The Impact of Low Latency Network: Your Complete Guide and Why It Matters for Businesses

What is latency? 

The definition of latency is a delay. In networking terms, this delay refers to the total time it takes from when a user initiates an action on a web application or network to when they get a response.¹ Another definition for latency is the round-trip time it takes for data to travel.¹ 

When you send a document, video or image to another person, that data packet is transmitted across various networks and devices before reaching its final destination. Latency measures the total time this process takes, and depending on a few factors, including the quality of your network, the response time can be faster or slower. 

Latency is just one piece of your overall network performance. While addressing latency is important, there are many other factors that impact your network. Ultimately, knowing the context to which latency is being measured and compared to is essential to the overall understanding of how latency affects your connection.

Why is latency so important? 

Imagine you’re on a road trip. From the moment you leave your house you hit numerous stoplights, take multiple exits on the highway and speed up or slow down depending on the traffic around you. These minor slowdowns add up, which ultimately delays the amount of time it takes you to reach where you’re going. The transfer of data is no different. There are many turns along the way – most of which people are unaware even happen. 

We’ve all had moments where we’ve audibly muttered under our breath, “Why is this taking so long to load?” Or maybe you’ve heard a customer service representative say, “I’m sorry, my computer is being slow today.” These may be common phrases heard by end users when interacting with their devices on a slow network. 
 
People and businesses want to be able to interact with data in real-time. Many industries depend on prompt access to information to help move life forward. Whether it’s to quickly update reports, accurately manage inventory or correctly share pricing structures, network latency is important because it ultimately helps provide a positive user experience. 

How is latency measured? 

Commonly measured in milliseconds (ms), the goal with latency is to transmit data with as minimal a delay as possible. Because of how data travels, it’s impossible to have a zero-latency network.¹ A network can have ultra-low latency, which is measured in nanoseconds.  

Networks with a fast response time have low latency, while those with a longer delay have high latency. A network that has good latency usually refers to low latency. 
 
There are many tools to measure delays such as ping and time to first byte (TTFB).² The most common method is round-trip. This measurement takes into consideration the amount of time it takes data while going from client to server and back.²  
 
When measuring latency, location really matters. The speed of latency by itself doesn’t have much value. Knowing the distance latency is being evaluated against is what impacts this number’s significance. For example, a <50 ms latency from coast to coast would be considered low latency and an excellent speed. This same latency from one location to another that’s across town would be considered high latency and a poor speed. Having context to understand from where-to-where latency is being measured will impact the evaluation of your latency rating. 

Want quicker response times for your customers and employees? Learn how Midco is meeting the demand. Read More

What causes network latency? 

Think back to your road trip. Did you come across any traffic? Were there detours? Was the road paved or gravel? One-lane or multiple? Traffic lights or stop signs? Each of these factors contribute to the amount of time it takes you to get from your house to your final destination. Some were predictable thanks to GPS, while others were outside your control.  
 
The same is true for the information superhighway. Your data is impacted by many factors along the way.   

The process starts like this. A user sends a request. When the request is received it is then processed by a server. When the information is retrieved, it then gets sent back to the original sender. While this process is rather simple, it’s quite a complex interaction influenced by many factors. 

Along the journey, in each direction, are network components such as routers, switches, translators and changes between the connection fiber, cabling and wireless transmission. Tiny delays, or hops, are introduced at each step, adding up to wait times for the user.  

Latency is the end result of many factors. Some are fixed, while others can be adjusted depending on location and resources. Many are part of the typical online experience and sometimes are outside a network’s control. Either way, a combination of any of the following can impact latency. 

• Bandwidth: This is known as your internet speed. It’s measured in megabits per second (Mbps) or gigabits per second (Gbps). Bandwidth is the measurement of how much data travels to your location per second.  
• Throughput: This measures the amount of data that can be sent over a system at any given time.  
• Hardware: Various equipment such as routers, controllers and switches are involved when data is transmitted. If any hardware is out of date or of poor quality, it will inevitably impact the rate of latency. 
• Connection: Fiber-optic is the fastest, most secure, and reliable internet, followed by cable. 
• Sharing: A connection that’s shared will most likely have a higher latency whereas one that’s private to your device will have a lower latency.  

Having a trusted communications provider means they’re paying attention to high traffic areas, charting demand, and course correcting, all so the end user can have a positive experience and hopefully start commenting, “Wow, that was so fast!” 

What are the benefits of a low latency network?

A low latency network is designed to reduce delays as much as possible. It’s optimized to transport your data faster. This means less interruptions and more uptime.  

Customers expect an instantaneous experience when they perform an action, and they often quit because of delays. High latency impacts performance affecting the experience a customer or employee has with your business. Therefore, having a low latency network connection is important to businesses for a few key reasons:  

• Efficient: Create cost savings and decrease time spent managing technology. 
• Effective: Seamless operations helping to reduce time spent worrying or fixing technical issues. 
• Experience: Receiving immediate feedback from applications you or your customer uses can help build trust with your business. 

This is a priority for many providers as businesses search for low latency network providers to keep their operations running efficiently, effectively and sustainably, so they can maintain a positive user experience for their customers and employees. 

How can latency be reduced? 

For businesses, the simple solution is to make sure you’re working with a trusted internet provider who’s informed and aware of the many factors that impact latency. Knowing you have a partnership with a provider who continually has your best interest in mind is your best line of defense to reducing latency. Because of a provider’s experience, they’re your trusted resource to offer suggestions or changes to help meet your business needs. 

Midco: Your Low Latency Solution  

Since 2021, Midco has invested $500 million to upgrade and expand all our fiber networks, resulting in low latency for our customers. A recent test of the optical network from Spearfish, SD, to Chicago, IL, achieved less than 20 millisecond latency. 

Midco is proud to offer this unmatched service to help businesses handle more traffic without experiencing technical difficulties.  
 
These upgrades are important for the telecommunications industry as data demands continue to grow and the needs of customers and clients evolve at rapid speed thanks to advancing technology.