You're all using the same equipment, regardless of the tier you sign up for. The firmware in your modem or their router limits the maximum packet rate, but individual packets and small groups of packets are always traveling at gigabit speeds, regardless of the speed cap.
That difference in latency isn't even what matters; it's the latency from the various types of modems. With the direct connection of fiber providers, you can often get sub-millisecond latency from nearby collocations, and rarely do ISPs have more than a few milliseconds of latency.
With cable providers, DOCSIS adds ten to twenty milliseconds of latency. You'll get about double that latency With LTE providers and low-eath-orbit satellite providers that have nearby ground stations. With geosynchronous satellite providers, you'll get several hundred milliseconds of latencu.
A 50 Mbps fiber plan will get an order of magnitude lower latency than a gigabit plan from anyone else.
> With cable providers, DOCSIS adds ten to twenty milliseconds of latency
Are you sure? I'm on cable (Xfinity) and ping to 1.1 is varies from 11 to 13 ms, and I see as low as 7.2 ms to some random Xfinity thing that is not at my home but on their network.
I've got an ancient DOCSIS modem, a Motorola MB7621, and my understanding is that newer modems have lower latency than mine.
This is called being “confidently incorrect”. As mentioned above, I have those millisecond-class pings at 200x faster than that piddling 50Mbit pipe (for $60/month). There’s no imaginable advantage to getting a slower, more expensive connection.
Everyone from your fiber provider is getting fiber-class latency, regardless of the plan's max speed. The fiber ISP in my area uses 10 gig ONTs for everyone, and limits each plan's speed with PPPoE. This is pretty common, and likely yours is doing the same.
On the other hand, everyone using the cable provider in my area, whether on their fastest or slowest plan, is getting the same tens of milliseconds of DOCSIS 3.1 latency, on a node that has tens to hundreds of gigabits of bandwidth but is using TDMA and FDMA to share it between a few hundred users.
My point is that the lowest-tier subscriber from your fiber ISP is getting magnitudes lower latency than the top-tier subscriber from my cable ISP. If either of the switch plans, but don't switch ISPs, they'll have the same latency.
That difference in latency isn't even what matters; it's the latency from the various types of modems. With the direct connection of fiber providers, you can often get sub-millisecond latency from nearby collocations, and rarely do ISPs have more than a few milliseconds of latency.
With cable providers, DOCSIS adds ten to twenty milliseconds of latency. You'll get about double that latency With LTE providers and low-eath-orbit satellite providers that have nearby ground stations. With geosynchronous satellite providers, you'll get several hundred milliseconds of latencu.
A 50 Mbps fiber plan will get an order of magnitude lower latency than a gigabit plan from anyone else.