Understanding Leased Line Costs: What You Need to Know

In the world of business, having a reliable and fast internet connection is crucial. One option for businesses looking for a dedicated, high-speed connection is a leased line. Leased lines provide a direct connection between two points, typically a business and an internet service provider (ISP). 

While the benefits of leased lines are clear, the costs can be confusing. In this post, we’ll provide an overview of leased line costs and what factors can impact them.

Definition of a Leased Line

A leased line is a dedicated, symmetric data connection between two points. This means that the connection provides the same upload and download speeds, making it ideal for businesses that need to upload large files or run bandwidth-intensive applications. Your business will have a faster, more reliable, and more secure solution.

Overview of Leased Line Costs

The cost of a leased line can vary depending on a variety of factors, including the distance between the two points, the required bandwidth, the installation costs, and ongoing maintenance fees. To get a better understanding of leased line costs, let’s explore the two most common types of leased lines: 100Mb leased lines and 1Gb leased lines.

Types of Leased Lines

1) 100Mb Leased Line:

 A 100Mb leased line is a dedicated, symmetric data connection with a bandwidth of 100Mbps. This type of leased line is ideal for small to medium-sized businesses that require reliable and fast internet connectivity. The cost of a 100Mb leased line can vary depending on the distance between the two points and the required bandwidth, but typically ranges from £200-£300 per month.

2) 1Gb Leased Line:

 A 1Gb leased line is a dedicated, symmetric data connection with a bandwidth of 1Gbps. This type of leased line is ideal for large businesses or organizations that require a high-speed connection for mission-critical applications. The cost of a 1Gb leased line can vary depending on the distance between the two points and the required bandwidth, but typically ranges from £300-£400 per month.

3) 10Gb Leased Line:

10Gb leased lines are the pinnacle in the world of connectivity at this moment in time. Once, just a dream to imgine this sort of speed but it’s now not just a reality but an affordable one. This type of service only used to be available to the worlds largest businesses but with prices not starting from around £750 per month in some built up areas, no wonder this speed is gathering a wider audience.

Factors that impact Leased Line Costs:

1) Distance:

The distance between the two points is one of the biggest factors that can impact leased line costs. The further apart the two points, the more expensive the leased line will be. This is because the ISP will need to install additional infrastructure to ensure the connection remains reliable over long distances.

2) Bandwidth:

 The required bandwidth is another factor that can impact leased line costs. The more bandwidth a business requires, the more expensive the leased line will be. This is because the leased line providers will need to provide additional infrastructure to handle the increased traffic.

3) Installation:

 The installation costs of a leased line can also impact the overall cost. Depending on the location and infrastructure available, the installation costs can vary significantly. In some cases, additional infrastructure may need to be installed, which can add to the overall cost.

4) Maintenance:

Ongoing maintenance fees can also impact leased line costs. While leased lines are generally very reliable, they still require ongoing maintenance to ensure they remain operational. The cost of maintenance will vary depending on the service level agreement (SLA) between the business and the ISP.

Benefits of Leased Lines:

1) Reliability

One of the biggest benefits of leased lines is their reliability. Because the connection is dedicated and not shared with other users, businesses can expect consistent and reliable speeds. This makes leased lines ideal for businesses that rely on their internet connection for mission-critical applications.

2) Security

Leased lines also provide a high level of security. Because the connection is dedicated and not shared with other users, businesses can be sure that their data is secure. Leased lines are also typically encrypted, providing an additional layer of security.

3) Increased Bandwidth

One of the primary advantages of leased lines is that they offer dedicated bandwidth, which is not shared with any other users. This ensures that businesses can enjoy a fast and stable connection, with guaranteed speeds that are not affected by external factors such as peak usage periods or network congestion.

Leased lines are ideal for businesses that need to transfer large amounts of data regularly, such as those involved in media production, scientific research, or financial services.

4) Scalability

Leased lines can be easily scaled up or down to meet the changing needs of a business. This means that businesses can increase their bandwidth as they grow or add new locations, without the need for costly infrastructure upgrades.

5) Cost-effectiveness

Although leased lines are generally more expensive than traditional broadband connections, they can offer significant cost savings in the long run. For example, by eliminating the need for a dedicated IT team to manage their network, businesses can save on staffing costs.

In addition, leased lines can also provide cost savings by reducing the need for hardware upgrades, as the service provider will typically handle all maintenance and upgrades.

6) Improved Quality of Service

Leased lines offer a guaranteed Quality of Service (QoS), which ensures that businesses can rely on consistent network performance. This is particularly important for businesses that rely on real-time applications, such as video conferencing or Voice over Internet Protocol (VoIP) systems.

Conclusion

In conclusion, leased lines are an essential tool for modern businesses, offering increased bandwidth, reliability, security, scalability, cost-effectiveness, and improved Quality of Service. By investing in a leased line, businesses can enjoy a fast, stable, and secure connection that meets their changing needs, both now and in the future.

Here at Connect2, we can help you figure out the requirements for your particular business and give you estimates on what your leased line costs would be. Let our experts help you find the optimum solution. Get in touch! Great pricing? It’s just the beginning!