In today’s enterprise networking landscape, ensuring reliable, high-speed internet connectivity is no longer optional—it’s essential. Dedicated Internet Access (DIA) has become the backbone of enterprise operations as businesses scale across multiple locations and adopt cloud-first strategies. However, not all DIA circuits are created equal. A critical yet often misunderstood distinction lies in Type 1 and Type 2 circuits.
Understanding the distinction between these two types of DIA circuits can greatly enhance the installation speed of a new circuit, improve your network performance, resulting in lower latency and increased uptime, and expedite troubleshooting when issues arise.
The Role of Dedicated Internet Access in Enterprise Networks
Unlike shared broadband, Dedicated Internet Access ensures your enterprise has a private, uncontended connection to the Internet. This translates to predictable performance, guaranteed uptime through SLAs, and the scalability required for bandwidth-intensive operations like video conferencing, cloud computing and unified communications.
Explore how APX Net delivers symmetrical bandwidth with carrier-grade reliability for a deeper overview of our enterprise fiber internet.
What is a DIA Circuit?
A DIA circuit refers to the physical connection between your business premises and the provider’s network infrastructure. Unlike shared Internet, which is vulnerable to congestion and latency, DIA guarantees a consistent experience backed by strict service commitments.
DIA circuits are defined not just by performance but also by who owns, manages and maintains the underlying infrastructure, which is where the Type 1 vs. Type 2 distinction comes into play.
Dedicated Internet Access vs Shared Internet
Shared Internet, while cost-effective, often suffers during peak usage hours. DIA circuits avoid this by giving businesses exclusive bandwidth. To understand how SLAs and speed for business internet impact network quality, check out our blog, “How Much Internet Speed is Best for My Business?”.
Understanding Type 1 and Type 2 DIA
What is a Type 1 DIA Circuit?
A Type 1 DIA circuit is a direct connection provided by a carrier that owns both the last-mile infrastructure and the core network. That means installation, monitoring and maintenance are handled end-to-end by a single provider, typically a Tier 1 carrier.
Pros:
- Single point of contact
- Shorter installation times
- Less latency during data transfer
- Faster repair times
- Better visibility into outages or service degradation
- Often faster provisioning times in covered regions
Cons:
- Potentially limited footprint based on a given carrier’s owned infrastructure.
Check out our Video Breaking Down Type 1 Circuits: https://vimeo.com/864471895
What is a Type 2 DIA Circuit?
By contrast, with a Type 2 DIA circuit, the provider resells a last-mile connection from a local carrier but overlays it with their own routing, monitoring and support stack.
Pros:
- Flexibility to mix and match carriers across locations, though this has drawbacks due to cross-connections
Cons:
- Dual ownership can complicate troubleshooting and result in finger-pointing between carriers during service disruption
- Multiple providers introduce points of failure as traffic travels from network to network
- Higher latency due to cross-connections and a greater distance data packets travel
- Longer installation times for new circuits
Key Differences Between Type 1 and Type 2 DIA
Key Difference #1: Ownership and Infrastructure
Type 1 = Owned infrastructure from end to end.
Type 2 = Aggregated infrastructure, often leased last-mile.
This impacts reliability and time to deploy, especially in rural or underserved areas.
Businesses needing specialized routers, network switches or redundant connections should budget for additional hardware and configuration services.
Key Difference #2: Service Level Agreements (SLAs)
SLAs tend to be stronger with Type 1 providers, but leading aggregators can still deliver robust guarantees by leveraging proactive network monitoring and multiple carrier relationships.
Key Difference #3: Pricing and Availability
Pricing can vary widely based on location and demand. Type 1 circuits tend to be more competitive with pricing given one network versus two,
Visit our business Internet page to learn more about the various kinds of Internet and explore pricing strategies optimized for multi-site deployments at our pricing page.
Aggregation and Reseller Impact on DIA Circuits
Benefits of Aggregators and Managed DIA
Managed DIA providers, such as APX Net, act as aggregators, simplifying procurement, billing, and support across dozens or even hundreds of locations. Instead of juggling multiple vendors and SLAs, your enterprise can rely on one partner for end-to-end service.
- National reach without being tied to one carrier
- Custom SLAs backed by enterprise-grade monitoring
- Bundled SD-WAN for intelligent traffic routing
This model works exceptionally well for multi-location enterprises with remote or hard-to-reach sites where business continuity is critical.
Which Type is Right for Your Enterprise?
While DIA (Dedicated Internet Access) can be provisioned as Type I or Type II, APX Net only provisions Type I DIA circuits. That’s because there are significant advantages, including quicker installation, lower latency, higher service levels, and less finger-pointing if an issue arises.
Need help finding the right business Internet plan? Contact us today for a custom quote tailored to your needs.
