If you’re searching for leased line rates, that means you’re considering buying it for your business. With the ability to provide internet speeds up to 10Gbps, leased lines can do your business a whole lot of good. But what stands between you and the execution is the leased line costs.
So let’s have a detailed look at them in this guide.
What is a leased line?
A leased line is an unshared and symmetrical data connection line between 2 sites, either a service provider and business location or between 2 office locations of a business. The signals are sent and received at the same speed because the line is not shared and it is generally used for the internet connection.
Generally, the fibre is laid from the Internet Service Provider (ISP) to the nearest point of presence (PoP) from where it is routed to the business’s location via copper wires or optic fibre.
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How much does a leased line cost in the UK?
Generally, your business should be eyeing to pay anywhere around £90 per month to £800 per month. This expanded range is because of various factors that dictate the cost of the leased line including the bandwidth selected, the provider you choose, the type of cable you opt for and the location your business is based in.
Let’s look at the leased line prices in detail now. This section is divided into installation costs, monthly charges and other prices.
Leased line installation costs
The installation costs can generally vary from £0 to £20,000 depending on the:
- Provider you choose: Some service providers lift the entire installation costs depending on the survey and the length of the contract while some cover a portion of them.
- The contract length you opt for: If you choose a long-term contract (3 years or more generally), the providers can waive off or discount the installation charges.
- Degree of digging required to lay the leased lines: This depends on the survey by the provider. If there is considerable digging involved, the charges will be more and vice versa.
- Types of leased line: Wired lines typically involve fibre optic cables that are more expensive and may cost up to £20,000. The wireless lines involve setting up radio links using antennas and it’s cheaper (range of £1000- £2000).
The most efficient method is to get in contact with the provider and confirm the charges.
| Condition | Installation charges |
|---|---|
|
Type of leased line |
Wired: £10,000 - £20,000 |
|
Degree of digging |
More: £2000 - £5000 |
|
Type of provider |
Some cancel the installation fee if the contract is 36 months or more. Some waive off a percentage of the installation charges given after the survey. |
Leased line monthly costs
The monthly cost for a leased line can vary significantly based on several factors. Generally, the price ranges from £90 to over £800 per month.
The factors affecting these rates are the following:
- Connection speed: Higher speeds would cost more. For instance, speeds up to 100Mbps can start from £195 per month, while speeds up to 10Gbps can exceed £800 per month.
- Type of leased line: Entry-level options like Ethernet over fibre to the cabinet (EoFTTC) are cheaper compared to full-fibre options.
- Service Level Agreements (SLAs): Premium SLAs with faster repair times increase the costs.
- Location: Urban areas often provide lower monthly charges due to better infrastructure.
Here’s a summary in the form of tables for better understanding.
According to the bandwidth:
| Internet speed | Monthly charges |
|---|---|
|
100 Mbps |
£185 - £270 |
|
500 Mbps |
£270 - £350 |
|
1 Gbps |
£300 - £650 |
|
10 Gbps |
£650 and above |
According to the location:
| Location | Monthly charges of a 100Mb line |
|---|---|
|
London |
£185 - £230 |
|
Manchester |
£200 - £280 |
|
Ambleside |
£220 - £320 |
According to the type of line:
| Type | Indicative price per month |
|---|---|
|
EoFTTC |
Starting from £114 |
|
EFM |
Starting from £133 |
|
Fibre Ethernet |
Starting from £197 |
Complete cost of a leased line setup
Let’s say your business opts to get a leased line with the following features:
- EFM.
- A service provider that charges £1000 as installation charges.
- 100Mbps bandwidth.
- Location in London.
The total cost for your setup would be monthly charges of 100Mbps EFM line + installation charges = £190 + £1000 = £1190 without any other charges taken into account.
This example must have simplified the equation for you.
Additional leased line costs
Some additional leased line prices may include:
- Upgrade costs: This is the cost of upgrading the leased line to a higher speed. Generally, adding 100Mbps of speed costs £21 per month.
- Equipment costs: These include the price of routers, modems and other necessary hardware. This depends on the provider and the specific equipment needed by your business.
- Cancellation fees: If you terminate the contract before the agreed period, cancellation fees may apply. It’s always better to get their information before signing the contract.
Factors affecting the leased line rates
It’s difficult to find a simple answer to the cost of leased lines because it is dependent on so many factors, which are mentioned below.
1. Type of line
The cost depends on the type of leased line. Ethernet Fibre offers high performance and speed but is generally the most expensive. Ethernet First Mile (EFM), using a combination of copper lines, is more affordable and suited for moderate speeds. Ethernet over Fibre to the Cabinet (EoFTTC) is a cost-effective option for lower speeds, combining fibre to the cabinet with copper to the premises.
2. Speed
Higher speeds demand higher costs. For instance, speeds up to 100Mbps are cheaper compared to speeds reaching 1Gbps.
3. Contract length
Longer contracts can lower costs as providers might offer discounts or waive installation fees for extended commitments, typically of three years or more.
4. Location of the business
Costs can be higher in less accessible or rural areas due to the increased complexity of installation compared to urban areas with better infrastructure.
5. The type of provider
Different providers offer varied pricing based on their infrastructure, reputation and service level agreements (SLAs). Some may include additional services at discounted rates as well.
6. Customisation
If you require tailored solutions to fit your specific business needs, such as unique bandwidth requirements, enhanced SLAs, or additional security features, costs will increase.
7. Distance
The distance between the business location and the provider’s nearest point of presence (PoP) affects installation costs. Longer distances require more extensive cabling and infrastructure, leading to higher expenses.
How to choose the best provider for a leased line?
Comparison of competitors
When selecting a leased line provider, always compare multiple ones. Assess them based on their offerings, reputation, and customer reviews. Look into their service level agreements (SLAs), customer support quality, and responsiveness. Consider their market experience and the range of services they offer.
Check for any value-added services like enhanced security, managed services, or additional redundancy options.
Bandwidth and its costs
Bandwidth is a key factor when choosing a leased line provider. Assess your business’s current and future bandwidth needs to ensure you select a provider that can scale with your growth. Compare the costs of different bandwidth options across providers, considering both initial and ongoing expenses.
Higher bandwidth comes with higher costs, but it’s crucial for handling increased data loads and ensuring smooth operations. A smart option in this regard is to choose a lower bandwidth on a higher bearer line e.g. 100Mbps on a 1 Gb bearer. So whenever you have to upgrade the speed, it can be done without delay.
Guaranteed uptime
Providers typically offer uptime guarantees within their SLAs, often expressed as a percentage (e.g., 99.9%). Higher uptime guarantees indicate more reliable service and better overall performance. Also, assess the penalties or compensations offered by providers if they fail to meet their uptime commitments.
Differing contract length
Contract length can significantly impact the overall cost and flexibility of your leased line service. Providers may offer discounts or waive installation fees for longer contracts, making multi-year agreements financially attractive.
However, longer contracts may also reduce your flexibility to switch providers or upgrade services. Shorter contracts offer more flexibility but often come at a higher cost. Evaluate your business’s long-term goals and then decide on the contract length.
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Lead lines are more expensive than broadband due to the dedicated and unshared connection they provide. This enables a high-speed data transfer which comes at a high cost. Also, the service levels agreements (SLAs) guarantee uptime and support, further increasing the cost.
Leased lines provide dedicated, symmetrical internet connectivity, ensuring consistent and high-speed data transfer for both uploads and downloads. They offer superior reliability and low latency, crucial for business-critical applications. Additionally, they offer enhanced security, guaranteed uptime and dedicated support.
An alternative to a leased line is a broadband connection, such as Fibre to the Cabinet (FTTC) or Fibre to the Premises (FTTP). These options are more cost-effective but offer shared bandwidth, potentially resulting in variable speeds and reliability compared to dedicated leased lines.
A leased line is worth it if your business requires reliable, high-speed internet with consistent performance for critical operations and you’re ready to invest a high amount for it. It offers dedicated bandwidth, enhanced security and guaranteed uptime.
