What are leased lines?
Leased lines provide businesses with a dedicated data line between two locations, mainly for internet access. Unlike broadband, leased lines provide an exclusive connection, allowing one organisation/ user per line. This results in delivering consistent connection speeds at all times. Some key differences between leased lines and other internet connections include the number of users sharing one bandwidth, infrastructure requirements, and service level agreements among other factors.
In this blog, we will discuss the different types of leased lines, their advantages and disadvantages, and the cost implications of each type to help you choose the best option for your business.
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Types of leased lines
1. Fibre Ethernet
Tasks with high internet requirements also demand an exclusive bandwidth to ensure consistent speeds even during peak hours. This is when a full fibre leased connection comes into play. It uses fibre optic cables to deliver high-speed network connections up to 10 Gbps. So businesses can complete even the bandwidth-intensive tasks like video conferencing, large data transfer and cloud computing without any hassle.
2. Ethernet in the First Mile (EFM)
EFM uses copper telephone lines instead of all fibre to provide an uncontended connection, typically with symmetrical speeds in the range of 2Mbps – 35Mbps. It is highly favourable for businesses with data-intensive needs like VoIP, running a website, using cloud connection and working remotely. It is frequently deployed in areas lacking fibre infrastructure, but where businesses also need a more stable connection option than regular broadband.
3. Ethernet over Fiber to the Cabinet (EoFTTC)
EoFTTC is the most affordable type of leased line as it doesn’t use 100% fibre cables for its network. This option is suitable for small to medium-sized businesses as it offers an uncontended connection at a comparatively cheaper price. Typically, this setup offers download speeds of up to 80 Mbps and upload speeds of up to 10-20 Mbps. It works by using fibre optics cable to the street cabin and then copper lines to the specific location.
Why Are EFM and EoFTTC Still Considered Leased Lines If They Use Copper?
The defining characteristics of leased lines are:
- Dedicated connection – bandwidth is not shared with other users.
- Comes with SLAs – to guarantee performance.
- Uncontended service — no competition for bandwidth so speed remains consistent at all times.
Fibre Ethernet is the most advanced type of leased line, using fibre optic cables from start to finish. However, other types like EoFTTC and EFM incorporate copper in their infrastructure. This might cause confusion since broadband connections also use copper, but the key difference is that broadband is shared (contended), while leased lines remain exclusive and dedicated.
The use of copper in EFM and EoFTTC helps reduce costs while still providing guaranteed performance, making them more affordable leased line options.
Types of leased lines: Comparison of Pros and Cons
Now that we’ve covered the types of leased lines and their basic descriptions, let’s compare their advantages and disadvantages to better understand which option is the right fit.
| Factors | Fibre Ethernet | Ethernet over Fibre to the Cabinet (EoFTTC) | Ethernet in the First Mile (EFM) |
|---|---|---|---|
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Cons |
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3 types of leased lines: cost details
Monthly leased line costs
Before deciding to commit to a specific internet connection for your business, consider if your budget can accommodate the prices of leased lines. Depending on the type of leased line connection you opt for, expect to pay around £100-£200 in terms of monthly expenses. We will discuss the factors that make up this monthly cost, but let’s take a look at the following table summary highlighting the range for each type of leased line first.
| Type of leased line | Starting range for monthly cost |
|---|---|
|
EoFTTC |
£100 - £115 |
|
EFM
|
£130 - £135 |
|
Full fibre leased line
|
£190 - £200
|
Factors affecting the leased line costs
Several factors influence the total cost of your leased line connection. While the type and speed of your connection are the most common, there are other important considerations as well. Let’s discuss all of them in detail.
- Contract duration: Longer contracts (three years or plus) offer lower prices for the customers as compared to contracts with shorter lengths.
- Type of provider: Different providers offer different pricing models.
- Contract modification: If you require any changes in a leased line contract to fit your specific business needs, costs will increase.
- Leased line speed: The total cost increases as the speed of connection increases.
- Type of leased line: Ethernet over fibre to the cabinet (EoFTTC) is a cheaper option as compared to full-fibre options.
- Service Level Agreements: Premium SLAs with faster repair times increase the costs
- Type of location: Urban areas provide lower monthly charges due to existing infrastructure.
Additional costs related to a leased line connection
Other than monthly leased line costs, businesses incur other types of costs as well. They vary with the choice of your provider. Therefore, it is important to specifically discuss any ‘hidden fees’ (something that is not explicitly mentioned in the service contract) with your provider to clear out any confusion. Some typical additional prices to expect with every type of leased line are explained below:
- Cost to upgrade connection speed: A leased line connection provides room to scale your connection as your business grows. This means, that if your connection previously provided 50 Mb speed, you could upgrade it to 100 Mb without needing any physical changes in the infrastructure. Instead, you’ll be asked to pay an upgrade fee.
- Cost to pay for equipment: Depending on your provider, you will incur a cost to cover the devices needed to set up the connection. These include routers, modems and other necessary hardware.
- Cancellation fees: As we already know, most leased line providers work on a contract basis. You can expect to pay cancellation fees as a penalty for ending the contract before its agreed termination period.
What type of leased line connection should you get for your business?
To choose the right leased line connection for your business, you must consider factors such as your budget, internet usage needs, and the extent of infrastructure development in your area. Here’s a glimpse of which option might suit your needs best:
- Fibre Ethernet – Ideal for large businesses or those with high data demands.
- Ethernet in the First Mile (EFM) – A great choice for businesses that require a stable internet connection but do not have full-fibre availability in their vicinity.
- Ethernet over Fibre to the Cabinet (EoFTTC) – Ideal for small to medium-sized businesses that need an affordable leased line option.
Let ComparedBusiness help you find the best leased lines provider for your business today
Working with a reliable service provider is every business’s priority. That is why ComparedBusiness is here to help you link with the top reliable leased line providers in the UK. Just submit your requirements in less than 2 minutes and we will match you with the top service providers in the UK. You can pick and choose the best option as per your business requirements.
FAQs
Small businesses can get a full-fibre leased connection if it is available in their area and within their budget. However, we assume that small businesses also have lower data needs, so a full-fibre leased line may be excessive. These connections are specifically made for high-demand internet applications that require guaranteed speeds and low disruptions. So, if your small business only uses the internet for emails, surfing or other daily tasks, a more cost-effective option like EFM (Ethernet First Mile) might be sufficient.
In an Ethernet First Mile (EFM) leased line network, multiple copper lines are used to provide redundancy. If one of the copper lines gets damaged, the overall connection does not disconnect. However, the connection speed becomes slower and the line gets repaired in the meantime.
An uncontended connection means the bandwidth is not shared with other users, which gives consistent speeds at all times. On the other hand, a dedicated connection means the line is only assigned to a single user. While both terms are closely related, “uncontended” focuses on bandwidth consistency, whereas “dedicated” means exclusivity in the use of the line.
An SLA (Service Level Agreement) is a contract between the leased line service provider and the customer. It explains the level of service that you can expect from your provider. It typically includes uptime guarantees, response times in case of an issue, and compensation in case of service failures.
