Latency vs Bandwidth: What’s the Difference

In today’s digital world, seamless communication hinges on two critical but often misunderstood factors: latency and bandwidth. Whether you're streaming a webinar, joining a video call, or gaming online, both terms directly impact performance. But what’s the real difference between bandwidth and latency—and why does it matter?

Table of Contents

1. What is latency?
2. Factors affecting latency
3. Different types of latency
4. How exactly can latency impact businesses and users?
5. What is bandwidth?
6. Factors influencing bandwidth
7. Importance of good bandwidth and impact of low bandwidth
8. Latency vs. bandwidth: understanding the differences
9. Differentiating latency and bandwidth
10. Scenarios showcasing latency and bandwidth
11. Balancing latency and bandwidth for optimal performance
12. Achieve better real-time communication quality with the Digital Samba

In this article, we break down latency vs bandwidth, explore how they affect video conferencing, and explain what a good latency speed looks like for optimal performance. From understanding video latency to balancing throughput vs latency, we’ll give you practical tips to enhance your real-time communication—especially if you're aiming for low latency video conferencing with platforms like Digital Samba.

What is latency?

Latency is the time it takes for data to travel from one point to another across a network. It’s typically measured in milliseconds (ms) and is most noticeable when you experience lag or delays during video calls, gaming, or live streaming.

In simple terms, latency is the delay between sending a request and receiving a response. For example, if you speak during a video conference and there’s a pause before others hear you, that’s latency in action. The lower the latency, the faster and smoother your communication.

A good latency speed for real-time communication, such as low-latency video conferencing, is typically under 150 ms. Anything above 250 ms can lead to noticeable delays, making interactions less natural and potentially frustrating.

Factors affecting latency

Latency isn’t caused by just one thing—it’s the result of multiple interacting elements within a network. Understanding these factors can help businesses and developers optimise their systems for better real-time performance, especially in video conferencing and streaming environments.

1. Physical distance

The farther the data has to travel between the sender and the receiver, the longer it takes. This is especially noticeable in international communication, where data must cross oceans via undersea cables or satellite links. Even at the speed of light, distance adds up.

2. Network congestion

High network usage—especially during peak times—can cause data packets to queue up, resulting in delays. Just like a traffic jam on a motorway, too many users sharing the same connection can slow everything down.

3. Number of hops (routing)

Data doesn’t travel in a straight line—it passes through routers, switches, and gateways. Each “hop” adds milliseconds of delay, particularly if any of the devices in the path are misconfigured or under heavy load.

4. Server response times

Even if the network is fast, latency can creep in if the server processing the request is slow. This could be due to outdated infrastructure, high load, or inefficient backend logic.

5. Device and hardware performance

The performance of the sender’s and receiver’s hardware—especially CPU and memory—affects latency. Lower-end devices may take longer to encode, decode, or render video and audio streams.

6. Wireless interference

Wireless networks (Wi-Fi, 4G/5G) are susceptible to signal interference from walls, devices, or environmental noise. This interference can cause retransmissions and delays, raising latency in the process.

Different types of latency

Latency is not a one-size-fits-all metric—it can be broken down into distinct types that occur at different stages of data transmission. Each type contributes to the total delay a user experiences, especially in time-sensitive applications like video conferencing, online gaming, and live broadcasts.

1. Transmission latency

This refers to the time it takes to push all bits of a data packet onto the transmission medium. It's influenced by the size of the data packet and the available bandwidth. Higher data volumes or slower connections increase transmission latency.

2. Propagation latency

This is the delay caused by the physical distance that data must travel. Even at the speed of light, sending data across the globe takes time. For example, a signal crossing the Atlantic Ocean via fibre-optic cables may incur noticeable delays in real-time communication.

3. Processing latency

Before a packet is forwarded to its destination, network devices (like routers, switches, and firewalls) need to inspect and process it. The more complex the network infrastructure—or the heavier the load on devices—the longer it takes.

4. Queuing latency

When a network device is overloaded, packets may have to wait in a queue before they are transmitted. This is common during periods of congestion and can lead to inconsistent performance or jitter during video calls.

5. Codec or encoding latency

In video streaming and conferencing, data must be compressed and decompressed. Video and audio codecs can introduce latency during encoding (on the sender's side) and decoding (on the receiver's side), especially if hardware acceleration is not used.

6. Application latency

Sometimes the delay originates at the software level—applications may take time to generate or process data before sending it. This often depends on how efficiently the application is coded and the responsiveness of the backend services.

How does latency impact businesses and users?

Latency isn't just a technical metric—it has real consequences for how people experience digital services and how businesses perform online. In a fast-paced world where responsiveness is expected, even small delays can snowball into big issues.

1. User experience

High latency degrades user satisfaction. Web pages load more slowly, cloud applications feel unresponsive, and video calls suffer from lag. In competitive industries, a sluggish experience can drive users to abandon a platform in seconds.

• For e-commerce, even a 100ms delay can reduce conversions.

• In SaaS products, latency leads to frustrated users and higher churn.

2. Real-time communication

In video conferencing and VoIP calls, latency over 150–200ms causes awkward pauses, echo, or people talking over each other. This disrupts natural conversation flow and damages team cohesion or client trust.

Low latency is critical for coaching, sales, interviews, and telehealth consultations. It affects how we interpret emotions, tone, and intent—especially in cross-cultural teams.

3. Remote collaboration

Latency impacts productivity in distributed teams. File-sharing delays, slow screen-sharing, or choppy meetings waste time and make remote work feel inefficient.

It disrupts “flow” in brainstorming sessions or live document co-creation. Inconsistent latency across users leads to miscommunication and frustration.

4. Financial and mission-critical systems

In sectors like finance or cybersecurity, low latency is essential. In high-frequency trading,  milliseconds determine profit or loss. In emergency services or healthcare, delays can risk lives.

• Traders, brokers, and banks invest heavily in reducing latency between data centres.

• Security systems require low-latency data streams for threat detection and incident response.

5. Brand reputation

In today’s digital-first world, your platform’s responsiveness is part of your brand. Apps or services known for being “slow” are less likely to be recommended or trusted.

Smooth experiences are shared. Laggy ones are remembered—for the wrong reasons.

What is bandwidth?

Bandwidth is the maximum rate at which data can be transmitted over a network connection within a specific period. Think of it as the width of a highway — the wider the highway, the more vehicles (data packets) can travel side by side.

Or imagine water flowing through a pipe. Bandwidth is the diameter of the pipe — a larger pipe can carry more water at once. However, how quickly the water arrives is a matter of latency, not bandwidth.

Technically, bandwidth is measured in bits per second (bps), with modern networks commonly using megabits (Mbps) or gigabits per second (Gbps). It refers to the volume of data that can be transferred, not how quickly it travels — that’s the role of latency.

Higher bandwidth allows more data to be transmitted at once, which is essential for activities like video conferencing, large file transfers, or streaming high-definition content. Conversely, low bandwidth limits how much data can move at a time, leading to buffering, delays, or degraded performance when too many users or devices are active.

It’s important to understand that bandwidth and latency are different: having high bandwidth does not reduce latency, but it ensures that the available data pipeline isn’t the limiting factor for performance.

Factors influencing bandwidth

Bandwidth isn't just about having a fast internet connection — several technical and environmental factors can influence how much bandwidth you actually experience.

1. Network infrastructure

The physical infrastructure — including routers, switches, cabling, and the type of internet service — plays a foundational role. Fibre-optic connections provide much higher bandwidth than traditional copper cables. Similarly, modern routers with advanced protocols support more efficient data flow.

2. Number of connected devices

Every device sharing a network draws from the available bandwidth. In a busy household or office with multiple users streaming, downloading, or making video calls simultaneously, bandwidth can be quickly divided, reducing the quality of service for each device.

3. Network congestion

Just like traffic on a road, too many users accessing the same network or service can cause congestion. This is especially common during peak hours or in shared environments like apartment buildings or co-working spaces.

4. Distance from the source

Bandwidth can degrade over distance. The farther your device is from the router or access point (in the case of Wi-Fi), the weaker the signal, resulting in lower effective bandwidth. The same goes for routing through long or inefficient paths on the internet.

5. Type of activity

Streaming HD video, downloading large files, or hosting a video conference uses significantly more bandwidth than simple web browsing or emailing. Applications with high data demands will require more consistent bandwidth availability.

6. Background applications

Often overlooked, background apps — like cloud sync services, updates, or video auto-play — can consume substantial bandwidth without the user’s awareness. Regular bandwidth monitoring helps prevent such hidden drains.

Importance of good bandwidth and impact of low bandwidth

Having sufficient bandwidth is essential for maintaining a high-quality digital experience, especially in real-time communication like video conferencing, online collaboration, and streaming.

Why good bandwidth matters

• Smooth communication: High bandwidth ensures clear audio and video quality with minimal buffering or compression artifacts. This is especially critical for virtual meetings and webinars where clarity affects professionalism and engagement.

• Multitasking support: Modern workflows often involve multiple cloud-based tools running in parallel. Adequate bandwidth allows for seamless multitasking without lag or delays in response time.

• Scalability for teams: As organisations grow or shift to hybrid and remote work models, higher bandwidth allows teams to scale their operations without compromising on performance.

What happens when bandwidth is low?

• Buffering and lag: Video streams pause, and audio becomes choppy, making real-time interaction difficult or frustrating.

• Dropped connections: Inconsistent bandwidth can cause calls or meetings to disconnect unexpectedly, impacting productivity and customer trust.

• Reduced quality: Applications may automatically lower the resolution of video or restrict background syncing features to cope with limited data flow, leading to a degraded user experience.

• Increased latency: Low bandwidth often correlates with higher latency, resulting in noticeable delays in communication, particularly in time-sensitive tasks like virtual support or live broadcasting.

By ensuring good bandwidth availability, businesses can create a stable digital environment that supports productivity, customer satisfaction, and long-term growth.

Bandwidth vs. latency: understanding the differences

Although both latency and bandwidth impact how data is transmitted over a network, they influence performance in very different ways. Latency refers to the delay before a data packet reaches its destination, while bandwidth measures how much data can be transferred at once. In video conferencing and other real-time applications, both play critical roles—low latency ensures timely interaction, and high bandwidth maintains video and audio quality.

Here’s a side-by-side comparison to clarify the differences:

Differentiating latency and bandwidth

Although often confused, latency and bandwidth refer to entirely different aspects of network performance. Understanding how they interact is essential for diagnosing communication issues and improving real-time user experiences such as video conferencing, online gaming, or live streaming.

Time vs. capacity

• Latency focuses on the delay—how long it takes for data to reach its destination. It directly impacts responsiveness, particularly in live video calls or collaborative tools where real-time interaction matters.

• Bandwidth, in contrast, measures the volume of data your network can transmit per second. It determines whether you can stream HD video, download large files quickly, or support multiple users on a call.

Impact on performance

• A network can have high bandwidth but poor latency, meaning you can move lots of data, but slowly. This may cause noticeable delays in voice or video synchronisation.

• On the other hand, low latency with insufficient bandwidth may allow fast response times but struggle with quality—resulting in pixelation, buffering, or dropped frames during video conferencing.

Troubleshooting tip

• If your video lags behind your voice, you’re likely dealing with high latency.

• If your video is blurry or keeps buffering, it’s probably a bandwidth issue.

Both need to be optimised together for high-quality, low-latency video conferencing—especially when using platforms like Digital Samba where stability and real-time performance are key.

Scenarios showcasing latency and bandwidth

Understanding how latency and bandwidth affect real-time communication becomes clearer when applied to practical scenarios. Here’s how each factor impacts common digital experiences:

Video conferencing quality

• Latency: High latency can cause delays in speech, awkward pauses, or people talking over one another. For example, a 300ms delay between a question and a response disrupts the flow of conversation and affects communication efficiency in virtual meetings.

• Bandwidth: Low bandwidth leads to video freezing, pixelation, or reduced resolution. Even with excellent latency, poor bandwidth can make meetings difficult to follow, especially in group calls or when screen sharing high-resolution visuals.

Online gaming

• Latency: In competitive gaming, latency—often referred to as "ping"—is critical. A delay of even 100ms can result in missed actions or slow responses, putting players at a disadvantage.

• Bandwidth: Although latency is more important for real-time inputs, adequate bandwidth ensures smooth gameplay with consistent frame rates and allows downloads, updates, or multiplayer communications to run concurrently.

Streaming and video playback

• Latency: For on-demand streaming (like Netflix), latency matters less because content is buffered. However, in live streaming, latency determines how "live" your stream is. Low latency ensures real-time audience interaction.

• Bandwidth: Higher bandwidth enables higher resolution (e.g. 4K) without buffering. Low bandwidth will automatically reduce quality or cause long loading times.

Remote work and cloud tools

• Latency: Tools like Google Docs, cloud-based CRMs, or remote desktops depend on low latency for real-time syncing and responsiveness.

• Bandwidth: When multiple team members join video meetings, transfer large files, or access shared drives simultaneously, adequate bandwidth is required to maintain a consistent experience.

To deliver consistent performance in these use cases, businesses often prioritise low latency video conferencing tools like Digital Samba, which are optimised for speed, clarity, and minimal disruption.

Balancing latency and bandwidth for optimal performance

To ensure smooth, high-quality communication—especially in real-time video conferencing—organisations must strike a careful balance between latency and bandwidth. Optimising one without the other often leads to bottlenecks, poor user experience, or degraded service.

Latency optimisation strategies

1. Reduce physical distance
   Use Content Delivery Networks (CDNs) and geo-located servers to shorten the route data travels between users and servers.

2. Streamline routing paths
   Implement intelligent routing protocols to minimise the number of hops and avoid congested or unreliable paths.

3. Minimise processing delays
   Optimise routers, switches, and endpoints to reduce device-level delays that add up during transmission.

4. Adopt low-latency codecs
   Use efficient audio/video codecs that are designed for minimal processing delay—essential for low latency video conferencing.

Bandwidth optimisation strategies

1. Upgrade infrastructure capacity
   Ensure your internet plan and hardware (like routers or fibre optics) support high-throughput demands.

2. Use traffic prioritisation (QoS)
   Configure Quality of Service rules to prioritise real-time traffic (like voice and video) over non-urgent background tasks.

3. Implement data compression
   Compress files and streams to use less bandwidth without compromising quality.

4. Monitor usage trends
   Regularly audit network performance to spot bottlenecks or peak usage times and adjust resources accordingly.

Why both matter

• A high-bandwidth connection with poor latency will still feel sluggish—think of a wide road with speed bumps.

• A low-latency connection with insufficient bandwidth will result in buffering, dropped frames, or grainy resolution.

Together, low latency and sufficient bandwidth deliver the responsiveness and clarity that today’s businesses expect from modern video platforms.

Achieve better real-time communication quality with the Digital Samba

When milliseconds matter, the right video infrastructure makes all the difference. Digital Samba is engineered for low latency and high throughput, giving businesses a reliable foundation for real-time communication—whether you're hosting webinars, virtual classrooms, or embedded video calls.

Here’s how Digital Samba helps you maintain a smooth, high-quality experience:

• Ultra-low latency performance
  Built on WebRTC and optimised for real-time transmission, Digital Samba minimises video and audio delay for natural, responsive interaction.

• Smart bandwidth management
  Our platform automatically adapts to varying network conditions, balancing resolution and stability across participants to avoid jitter and buffering.

• Hosted in the EU with GDPR compliance
  All infrastructure is EU-based, ensuring data residency and privacy compliance without compromising performance.

• Customisable API and SDK
  Integrate video directly into your applications with full control over features, layout, and performance settings—ideal for scaling complex workflows.

• Encrypted by default
  End-to-end encryption and secure signalling protect every meeting, ensuring your conversations stay confidential.

Whether you're building for healthcare, education, finance, or internal collaboration, Digital Samba delivers real-time video that’s dependable, secure, and scalable.

👉 Request a demo to see how we help you optimise latency, bandwidth, and beyond.

FAQs

1. What’s considered a good latency for video calls?

Ideally, latency should be under 150 milliseconds for smooth, uninterrupted video calls. If it’s below 100ms, you’ll barely notice any delay at all—it’ll feel like you're talking in person.

2. Can more bandwidth fix high latency?

Not always. Bandwidth is about how much data your network can handle at once, while latency is about how fast it gets there. So, even with fast internet, delays can still happen if the route is congested or the servers are far away.

3. Why is my video lagging if my internet speed is high?

Lag isn’t just about speed—it’s often caused by high latency, unstable connections, or Wi-Fi interference. Things like a busy router or too much distance from the server can slow down real-time communication.

4. What usually causes high latency in video calls?

Long routing paths, crowded networks, and slow devices are common culprits. Using Ethernet instead of Wi-Fi and choosing a platform that’s built for low latency, like Digital Samba, can really help.

5. Is latency the same as buffering?

No, they’re different. Latency is the delay between when you say something and when others hear it. Buffering is what happens when your device is waiting to download enough data to play smoothly—usually a sign of low bandwidth.

6. Can I improve latency without upgrading my internet?

Yes! You can lower latency by switching to a wired connection, limiting background traffic, placing your router strategically, and using a video platform designed for real-time performance.

When you understand how latency and bandwidth work, you can fine-tune your setup for crystal-clear video and responsive conversations. With Digital Samba, you're covered on both fronts—no lag, no compromise.