Mbps is an abbreviation for megabits per second. It refers to data transfer speeds as measured in megabits.

A bit is a digit of data, either a 0, or a 1. A string of eight bits equals one byte. Any character formed, such as a letter of the alphabet, a number or a punctuation mark, requires eight binary bits to describe it, or one byte of data. For example:

• A = 01000001
• B = 01000010
• a = 01100001
• b = 01100010
• 6 = 00110110
• 7 = 00110111
• ! = 00100001
• @ = 01000000

A megabit (mb) actually has two different values depending on what the term is being used to describe. When used to describe data storage, a megabit (mb) is the equivalent of 2²⁰ or 1,048,576 bits. However, when used to describe data transfer rates, one mb equals 1,000,000 bits. Therefore:

1 mbps (megabit per second) = 1,000,000 bits per second

In addition to the confusion over the value of a megabit (mb), there is also confusion between the megabit (mb) and the megabyte (MB). As noted earlier one byte (B) is comprised of 8 bits (b). So, one megabyte (MB), when used to describe data storage equals 2²⁰ or 1,048,576 bytes. When used to explain data transfer rates, one megabyte (MB) is 1,000,000 bytes (B), or 8,000,000 bits (b). Therefore:

1 MBps (megabyte per second) = 8 mbps (megabits per second)

Some equivalents worthy of note related to the equation directly above: megabytes per second can be expressed as MBps as well as MB/sec. Additionally, 1 MBps and 8 mbps can also be represented as 8 million bits per second or 1 million bytes per second.

Networking technologies are commonly rated in mbps. This includes home power-line networks, phone-line networks, wireless models and commercial or public networks like the Internet. Connectivity to the Internet by companies that sell DSL service often advertise data transfer speeds in terms of mbps, though some also use a (kilobits per second). Wireless firewall routers and NICs (Network Interface Cards) are just two of the many hardware devices generally rated in mbps.

When purchasing equipment, be sure to compare speeds properly between components to ensure you are getting the expected value. It is also important to buy components that support equal speeds, as the slowest component will present a bottleneck. For example, if a wireless router can support speeds up to 54 mbps, upgrading to NIC that supports up to 108 mbps will be largely fruitless without upgrading the router as well. With technology advancing quickly, it is usually wisest to buy the fastest devices the budget will allow for maximum future-proofing.