The direct answer to whether this action reduces internet speed is yes, it typically does. By dividing a single optical signal from a central Optical Line Terminal (OLT) into multiple outputs for Optical Network Terminals (ONTs) at users' homes, splitters eliminate the need for dedicated fibers to each residence—slashing infrastructure costs while scaling network reach. A key component enabling this efficiency is the optical splitter, which divides the optical signal to serve multiple endpoints. Conversely, it can also combine multiple signals into one.