Traditional telecommunication systems like PSTN are no longer enough to meet the growing needs of UK businesses. Even small startups with limited operations now require connectivity that goes beyond dialling and receiving voice calls. That’s why modern solutions, such as leased lines, have largely replaced analogue phone systems.
The terminology “leased line” refers to a private connection set up by an internet service provider (leased line provider). However, to be specific, a leased line simply means a fibre leased line in the industry. So, when we talk about leased lines in this blog, we are specifically discussing fibre-based.
Similarly, EFM (Ethernet in the First Mile) is another type of leased line that has grown in popularity alongside modern communication options. The major difference between a leased line and EFM is the difference in their infrastructure, which results in a difference in features and performance. In this blog, we will discuss these differences in detail and explain how they impact users, so you can decide which option best suits your business.
What is a Leased Line?
A leased line uses a fully fibre-optic network to connect either two business locations (point-to-point leased line) or a business premises to an internet service provider. Leased lines have always been available and used by all types of businesses. But their popularity has exponentially increased recently due to the upcoming broadband switch-off in the UK. Many SMEs choose to upgrade from their old analogue phone systems and switch to high-speed and uncontended internet connections.
The high quality of a leased line connection makes it a perfect match for businesses with advanced tasks, like hosting websites, sending and receiving large files, running VoIP services, and supporting remote cloud-based WANs.
Here are some of the highlighting features that leased lines are known for:
- Dedicated internet connection: It provides consistent bandwidth without having to share with other users in the network.
- Uncontention: Leased lines provide an uncontended connection, meaning users don’t have to share bandwidth, and speeds are not slowed down with heavy traffic.
- Symmetrical speeds: The connection provides symmetrical download and upload speeds.
- SLAs: Service metrics are protected by service-level agreements to guarantee that users receive the same quality of service as advertised.
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What is EFM?
Ethernet in the First Mile is also a telecommunication solution, installed over a combination of copper lines in pairs. Generally, an EFM connection uses 2 to 8 copper pairs to link a business premises to the internet service provider or to connect two business locations. It is often seen as a more cost-effective alternative to fibre leased lines because of the difference in cost between the types of cables used in both options.
EFM provides the following features to its users:
- Symmetrical speeds: EFM connection also provides a symmetrical connection with equal download and upload speeds.
- Contention of connection: EFM usually provides an uncontended connection; however, in some cases, it could also be contended, depending on your provider.
- Dedicated internet connection: The connection provides dedicated internet access, so each user can have a private connection.
EFM vs leased line: 6 major differences
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Infrastructure |
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When it comes to factors such as installation costs, lead times, infrastructure, speed of the connection or whether it is scalable, Ethernet in the First Mile and leased lines differ greatly. Let us explore each of these factors in detail.
1. Affordability
Leased lines’ costs are generally higher compared to EFM. The typical costs can be divided into two major categories, which are:
- Installation costs: These are one-time costs related to the initial installation of the connection. You can expect to pay anywhere between £0 and £20,000 in the UK. The exact figure depends on how your provider evaluates and structures their cost breakdown. Some providers may offer waivers if businesses opt for a longer contract and also consider the degree of digging required to lay the infrastructure. EFM installations are usually on the lower end of the range because they have shorter installation times and do not require considerable digging.
- Monthly costs: These are recurrent charges related to the connection speed, bandwidth and service level agreements. Generally, the price ranges from £90 to over £800 per month. The exact payable monthly cost will vary with your connection type (EFM or leased lines), the SLA terms and the location of your connection.
2. Installation time
Leased lines usually have lengthy installation times, ranging from 60 to 240 days, depending on multiple factors, including the location of the connection, the distance between the two points and whether existing infrastructure is present in the area. Installation time also depends on the degree of digging required since fibre leased lines are buried underground.
For EFM, the copper lines are installed above the ground, so there is no need to dig extensively. This significantly lowers both the time and cost. Copper lines are also less expensive to access and install (also considering the existing copper infrastructure ) as compared to fibre leased lines. That is why, installing an EFM connection should take 15-20 days or a month at most.
3. Connection speed
Leased lines offer a wide range of connection speeds, starting from as low as 100 Mbps and going up to 500 Mbps, 1Gbps, and 10Gbps.
EFM promises connection speeds between the range of 2Mbps and 35Mbps for both download and upload. The actual speed depends on the specific EFM provider and the quality of the copper infrastructure, so it may fall anywhere within this range.
4. Infrastructure
Leased lines, specifically fibre leased lines, use fibre optic cables made of glass. These cables rely on total internal reflection and are not affected by electromagnetic interference, even over large distances. This preserves the signal quality, which results in higher speeds and minimum data loss when travelling.
The infrastructure of EFM uses copper bundles (pairs ranging from 2-8). Pairing copper wires together is an industry practice that can improve signal strength and provide redundancy. However, the improvement happens within the limited capacity of copper lines. Pairing also allows for setting up a basic backup connection. If one or two copper pairs experience issues, the remaining pairs can maintain the connection and avoid total downtime.
5. Reliability
Leased lines offer maximum reliability because they are legally backed by service level agreements (SLAs). These are incorporated into the contract for consumer protection purposes. SLAs specify different metrics of the service so users know what they are signing up for.
A typical service level agreement outlines:
- guaranteed maximum and minimum speeds
- resolution times in case of any issue
- maximum downtime
If a provider overestimates the SLA and fails to provide the service, businesses are entitled to compensation.
EFM is also supported by service-level agreements, but the metrics and guarantees can’t match those for fibre leased lines. For example, an EFM connection may advertise a maximum speed of 35 Mbps, but your provider might only be able to deliver 20 Mbps, which would be reflected in the SLA. Even with this SLA in place, the limitations of EFM remain the same. Over longer distances, copper lines are vulnerable to electromagnetic interference, which causes signal loss and reduces speeds. SLAs indeed provide assurances, but EFM connections overall offer lower reliability and performance compared to leased lines.
6. Scalability
Once the infrastructure is in place, the scalability of leased lines is not an issue. It largely depends on the growth capacity built into the setup. Businesses often install versatile infrastructure that matches their maximum estimated connection needs. For example, a business may start with a minimum connection of 100 Mbps. Then, as the business grows, the connection bandwidth can be gradually increased without major on-site changes.
On the other hand, EFM does not offer the same level of flexibility to grow as the business does. That is due to the inherent limitations of copper lines, which can only offer a limited bandwidth range, therefore lower speeds as compared to fibre leased lines. So, the capacity of EFM remains fixed within a narrow speed range.
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