Unraveling The Fast Access Mess What you must know about DSL, satellite, wireless, and cable to get the speed you need
By Joel Dreyfuss

(FORTUNE Small Business) – Who doesn't want a high-speed Internet connection? Of course, therein lies the catch-22. Business demand for fast Net access, in particular Digital Subscriber Line (DSL), has been so overwhelming that providers can't deliver, causing frustration in the marketplace. Many local ISPs have gone out of business, causing a money crunch at DSL providers like Covad and worsening the outlook for fulfilling that demand. Putting that trusty 56K modem aside and moving to a broadband connection is not a decision to be made lightly. Whether you navigate the issues surrounding DSL or explore one of the emerging alternatives in cable, wireless, or satellite services, navigate you must. Here's how to avoid being one of those angry customers stuck in the slow lane.

A number of misconceptions surround DSL, most of them propagated by the companies selling it. The low rates you see advertised are mostly for home users; you aren't going to pay $39.99 a month for your company's service. Businesses can expect to pay installation fees and higher rates for faster speeds and multiple users--and better technical support. If you want to host your own Websites, you'll want a "fixed IP," an option that gives you a set Internet address so users can always find your site. And if you intend to share the pipe with other users in your office, make sure you're issued rights (and IP addresses) for multiple users. These issues often get lost in the effort to close a sale.

Perhaps the biggest thing to know about DSL is that you'd better have a wellspring of patience before signing up. In theory, installation should be a snap because DSL uses much of the telephone company's existing infrastructure--and your ordinary telephone lines. But many local companies found the installations more complex than anticipated or simply couldn't handle the crush of demand. Third-party providers found themselves caught in the snag because they needed the local phone companies for the final connection to a user's office. Users have waited weeks, even months, to get their lines working properly.

The DSL industry knows it has alienated many potential customers from even considering its service, but its leaders think they have the answer going forward. "It's a matter of managing expectations," says John Ellis, EarthLink's director of broadband services. Basically, be patient and ignore the industry's hype of the last few years. Ellis says many of his DSL clients have previously ordered small business services from local phone companies and have learned to allow more time than consumers who expect instant service. EarthLink offers Biz DSL to small business, a symmetrical service starting at 144 kilobits per second (Kbps) for both uploads and downloads at $129, and going all the way up to 1.5 megabits per second (Mbps) both ways for $399 monthly. This top offering may cost as little as half a traditional T1 line at the same speed.

Patience may indeed be the watchword, whether you try to get DSL or consider an emerging alternative like satellite-based Internet service. Not long ago, satellite access was clunky, with fast downloads from the sky but requiring slow phone lines for uploads. Next-generation providers like Starband (www.starband.com) offer a $99-a-month service that uses the satellite in both directions. While Starband guarantees 150- to 500Kbps downloads, uploads are still much slower, at just 50Kbps. If you need to send large files, you'll need a different service.

Wireless broadband, another emerging high-speed technology, looks promising but is still largely on the horizon. Many companies have used wireless systems to link buildings or campuses. Now Sprint, Worldcom, and others are rolling out a technology called multichannel multipoint distribution services (MMDS) for high-speed Internet access. MMDS offers quick setup (a slap at DSL) and more reliability. "This is the killer app for small business," says Amir Zoufonoun, CEO of Western Multiplex, a Sunnyvale, Calif., company that supplies wireless equipment to service providers. High equipment prices have been an obstacle for wireless, but advances have brought prices down dramatically. One of Western's clients is Ricochet, which offers wireless Net access at 128Kbps in a number of major cities for about $80 a month, plus another $99 for the modem. This is fast enough for many mobile users who just have to stay connected, but Zoufonoun expects fixed wireless services at business-friendly speeds of 10Mbps and up to be widely available within a year.

One of the limitations of all broadband services is availability. For DSL, you have to be within a couple of miles of a phone company central office, which makes getting the service in rural areas rare. Satellite requires access to the southern sky. Wireless is limited by line-of-sight communications. Cable, another option, is limited even in urban areas because many office buildings aren't wired for it. Keep an eye on cable, though. Its low-hassle installation makes it worth a look.

Obviously, picking a broadband service isn't as easy as buying a TV. But once you've made the choice, and the graphics pop on your screen, the files download so fast that you'll think the line was disconnected; you'll be able to talk to and see clients without getting on a plane, and you'll never again go back to that squawking modem.