The Difference Between Bandwidth and Speed

A link in a network is determined by two factors, bandwidth and speed. These are usually the same but not always.
Definition: Speed is bit rate of the circuit while bandwidth is the amount of “speed” available for use.
As an example, a 500 Megabit Ethernet MPLS service which uses a 1 Gigabit Ethernet connection to site would have a bandwidth of 500Mbps and a speed of 1 Gbps.
Speed is commonly determined by the physical signalling of the underlying network.
The most common example is a Link Aggregation where a number of Ethernet connection are bonded into a single interface. The bandwidth is the sum of the total connections but the speed is determined by the physical network connection.
bandwidth-speed-lan
Another common example occurs when provisioning WAN circuits. It is common to use a high speed circuit to connect from the customer site to the carrier network but offer a “sub-rate” speed for actual use.
For example, a network using 10Gbps everywhere including to your sites might only offer 100Mbps or 1Gbpps connection over the network.
bandwidth-speed-wan

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