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NBN or 5G: Which Is Better for a Small Business?

NBN or 5G for Small Business 

2G, 3G, 4G, 5G. Today we're going to be talking about wireless Internet connections, NBN, and why you might want to go wireless. 5G is a technology that's coming to Australia. I suggest looking it up and having a bit more of a gander.

5G is putting through these big bold promises of 400 megabits per second and upwards to 1.4 gigabits. That is 1,400 megabits per second. Now that's four times faster than what the standard NBN connection is promising in Australia. 

Take Speed Numbers With a Grain of Salt 

It comes with its flaws. So when you have an NBN connection Australia, it's shared between a few people locally, and it's piped through to your business. If everyone's on the Internet at the same time, everyone speed is reduced down. So they oversell. Like in any industry, when you go to buy a ticket on an airplane, they have already worked out the math that they aren't going to be having any empty seats because it's too expensive, and so they oversell the plane. They do the same with Internet connections. So most all internet connections are shared to some degree. When you have them shared, and you're an industrial estate, that means that when everyone else is on the Internet, your Internet is going marginally slower.  

What Happens With Wireless Connections? 

With 4G and 5G, and any other wireless technologies, speed issues become further complicated because you're going through a single point that is shared with a lot more people. That means that your Internet connection can be reduced down significantly. Although the theoretical height is better, and the speed that you can get is better, the actual coming into the real nitty-gritty numbers means that you probably won't actually find it's going to be a big improvement. Reliability is a huge factor. If you get wind, rain, or any other interference on the network, you will have a reduction in speed. If you are a small business that has two to three users.  

Think About How Many People Work for You 

I would consider a wireless option such as 4G or 5G internet connection, but not if you're a business that has 10 or 20 users. It just doesn't make any sense. Hopefully, you've jumped in and done some of that research and you noticed, "Hmm.  The plan said 1.4 gigabits per second, but I'm seeing that it does 10 gigabits per second." If you are in exactly the right spot at the right time, and you're standing on one leg, and the wind doesn't move, and everything is perfectly identically perfect. But in real-world test case scenarios, the achieved results at 1.4. 

Security Matters 

A few of the other reasons that having a wireless connection on a mobile network is not good, especially in Australia, is IP addresses and locking down security. 4G and 5G connections in Australia do not allow for you to have a static IP address. What that means is, like the postman, when the postman comes and there's a signed delivery, he comes to your house. You do your business, he rocks through the driveway, path or whatever. He comes up, knocks on the door, asks for your signature. You sign it. You look at him, he looks at you and goes, "Yep, I remember you from last time." Everyone goes about their day.

An IP address that's static works in a similar way. A dynamic IP address means that your IP address is changing all the time. So imagine you're a nomad and you're in your motor home or van, and you're cruising around Australia, seeing all these cool sites. 

If that's where you're at and what you're doing, it's hard to get mail to you. It's hard to make sure that when you're getting the mail, the postman doesn't know who you are. "This is just another one of those guys traveling around. I don't know you that well." But you get the mail, and that's fine if you're just getting the mail and that's what you doing. But if you want to get a secure parcel, it's difficult to get that. With a static IP address, you can set up rules that mean that only certain traffic comes from wherever they're sending it from. 

So it could be your cloud-based application that is industry-specific or your client relationship management citizen. 

My Personal Choice 

In Australia, they don't give static IP addresses for your 4G and 5G connections, so you can never have that handshake, where it knows that number belongs to your business. For us, we would never be on the dynamic connection where that was the case because it would be terrible. That's something to take into account when you're looking at the alternate options that are out there. For a mobile phone, perfectly fine. Would not say there are any problems with that, but most of the time on a mobile phone, you're not doing any of these big, critical transactions that could be having men in the middle attacks and people snoop on. 

Other Negatives of 5G 

So let's go through a quick synopsis of the positives and negatives for 5G versus the NBN connections. For small to medium enterprises in Australia, your 5G connection could be quicker some of the time. It does give you the flexibility to be anywhere, but it is shared with a lot of people in your local area. So as there are more and more people that jump on, you're going to be having your internet go slower and slower. So it's not going to give you a consistent quality of service. It's not going to give you a static IP address. The costs for the data in Australia is abysmal. It's ridiculous how much we have to pay for data in Australia. In America, $70 and a 4G connection means that you could transfer as much data as you want. I was transferring from 500 to 700 Gig each month through my mobile phone and I felt super naughty. Because in Australia, you'd be spending thousands to do that. So from that perspective, your NBN connections are better for data. So there are the negatives to the 5G. 

Positives of 5G 

The positives are, you're going to get faster speeds some of the time. You've got huge flexibility if you're needing to move a business or something like that, where you're able to then get up and work here and know that your Internet connection, it's going to be super quick. Sometimes you don't have any other options because NBN relies upon a physical infrastructure layer within your local area. Sometimes you have to go 4G or connection like that. A wireless connection. 

NBN Positives 

We've covered off on the positive and the negatives of a 5G or 4G connection, so let's dive into the NBN connection. It's more reliable. It's very consistent. It gives you near to unlimited data depending on the plans you're going on, which means that you don't have these anomalies, where one month it might be costing you an arm and a leg and another month it's not. It gives you the ability most of the time to have a static IP address, which means you can have a secure connection handshake between both sides of the party. This means that for business critical applications that are stored in the cloud, you know for sure that you've got that handshake and that peace of mind that your data is only being seen by you and them and if his IP address locks down. Because the quality of service is higher, it means that you can more easily know that there's reliability within the connection. This means you can have different things that need a high quality of consistent connections, such as VOIP phones.  

Final Word 

In a nutshell, that is comparing the two technologies and why one is better than the other. In my opinion, it's your mileage that varies. It just depends on what business you're in and how you're going to adopt that. But for any big business, if you've got payroll, you should be having an NBN connection. That's a physical connection. If you don't have any other options, jump onto a wireless connection. Anyway, I hope you've enjoyed the content. Stay good! 

 

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