Leased Lines Costs – Why It’s Not Quite so Black & White

There’s a common and very widespread belief among businesses – that leased lines are expensive, and that standard broadband installations are more cost effective. While it is typically acknowledged that leased lines do cost more – they provide a much more reliable internet service, after all – it’s not quite as simple as saying leased lines are expensive, and business broadband is affordable. Leased line costs can vary considerably depending on provider, but how can you ensure your business gets a great deal?

Research firm OneStopClick published a report – The Falling Costs of Wide Area Networks – which asked three different leased line suppliers in the UK to provide tailored, accurate quotations for a leased line installation, all based on the same business scenario. What they found was interesting:

As expected, the study found that geographical location played a huge role in costings, but, surprisingly, there was no clear pattern to this. While it could have been reasonable to expect for providers to charge more in some cities than others, it was found that some providers were able to charge less in some cities, while others were able to provide a lower quote for other cities. The reason? Point-of-Presence.

Leased lines work by providing a dedicated, reliable connection from the provider’s point-of-presence (PoP) to the business premises. It was found that leased line costs were directly influenced by two factors: the distance of a business from a PoP, and whether the provider was ‘on-net’ or ‘off-net’ in any given area. On-net means that the provider owns the Pop, while off-net means that while the provider has access to the PoP, it is owned by another supplier, which means costs will be higher to cover fees.

The report found that, on average, leased line providers were charging businesses anywhere from £300 to £900 per month for a 2 Mb connection, with price differences most notably based on business location. Other factors affecting price included the length of agreed contract. Shorter contracts tended to bring higher prices, and, as a result, it was found that around 60 percent of leased line contracts in the UK are signed for 36 months, rather than the standard 12 months for business broadband.

So are leased lines expensive? They can be, but it’s not quite as black and white as that. There’s a definite grey area when it comes to leased lines, which means that businesses really need to do their research, and identify which providers are able to offer more affordable rates in their area. At Leased Line Comparison, we take the hassle out of researching the best leased line providers. We’ll help your business to get the best deal on a fast, reliable internet connection, with quotes from all major UK providers. Give us a try today and see how comparing costs can help your business to save money.