars per month, with multi-gigabit plans generally costing more. Dedicated fiber typically costs more and is often priced by quote. You may also pay for installation, equipment or construction if fiber hasn’t reached your building.
Golden emphasized that existing infrastructure can make a big difference in the final cost. “Fiber can sometimes initially have a cost for a router or construction fees if fiber is not yet available,” he said.
Along with fast speeds, fiber-optic internet offers several benefits for businesses, including the following:
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.
Cable internet is widely available and typically uses a hybrid fiber-coaxial network, with fiber carrying data through much of the network and coaxial cable completing the connection to your business. If your building is already wired for cable, getting connected is usually fairly simple.
Cable can deliver gigabit and even multi-gigabit download speeds, making it a strong option for many businesses. However, current business cable plans commonly offer much slower upload speeds than download speeds, while fiber more often provides symmetrical or nearly symmetrical speeds. Newer cable technology is beginning to narrow that gap.
Golden noted that cable’s reliance on copper can create some limitations. “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,” he said.
Satellite internet doesn’t require wired infrastructure to reach your business, so it’s available in many rural and remote locations where fiber hasn’t been built out. Newer low-Earth orbit satellite services have also improved speeds and latency considerably compared with traditional satellite internet.
Fiber still has the advantage when it comes to consistent high speeds, low latency and capacity. But if your business is outside the fiber footprint, satellite can get you online without waiting for a wired connection to reach your location.
Speed is where you’ll see the biggest difference between dial-up and fiber. Dial-up uses a traditional phone line and tops out at just 56 Kbps, while fiber can deliver gigabit and even multi-gigabit speeds.
Once a common way to get online, dial-up has largely given way to broadband. You may still find it in rural areas where internet choices are limited, but 56 Kbps doesn’t leave much room for today’s business needs.
DSL delivers internet over the copper telephone lines already running to many homes and businesses. Unlike old-school dial-up, you can use your internet connection and phone line at the same time.
Speed is where fiber pulls well ahead. DSL plans commonly top out around 100 Mbps or less, and the speed you can get often depends on how far your business is from the provider’s equipment. Fiber can reach gigabit and multi-gigabit speeds.
That difference becomes more noticeable if several employees are online at once or your business regularly uploads large files, streams video or relies heavily on cloud applications. DSL may be enough for lighter internet use, but there’s much less bandwidth to go around.
DSL is still an option in some places fiber hasn’t reached, thanks to the telephone lines already in place. But major providers are starting to leave those older copper networks behind. AT&T plans to move away from copper across most of its wireline footprint by the end of 2029. Verizon is making the switch to fiber and wireless services in many areas as well.
Whether fiber is worth it comes down to how much your business relies on its internet connection and what service is available at your location. A small business with fairly basic internet needs may be perfectly happy with a less expensive option.
Fiber becomes more appealing if your team regularly transfers large files, participates in video conferences, relies heavily on cloud-based software or has many devices online at once. Its fast upload and download speeds, low latency and capacity for bandwidth-heavy work can make a noticeable difference.
Availability may make the decision for you. Fiber networks continue to expand, but service still hasn’t reached every business location. Check with local providers to see what’s available at your address and compare the speeds, pricing and service terms before signing up.
Jeremy Bender and Stella Morrison contributed to this article. Source interviews were conducted for a previous version of this article.
