Leased Line Prices: Debunking the Myth

Think about what you know about leased lines. You probably know that they’re fast, you probably know that they’re reliable, and you probably think they’re expensive, too, but is this really the case? Actually, the idea that leased lines are drastically more costly than a reasonable business broadband connection is a bit of a myth these days. When leased lines were first introduced, of course, they were priced significantly higher than they are today, which happens with practically every new product on the market. Today, however, many businesses are finding them to be a remarkably cost effective option.

Businesses Have Spoken

Believe it or not, a study by Ofcom found that the second most common reason for a business installing a leased line was because it was the most cost effective option for them. The only reason that was more common was inheriting the line when moving into a new business premises. The benefits and advantages of leased lines, such as point-to-point connections, convenience, quality of service and reliability, came right down near the bottom of the list! While a leased line may be slightly more expensive than business broadband, many businesses do find they get much more for their money.

How Much Does a Leased Line Cost?

Looking back just a few years ago, BT was really the only mainstream leased line provider in the UK. However, as these connections have become much more in demand, there are now a lot more choices, which means that there can be big differences in leased line prices between different leased line providers. The price a business pays depends upon their chosen provider, and the speed that they require, but Ofcom has found that the average annual price for a leased line in the UK is around £18,000.

Ofcom also concluded that businesses in the South tend to pay more on average for their leased lines than those in the north, at £46,000 per year compared with £28,000 per year. We can assume that there are two factors affecting price in terms of geography: perhaps higher rates in the capital, and London-based companies having slightly greater connectivity needs than their regional counterparts.

How to Find a Great Deal

Although leased lines are now very cost effective and affordable for many businesses, it’s still worth shopping around to find the best deals. Businesses can save time by using, which compares leased line prices, speeds, and services across all major providers in the UK.

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