Whether you are selecting an internet plan for your home, your home office, or your business, it is always tricky and requires thorough research on your end to properly identify and understand a few things. Since the internet is connecting you to the world, and you use it for one too many things, you cannot compromise on its quality at all. If you have researched a little on internet services, you might have come across residential and business internet.

You might also have wondered what was so different about the two of them. You’re in luck because today, that is exactly what we are going to discuss. Most internet providers usually offer residential and business internet services both, depending on which you need. If you look into the plan details for both, you will find there is some difference in pricing and other specifications of the plan. If we were to demonstrate with an example, take TDS Telecom

TDS offers multiple connections like Fiber and DSL that also happen to come at many different speeds. Depending on whether you are looking for your home or your business, you can alternate between the internet plans and determine which is best for you. And to do that, you will need to know the basic difference between the two of them.

Business vs. Residential Internet

As we mentioned before, there are some notable differences between the two types of internet connections. While some of these differences might seem insignificant, keep in mind that they matter a lot and make up for all the difference. Now, let’s move on to these differences!


Speed is one of the few things that determine how smooth your internet connection is going to be and how fast you can get done with any online activities. It is also the first thing people look at when searching for the right internet plan. 

Usually, business internet packages offer better speed than residential internet plans. The reason for this is that there is a higher speed requirement and usage in professional workplaces than at home. For example, video conferences, uploading heavy files, etc., all of them require a good internet speed.

You will find that the average residential internet speed ranges from 1 to 25 Mbps, whereas business internet speeds can easily go up to 2 Gbps. This doesn’t mean that you will be restricted from or will not see any residential internet plans of up to 2 Gbps. You can still get an internet plan like that, especially in case you have a big family or a home office. Just like how TDS wifi offers internet speed as low as 1 Mbps and as high as 100 Mbps too.

IP Address

Business internet comes with a static IP address, thus, these are more secure than residential internet since they come with dynamic IP addresses. IP addresses are used as a unique identifier of any device’s location. Due to a stable IP address for business internet, they can use it to host their network infrastructure.

A residential internet plan cannot host its network infrastructure due to dynamic IP addresses that can change at any time without warning. Of course, this can be explained to you in further detail by customer service representatives at the store. 


As a business, you need your internet connection to be stable at all times. You can’t risk losing a customer over a slow internet connection. Therefore, business internet packages have Dedicated Internet Access. This is also known as DIA and it is crucial for businesses since they do not have to share this connection with any other business or home. The chances of you facing any lags in your connection are little to none.

On the contrary, a residential internet plan will most likely come with Shared Internet Access, also known as SIA. This is the opposite of DIA and it means that your internet connection is shared with your neighbors and probably other people in your neighborhood too. Now, it’s not necessary that you will face problems every time with SIA. However, you might experience a slow connection during peak hours and such.


Business internet plans are more costly than residential internet plans and it is pretty obvious why. Business internet plans offer a lot more in terms of speed, bandwidth, customer service, etc. And considering the fact that you are a business too, it is probably not very costly to you to invest in a good internet plan.

On the flip side, a residential internet plan doesn’t offer you a lot, to begin with, however, if you are selecting a plan that offers you more than usual, even for a residential plan, you should be prepared to pay more.

You should also keep in mind that business plans usually come with advanced phone systems, extra lines, VoIP features, non-geographic business numbers, and so much more. With residential internet plans, you can get a simple phone with features like 3-way calling, voicemails, and the like.

Customer Service

Customer service is an important point of concern when it comes to purchasing or buying anything. For business internet plans, since they are charged higher, they will get prompt customer service for any of their concerns, issues, and more. Many of the ISPs even offer them 24/7 customer support and a helpline.

For residential internet plans, you will still get the awesome customer service that you were promised by the ISP, however, there might be some limitations like 24/7 availability on text or online chat, but not call. It might also be possible that the line or network is busy since they have to deal with multiple customers and your issue might take a while to solve too. 

Coming to the Conclusion

Now you know the difference between a residential and a business internet plan. As you can see, there is a vast difference and proper reasons for it too. Naturally, everyone might think a business internet plan is much better than a residential one, and they would want to go for that option then. However, keep in mind that you will have to bear the price for it as well. So, choose wisely! 


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