Think of it like city water.
If the city is pumping 1000 gallons of water per minute into the pipes in your neighborhood, you could theoretically get 1000 gallons of water out of your faucets.
But if all 100 houses in your neighborhood turn their faucets on at the same time, you’re gonna get 10 gallons per minute, each.
Your internet provider is going to advertise “up to 1000 gallons per minute speeds,” but realistically that will never happen. And honestly, your house might not even be wired up to actually receive all 1000 gallons per minute, that doesn’t stop the company from advertising it.
Among the many other valid reasons posted, many routers and ONTs only have 1 Gbps Ethernet transceivers. 1 Gbps Ethernet can do a theoretical max of 940 Mbps without jumbo frames and 990 Mbps with them – and it will always be a little lower in practice. If all devices in the chain had 2.5 or 10 Gbps Ethernet you would get very close if the ISP wanted.
For all the data you send back and forth there is overhead. Your data has to be encapsulated with information that helps that data get to you. That data takes up bandwidth. So sending 900Mb of data may require 100Mb of data about how to route your data. Those are not exact numbers, but just giving you an idea. So while your speed test is telling you you are transferring 900Mb of data, you are using 1Gb total. The speed test is just not including then meta data that carries your actual data. The headers and footers around your data packets take up some of the bandwidth.
Since the answer is already explained well for both port speed, and addressing bits, I’d like to add in a caveat.
There is a thing called burst traffic. It’s typically only used between carriers, but some businesses will opt to get it.
In essence, a cache is configured on the handoff device, so that if the traffic goes over the assigned bandwidth momentarily you will still get it, instead of it being dropped by the policers. It only works for intermittent “bursts” of traffic though, and can’t be done continually since it’s cache dependent.
There’s a lot of good, but technically wrong, answers here.
2.5gbps equipment is needed to truly see 1gpps, yes. Also, they’re not hooking up 2.5gbps equipment in people’s homes for 1gbps service. But the real reason you’re able to be sold 1gbps even though that will never happen is what are you going to do, switch to their fairly priced, advertising truthfully competitor? They’ve invested a lot of money in ensuring that competitor doesn’t exist.
1gpbs speed (may actually be 900mbps), unlimited data (may actually be 4GB), enter your name to win (enter your name for a chance to win), we’ll keep your data safe (we won’t keep your data safe). This is just how buying things (at least in the US and wherever you are, it sounds like) goes. What are you going to do, sue them? Switch to another company? Truth in advertising is now only required in very specific areas.
If you look at your agreement with your internet service provider, they don’t even have uptime requirements for residential accounts. If your service was slow, their bad they’ll do better next time, here’s 1 days credit since it was slow on one day and you managed to spend 2 hours on the phone with support to get that credit.
If you want to pay for a speed and get that speed, sadly, you need to have a contract written specifically for that. It’s called a Service Level Agreement.
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