Regic Blogs

commercial broadband connection provider

Shared vs. Dedicated Commercial Broadband: Cost Comparison

Home » Blog » Shared vs. Dedicated Commercial Broadband: Cost Comparison

The standard commercial broadband connection provider comparison in India is a price-versus-speed calculation: monthly cost divided by advertised bandwidth gives a per-Mbps cost figure that is used to rank options. This calculation is incomplete in ways that systematically lead buyers to underestimate the value of dedicated connectivity and overestimate the performance of shared commercial broadband.

Shared Commercial Broadband

Shared commercial broadband connections provider, A defined bandwidth allocation that is shared across multiple business customers using the same infrastructure segment. The headline bandwidth is a maximum speed available when shared infrastructure has unused capacity. During peak business hours, when multiple businesses sharing the infrastructure are simultaneously active, available bandwidth is constrained by total demand across all users.

The cost of shared commercial broadband is lower than dedicated alternatives at the same headline bandwidth figure. The delivered performance is also lower in ways that matter for bandwidth-intensive or latency-sensitive business applications. A shared 100 Mbps connection may deliver 40 to 70 Mbps during peak business hours. A dedicated 50 Mbps connection delivers 50 Mbps consistently.

Dedicated Commercial Broadband

According to Internet Service Providers Association of India Enterprise Connectivity Benchmark 2023 dedicated commercial broadband connections in India delivered an average of 96 percent of contracted bandwidth during business hours across a sample of enterprise customers monitored over six months. Shared business broadband connections delivered an average of 71 percent of contracted bandwidth during peak hours over the same period. For businesses that depend on consistent connectivity performance during working hours, the difference between 96 percent and 71 percent delivery is operationally significant.

Dedicated commercial broadband carries a cost premium over shared alternatives. The complete cost comparison requires accounting for what the performance difference is worth operationally: how many hours per month of degraded performance occur on the shared connection, what the productivity cost of those hours is, and what the risk cost of connectivity failures with and without SLA-backed resolution commitments is.

When to Choose Which

Choose a shared commercial broadband connection provider for: businesses with low and consistent bandwidth requirements that do not have peak-hour demand spikes; operations where cloud application usage is moderate and video conferencing is infrequent; and locations where dedicated fibre infrastructure is not yet available and shared broadband is the only commercial option.

Choose a dedicated commercial broadband connection provider for: businesses with 20 or more simultaneous internet users during peak hours; operations dependent on cloud applications, video conferencing, or VoIP for core business functions; revenue-generating activities that require consistent internet performance; and any business where a connectivity outage would create direct customer-facing or revenue impact.

Common Mistakes in Both

With shared providers: not inquiring about the contention ratio of the specific connection being offered. Shared commercial broadband connections with high contention ratios, meaning many customers sharing a fixed capacity, deliver significantly worse peak-hour performance than low-contention connections at the same headline bandwidth.

With dedicated providers: comparing dedicated 1:1 bandwidth against shared broadband on a per-Mbps price basis without accounting for the performance difference. A dedicated 50 Mbps connection that delivers consistent performance is not the same product as a shared 100 Mbps connection that delivers 50 Mbps on average. The per-Mbps comparison treats them as equivalent when they are not.

Clear Recommendation

The commercial broadband connection provider comparison that produces reliably good outcomes starts with a performance requirement definition, not a price comparison. Define the minimum acceptable throughput for your business during peak hours, the maximum acceptable downtime per month, and the latency requirements of your critical applications. Then evaluate providers against these requirements rather than against each other’s headline specifications.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top