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What is business Ethernet?
Business Ethernet connects multiple locations and services into private, internal networks.
It is widely used by businesses and institutions with multiple sites and those that need dedicated connectivity to essential cloud applications.
In this guide we explain business Ethernet, how it works, what it is used for, and the different types used by organisations in the UK.
Contents
- What is business Ethernet?
- Business Ethetret use cases
- Types of business Ethernet
- Business Ethernet case studies
What is business Ethernet?
Business Ethernet is a private business network formed using wired Ethernet technology over a large area.
Examples include interconnecting university buildings across campus (local area network – LAN) or business offices nationwide (wide area network – WAN).
Business Ethernet differs from business broadband, which focuses on connecting individual business sites with the wider public internet. The diagram below illustrates this difference.
What is Ethernet technology?
Most people think of Ethernet as just the cables connecting devices like printers and computers at a single office, but Ethernet technology is more than just cables.
Ethernet is the entire technology stack enabling wired networks, including cables, devices, hubs, network switches, gateways, protocols, and software.
Business Ethernet use cases
Business Ethernet is key for advanced business interconnectivity. The most common use cases are:
- Private networks: Connecting multiple locations for seamless and secure internal communication and data sharing.
- Data centre integration: Linking offices to physical data centres for efficient operations and secure storage.
- Cloud service integration: Creating a dedicated connection to cloud services like AWS or VoIP for seamless access from multiple locations within your network.
- Backup and disaster recovery: Ensuring fast data replication across sites for security and redundancy.
- IoT networks: Supporting Internet of Things (IoT) deployments by providing reliable, low-latency connections for smart devices across factories, warehouses, or retail locations.
- Low latency networks: Supporting businesses like financial institutions or e-commerce platforms requiring low-latency, high-bandwidth connections for real-time transactions.
These common use cases are summarised in the following diagram:
Types of business Ethernet
Ethernet technology is extremely versatile and can be deployed to form networks over any infrastructure. Over large or small areas, physically or virtually, on dedicated or contended lines, etc.
In this section we outline the key types of business Ethernet categorising them by coverage, shape, speed, connectivity and layers.
Business Ethernet by coverage
Business Ethernet networks are commonly categorised by their geographical coverage:
- LAN (Local Area Network) Ethernet: Uses standard “Cat” cables to connect devices within a single site, like an office, campus or factory. This closed network ends at the router/modem.
- WAN (Wide Area Network) Ethernet: More abstract, a WAN connects multiple business local area networks (LANs) over the public internet using an Ethernet Virtual Connection (EVC).
- MAN (Metropolitan Area Network) Ethernet: A sub-type of WAN that offers high-performance, full fibre connectivity across sites within the same town or city. It uses a network of specialised business switches to connect businesses efficiently. Also known as Short Haul Data Services in the UK.
Business Ethernet by shape
Ethernet networks can have distinct arrangements depending on the desired performance and available infrastructure. Hubs, switches, and routers within the public infrastructure network are key to forming these “topologies”:
| Topology | Description |
|---|---|
| E-Line | A direct Ethernet connection between two locations (Point-to-Point) or one central site to multiple locations (Point-to-Multipoint). |
| E-LAN | A Multipoint-to-Multipoint network where all locations are interconnected, allowing direct communication between all sites. Ideal for businesses needing shared access to resources like cloud storage and enterprise applications. |
| E-Tree | A hierarchical network with a central "root" (e.g., headquarters) connecting to multiple "leaf" locations (e.g., branch offices). Leaf nodes cannot communicate directly. Ideal for setups where resources are centralized. |
| E-Access | Extends E-Line, E-LAN, or E-Tree topologies across an Internet Service Provider’s infrastructure for broader connectivity, such as national or international WANs. |
Business Ethernet by speeds
Most businesses ultimately care about the performance of their Ethernet network rather than how it’s achieved, making speeds critical for communication and marketing. Here are the Ethernet speed categories:
- Fast Ethernet: Up to 100 Mbps. This is for small retail businesses with basic networking needs, such as card readers, email, and file sharing.
- Gigabit Ethernet: Up to 1 Gbps. For modern offices, supporting business applications like business VoIP phone systems, UCaaS video conferencing and cloud storage.
- 10/40/100 Gigabit Ethernet: Up to 10, 40 and 100 Gbps. Specialised networks are used by large enterprises and niche businesses like data centres.
- 100/200/400/800 Ultra-High-Speed Ethernet: Up to 100, 200, 400 and 800 Gbps. Used in niche applications like data centres, AI research and infrastructure providers.
Business Ethernet by broadband connectivity
Ethernet networks can also be categorised by the physical medium that enables connectivity. All Ethernet WANs use Ethernet over Fibre (EoF) for at least some of the journey, as most of the internet is built on these.
Here are other subtypes depending on the specific type of fibre connection:
- Dedicated Internet Access (DIA): A business Ethernet WAN formed over leased line broadband connections. It’s full fibre with uncontended, dedicated bandwidth for your business.
- Ethernet over FTTP (EoFTTP): A business WAN formed over FTTP broadband connections. It’s full fibre business broadband and has contended bandwidth.
- Ethernet over FTTC (EoFTTC): A business WAN formed over FTTC or SoGEA broadband connections. It’s a part fibre, shared bandwidth connection with the last mile made of copper telephony cables.
Business Ethernet by layer
Providers often offer business Ethernet Layer 1, 2 or 3 solutions. Here’s what they mean:
- Layer 1 Ethernet: The provider supplies the physical connections (like fibre or copper) needed for Ethernet but leaves data handling and routing to the customer. It is very similar to a business broadband installation.
- Layer 2 Ethernet: The provider handles secure data transfer between endpoints but does not manage routing, offering services like private lines or Ethernet point-to-point. Customers include retail chains connecting multiple stores or businesses connecting multiple offices.
- Layer 3 Ethernet: The provider manages everything, including data routing across networks using SD-WAN and security using SASE. Customers include multinational corporations needing global connectivity.
Business Ethernet case studies
Business Ethernet is undoubtedly not for everyone. Micro businesses, startups and those limited to a single site can rely on a regular non-Ethernet broadband connection for all their needs.
Services like small business VoIP, regular VPNs for remote work and standard cloud storage like Google Drive don’t require the high-performance interconnectivity and security of Ethernet.
However, larger businesses could not operate efficiently without business Ethernet.
Here are two examples of successful deployments:
Halfords
Halfords uses a robust Layer 2 Ethernet network to connect its numerous retail outlets with central systems. This connectivity ensures real-time data flow for inventory tracking, sales transactions, and customer engagement tools.
- Interconnected sites: Headquarters, retail stores, and distribution centres across the UK to form a WAN.
- Purpose of Ethernet: To facilitate seamless operations, including point-of-sale systems, inventory management, supply chain management software and customer service applications.
- Arrangement: Hub-and-spoke architecture (E-Access and E-LAN).
- Speeds: Varies based on location requirements, typically ranging from 1 Gbps to 10 Gbps.
- Contention: Low contention for critical retail operations, Higher contention for non-priority traffic.
Source: Juniper Networks
Calthrops Solicitors LLP
Calthrops Solicitors LLP, a small solicitors practice, implemented a VoIP phone system delivered over Spitfire’s Ethernet circuits. This small-scale, Layer 2 Ethernet setup guarantees end-to-end Quality of Service (QoS) with assurances on latency, jitter, and packet loss, both upstream and downstream.
- Interconnected sites: Two office locations across rural Lincolnshire.
- Purpose of Ethernet: To support advanced VoIP features to streamline client management and communication.
- Arrangement: Hub-and-spoke architecture (E-LAN), with a central server connecting both offices.
- Speeds: 1Gbps for seamless VoIP communications.
- Contention: Low due to dedicated circuits that prioritise voice traffic.
- Geographical extent: Metropolitan Area Network (MAN) within the local region.
Source: Spitfire
Business Ethernet – FAQs
Our business broadband experts answer commonly asked questions on business Ethernet networks in the UK.
Dark fibre vs Ethernet?
Dark fibre and Ethernet are completely different things. Dark fibre is any spare or idle fibre optic strands owned by a broadband infrastructure provider like Openreach or KCOM. It results from unused spare installed capacity and can be rented to businesses that must provide the equipment at both terminal ends.
Ethernet is the technology that enables internet networks; see a detailed description here. Ethernet networks can be formed over dark fibres if a business wants to lease it.
Is business Ethernet secure?
Business Ethernet is highly secure. It operates using dedicated or logically isolated shared connections that prevent unauthorised access. It uses strong encryption, and managed networks usually have Quality of Service (QoS) features to ensure data integrity, confidentiality, and protection from external interference.
Does a WiFi network use Ethernet?
WiFi is a technology that enables local wireless networks, while Ethernet enables wired networks of any size. A WiFi network like Guest WiFi often depends on Ethernet as its backbone, connecting access points to the network.
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