Internet Wholesale Bandwidth Options

There are two types of organizations that buy Internet bandwidth. Most are end users. They want the access for their employees. The others are resellers. They take large Internet connections and divvy up the bandwidth to hundreds or thousands of individuals and businesses. These are Internet Service Providers (ISPs) looking to buy at wholesale and sell at retail.

The largest networks in the world, called Tier 1, don’t purchase Internet access. They are part of the core network itself. Those major world wide networks exchange traffic on basis of equals called peering. Each network gets as much traffic as it sends to the others, so all benefit and no money is exchanged.

Everyone else has to get to the Internet by accessing one of these Tier 1 networks. The next level down, the Tier 2 networks, are also very large Internet service providers. Since they don’t have the enormous global traffic to participate in peering, they purchase what is called IP Transit. This is Internet access sold on a per Megabit per second per month basis.

Smaller Tier 3 networks can purchase IP Transit from Tier 2 networks, if they are large enough to have an assigned AS or Autonomous System number (ASN) to identify them as part of the Internet. Large scale ISPs fall into this category as well as some large corporations and other organizations.

Local and regional Internet Service Providers, including WISPs (Wireless Internet Service Providers), buy DIA or Dedicated Internet Access. DIA connections are like point to point private lines, except that one end connects to the Internet. Other private line characteristics still apply. The bandwidth provided is completely dedicated to the ISP and not shared with anyone else. There are generally SLAs or Service Level Agreements that spell out characteristics such as maximum latency, jitter and packet loss as well as time to respond to outages and time to make repairs.

Dedicated also means that there are no extra charges for heavily loading the line. You can use the entire capacity of the circuit in both directions or only some of it. The price is the same.

The smallest DIA service is usually a T1 line running at 1.5 Mbps. This is a symmetrical service, meaning 1.5 Mbps upload and 1.5 Mbps download. Usually the download path is much heavier loaded than the upload path for typical Internet access. If fact most consumer Internet access is sold with 5x to 10x higher speeds on download than upload. For business users, upload speeds can be important when transferring large files to remote backup sites and servers within colocation centers.

Obviously, T1 lines can’t serve a large user base but they work great for WiFi hotspots and rural or subdivision WISP service where signed-up customers number in the dozens, not hundreds. A nice feature of T1 lines is that they can be bonded by adding more lines to double, triple and quadruple bandwidth up to about 10 or 12 Mbps. The other nice feature of T1 lines is that they are available where other line services don’t reach. If you can get business telephone system into a facility, you can probably get T1 DIA service.

The next increment in traditional telecom bandwidth is DS3, also called T3 lines. This service runs at 45 Mbps which is large enough for a good size service provider to offer competitive bandwidth. Beyond that, SONET fiber optic services include OC3 at 155 Mbps, OC12 at 622 Mbps and OC48 at 2.5 Gbps are very popular.

A strong competitor to T-Carrier and SONET bandwidth is Carrier Ethernet. It comes in two flavors, Ethernet over Copper (EoC) typically from 1 to 50 Mbps and Ethernet over Fiber (EoF) from 10 Mbps to 10 Gbps. In a some metropolitan areas, you can also get EoFW or Ethernet over Fixed Wireless at DS3 and Fast Ethernet speeds. Where available, Carrier Ethernet tends to have considerably better pricing than other services.

Do you resell Internet access to other ISPs or end users? If so, see if you can get better wholesale pricing on Dedicated Internet Access and IP Transit services.

Dedicated Bandwidth vs Cable

There are a couple of good but quite different approaches to business Internet connectivity. One is dedicated bandwidth, as exemplified by T1 lines and Ethernet over Copper. The other is Cable broadband. Let’s take a look at what each has to offer and how you would pick the right service for your business.

Small and medium size businesses that pick dedicated bandwidth services do so either because there is no shared bandwidth service readily available or because they value the consistency and service level agreements provided by the dedicated telecom providers. Companies that choose Cable broadband do so because they get a lot of bandwidth for a relatively small price. Cable BB is an established service that has been proven in years of service to residential and business users. The service availability is generally quite good, especially during business hours, and the low prices may be more important than service guarantees.

It’s important to note the definition of the term “dedicated” in this context. It doesn’t mean working extra hard like, say, a dedicated employee. What dedicated means is that a certain amount of bandwidth is reserved or dedicated to your exclusive use. If you order a T1 line, you can count on having 1.5 Mbps upload and 1.5 Mbps download capability available at all times. There is no such thing as overage charges or fair use policies. You can load that T1 line up to the limit and run it that way all month. You’ll be charged the same as if you lightly used the service during business hours and let it idle overnight.

Cable broadband is sold on a different basis. First of all, the bandwidth is shared not dedicated. You’ll notice that Cable bandwidth is specified as “up to” 10 Mbps, 100 Mbps and so on. At any given moment you may experience the full bandwidth or a small fraction of it. Why? It’s the sharing involved. What Cable companies do is lease large dedicated bandwidth circuits and then divvy that bandwidth up among their subscribers. The chunk allocated to your area may be shared by dozens or hundreds of other users. Whether or not that makes a difference depends on what you are doing on the Internet and what others on the same service are doing.

Cable broadband is designed to match the expected activities of the typical Internet user. You know that when you are looking something up online, you first query a search engine. Then you read through the first page or two of listings deciding on what site to visit. Finally, you select a site and it downloads in your browser. You may quickly go to visit another page on that site or you may spend a minute or two reading what’s on the screen.

Notice that what you were doing was sending out commands from your keyboard, waiting for a page download and then not accessing the Internet at all while you perused the material. That’s why shared bandwidth works. Not everyone is going to be typing on their keyboard or in the midst of a file download simultaneously. While you are reading, someone else can be downloading and vice versa.

This is also the reason why asymmetrical bandwidth works so well for Internet access. Asymmetrical means that upload and download speeds are vastly different. You may order 30 Mbps download with 3 Mbps or 6 Mbps upload and be perfectly satisfied. It only takes a small amount of data from the keyboard to trigger much larger data packages in the form of websites or videos to download.

Dedicated bandwidth services like T1, DS3, EoC, EoF and SONET fiber optic tend to be symmetrical. The upload and download speeds are the same. This is particularly valuable if you are communicating between organizations, sending files back and forth, uploading to a remote server or backing up files. In these cases, upload capacity counts.

The other service that works much better over dedicated rather than shared bandwidth is VoIP telephony. In fact, you are much better off connecting directly to your VoIP service provider with a dedicated T1 line or SIP trunk than using the Internet at all. The Internet offers no class of service controls so your sensitive voice packets can easily get pushed around by someone else’s data packets. That situation is even worse on shared bandwidth access services where your bandwidth varies all over the place.

Is your business in need of Internet access, point to point connections or multi-location connectivity? Check prices on dedicated and shared bandwidth options and get complementary expert advice on what services make the most sense for your business requirements.

Broadband Business Internet Service Options

Nearly every business today is connected to the Internet or soon will be. Even those mom and pop operations that still use the mechanical credit card machines will soon use electronic card verification, email and at least a brochure website. Businesses that are already seasoned users of the Web are looking to upgrade their bandwidth to support a move to cloud services. Let’s compare and contrast the various options you have for a broadband Internet connection.

Business Internet broadband services generally fall into two categories. They are shared and dedicated connections. Shared connections are similar in design to residential broadband services. The fact that the bandwidth is divvied up among many users lowers the cost for all. Dedicated services allocate a certain bandwidth to your connection and it does not vary regardless of what other users are doing. These services also tend to come with SLAs or Service Level Agreements that spell out technical parameters and availability commitments.

Shared bandwidth services include Cable Broadband, DSL, 3G and 4G Wireless, and two-way Satellite Internet. What they all have in common is that the actual bandwidth you’ll see varies with the number of other users and what they are doing. These services are sold as speeds “up to” a certain number of Mbps. That means what it says. You may get the full speed the connection is capable of or you may get a tenth of that at any given time.

These variations may or may not bother you. If you are running enterprise VoIP or bandwidth sensitive business processes, your variable connection may not support the performance you have in mind. On the other hand, if you use the Internet at work the same way you use it at home for email, Web browsing, or accessing pre-recorded audio and video, you may be quite satisfied with the service and delighted with the cost savings. Some services, like 3G wireless and Satellite are often used to support electronic credit card machines in lieu of using a phone line.

Dedicated Internet access connections, such as T1 lines and Ethernet over Copper, have rock solid bandwidth and generally excellent latency, jitter and packet loss characteristics. These are the same lines that you would use to interconnect business connections on a private line service. As Internet connections, they have one termination at your location and the other at your Internet service providers location.

Dedicated Internet access supports Web and email servers. The also support multiple users accessing the Internet and VPNs (Virtual Private Networks). If you are going to stream content to Internet users, you’ll want a DIA (Dedicated Internet Access) connection from the server to the Internet.

Ethernet over Copper (EoC) has become very popular as both a private line and DIA connection. You can often get twice the bandwidth you could with a T1 line costing the same price. Like T1, EoC is provisioned over twisted pair copper telco wiring to keep construction costs down.

Larger companies and those with demanding applications such as video transport move up to fiber optic services, such as OC3 to OC768 SONET and Ethernet over Fiber (EoF) 100 Mbps Fast Ethernet, 1 Gbps GigE and 10 Gbps 10GigE bandwidth services. All of these are dedicated services with service level agreements.

How do you decide which broadband service is right for your business? Perhaps the best way is to compare prices, availability and features for the range of Broadband Business Internet Service options available for your location. Most business grade broadband services are available only for business locations and not residences, despite similarities with consumer Internet services.

D3 vs DS3 Bandwidth Choices

Medium and larger size companies have long chosen DS3 services to obtain the bandwidth they need for broadband Internet access. Now there’s a new player in the marketplace that is looking to complement if not displace the venerable DS3 connection.

If you need business bandwidth higher than you can get by bonding T1 lines, you already know about DS3. But how much do you know about D3?

D3 is short for DOCSIS 3.0, a cable broadband standard that gives HFC (Hybrid Fiber Cable) systems a capability that rivals fiber to the premises. It is now possible to get 50 Mbps for business use from cable systems in many cities. Some have 100 Mbps available and more will have that service offering soon. DOCSIS 3.0 can provide 152 Mbps, with even higher speeds possible. Compare that with DS3 at 45 Mbps and you can see why there is a natural competition between the services.

The raw bandwidth specs don’t tell the whole story, however. D3 and DS3 are different technologies with different characteristics. You may find that one or both of these services make sense for your business.

DS3 stands for Digital Signal, level 3. It was developed as part of the T-Carrier specification by Bell Labs for use by the telephone companies to transport up to 672 simultaneous telephone calls between phone company switching centers. When provisioned over coaxial copper lines, it is called T3 line service. If you suspect that T3 is related to T1, you are right. A T3 line can transport the equivalent of 28 T1 lines on its higher bandwidth.

DOCSIS 3.0 has a Cable TV rather than a telephone company heritage. The DOCSIS standard was developed by CableLabs (Cable Television Laboratories, Inc.) with contributions from other companies serving the cable industry. If you have Cable broadband, you are using a DOCSIS modem. It’s only a question of which version you are using. The original was DOCSIS 1.0, which has been supplanted by DOCSIS 1.1, DOCSIS 2.0 and now DOCSIS 3.0.

DS3 is based on multiplexing 672 channels of 64 Kbps each to create total bandwidth of 43 Mbps. Add the necessary synchronization and control bits and you have a bandwidth of 44.736 Mbps. Why so many channels? Each of those 64K channels is just the right size to carry one telephone call. That’s the telco heritage of DS3. Combine all the channels into one large pipe and you have nearly 45 Mbps of digital bandwidth.

D3 is also based on channels. In this case, each channel is 6 MHz wide. That’s the width of one television channel. Everything on a cable system is treated as a TV channel, so broadband services have to fit into those channels to get through the amplifiers and wiring on the system without interfering with any other channels. A 6 MHz channel can transport a 38 Mbps broadband signal in one direction. Cable operators bond channels together to get higher bandwidths. With 4 bonded channels, DOCSIS 3.0 can deliver a download speed of 152 Mbps.

So, are D3 and DS3 the same beyond their different technology heritages? Not really. The telco heritage of DS3 means that it is a dedicated symmetrical bandwidth service. You get 45 Mbps in both the upload and download directions. That bandwidth never varies. It is called dedicated because it is completely dedicated to your needs. Anytime you don’t use the full 45 Mbps, it just sits there and idles while waiting for more data.

D3 is an asymmetrical shared bandwidth service. You get different speeds in the upload and download directions. Download is faster to reflect the fact that most users download more content from the Internet than they upload. Typical business bandwidth services are 50 Mbps download and 10 Mbps upload or 100 Mbps download with 10 Mbps upload. This bandwidth is shared among many users on the system. Thus, you may experience your access speed varying all over the place depending on what other users are doing. If a lot of them are downloading movies or big software updates, everyone’s speed will be slowed.

DS3 service is generally sold with an SLA or Service Level Agreement that describes the expected performance and availability of the service, plus remedies if the provider doesn’t deliver as promised. D3 is a “best effort” service with no specific performance guarantees. Even so, it is in the provider’s best interest to provide adequate resources and service availability to keep the customers happy.

The difference in services are most dramatic when you look at the pricing. You might pay several thousand dollars a month for DS3 service with an SLA. D3 will probably cost you a tenth of that, with no guarantees. Which will work for your needs depends on if the cable system passes your business and if you can live with the variations in performance and lack of guarantees. Some companies have DS3 or even T1 lines installed for their mission critical or performance sensitive applications and D3 for general Internet access and low cost backup to their telecom services.

Are DS3, D3 or both bandwidth services right for your company? Why not talk to an expert consultant that can provide you with prices and availability of DS3, D3, and other broadband options for your business needs? There is no charge for this helpful service and you may be able to realize a considerable cost savings while achieving the same or better network performance as you have now.

Internet Bandwidth Connections For Business

Internet access can be divided into three categories. Consumer residential broadband, dedicated business bandwidth, and 3G/4G mobile. Mobile broadband serves both individuals and business users. But fixed wireline is either business or consumer, but not truly both.

Why is that? There’s as cost vs performance decision that separates the two. Consumer services, and that includes home based businesses, are not even classified as telecom services. They have a designation as “information services.” What that does is keep them relatively unregulated with few commitments to the customer. In return, costs are kept low so that they are affordable by most households.

Business bandwidth is a regulated telecom service with high performance expectations. Unlike consumer connections, your business line services have a dedicated bandwidth level that is available 100% of the time. You can use that line up to its full capacity without bandwidth caps.

Business bandwidth also tends to be symmetrical. That is, you get the same bandwidth in both directions. An example is 10 x 10 Mbps Ethernet. What that means is that you get 10 Mbps in both the upload and download directions. Contrast that with consumer DSL, Cable and wireless services that favor the download direction by a large margin. That’s because most consumers download far more data than they upload. Business use tends to be more balanced.

Business bandwidth services are designed to be highly reliable. After all, the telecom companies and network carriers use the same line services themselves. Many come with an SLA or Service Level Agreement. That document defines the performance and availability of the line. If it goes down, it gets fast attention from the service provider. Most outages are restored in a matter of hours or less. There is no such commitment for consumer services. It’s a “best effort” arrangement with multi-day outages undesirable but not unknown.

Business Internet bandwidth is also called “dedicated” access. The dedicated term means that you and you alone have use of that much bandwidth. That may seem obvious, but do you realize that consumer broadband services are called “shared” and not dedicated? What the service provider does is purchase a large dedicated line service and then share that bandwidth among the user base. How much bandwidth you have at any given time is a function of how much your neighbors are also using. Bandwidth slowdowns during peak usage times are to be expected. This is why consumer bandwidth is sold as “up to” a certain Mbps.

Popular Internet bandwidth connections for business are T-Carrier, SONET and Ethernet. T-Carrier includes the popular T1 lines that offer 1.5 Mbps bandwidth and are available just about anywhere you can get telephone service. SONET is the big brother of T-Carrier. It is a fiber optic service with designations such as OC-3, OC-12, and OC-48. Ethernet can be provided on either copper or fiber. Ethernet over Copper is available in metropolitan areas at bandwidths up to 45 Mbps. Most popular are 3 Mbps and 10 Mbps Ethernet over Copper. They typically offer more Mbps for your bandwidth dollar, where available. Ethernet over Fiber offers near limitless bandwidth, although 100 Mbps Fast Ethernet, 1000 Mbps Gigabit Ethernet and 10 Gbps Ethernet are popular standard line speeds.

Are you frustrated by a poorly performing Internet connection or just want to compare pricing to ensure that you are getting the most for your money? If so, get competitive pricing and availability for business Internet bandwidth services now.

Dedicated vs Shared Internet Access

There are fundamentally two types of broadband Internet access. They are shared and dedicated.

You may have been thinking wireless, landline, satellite or fiber optic. Those are delivery technologies that can determine price and availability. But your fundamental decision is whether to go with shared or dedicated Internet access.



What’s the difference? The name pretty much describes the nature of your service. Shared Internet access is something like a buffet. You see that big roast and think that you can fill your plate with meat. But by the time you get to the head of the line, you only get a sliver of beef. “Sorry,” says the chef. “We have to limit portions of this entree because there is so much demand.”

That’s how shared Internet service works. You sign up for what you think is 10 Mbps download and 2 Mbps upload. But if you look carefully at the supplier's disclosure, they say that you get “up to 10 Mbps download and 2 Mbps upload.” Up to means a maximum, not a minimum or even an average value. In other words, 10 Mbps is the fastest line speed you can ever expect to see and don’t count on seeing it at any particular time.

Why is this the case? It’s the way that the shared Internet connection is organized. The service provider figures that not everyone who signs up for their broadband service will be online simultaneously. Even those who are at their computers aren’t likely to be all downloading huge files at the same time. So they sell that 10 Mbps service to 10, 25 or even 100 different users. If most people are composing email or reading web pages, you’ll have the lion’s share of the bandwidth to yourself. But as soon as one or more users start downloading, that 10 Mbps is divvied up to support as many users who want to use bandwidth at that time.

As you can imagine, the amount of shared bandwidth you have available can vary greatly and will change from minute to minute. If you have an important document to upload or download, you initiate the transfer and take your chances. There’s no guarantee of how long that transfer will take. It might go quickly. It might drag on seemingly forever.

Who puts up with this type of service? Consumers, that’s who. The reason is cost. The provider pays for the 10 Mbps backbone service and divides the cost among the number of users sharing that bandwidth. The price of shared broadband Internet is reasonable for residential users, who rarely are doing anything critical. The worst they experience is streaming audio or video that breaks up, or long delays in accessing their favorite Web sites.

Contrast this situation with dedicated Internet access. Dedicated means just that. The bandwidth you order is dedicated for your use only. You may still experience congestion on the Internet itself, but that 10 Mbps connection to your provider will always run at 10 Mbps.

Most dedicated connections are also symmetrical. That means they run at the same speed in both the upload and download directions. Your 10 Mbps service may be described as 10 x 10 Mbps bandwidth. You get 10 Mbps download and 10 Mbps upload. That can be very important if you transfer files in both directions. You won’t be slowed down by a lower upload bandwidth.

The other difference between shared and dedicated bandwidth is that dedicated bandwidth is sold as a professional business service. It most often comes with an SLA or Service Level Agreement that describes what service you are ordering and how reliable it is expected to be. If the line goes down for any reason, it gets high priority and should be available again within a certain number of hours.

Shared bandwidth is sold on a “best effort” basis. That means that the carrier will try to keep things running properly, but there are no guarantees as to availability or how long repairs will take. If someone down the street is having service problems, the repair effort might disrupt your service too. That’s just the nature of sharing facilities to save money.

Now you know why home broadband services seem so much cheaper than business grade dedicated Internet access. It comes down to performance and availability. If the Internet is important to your business activities, then you’ll want to check the prices and availability of dedicated Internet access for your location. You may find that prices have come down so much in the last few years that dedicated access is now well within your reach.