Broadband Speeds OK For Most Home Users?

Sean Mota

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Sep 8, 2003
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As home broadband networks get faster and faster, consumers are wondering if they need all that speed.

Today the typical digital subscriber line service transmits data at 1.5 million bits per second. That's 25 times faster than dial-up service. Higher-end DSL offerings whisk data at 3 mbps.

Cable modems, meanwhile, are reaching speeds of 4 to 6 mbps, while high-speed fiber-optic links promise to hit 15 or even 30 mbps. (See related story, this page.)

Home networking gear also is speeding up. That means people can share the power of their broadband service with any number of devices -- using wired or wireless links. New wireless fidelity, or Wi-Fi, networking equipment is twice as fast as last year's gear.

That's good news for homes with multiple computers and other data devices. Broadband isn't just used for Web surfing anymore. It lets users make Internet-based phone calls, listen to streaming music and play online video games.

But with the arrival of ever-faster broadband speeds, consumers may face a case of diminishing returns. For most people, it's not worth it to upgrade to speedier Internet connections, experts say. Current broadband services can handle their needs just fine.

Even with new ways to use the Internet, only a few applications -- such as online video games or swapping music and video files -- come close to filling most home broadband pipes.

"Most home broadband services are a lot higher than what people really need," said Neil Anderson, co-author of the book "Home Networking Simplified," published by Cisco Press, a joint venture of Cisco Systems (NasdaqNM:CSCO - News) and Pearson Education.

Power User's Fine At 1.5 Megs

Anderson, a power user, relies on a 1.5 mbps service. That's enough bandwidth to link his two desktop computers, two laptops via wireless and get Internet telephone service, as well as provide connections back to his offices at Cisco.

Anderson says he's seen small offices connect anywhere from six to 10 computers with regular DSL.

Many broadband carriers sell their higher-speed services -- 3 mbps and up -- to small offices and home businesses. But office work generally requires less bandwidth than home computer activities, says Steve Thiel, a member of Best Buy's (NYSE:BBY - News) Geek Squad service team.

Business users often need their Internet connections for only e-mail and light Web surfing, while homes may have multiple users downloading big files.

"In reality, there's little that most people do to fill that (broadband) pipe entirely," Thiel said.

Games Need Wide Pipes

There's growing consumer interest in low-cost Internet phone service as well as online entertainment, such as streaming music. But these uses take up a small portion of a broadband connection, Thiel says.

Due to their heavy use of graphics, online video games are the most bandwidth-hungry application, he says. Microsoft's (NasdaqNM:MSFT - News) Xbox Live gaming service, for instance, requires a minimum speed of 512 kilobits per second to work well, Thiel says.

But as new services such as high-definition TV become available over broadband, more bandwidth could be needed.

Wi-Fi networking gear has seen a similar push toward faster speeds.

The most used flavor of Wi-Fi, known as 802.11g, can send data at speeds of 50 million bits per second.

Wi-Fi gear makers look to double that speed -- to 108 million bits per second -- with a new format. Their new products, sometimes known as Mimo or pre-N, are based on a type of Wi-Fi called 802.11n. It's still in the early stages of being certified by engineers as an industry standard.

Most consumers won't need to upgrade to 802.11n-based products now, Anderson says. But it might come in handy if you distribute digital music throughout your house or use wireless-equipped printers.

The main advantage of 802.11n products is data can go longer distances than with 802.11g, Thiel says. For example, 802.11n would work well if the broadband connection is in a house's basement and needed to be connected to computers on the first or second floor.

"If there's 100 feet or more of distance separating two computers in a home, 802.11n is the way to go," Thiel said.

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i have 15 mbps download and the only time i benefit is when i download something that supports the larger speeds or streaming video or audio. works well with hosting xbox live as well. the real benefit is the upload. i had .750 and am now at 1.45 and notice the difference greatly. i wish i could get a little higher upload, but don't want to spend the 200 bucks monthly.
 

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