Point-to-point (P2P) is a popular type of leased line that provides a direct connectivity solution between business locations. In this blog, we will explain how it works, its benefits, a basic cost breakdown, and how it differs from a standard leased line. We’ll also discuss its drawbacks, who it’s best suited for, and some alternatives you might consider before making a decision.
By the end, you’ll clearly understand whether a P2P leased line is the right solution for your business.
What is a Point-to-Point Leased Line?
A point-to-point leased line provides direct connectivity between any two locations, such as linking two different business sites. It bypasses the provider’s data centre and instead creates a private path between the locations. This makes it the best fit for purposes such as data sharing, cloud backups, or maintaining a private connection that doesn’t involve the public internet.
For this reason, a P2P connection is also referred to as a private circuit. The connection pathway of a P2P leased line differs from that of standard leased lines, which we’ll explore in the next section. The major features of point-to-point leased lines are:
- There is no limit to how much data can be shared.
- The connection is private and does not pass through the public internet.
- Installation typically takes 30-60 working days in urban areas, with longer times possible in remote locations.
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How Does a Point-to-Point Leased Line Work?
Imagine a P2P leased line as a lengthy Ethernet cable that directly links your two offices. Its core framework consists of a physical line between the two addresses, resulting in a private connection that doesn’t involve the providers’ data centres.
In practice, leased lines are typically built with fibre optic cables; sometimes copper, or a mix of both, can also be used. These cables are installed underground between two sites. Once the infrastructure is laid, each end of the line is connected to the location’s network router. With this setup, the two sites function as if they are connected to the same local area network (LAN).
Point-to-point leased line configuration
Configuration is the next step after the physical connection of the P2P leased line is completed. This process effectively arranges the network components and their devices to use the connection. The physical lines provide an external framework, but the two sites can only communicate properly once network addresses are assigned to the routers. Here is what happens during a typical configuration process:
- IP addresses are assigned to the routers at each end so data can be sent and received at the correct location.
- Securing the connection with basic firewall settings.
- Performing test actions to confirm whether both sites can share data without interruption and if the connection works properly.
Who is the P2P leased line connection for?
Point-to-point leased lines are best suited for businesses that:
- There is a need to transfer large volumes of data between two sites.
- Have teams working on collaborative projects across locations.
- Run off-site backups or data recovery systems.
- Handle sensitive data that must not pass through the internet.
- Require guaranteed performance for critical business operations.
Point-to-Point vs. Standard Leased Lines
Both point-to-point and standard leased lines share features like SLAs, symmetrical upload and download speeds, and scalable bandwidths of up to 10 Gbps. Point-to-point is just one type of leased line with its own unique use case. Both employ similar technology, and the major difference lies in their purpose and application.
- Leased Line Connection: A standard leased line connects a business location directly to the internet through the provider’s network centre. This allows businesses to perform data-heavy tasks with an uncontended internet connection, like cloud applications, VoIP services, video meetings, hosting websites, and more.
- Point-to-Point Leased Line: It is designed for direct data sharing between two business sites instead of providing internet access.
In simple terms:
A standard leased line = an internet solution.
A point-to-point leased line = a connectivity solution.
Cost Breakdown of P2P Leased Lines
Costs for point-to-point leased lines vary depending on factors like the specific provider, contract length, connection speed, and location. Typically, P2P costs can be divided into two major categories:
- Installation Fees: Generally vary from £500 to £2,000. Many providers offer discounts on contracts of two years or more. The installation fee largely depends on the degree of digging required for the infrastructure. So, there is no set criterion for deciding the exact cost, as each case varies with its specifications.
- Monthly Costs (based on bandwidth): Higher speeds have higher monthly costs. The following table can give you a perspective of how much the monthly costs can range for each P2P leased line connection.
Generally, P2P leased lines can be priced similarly to or slightly differently from standard leased line costs, depending on the service setup.
Pros and Cons of P2P Leased Lines
| Pros | Cons |
|---|---|
|
Symmetrical speeds, efficient for large files and backups |
Limited provider monitoring needs the internal team |
|
SLAs, guaranteed uptime, support, and fixed resolution times |
Multi-site scaling is expensive; each site needs a new line |
|
Proactive monitoring, 24/7 issue detection |
No remote access; off-site connection requires a separate service |
|
Scalable speeds, 10 Mbps to 10 Gbps |
Limited connectivity, only between two endpoints |
|
Low contention, consistent performance |
Indirect routing may pass through multiple stops |
|
Security, private, off-public-internet, minimal risk of data leaks |
|
Advantages of Using Point-to-Point Leased Lines
Point-to-point leased lines offer many technical benefits that make them a perfect fit for remote businesses with multiple locations. Here are some major advantages of using a P2P leased line:
- Symmetrical speeds: Upload and download speeds are the same, which allows businesses to send and receive files at the same rate. This setup works best for transferring large data files and managing data-heavy backups.
- Service Level Agreements (SLAs): Point-to-point leased line providers back services with SLAs. The level of SLA support depends on the package and price you choose, but guaranteed uptime, customer support, and fixed resolution times are provided at a basic level.
- Proactive monitoring: Even though the connection doesn’t pass through the provider’s data centre, reliable providers still offer 24/7 monitoring of your connection. This is done so issues can be flagged in a timely manner and addressed.
- Scalability in speed: Leased line options for point-to-point offer a wide range of speeds, starting from 10 Mbps and going up to 10 Gbps.
- Low contention ratio: Connections are uncontended in this case, meaning users do not compete for bandwidth. This means performance mostly remains consistent and does not change with higher network traffic.
- Security: Data stays off the public internet, so the sensitive information is kept secure with minimal risks of data leakage or interception.
Drawbacks of Using Point-to-Point Leased Lines
A point-to-point connection offers typical leased line advantages like a dedicated connection with privacy, but it also comes with some limitations that businesses should consider:
- Limited monitoring by the provider: The provider doesn’t automatically detect problems on your line because the traffic bypasses its data centre. The business must have an internal team to monitor the connection and report any problems.
- Difficulty in multi-site scaling: Scaling to more than two sites is expensive with P2P leased lines. That is because each new site requires new physical lines to connect to existing locations.
- No remote access: Since the connection is private, your employees cannot connect from off-site unless you provide a separate internet service.
- Limited connectivity: A P2P line only provides connectivity between two endpoints. Services like internet access or phone services require additional contracts, which add extra cost.
- Indirect routing in practice: The “point-to-point” route isn’t always literally direct. Your connection may run through multiple invisible stops within the infrastructure.
Alternatives to Point-to-Point Leased Lines
One common alternative to a point-to-point connection is a standard leased line. Instead of a direct connection between your sites, each site connects to the provider’s nearest data centre, and the provider links the two data centres via their existing infrastructure. This makes the setup easier to scale and integrate with other services.
Other technologies that can serve as alternatives include:
How to Choose the Right P2P Leased Line Provider?
Before committing, make sure you:
Understand exactly what the service includes
Check whether the line only provides direct site-to-site connectivity or also includes additional services like internet or phone access. These services vary with providers, so knowing this information upfront can prevent unexpected costs later in the contract.
Review the contract terms
Make sure you review contract terms, installation fees, contract length and the provided bandwidth options. Providers may offer discounts for longer contracts or higher speeds, but installation can vary widely depending on location and complexity. Compare these carefully to get the best value.
Consider limitations
Consider service limitations, like lack of remote access, scaling issues and paying extra for additional services. If your business plans support remote work, double-check if the chosen solution accommodates these needs or if you have alternative setups in place.
Align the service with your industry needs
Some business industries may benefit more from P2P leased lines, while others may be fine with standard leased lines or fibre solutions. Always match the service to your industry needs rather than assuming it covers everything. This way, you avoid expensive mistakes and only pay for what your business actually requires.
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FAQs
On average, 30-60 working days in urban areas, though remote locations may take longer.
Both can reach speeds of up to 10 Gbps. The difference is in use: leased lines focus on internet access, while P2P leased lines connect two business sites for data transfer.
No, the private connection only links two physical sites. For remote access, you’d need a separate internet service.
