Leased Line Prices
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Content: 8 Minute Read
Getting your quote is only part of the equation. Your internet connection is critical to your business. We provide a comprehensive range of leased line solutions that can be tailored to fit your exact business needs.
We also provide a premium 100% availability service level agreement to reinforce our service offering and to ensure you receive the best pricing available, we operate a price promise guarantee!
This guarantees that we will not only match any quotes that you get from any UK leased line providers but we will also beat it for you! A first in our industry.
How Do We Calculate Leased Line Prices?
“Leased line prices over the last few years have dropped a long way from where they first started. Higher take up means lower prices overall.”
The telecoms market finally got opened up to competitors to BT’s dominance in 1981 thanks to the government. The competition initially came from Mercury Communications, a subsidiary of Cable & Wireless and has grown from there.
1984 saw more changes as BT was privatised. OFTEL was also created with the main aim of ensuring fair trading between the competition and BT. Unfortunately, OFTEL ended up getting a bit of a bad name in the early days due to the fact that businesses though that they were too lenient with BT.
A few of the reasons for this was the slow roll out of ADSL as this was classed as having a negative effect on BT’s ever growing ISDN service, plus LLU (Local Loop Unbundling) which could have caused huge issues for BT’s monopoly on ADSL provision and line rental.
It took OFTEL 17 years before deciding to make BT offer leased lines on a wholesale basis! BT leased line pricing from that point on was never the same. The competition were now in business being able to market, sell, provision and bill leased lines in the UK themselves.
We work with all UK carriers to offer a price promise guarantee on your leased line costs. If you find a cheaper “like for like” quotation for the exact same product, simply let us know and we will beat it for you.
“2021 was the best year for reduced leased line prices. Demand for bandwidth has risen but prices continue to fall but it won’t last!”
This is the perception but in some instances prices have actually gone up. The overall pattern is that over the years, Ethernet costs have definitely gone down. Will it stay this way? It’s not looking likely. The first price increases have started April 2022.
With ISDN and all traditional copper lines including broadband connections being switched off by 2025, the need for business bandwidth will increase as hosted voice will become the “go to” replacement and to run that well, you need a dedicated connection.
Carriers are well aware of this and it may cause an extra increase in pricing simply due to the increased need, but even if they do, you can be safe in the knowledge that we will still offer the best prices in the UK.
Renewal pricing is another area of despair at the moment. Once your leased line is installed (which can take up to 3 months) and your 3 year term is up, you would expect prices to come down, but at the moment the market has hit a period of high renewal quotes.
The easiest option is to keep your line in place purely because of the time it would take to replace it but it certainly seems it’s worth shopping around now so you can save money. In some cases, an awful lot of money.
As we are carrier independent, we can do this for you always guaranteeing you the best costs. Generally though, as internet transit costs have fallen, such as the overall improvements in optical networking, we are seeing that leased line pricing is dropping as a result.
It can also reduce the costs of the data flowing over these connections. The majority of leased lines are used for accessing the internet.
The demand for internet transit has gone through the roof in recent times with people going on the internet, they then order a higher speed connection so they can stream music and watch films online as an example.
“Competition will, as always continue. This can only be good for any businesses in the market for a leased line as prices will be drastically reduced by companies like ourselves.”
Due to the rise in demand (initially from consumers), the knock on effect is one of a decline in pricing overall, making leased line connectivity a lot more affordable.
In this day and age we would rather pay more and have more bandwidth. It seems you can never have enough! The overall feeling is that for the next few years at least, prices should continue to fall for new connections with us.
Optical networking technology is improving all the time, network equipment will continue to become more advanced and as a result costs will fall.
You can go direct to comapnies such as BT Business and Virgin, paying a lot more and getting the exact same line as you would from us, but with us you have a whole lot more money in your pocket!
The demand for bandwidth will continue to grow year on year. Here’s hoping the carriers don’t get greedy around 2025 as a result of the copper switch off. If they don’t then prices will continue to fall which is good news for all of us!
“The rise in competition means that 2022 is a great time to be in the market for a leased line but location plays a big role in prices.”
There are a number of different factors taken into consideration to determine how much you can expect to pay for your own dedicated connection.
Prices can range from a few hundred pounds to a few thousand depending on your requirements.
Historically, prices of leased lines have fallen year on year. What was once only available to large corporates, leased lines are now accessible to all businesses.
Added to the fact that by 2025 ISDN lines will cease to exist, demand for leased lines is increasing as all businesses that currently don’t use VoIP (Voice over Internet Protocol) will have no choice but to switch over to it.
For VoIP to run seamlessly, you will need to ensure you have the capacity to integrate it without sacrificing the bandwidth you currently have.
Below, we will now outline the five key areas that have an effect on a quotation plus a summary.
“Leased line prices are usually a fixed monthly rate. This monthly rate is determined by the speed of the symmetric connection and the distance of the fibre line.”
Leased line contracts term come with 3 options. 1 year term, 3 year term and 5 year term. A 1 year term comes with an install cost, a 3 year and 5 year term offer free installs (subject to a site survey).
A 3 year term is the most popular as it offers the most value because install costs are around the £2,000 mark for a 1 year term and a 5 year term is simply too long.
There are also two different types of pricing band – “on-net” and “off-net”. On-net, as the name suggests means you are in a good location and there should be no issue with installation of your line. It also offers the lowest prices.
If you are in a rural location then this is most likely off-net where the costs will be slightly higher as there will potentially be more work required to get the line installed.
Lastly, your pricing can be affected by excess construction charges which is additional work that needs carrying out to deliver your service. For peace of mind we cover you from £2800.00 right up to £10,000 depending on the carrier available in your area.
Our Price Promise Guarantee!
Not only do we work with every single top tier provider in the UK, We also offer a price promise guarantee on all our quotes for all our products. If you find a cheaper quote elsewhere, simply let us know.
If it’s a “like for like” proposal, not only do we price match but we will beat it for you! Simply ask for more details. You now get all the benefits of being on the best networks in the UK at a fraction of the costs compared to going direct!
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