Other answers are close to dead on. Just to add a bit.
In addition to either knowingly (or unknowingly) misinforming you, he is also mixing up MB (GB) with Mb (Gb). Big "B" in either MB or GB means byte or 8 bits. Little "b" in Mb or Gb means bit (1 bit). Two very different things. So 1 GB/s is way faster than 1Gb/s. When someone refers to a Gigabit ethernet router or NIC card, they are talking about Ethernet at 1 Gb/s. When some is referring to USB 2.0 speeds, they are talking about 480 Mb/s.
The internet backbone is generally comprised of Sonet rings in most countries:
T-1 - 1.544 megabits per second (24 DS0 lines) Ave. cost $250.-$500./mo.
T-3 - 43.232 megabits per second (28 T-1s) Ave. cost $4,000.-$16,000./mo.
Sonet OC-3 - 155 megabits per second (100 T-1s) Ave. cost $20,000.-$45,000./mo.
Sonet OC-12 - 622 megabits per second (4 OC3s) no estimated price available
Sonet OC-48 - 2.5 gigabits per seconds (4 OC12s) no estimated price available
Sonet OC-192 - 9.6 gigabits per second (4 OC48s) no estimated price available
So OC-192 is roughly the speed your buddy is referring to (assuming he meant little b, not big B since that would be faster than even an OC-192 backbone ring). These are core internet speeds. The access clouds or "edge" of the internet (e.g. home access in city highrises, subdivisions, etc.) is typically some form of DSL or cable modem. Those speeds are normally on the order of 10 Mb/s and under on the downlink (download) and 1-2 Mb/s on the uplink (you can get better if you pay more, but those are general numbers).