What internet speed do you really need?

This editorial article is underwritten by Verizon. Technical.ly is a free news resource thanks to financial partners like this  Technical.ly Ecosystem Builder client.

Do you really need 2,000 Mbps of internet download speed at home?

Maybe not, but the amount of speed needed for a household to function is growing. In 2024, the Federal Communications Commission (FCC) quadrupled the download threshold for high-speed internet from 25 Mbps to 100 Mbps. It was the first increase in nearly a decade, and it upped the stakes for broadband accessibility. Broadband infrastructure projects bringing high-speed internet to small towns, rural areas and urban Wi-Fi deserts now have to meet that 100 Mbps threshold for households, or they are considered under-served. 

“What we hear the most about the barriers [people] face in accessing the internet are affordability, device access and being afraid of getting scammed,” former Delaware Broadband Office Executive Director Roddy Flynn told Technical.ly in 2023.

On average, Americans have access to internet well above the minimum threshold. As of December 2024, the average download speed in the US was 267 Mbps. According to FCC data, 92% of US households meet or exceed the 100 Mbps minimum. You can check your speed for free via Fast.com or most internet provider websites.

When shopping for high-speed internet plans, you’ll see packages with prices based on download speed — 300 Mbps, 500 Mbps, 1 gigabyte (1,000 Mbps) and even 2,000 Mbps or more. Is it worth it to spend more every month for a package that’s ten times higher than the high-speed minimum, or is that just wasting money on extra speed you’ll never use?

Like most things, it depends. 

Before HD streaming, online gaming and VR, deciding on an internet speed was pretty simple. Less speed meant slower downloading and loading time, faster speeds meant faster downloads and loading times, and whether waiting less was worth paying more was up to the consumer.

It’s still up to the consumer, but today a slow download speed could mean not being able to watch a movie without constant buffering. At the same time, there are speeds available at a higher cost that may offer more speed than you will ever use, even as a gamer or heavy-use remote worker.

What are Mbps?

Mbps stands for megabits per second, a measure of data transfer rate. Higher Mbps means faster download rate — something that impacts your internet usage even if you’re not specifically downloading a file. Streaming movies, for example, require a minimum Mbps to play smoothly.

A lot of the things you use the internet for, like browsing, social media, email and streaming music require just one Mbps or less, according to the FCC. Things like gaming, streaming HD video, HD teleconferencing and telecommuting require more Mbps, but generally still less than 10. 

If your household uses VR headsets, however, you will typically need 100 Mbps for high-resolution use on a basic consumer headset like the Quest 3; for more advanced PC gaming with 12k graphics such as with the Pimax Reality, you will need 225 Mbps. Just as you factor in each gaming console that’s being used in your household, if your household has VR headsets, each one also needs to be factored in.

Some households have adopted 8K streaming, which requires a minimum 100 Mbps speed, about four times as much as 4k streaming’s 25 Mbps requirement. That means that if you have a download speed of 100 Mbps, it will just barely be able to handle 8K streaming if nothing else, including if things like smartphones and laptops, are in use anywhere in the house at the same time. 4K, which needs about 25 Mbps, remains more common, but for households with 8k television, the larger speed requirement will need to be a consideration when deciding what speed you need.

On the other end of the spectrum, a small household of light internet users who use no HD streaming, no online gaming and no video conferencing or telecommuting can get by with less than 25 Mbps, though most minimal, inexpensive plans today start at 50 Mbps.

If my speed is so high, why is my internet slow?

If you’ve ever taken a download speed test when your internet felt sluggish, only for it to come back with lightning-fast speeds, it could be your device. Some devices, especially if they’re older, can only go as fast as they go, regardless of internet speeds. A device cleanup can help speed it up, or you might just need to update your device. 

Another issue might be your router. Major internet providers usually will replace your router with the newest version for “free” as part of your internet package price, but they won’t necessarily let you know that your router is outdated and needs to be upgraded. If you have a router from your provider that you haven’t updated in a couple of years and Netflix starts buffering, that’s a good indication that the service has improved beyond what the router can handle. 

Also keep in mind that when you sign up for a plan with, say, a 500 Mbps download speed, you’re paying for “up to” 500 Mbps. What you actually get may be significantly slower. According to a 2024 broadband data analysis by Allconnect, US consumers on average actually received about 32% of the advertised speed, especially if they use fiber or cable internet. So, if you really need at least 500 Mbps, it might be worth splurging for the 1 gig package.

Common internet speeds

If you’re looking at internet speeds and are unsure how high to go, here’s a basic guide, according to various sources cited above.

• 25 Mbps — Once the gold standard of high-speed internet a decade ago, 25 Mbps is no longer considered high-speed internet at all. While it technically can support 4k streaming and game console use, that’s only if no other devices are in use, so it won’t support households where, for example, one member is doing homework on a laptop, another is browsing the internet on a tablet and a third is streaming a TV show.
  
• 50 Mbps — Still considered below the threshold of high-speed internet, 50 Mbps is offered by some providers as a low-cost option, as well as an option for households that limit broadband use to things like email and online shopping. However, it’s not a good choice for households with kids, even if they don’t play online games, because a broadband speed that can support video conferencing may be necessary for remote schooling when things like snow days happen.
  
• 100 Mbps — Now the minimum level of high-speed internet per the FCC. It can handle streaming, console gaming and multiple people using devices reasonably well, such as kids doing homework while Mom pays bills online.
  
• 300 Mbps — The base speed for some providers. For most family homes, 300 Mbps is enough to allow multiple people streaming 4K, multiple people playing console or PC gaming and multiple people using devices, including working from home.
  
• 500 Mbps — A family of two or four with 500 Mbps will have a good amount of buffer before the wifi slows down, but their everyday usage won’t be noticeably faster than with 300 Mbps.
  
• 1,000 Mbps — If you have a “connected” family that streams 8K video, uses VR devices and has one or more people who work or go to college from home, this “super fast” speed, considered wastefully fast for consumer households just a few years ago, is a good option.
  
• 2,000 Mbps — The fastest speed offered to household consumers by some providers. It’s more than most households really need, but it allows for accommodating new high-demand devices and extra high-usage situations, such as when you have multiple guests over, each with their own device. 

It should be noted, these are household speeds. For business use, speeds may be much faster, to accommodate a large number of people working simultaneously. 

What about 5G?

The 5G, or 5th generation mobile technology, that you may use on your smartphone can also be used as household Wi-FI with the addition of a 5G router. These routers and household 5G plans are available through some mobile service providers like T-Mobile. 

5G has incredibly fast download speeds, but there is a caveat: 5G’s latency, or the amount of time it takes a device to communicate with the server, is generally slower than Wi-Fi. If the household does a lot of online gaming or HD streaming, 5G alone may not support your needs. However, it’s a good option if you don’t have access to wired high-speed internet.

AI and internet speed

Now that AI is everywhere online, do you need to increase your home internet speed to accomodate it? On the consumer level, faster internet speeds do mean faster generative AI processing, but the kind of chatbots that are built into search engines don’t require more than basic high-speed internet, as long as it’s stable. As with streaming, that’s sure to change as AI evolves.

Bottom line

Every household has an internet speed sweet spot based on the number of people and level of internet use. A smart home full of early-tech adopters may really get use out of a 2,000 Mbps plan. 

In general, though, allow 100 Mbps for each online gamer (225 Mbps each for high definition VR), 100 Mbps for each HD streamer, telecommuter or full-time online student, and 50 Mbps for each person using less speed-dependent wifi, and you can budget a plan that fits your home.