Infrastructure
6 min read
Feb 05, 2024

Fiber Arbitrage: How to Save 20-40% on Connectivity

Most businesses overpay for circuits and fiber. Learn how to use carrier arbitrage to cut connectivity costs.

SmashByte Team

What is Fiber Arbitrage?

Fiber arbitrage is the practice of comparing wholesale pricing across multiple carriers (AT&T, Lumen, Zayo, Crown Castle, etc.) to find the best price for connectivity.

Most businesses buy directly from carriers at retail rates. They never see wholesale pricing or compare alternatives.

Result: You're overpaying by 20-40%.

How Fiber Arbitrage Works

Traditional Approach (Retail)

  1. Call AT&T sales rep
  2. Get quoted $1,500/month for DIA
  3. Sign 3-year contract
  4. Pay retail pricing

SmashByte Approach (Wholesale)

  1. Tell us your connectivity needs
  2. We compare AT&T, Lumen, Zayo, Crown Castle
  3. Get wholesale quotes from all carriers
  4. Choose best price and quality

Typical savings: 20-40% vs. retail

Real-World Example

100 Mbps DIA circuit in Dallas, TX:

  • AT&T retail: $1,200/month (3-year contract)
  • Lumen retail: $1,100/month (3-year contract)
  • Zayo retail: $1,400/month (3-year contract)

SmashByte wholesale pricing:

  • Lumen wholesale: $650/month (month-to-month)
  • AT&T wholesale: $720/month (month-to-month)
  • Zayo wholesale: $800/month (month-to-month)

Savings: $550/month ($6,600/year)

Why Wholesale is Cheaper

SmashByte has channel partnerships with 300+ carriers worldwide. We buy in bulk and pass savings to customers.

Carriers prefer working with us because:

  • We send them high-volume, pre-qualified deals
  • We handle customer support
  • We reduce their sales overhead

You get wholesale pricing without wholesale minimums.

Beyond Fiber: SIP Trunking

Fiber arbitrage applies to voice too:

Wholesale SIP trunking:

  • AT&T: $0.003/min
  • Lumen: $0.0025/min
  • Verizon: $0.0028/min

vs. retail CPaaS:

  • Twilio: $0.0085/min
  • Telnyx: $0.004/min
  • Bandwidth: $0.006/min

Savings: 30-50% on voice traffic

Multi-Carrier Redundancy

Smart companies use fiber arbitrage for redundancy:

Example: E-commerce company

  • Primary: Lumen DIA (wholesale)
  • Backup: AT&T DIA (wholesale)
  • Automatic failover
  • 99.99% uptime

Blended cost: Still 30% cheaper than single retail circuit

Getting Started

SmashByte makes fiber arbitrage simple:

  1. Tell us your locations and bandwidth needs
  2. We quote wholesale pricing from all carriers
  3. You pick best price/performance
  4. We provision and manage

No markup. No hidden fees. Just transparent wholesale pricing.

Common Questions

Q: Do I need to change providers? A: No. We can often get wholesale pricing on your existing carrier.

Q: What about contracts? A: Many wholesale circuits are month-to-month. No 3-year lock-in.

Q: Is quality the same? A: Yes. Same carriers, same SLAs, same infrastructure.

Q: What's the catch? A: No catch. We make money through small channel commissions from carriers, not markup on your bill.

Why It Works

Most businesses don't have relationships with 300+ carriers. We do.

We've negotiated wholesale pricing across:

  • Fiber providers (AT&T, Lumen, Zayo, Crown Castle)
  • Colocation (Equinix, Digital Realty, CoreSite)
  • Cloud infrastructure (ByteCloud, wholesale GPU)
  • Voice/messaging (wholesale SIP, BYOC)

One relationship. Wholesale access to everything.

Ready to Optimize Your Infrastructure?

Talk to a SmashByte Advisor and discover your custom wholesale savings plan.

Talk to a SmashByte Advisor