Whether you’re looking to upgrade your existing FTTP connection or thinking about installing a high-speed leased line for your new office, this article on leased line vs FTTP will educate you about the top differences between the two.
What is a leased line?
A leased line, also known as dedicated internet access (DIA), establishes a dedicated data connection between two locations. A connection is said to be a leased line if it has the following attributes:
- Dedicated connection: Bandwidth is not shared with others.
- Comes with SLAs: Guarantees performance.
- Uncontended service: Connection speed always remains consistent.
What is an FTTP connection?
Fibre to the premises (FTTP) establishes a full fibre-based broadband connection from the street cabinet to your premises. Even though it uses fibre cables, the connection is different from leased lines as it is shared, contended, experiences latency, and its performance is not fully protected by extensive SLAs like in leased lines.
Leased line vs FTTP differences
| Feature | Leased line | FTTP |
|---|---|---|
|
Technology |
Dedicated line with symmetrical speeds. |
Uncontended line with asymmetrical speeds. |
|
Bandwidth |
100Mbps to 10Gbps. |
Up to 1Gbps. |
|
Price |
Costly. £185 - £270 for a 100MB line. |
Quite cheaper. £30 for a 100MB line. |
|
Reliability |
More reliable. Excellent monitoring and error resolution. |
Less reliable. No stringent SLAs. |
|
Installation process |
Time-consuming and costly. |
Quick and affordable. |
|
Scalability |
More scalable. |
Less scalable. |
Let’s start the discussion with the most prominent difference i.e. technology.
1. The technology
Leased lines provide a dedicated and uncontended connection between the Internet Service Provider (ISP) and the business premises. This means that the bandwidth is not shared with any other users which ensures that the speed and internet performance remains consistent despite peak hours.
The connection is typically direct and always in the form of fibre optic, running from the ISP’s network straight to the business site and they offer symmetrical speeds (equal download and upload speeds).
FTTP, commonly known as full fibre, provides internet connectivity by laying fibre optic cables to the business site. However, unlike leased lines, FTTP connections are contended which means you’ll face speed variation, especially during peak hours.
The route of an FTTP connection involves sending the data from the exchange to the street cabinet and from there to your business premises. It provides asymmetrical speed; the download speeds are always higher than the upload speed.
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2. Bandwidth
Although the most popular speeds for a leased line range from 100 Mbps to 1 Gbps, it can deliver a minimum bandwidth of 50 mb and a maximum bandwidth of 10GB. Also, bear in mind that you will get the entire bandwidth for yourself, which means if you get a 100 Mbps leased line, your upload and download speeds will remain dedicated and uncontended.
In the case of FTTP, things are different. The maximum bandwidth offered is 1 Gbps, with typical packages ranging from 100 Mbps to 300 Mbps. If you sign up for a 100 mb FTTP package, you will get variable bandwidth depending on the time of day and the number of users online at that time.
3. Price
Leased lines are more expensive than FTTP and offer more than one speed range for users. You can expect to pay between £185 – £270 per month for a 100Mbps leased line, while a 1Gbps line can cost around £300 – £650. You can get an idea of average leased line costs by understanding that 100 Mbps of speed generally costs £21 per month.
The table below shows the general rates of leased lines in the UK.
| Leased line connections | Monthly charges |
|---|---|
|
100 Mbps |
£185 - £270 |
|
500 Mbps |
£270 - £350 |
|
1 Gbps |
£300 - £650 |
|
10 Gbps |
£600 and above |
However, FTTP connections are not available in a speed range greater than 1 Gbps. The price of FTTP connections ranges from £30 to £80 and offers an affordable connection alternative for many businesses.
4. Reliability
A leased line is far more reliable than FTTP due to its dedicated nature of connection. This means that each user has access to a consistent bandwidth that is not shared with other users. It also provides an uncontended service, which ensures uniform speed and minimum latency for everyone. All these attributes are protected by service-level agreements (SLAs), which further strengthen the reliability of the connection. These SLAs mention user expectations like minimal downtime, data privacy and backup, maximum time for resolving issues, and quality customer service. In case they are not carried out as promised, the service provider faces a penalty and compensates the user.
However, FTTP connections share bandwidth among multiple users, so the speed can fluctuate depending on how many people are using it at the same time. This means that the connection may perform well during off-peak hours but undergoes higher latency during peak usage hours. It also comes with fewer SLAs, which often result in slowdowns and longer response times in case of an issue.
5. Installation
Installing a leased line connection can take 45-85 days or more, with the price ranging from £2000 to £30,000 in general. Multiple factors are involved in determining the length and cost of the installation of leased lines. Situation-wise, the price and length can lie on either the lower or higher end of the range. These factors are:
- The location of the desired connection: If the area is in a city, the price will be relatively cheaper, and it will take a minimum time to get the connection running. Otherwise, it will be expensive to establish a leased line connection in a rural area with less infrastructure.
- Distance between the two points: The distance between the two points of the connection also impacts the installation process.
- Type of leased line connection: Depending on the type of leased line, whether it is a full-fibre, EoFTTC, or EFM, the price fluctuates a lot. A full-fibre leased line connection is the most expensive amongst the three and takes the longest to install. The other two options include copper wiring in the infrastructure that brings down the total cost.
On the other hand, installing an FTTP connection takes far less time. Setting up the connection can cost £50 to £200 because the infrastructure uses most of the existing broadband exchanges and street cabinets. The time to install an FTTP connection also ranges from a few hours to a few days at maximum, which makes it a quick and affordable solution to bridge the connectivity gaps for businesses.
6. Scalability
Scalability is one of the primary benefits of leased lines. These dedicated lines are typically transmitted over a carrier line with higher bandwidth capacity e.g. a 100Mbps line will be delivered over a 1Gbps carrier. Thus businesses can easily scale their leased line services by increasing their bandwidth allocations as their needs grow.
In an FTTP setup, a high-capacity fibre line, such as 10Gbps is divided among multiple subscribers. For example, if a fibre is shared by 10 subscribers, each may receive up to 1Gbps. This limits the potential of scalability for businesses. While many FTTP providers offer high speeds, performance will be influenced by traffic congestion and the number of users sharing the bandwidth nonetheless.
Leased line vs FTTP: Which option to choose?
The choice between a leased line and FTTP depends on your connection requirements, business type, scale, and budget.
If your business operates at a larger scale and requires maximum bandwidth with minimal latency, a leased line is a better option. Even though it takes longer to install and comes with higher installation costs, it offers a dedicated and high-performance connection. A leased line becomes even more appealing if your business values SLA-backed performance and has the budget to support it.
However, if your business has either just started or consists of a small team with moderate internet requirements, choose FTTP. It will allow you to get access to fast internet, even though it’s shared within a relatively cheaper price range than leased lines.
Additional Read: Leased line vs broadband: What’s the Difference?
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A leased line connection offers dedicated bandwidth, consistent speeds and reliable uptime, ensuring a stable and high-performance network. It also provides enhanced security, lower latency and symmetrical speeds, making is ideal for businesses with high data demands.
You can have full fibre connectivity without any broadband connection or line rental. FTTP doesn’t need a phone line so you can skip paying the monthly broadband rent.
FTTH (Fiber to the Home) and FTTP (Fiber to the Premises) are often used interchangeably, but both refer to fiber optic technology that connects two locations. The choice between them is not a matter of one being better than the other, as they provide the same function.
