Finding the best internet connectivity option for your business can be overwhelming. Broadband vs leased lines – both appear to be great options but they are different in many ways. The best choice for your business will depend on your unique needs such as budget, bandwidth required, reliability needed and so on.
In this article, you will find out the similarities and differences between leased lines and broadband in terms of speed, reliability, contention, SLAs and much more.
Similarities between leased line and broadband
Let’s start with the differences between a leased line and broadband first.
1. The technology
Broadband connections involve a shared infrastructure. The internet service provider (ISP) connects to a cabinet located near your site which then distributes the connection to multiple premises via copper or fibre optic cables. This shared distribution method is known as contention, meaning multiple users share the same bandwidth.
In contrast, a leased line provides dedicated and unshared connectivity directly from the ISP to your business site. This point-to-point connection ensures that the bandwidth is exclusively available to your business, resulting in consistent and high-speed internet access. It is critical for operations requiring reliable and stable internet connection like VoIP, video conferencing and cloud computing.
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2. Speed
Speed is another big difference between internet leased line vs broadband. In the UK, most leased line providers offer lightning speeds up to 10Gbps but broadband? Well, the fastest speeds they offer are far less and range typically from 500Mbps to 1Gbps.
| Broadband internet type | Speed in Mbps |
|---|---|
|
Standard broadband (ADSL) |
10-15 |
|
Superfast broadband (fibre-optic + copper) |
30-300 |
|
Ultrafast broadband (full-fibre-optic) |
300-1000 |
One reason for this is that a broadband connection is served on a shared line so the bandwidth is consumed by each user along the line, resulting in you only getting a portion of the whole bandwidth.
The other reason is that most leased lines operate on fire optic cables. This technology uses light signals to transfer data which is a lot quicker than copper wires used in typical broadband cables. Many broadband connections have fibre optic lines as well, though.
3. Symmetrical connections
Leased lines offer symmetrical connections, meaning the download and upload speeds are equal. But broadband connections are typically asymmetrical with higher download speeds. For instance, a broadband plan advertised with a 50Mbps speed might only offer a 20Mbps upload speed.
This asymmetry is designed, however, to cater to typical consumer behaviour where downloading activities like streaming videos or browsing the internet is more common than uploading large files but that is different in business operations which rely on uploading large amounts of data and running cloud-based applications.
In that case, symmetrical speeds of leased lines come into play. They allow the execution of critical activities like video conferencing with global clients and taking real-time data backups. This eliminates bottlenecks and ensures businesses can maintain high productivity and efficient communication.
4. Installation time
Broadband connections generally have shorter installation times because they leverage existing infrastructure. Most broadband services utilise the local telephone network or existing fibre-to-fibre cabinet (FTTC) systems. The ISP simply needs to connect the business’s premises to the nearest cabinet and configure the service, which usually takes a few days (2-7).
In contrast, leased lines are dedicated lines that require a more complex installation process. This can involve digging trenches, laying fibre optic cables and securing necessary permits, which are all time-consuming tasks. Additionally, the following tasks can make the process stretch to 45-85 days or even more:
- Site surveys and planning.
- Permissions from local authorities e.g. to dig the road, etc.
- Testing and configuration.
6. Service level agreements (SLAs)
Leased lines come with comprehensive SLAs that guarantee a high level of service quality and reliability. These SLAs typically include commitments to metrics like uptime, latency and repair times. Any issue that occurs with your leased line is generally fixed within 4-6 hours generally. There are regular checks and monitoring as well.
This is not the case with broadband. In fact, most of the time, it will be you who will spot the issue and report it to your ISP before it gets resolved. Have a look at the table below to understand the significance of SLAs more clearly.
| SLA | Downtime/year | Downtime/month | Downtime/day |
|---|---|---|---|
|
99% |
3.6 days |
7.3 hours |
14.4 minutes |
|
99.9% |
8.8 hours |
43.8 minutes |
1.4 minutes |
|
99.99% |
52.6 minutes |
4.4 minutes |
8.6 seconds |
|
99.999% |
5.3 minutes |
26.3 seconds |
864 milliseconds |
Broadband connections generally do not come with the same level of SLAs. While some providers might offer basic SLAs, they’re typically less stringent and do not provide the same guarantees as those for leased lines.
7. Quality of the internet
Another leased line vs broadband difference is the quality of the internet. Leased lines provide superior internet quality. Several factors contribute to this:
- The upload and download speeds are the same which is crucial for tasks that involve heavy data transfer in both directions.
- The connection is uncontented which guarantees consistent bandwidth without fluctuations in peak hours.
- They have lower latency, thanks to the high-quality optic fibre cables installed.
- They offer consistent internet connectivity with minimal jitters which ensures the data packets arrive in a smooth and orderly manner.
Broadband internet, on the other hand, can have inconsistent speeds, particularly during peak hours when many users are online simultaneously.
8. Reliability
Leased lines are renowned for their superior reliability, largely due to the use of fibre optic cables and SLAs. Unlike copper wiring which is used in typical broadband connections like ADSL and FTTC, fibre optics are immune to electromagnetic interference, ensuring a reliable and stable connection. This makes leased lines highly dependable for data-intensive businesses.
Broadband connections are also shared which means the reliability can vary depending on the number of users and the overall network load. The lack of SLAs can increase the downtime by large amounts which can be detrimental to business productivity and revenue.
According to David A. Patterson, a computer pioneer, one of the effective formulas to calculate the cost of downtime is as below.
Estimated average cost of 1 hour of downtime =
(Employee costs per hour x Fraction employees affected by outage)
+ )Average Income per hour x Fraction income affected by outage)
If you add up the number of downtime hours, you’ll notice how much your business will potentially lose.
Similarities between leased line and broadband
Let’s now discuss some of the similarities between both technologies.
- Both provide internet connectivity, enabling businesses to access the web, use email and run online applications.
- Both services are offered by ISPs, which include installation, maintenance and support of internet connections.
- Both types of connections typically require a modem or router to connect to the internet, which distributes the connection within business premises.
Leased line or broadband: Which is better for your business?
The choice between a leased line and broadband depends on your business’s specific needs and budget. If your business requires unshared, high-quality internet with symmetrical speeds, low latency, and minimal downtime, and cost is not a primary concern, a leased line is the optimal choice.
However, if your business can manage with variable speeds and occasional downtime, and budget constraints are significant, broadband might be sufficient. Broadband is cost-effective and quicker to install, making it suitable for smaller businesses or those with less demanding internet requirements.
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