Dial-up modems are limited to a bitrate of less than 56 kbit/s (kilobits per second) and require the full use of a telephone line—whereas broadband technologies supply more than double this rate and generally without disrupting telephone use.

Although various minimum bandwidths have been used in definitions of broadband, ranging up from 64 kbit/s up to 1.0 Mbit/s, the 2006 OECD report

is typical by defining broadband as having download data transfer rates equal to or faster than 256 kbit/s, while the United States FCC, as of 2008, defines broadband as anything above 768 kbit/s.

[http://www.engadget.com/2008/03/19/fcc-redefines-broadband-to-mean-768kbps-fast-to-mean-kinda/

Data rates are defined in terms of maximum download because several common consumer broadband technologies such as ADSL are "asymmetric"—supporting much slower maximum upload data rate than download.

"Broadband penetration" is now treated as a key economic indicator.

Broadband is often called "high-speed" Internet, because it usually has a high rate of data transmission. In general, any connection to the customer of 256 kbit/s (0.256 Mbit/s) or greater is more concisely considered broadband Internet. The International Telecommunication Union Standardization Sector (ITU-T) recommendation I.113 has defined broadband as a transmission capacity that is faster than primary rate ISDN, at 1.5 to 2 Mbit/s. The FCC definition of broadband is 768 kbit/s (0.8 Mbit/s). The Organization for Economic Co-operation and Development (OECD) has defined broadband as 256 kbit/s in at least one direction and this bit rate is the most common baseline that is marketed as "broadband" around the world. There is no specific bitrate defined by the industry, however, and "broadband" can mean lower-bitrate transmission methods. Some Internet Service Providers (ISPs) use this to their advantage in marketing lower-bitrate connections as broadband.

In practice, the advertised bandwidth is not always reliably available to the customer; ISPs often allow a greater number of subscribers than their backbone connection or neighborhood access network can handle, under the assumption that most users will not be using their full connection capacity very frequently. This aggregation strategy works more often than not, so users can typically burst to their full bandwidth most of the time; however, peer-to-peer (P2P) file sharing systems, often requiring extended durations of high bandwidth, stress these assumptions, and can cause major problems for ISPs who have excessively overbooked their capacity. For more on this topic, see traffic shaping. As takeup for these introductory products increases, telcos are starting to offer higher bit rate services. For existing connections, this most of the time simply involves reconfiguring the existing equipment at each end of the connection.