Broadband Data Caps: A Hidden Risk for Small Businesses
When consulting SMB business owners regarding their Internet broadband needs, I invariably get the "is my broadband fast enough?" question. While this isn't always the easiest question to answer, it's a given that most business broadband speed requirements are significantly lower people might think.
Instead of worrying about speed, businesses owners should be concerned with data usage caps instead.
Service Providers Overselling Speed
Broadband service providers are constantly bombarding us with misleading information regarding how much bandwidth (speed) we really need. They use questionable upselling tactics to try to convince prospective customers to commit to a higher tier of bandwidth than what they actually need.
For example, AT&T makes the claim that a task such as video conferencing requires a broadband connection of 24 Mbps. This statement is highly misleading; most popular online conferencing services, including Skype's video conferencing software, only requires speeds of 1.5 Mbps or less.
Determine Your Actual Speed Requirements
Figuring out actual bandwidth requirements for your business depends on a number of factors such as the type of applications used, number of users, and the ratio between download and upload data streams. It's often a good idea to hire a technology consultant to assist with this estimation as it could save you a bundle in monthly broadband costs.
If you do get a professional to determine the ideal broadband speed for your business, you'll probably be surprised that you utilize far less bandwidth than you originally thought.
The Real Question: Data Caps
The primary concern when businesses are choosing a broadband provider plan shouldn't be speed, but data usage caps.
Data usage caps are limits on the amount of bandwidth a business is allowed to send and receive over its Internet connection during a billing period. DSL and cable broadband Internet providers have been known to cap data connections as low as 150 GB a month in the United States. While this might seem like a large number, businesses that use cloud-based applications and online storage can quickly eclipse this limit.
Depending on your provider, exceeding the capped limit could mean expensive overage charges on your next bill. That's why it's important for business owners to ask the right questions about their Internet broadband needs from their Internet service provider. The wrong question is to ask "how fast?" - and the right question is to ask "how much?"
