Leased lines and MPLS are two of the main network options suitable for connecting two or more corporate locations. When it comes to communication & connectivity, every business has unique requirements. The needs can vary based on the industry and nature of business, whether the company has more than one location, on-site or remote working models, and, most importantly, the features required for the operations.
When investing in a communication network, it is critical to carefully select the option that is the most compatible with your business requirements. This is the best way to make the most out of your decision so that it aligns with your short and long-term plans.
In this blog, we will discuss the technologies behind leased lines and MPLS, explain their basic working procedure, and break down the factors that distinguish them. This will help streamline the decision process and make it easy for you to choose the best solution for your business.
What is a Leased Line?
A leased line connection provides a high-speed, private and consistent data transfer service between two or more connection points. It provides a superior alternative to the standard consumer broadband internet for businesses and other users with high-volume internet needs. The following three characteristics differentiate an advanced leased line connection from other connectivity solutions:
- It provides a dedicated connection, meaning that the bandwidth is private and not shared with other users.
- It comes with SLAs that legally guarantee quality performance and quick resolution to issues.
- It provides an uncontended connection where the speed always remains consistent because of the exclusive bandwidth.
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How does a leased line work?
Generally, leased lines operate over fibre optic technology, the most advanced medium for data transfer. Fibre optics uses light pulses to transmit data through fibre lines, which offers high-speed capacity and greater resistance to electromagnetic interference compared to traditional copper lines. Fibre optics provides the following benefits:
- High speed, because it allows faster data transfer rates.
- High reliability, because the cables are less prone to electromagnetic noise.
- Cost-effective, because they are durable and cost less to maintain than copper lines.
Apart from fully fibre optic leased lines (Fibre Ethernet), other types of leased lines, such as Ethernet in the first mile (EFM) and Ethernet over the fibre to the cabinet (EoFTTC), provide different options for businesses to choose from. EFM and EoFTTC both do not use 100% fibre optic cables; instead, they combine copper lines in their infrastructures.
What is MPLS?
Multiprotocol Label Switching is a high-performance technique used by businesses to connect their two or more premises. At its core, it increases the efficiency and speed of sending and receiving data over a typical internet connection.
MPLS runs on a private connection set up by your service provider. Your business traffic travels over the provider’s MPLS network, completely bypassing any public network. The technology is based on sorting out data packets by their destination and path (not by their media type). Data bound to be sent to the same location with a similar route are grouped. They all get the same label and travel from one point of connection to the other using the same internet pathway over the provider’s network.
How does MPLS work?
MPLS files are transferred from one point to another in a private network using a labelling technology. Let us see how it works in simple steps:
- A file sent over the MPLS network: Before a file is sent over the network, it is converted into data packets (also called IP packets). The router doesn’t send them over an unpredictable path. Instead, it labels all data packets (even of different file types) and transfers them over the same route to the same destination.
- Label exchange over the route: The packets enter the provider’s core network and are labelled with a new tag that tells the next router where to go. This label-exchanging process is extremely fast and efficient.
- The file reaches its destination: After reaching their destination, the IP packets are converted back into file form and stored.
Leased Line vs MPLS: Major Differences
It is important to weigh the features that both options offer to their users to make the decision that accommodates all your business requirements, any budget goals, and plans. Below, we discuss the advantages and disadvantages of both leased lines and MPLS.
| Feature | Leased Line | MPLS |
|---|---|---|
|
Purpose |
Delivers direct & dedicated internet access via fibre optic cables |
Connects multiple businesses along predefined paths via a private network |
|
Type of Connectivity |
Point-to-point |
Point-to-point, one-to-many |
|
Setup & Installation |
Simpler setup with less technical knowledge required; moderate lead time |
Complex setup with higher technical knowledge required from the provider; higher lead times |
|
Performance |
Consistent performance; vulnerable to outages |
Extremely high performance |
|
Security |
High because of a dedicated internet connection |
The highest as a private WAN is not part of the public internet |
|
Reliability |
High because of fibre optic; uptime 99%+ backed by SLAs |
High; depends on provider network |
|
Scalability |
High for single-site growth; simply add more bandwidth |
Best for adding location nodes to the existing network |
|
Cost |
Very cost-effective for single-location businesses requiring high-speed internet access |
Costs depend upon the number of locations in the WAN and the bandwidth per site |
|
Ideal for |
Businesses needing high-speed internet access |
Businesses needing secure connectivity between multiple locations |
Advantages and Disadvantages of Leased Lines
A leased line connection is the best match for guaranteeing an uninterrupted internet connection at a single location. Let us discuss the advantages and disadvantages of leased lines to see what they offer for such businesses, both pros and cons:
- Uncontended connection: Leased lines provide an uncontended and private connection. Their users avail symmetrical upload and download speeds, as well as a consistent connection speed irrespective of the total traffic over the internet. The quality of the dedicated connection remains consistent throughout.
- Security of the connection: The connection is composed of a physical circuit laid between the provider’s network centre and your location (via fibre optics or other types), which is why it is secure from cyber threats commonly found on a public internet.
- Reliability of the connection: The service is protected by service-level agreements that require providers to legally guarantee maximum uptime and maximum resolution times in case of a disruption. It makes sure you receive the same service quality as advertised.
- Affordability of the connection: Leased lines provide a cost-effective option to businesses with a single primary location. Accommodating growth plans is also straightforward; you can easily upgrade to a higher bandwidth package without making any physical changes to the infrastructure.
- Internet dependence: The only main disadvantage of a leased line connection is that it is entirely dependent on the strength of your internet connection. In case of an internet outage, the service would not be usable at all without a backup Internet connection.
Advantages & Disadvantages of MPLS
MPLS focuses on linking more than one business premise over a wide area network. Let us discuss its basic advantages for UK SMEs, as well as any disadvantages.
- Connects multiple locations: MPLS connects multiple business locations into a single comprehensive network. It perfectly matches the faster growth pace of remote businesses with its high scalability. Each new site can be connected to the existing MPLS cloud network in no time.
- High-performance connection: MPLS predicts the most efficient route for data packets to travel and categorises the ones with the same destination. All the data remains over the internal network without needing public internet pathways.
- Security of MPLS: A dedicated network minimises digital threats by completely avoiding sending data over the public internet.
- Complex setup: However, implementing an MPLS connection requires high expertise from the provider, as it is a complicated setup. Compared to leased lines, installation can take longer.
- Cost impact: The cost of an MPLS service is not as straightforward as a leased line. It depends on multiple factors like the number of locations, the scope of the WAN, and the bandwidth required at each site. It is a significant investment and not affordable by SMEs or early startups.
Leased Line vs MPLS: Which Solution Is Right for Your Business?
When choosing between a leased line and MPLS, it is paramount to understand the benefits and drawbacks of both technologies, as explained above. The nature of the business, whether you are looking for high-speed internet access or connecting multiple locations, budget considerations, and growth plans, also impact the decision to choose leased lines or MPLS. Here is a simple decision guide for you.
Leased Line is a better option for you if:
- You are looking for a dedicated high-speed internet connection for a single location
- You want to run cloud services, apps, and VoIP in real-time.
- You want a faster setup and installation without involving your business in configuring and managing a complex network (WAN).
- You want secure and reliable internet access with maximum uptime.
Choose MPLS if:
- You want a private network to connect multiple locations of your business locally or globally.
- Prioritisation of traffic & Quality of Service is essential for your business.
- You want a private and secure WAN with superb performance across multiple sites managed by a single provider.
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