Tom Melhuish 6 min read

Is business broadband better than residential?

Since COVID-19, the boundaries between work and home have become blurred. People across the country spend increasing amounts of time taking work Zoom calls at home in their pyjamas.

With more people relying on their home broadband to complete their work, people often ask whether they should upgrade their home broadband to a business broadband package.

On the other hand, small business owners need to consider whether a simple home broadband deal offers a cheaper alternative to a business broadband deal with the functionality they need.

Our business broadband experts are here to help you answer these questions in this guide to comparing business broadband to residential broadband in 2023.

Our high-level summary: business broadband deals are more expensive because they offer a few additional features. Keep reading for a comprehensive explanation of the differences.

Is there a difference between business and residential broadband?

Let’s start with a fundamental point. Business and residential broadband packages are very similar.

In both cases, your broadband provider will connect your property to the local broadband infrastructure, giving you internet access. In both cases, your provider will provide you with a router allowing wireless connection to the internet within your property.

The contracts in both cases look similar; you’ll agree to receive internet services over a number of years in exchange for a monthly charge. In 2023, residential and business broadband typically have unlimited data usage.

Home broadband vs business broadband: What are the differences?

The lists below summarise the features that differentiate residential and business broadband packages.

Home Broadband

Here are the features of home broadband that differ from an equivalent business broadband package:

  • Bundled broadband packages – The biggest home broadband providers like BT and Sky, are huge telecom companies offering many other products like mobiles and TV services. The cheapest way to get residential broadband is to sign up for broadband with many additional products.
  • Simple easy to understand deals – Residential broadband contracts are simple. In a typical home broadband deal, you’ll pay a simple monthly fee for one or two years in exchange for your broadband connection. Broadband deals are presented as a simple guaranteed connection speed allowing you to compare broadband deals easily.
  • Cheaper broadband deals – Residential broadband packages are typically cheaper than the equivalent business broadband deal due to the lack of business-specific features offered (continue reading below).

Business Broadband

Here are the key additional features you can expect by choosing a business broadband deal:

  • Enhanced tech support – Broadband providers typically have a separate support team dedicated to their business customers. Although going an evening without Netflix is annoying, when a business has a broadband interruption, it’s typically much more consequential. Business broadband providerswill act faster to fix connections for their business customers.
  • Static IP address – Residential broadband packages have a static IP address that changes month-to-month. In contrast, a business broadband package typically has the option for a static IP (that always stays the same). This allows a business to host servers and websites.
  • Uptime and time to fix SLAs – A typical business broadband contract will include specific guarantees for uptime (the percentage of time the connection will be available) and time to fix (how long the providers’ engineers will take to resolve any broadband interruption).

Get the latest small business broadband deals with Business Broadband Hub. We help connect business owners to cheaper business broadband deals.

Which broadband type do I need?

Choosing broadband packages is complicated. Our broadband guides help you make the right choice on your broadband.

Before choosing a residential or business broadband package, the most important thing to consider is what broadband speed you’ll need.

Once you know your speed requirements, consider whether you need the additional features offered by a business broadband package.

Depending on your choice, you must compare business broadband providers.

Home broadband vs business broadband – FAQs

Our experts answer the most common questions about the differences between home and business broadband connections.

Why is business broadband more expensive than home broadband?

Business broadband is generally more costly than an equivalent home broadband package due to the additional features offered.

Providing basic business broadband features such as priority tech support, advanced routers and static IPs all come at a cost to the provider, making business broadband deals more expensive.

Is business broadband faster than residential

Business broadband is not necessarily faster than residential broadband, as both types of broadband rely on the same infrastructure.

The more important factor when it comes to speed is the specific package that you’re paying for. You can usually opt for a more expensive package in residential and business broadband to get more speed.

With business broadband, you can opt for a leased line connection where speeds of up to 10Gbps are possible. Leased line connections are expensive, so they are usually not a realistic option for residential users.

Find out the speed of your current connection with the Business Broadband Hubs broadband speed test.

Can I use business broadband for home?

Nothing is stopping you from getting a business broadband connection for your home.

Business broadband providers generally offer business broadband packages to any property connected to their broadband infrastructure.

The key consideration is whether you want to spend the additional money on business broadband.

Can you get business broadband if you work from home?

Business broadband can be more expensive than home broadband, so if working from home is only temporary, you should probably not upgrade to business broadband. Upgrading to business broadband could be a good option if you are permanently working from home.

See the full article above for the additional features you’ll enjoy by upgrading to a business broadband deal.


Start saving now