Hidden costs in leased line pricing are often overlooked, yet UK businesses can pay up to 40% more than the advertised price once these hidden charges are factored in. A 1 Gb leased line in London may appear to cost £395–£495/month, but setup and ECCs can add thousands more.
Connect2 reports 85% of quotes include unlisted ECCs, averaging £1,000–£10,000, especially in rural or industrial zones. If you’re budgeting only for monthly fees, you’re missing a huge part of the picture. This guide exposes the full cost of ownership and the hidden costs in leased line pricing.
What’s Included in Monthly Leased Line Prices?
Most leased line providers quote monthly costs that include:
- Dedicated bandwidth (e.g. 100Mb, 1Gb, 10Gb, or 100Gb)
- Symmetrical upload/download speeds
- 24/7 support and monitoring
- A fixed IP address
But the real total cost of ownership (TCO) goes well beyond these standard inclusions and introduces hidden costs in leased line pricing you may not expect.
Setup and Installation Costs
What You’ll Really Pay to Get Connected
Setup costs can be a shock. Even with “free installation” deals, this usually applies only to 36-month contracts or select locations. Elsewhere, expect charges between £500 and £3,000 depending on infrastructure availability.
Excess Construction Charges (ECCs)
If your premises lack existing fibre, ECCs can expand your upfront costs. This includes digging, laying fibre, or getting landlord permission. ECCs typically range from £1,000 to £7,000, but we’ve seen them exceed £20,000 in remote areas.
Site Surveys and Planning Fees
Before installation, most providers conduct a site survey. Some include it free, but others charge £200–£500—especially in rural or restricted access locations. Always confirm whether this fee is included.
SLA Premiums and Reliability Add-ons
SLA Tiers: What’s the Real Difference?
An SLA defines uptime, fix times, and compensation terms. Basic SLAs may promise 24-hour fixes and 99.9% uptime, but higher tiers can significantly improve reliability for mission-critical operations.
Enhanced SLA benefits include:
- Fix times under 4 hours
- 99.99% uptime (less than 1 hour/year downtime)
- Guaranteed compensation for outages
Typical cost: Advanced SLAs can add £50–£200+ per month depending on your bandwidth and contract length.
Backup Lines and Failover Solutions
Failover keeps your business running during outages. Providers may offer:
- 4G/5G failover lines
- Secondary fibre/broadband lines
- Dual-WAN routers
Added cost: £30–£150/month, plus £250–£800 for hardware/configuration if not bundled.
Hardware and Equipment Costs
Routers and Firewalls
Providers may bundle a managed router, but often you’ll need to supply enterprise-grade hardware. Expect:
- £200–£2,000 for routers
- Extra for managed firewalls and security features
Installation of On-Site Equipment
Beyond purchase costs, setup may add £300–£800 in labour fees unless bundled. Always confirm if installation is included in your quote.
Early Termination Fees
The True Cost of Exiting Early
Most leased line contracts last 36 months. Terminating early usually means paying the full remaining balance. Example: Exiting a £500/month contract with 12 months left could cost £6,000.
Equipment Return or Buyout
Leased equipment often needs returning, sometimes at your cost. If you’re on a rent-to-own model, a final buyout payment may apply—often unlisted in initial quotes.
Rural vs Urban Pricing Disparities
Geography Impacts Your Final Bill
Urban centres like London, Manchester, and Birmingham enjoy better fibre infrastructure and more competition, keeping costs down.
Rural zones face up to 22% higher pricing due to:
- Long cable runs
- Higher ECCs
- Fewer provider choices
Remote businesses should plan for higher surveys, longer installs, and limited bundles.
Contract Terms That Impact Total Cost
Longer Contracts: Savings or Lock-in?
36–60 month terms often lower monthly costs and waive setup fees—but reduce flexibility. If tech needs change, you may be stuck paying to upgrade or exit.
Price Review Clauses
Contracts often allow annual increases tied to inflation (RPI/CPI). Over 3+ years, this can inflate costs by 5–15%. Review this clause before signing.
How to Minimise Hidden Costs
Request a Fully Itemised Quote
Insist on a line-by-line quote covering:
- Setup fees
- Hardware
- ECCs
- SLA tier
- Termination terms
Transparency upfront saves money later.
Get a Site Survey Early
Paying for an independent site survey helps you uncover ECCs and routing issues before committing. This avoids shock charges later in the process.
Negotiate SLA Bundles
Providers may be willing to upgrade SLAs or offer free backup lines if you sign longer contracts or bundle multiple services.
Work With a Leased Line Broker
Brokers compare offers from multiple providers, highlight hidden charges, and can secure better deals on your behalf—especially helpful in rural areas.
Final Thoughts: Don’t Let Hidden Costs Derail Your Budget
Hidden costs in leased line pricing can derail even the most well-planned IT budgets. Leased lines offer unbeatable speed and reliability—but not at face value. To avoid budget overruns, factor in installation, SLA premiums, hardware, and contract penalties.
Understanding the hidden costs in leased line pricing helps you plan better, save more, and ensure uninterrupted connectivity.
Speak to a Connectivity Consultant Today
Looking to install a leased line or switch providers? Contact Connect2 to get a transparent, no-obligation quote tailored to your location and needs.
