Single-mode optical fiber carries a single ray of light, usually emitted from a laser. Because the laser light is uni-directional and travels down the center of the fiber, this type of fiber can transmit optical pulses for very long distances.
Multimode fiber typically uses LED emitters that do not create a single coherent light wave. Instead, light from an LED enters the multimode fiber at different angles. Because light entering the fiber at different angles takes different amounts of time to travel down the fiber, long fiber runs may result in the pulses becoming blurred on reception at the receiving end. This effect, known as modal dispersion, limits the length of multimode fiber segments.
Multimode fiber, and the LED light source used with it, are cheaper than single-mode fiber and its laser-based emitter technology.