This type of cable is often used in structured cabling for computer networks such as Ethernet, and is also used to carry many other signals such as basic voice services, token ring, and ATM (at up to 155 Mbit/s, over short distances).

Cat 5 wiring includes four twisted pairs in a single cable jacket. This use of balanced lines helps preserve a high signal-to-noise ratio despite interference from both external sources and other pairs (this latter form of interference is called crosstalk). It is most commonly used for 100 Mbit/s networks, such as 100BASE-TX Ethernet, although IEEE 802.3ab defines standards for 1000BASE-T - Gigabit Ethernet over Cat 5 wiring. Cat 5 wiring typically has three twists per inch of each twisted pair of 24 gauge copper wires within the cable.