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Singlemode fiber has a lower power loss characteristic than multimode fiber, which means light can travel longer distances through it than it can through multimode fiber. Not surprising, the optics required to drive singlemode fiber are more expensive.

When to use each: Both singlemode and modern multimode fiber can handle 10G speeds. The most important thing to consider is the distance requirement. Within a data center, it's typical to use multimode which can get you 300-400 meters. If you have very long runs or are connecting over longer distance, single mode can get you 10km, 40km, 80km, and even farther - you just need to use the appropriate optic for the distance required, and again, the prices go up accordingly.

Compatibility issues: They are not compatible. You cannot mix multimode and singlemode fiber between two endpoints. The optics are not compatible either.

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Q: Can you use multimode SFP in place of single mode SFP?
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