For businesses, buying internet based on advertised "speed" can miss the real problem. The Engadget article explains that ISPs typically sell bandwidth—the maximum theoretical capacity of a connection—as if it were speed. Actual internet speed, or throughput, is the rate at which data reaches a device at any given moment. It can never exceed bandwidth, and it is what speed tests measure.
When a network slows down, the article says, the cause may not be insufficient bandwidth. Activities like 4K streaming, video calls, and large downloads can max out a plan's capacity, producing congestion. But if performance stays poor in real-time applications such as video calls or gaming, latency is more likely the culprit. Latency is the round-trip delay for data, measured in milliseconds; it depends on physical distance and connection type, with fiber offering lower latency than traditional satellite.
Before upgrading to a higher-bandwidth plan, the source suggests diagnosing the issue first. A bufferbloat test can confirm congestion, and router features like Quality of Service (QoS) can prioritize critical apps. If speed tests consistently fall far below the plan's bandwidth even without congestion, the Wi-Fi router is often the bottleneck. A wired Ethernet connection or using the 5GHz/6GHz band can improve wireless performance without raising monthly costs.