If an internet provider can only provide a 50Mbps stream of data, why do I need a Gbps modem or router?

[marcus]

[Kenneth]

Because gigabit ethernet and wireless are just the new technology today.

Internet speeds always lag behind local network speeds.

[Sean]

If you're transferring things between computers on a network, it will enable super-fast transfers.

It doesn't make a difference internet-wise, though.

[Ari]

Good question, a simple answer will be because those provider could not provide tailor made modem or router as per our need. They got standard which is supposed to meet most of the users and cost wise it is cheaper.

Also the internet provider got to move along with new technology to beat their competitors in the market.

[CLD]

Gigabit networking will help if you're generating large amount of traffic from only within your local network (i.e. large file sharing, network booting over PXE, streaming media, etc).