Leased lines are basically composed of some components. These are the router and the local loop circuit. The router is typically handled by a service provider and installed into the computer room on the customer’s premises. The local loop circuit is provided by several carriers. It is linking the router into the POP (local point of presence) of the service providers.
NTE or network termination equipment will be attached into the wall in the comms room. Then, it will be connected to the copper or fibre optic local loop circuit. If fibre is unavailable, copper is used at lower costs, without a difference in the quality or speed of the circuit. Depending on the location, the back haul circuit can be utilized in linking the customer to the POP of the service provider and into the internet gateway.
To give you a better idea, there is also a virtual leased line. This is the apparent leased line of point-to-point Ethernet which makes use of pseudo-wire encapsulation in order to transport Ethernet traffic across the MPLS tunnel passing through the MPLS network core. People are often wondering why they cannot just go for the real POP leased line networking and avoid a virtual leased line. The truth is that they can. However, there are some reasons why it is necessary to get into a more typical topology network wherein the leased lines are passing through the data centers of the provider. These reasons are the following;
- WAN Scalability – to increase the WAN sites, it will be easier if every site is already connected into one network which is the single network of the leased line provider.
- Internet Access – the provider may put extra services like SIP telephony and internet access onto the leased line
- Fault visibility – the provider of the leased line sees whether the line is down or up rather than simply waiting for any information about it or spotting downtime.
- Various speeds for various websites – the speed of connection at every website is dependent. The POP links, the speed of both sites has to be equal.
The major providers of leased lines are setting up POP’s in many locations. Then, they are going to link them with the use of ultra high capacity circuits. The circuits are usually expensive; however, they are of great value. In some cases, the providers are taking advantage of such conditions in order to reduce the costs slightly. They make use of the cheap and ultra high capacity circuits for carrying the data. They are going to set up the virtual leased lines rather than the big, fat capacity circuits.
The providers may rent short circuits that are cheaper from the supplier. As a result, many savings have been passed on. They are also using MPLS to assure that the virtual leased lines would perform just like the dedicated circuits. It gives the first bandwidth refusal that you had signed up for. And one easy way to determine the cost of a leased line, you can use our instant leased line quote tool.