If you’re searching for leased line rates, that means you’re considering buying one 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, symmetrical data connection between two sites, either a service provider and a business location or between two 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 expect to pay anywhere from £90 to £800 per month. This expanded range is because of various factors that dictate the cost of the leased line. 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.
Leased line costs by bandwidth:
| Internet speed | Monthly charges |
|---|---|
|
100 Mbps |
£185 - £270 |
|
500 Mbps |
£270 - £350 |
|
1 Gbps |
£300 - £650 |
|
£650 and above |
|
Leased line costs by location in the UK:
| Location | Monthly charges of a 100Mb line |
|---|---|
|
London |
£185 - £230 |
|
Manchester |
£200 - £280 |
|
Ambleside |
£220 - £320 |
Leased line costs by type:
| 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
When getting a leased line for your business, installation and monthly costs are usually the first two things that come to mind. But depending on your situation, such as the service provider, speed of the connection, and any add-ons, you may also come across additional prices from the UK providers. Let us explain these one by one:
- Upgrade costs: If your current leased line connection has outgrown your business’s needs, you will need to upgrade to a higher bandwidth. Usually, this only requires an increase in the monthly charges and no major infrastructural changes. To give you an idea, adding 100 Mbps of speed costs £21 per month. So, if you increase your speed by 300Mbps, it means paying an extra £63 per month. Of course, the mentioned prices provide an estimate and differ from the actual prices.
- Equipment costs: To handle the high speed and maintain a reliable leased line connection, you may need to upgrade your existing device setup. This includes purchasing a new router, modem, firewall, or switches. The equipment costs depend on the following factors:
- If your provider provides hardware included in the leased line package.
- The condition of the hardware you are currently using.
- Whether you’re renting or buying the equipment.
- The type of leased line connection you’re using.
- Your budget to upgrade your equipment.
- Cancellation fees: Some providers apply a cancellation fee if you opt out of the contract before the agreed term. This fee is calculated in different ways, like some providers calculate it based on the remaining months’ fees, while others charge a fixed amount. Before signing the contract, it is best to get the maximum information about the contract duration, terms and details, and discuss the potential charges in case of terminating the contract early.
7 Factors affecting the leased line prices
There’s no one standard price for a leased line in the UK because several factors make up the final cost. Let’s explain each one so you know what to expect:
1. Type of leased line
Leased line costs mainly depend on the type of leased line used by the business. Ethernet Fibre consists of all fibre cables, therefore, it offers high speed but is generally the most expensive. Ethernet First Mile (EFM) uses a combination of copper lines with fibre which brings the cost down and is suited for moderate speeds. Ethernet over Fibre to the Cabinet (EoFTTC) combines fibre to the cabinet with copper to the premises to provide an affordable leased line suitable for lower speed connections.
2. Bandwidth of the leased line connection
A leased line connection with large bandwidth requirements offers more speed, reliability, strict SLAs and additional features like VoIP, large data transfers and access to cloud systems. So, the more speed you require for your business, the more you will have to pay to set up the connection. For example, a 100Mbps leased line will cost less than one offering 1Gbps. If you are not sure of where to start, get a low bandwidth connection first and then upgrade as your business grows with time.
3. Contract length
Contracts with a duration longer than three years can lower the leased line costs for businesses. It is because providers associate more security and fewer risks with longer contracts and may offer discounts as part of a package.
4. Location of the business
Businesses in rural areas pay higher prices to install a leased line connection there. It is because of the additional infrastructure needed to set up the connection. Oftentimes, service providers set up a connection from one point to another from scratch, which increases the installation span (12 months or more) and ultimately the total cost too.
However, it takes less time to install a leased line in an urban area because of its existing infrastructure. A quick installation process means lower prices to pay for businesses.
5. The service provider you choose
Not all providers price their services the same way. Their pricing strategies vary based on their business industry, the region in the UK, reputation with past users, customer support quality, and the extent of service level agreements (SLAs) they offer. So, the providers that offer more will charge more, too.
When you’re choosing between providers, think about what your business needs the most. Two providers might charge around the same price, but if one has better customer support, that could make a big difference in the long run. Replace customer support with any feature of your choice and choose the best provider for your business easily.
6. Customisation to your needs
Demanding additional features to a standard leased line package will require your business to pay more. Most providers provide custom packages at a premium rate, where users get to match the features to what they need. These include features like custom bandwidth requirements, more guaranteed uptime, strict SLAs, and extra security.
7. Distance between points of connection
The distance between the two points of connection, like the business location and the provider’s nearest point of presence, directly affects the installation costs. It is because, higher the distance, the longer the length of cables is required to cover that distance.
Now, if we combine this with other factors like the location of the business, it plays out differently. A business in an urban location with extensive infrastructure might pay less for installation, even with a large distance, as compared to another business in a remote location closer to the other point of connection.
That’s how multiple factors come together for the leased line prices to vary within a wide range.
How to choose the best provider for a leased line?
1. Compare different competitors
Always compare multiple leased line providers before finalising the one for your business. Doing this will allow you to gain an overview of the market trend for leased line prices, given your connection needs.
You should assess the competitors based on their offerings, pricing, service level agreements (SLAs), customer support, and customer reviews.
2. Consider your bandwidth requirements
Bandwidth is the major factor to consider when choosing a leased line provider. Start by analysing your business’s requirements to see what it needs at the moment. If your business has just started out and you can’t estimate it, choose a leased line connection with the lowest speed and check its compatibility over time. Otherwise, you can always upgrade your leased line connection.
3. Guaranteed uptime
Leased line providers typically include uptime guarantees within their SLAs, as a percentage (99.9%). The SLAs also include the compensation offered by providers if they fail to meet the commitment. These SLAs protect the customers from fraud claims and make sure that they get what they pay for.
4. Choose the Right contract length
Contract duration impacts the overall cost of your leased line service. Like we discussed before, multi-year agreements appear financially attractive to customers, but it is not as simple as that. In addition to low costs, longer contracts may also restrict you from switching providers or upgrading services. If upgrading leased line bandwidth is your plan, then a long-term contract may not be for you.
To get a clearer vision, discuss the terms of your contract with your provider in detail and then decide on the contract length.
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Lead lines are definitely more expensive than a broadband connection due to the dedicated and unshared connection they provide. Also, the high-speed connection, reliable service, service-level agreements (SLAs), guaranteed uptime, and support offered by providers may increase the cost.
Leased lines provide a dedicated connection, reliability, and low latency for an internet connection that is critical for business operations. Additionally, they offer enhanced security, guaranteed uptime, and dedicated support for their customers.
The monthly charges of a 100 Mbps leased line connection range from £185 – £270. This is only an estimate as the total cost is decided by other factors like the type of leased line and the business location, etc.
The monthly cost of a 1 Gbps leased line ranges from £300 – £650 on average. Keep in mind that this range offers an estimated cost of a leased line connection, and the actual price varies with the provider you choose.
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, which results in variable speeds compared to dedicated leased lines.
100 Mbps of speed for a leased line connection costs £21 per month. You can also refer to the above-mentioned table to get an idea of leased line prices for a 100 Mbps, 500 Mbps, 1 Gbps, and 10 Gbps leased line connection.
Leased lines are actually very reliable because you don’t share the connection with anyone else, so your internet remains stable all the time. But of course, small issues like cable damage or maintenance issues can arise with leased lines, too. If your provider offers good support, then these issues can be fixed quickly. So, even though leased lines are not 100% fault-free, they are still one of the most reliable internet options for businesses in the UK.
