A leased line is a dedicated alternative to broadband for uninterrupted business operations. It maintains high-speed internet connections between ISPs (internet service providers) and business administrators. Whether cloud sharing, bouncing between video meetings, or digital collaborations with remote employees, a business fibre broadband offers multiple benefits.

Broadband Leased Lines: Cost and Benefits

Leased lines are an advanced solution for businesses seeking dedicated bandwidth to transmit data. However, the pricing of leased lines can be a barrier for SMEs (small and medium-sized enterprises). Businesses that cannot afford to compromise on privacy and security continue to rely on leased lines despite their high costs.

There are multiple benefits of expensive leased lines. Unlike broadband connections, where multiple users share the same bandwidth, leased lines are highly reliable and have a non-zero latency rate. They deliver data using high-capacity transmission techniques with a wide range of frequencies. 

Key Variables Affecting the Price of A Broadband Connection

Typically, bandwidth, location, and contract length are three key factors influencing broadband price. Here’s how these business variables affect leased-line pricing:

1. Location and distance

An optical fibre cable is installed for direct communication between your business centre and the Point of Presence (PoP). The cable can be extended up to 35 km. Unfortunately, not all businesses are well connected to the existing network. The location dramatically impacts lease line pricing; every mile and manual work adds to the cost. 

The closer your business is to the PoP, the lower the initial set-up cost. Leased line service providers also add construction charges for ducting and closing roads during the set-up. For example, businesses in rural areas incur high costs because a long fibre cable is required to establish a dedicated network connection. 

Sometimes, DSL variants on exchanges cannot provide the desired speeds on remote premises, so lower leased line speed is another factor that adds to the cost.

2. Bandwidth 

Businesses seeking a reliable, high-speed internet connection with high uptime are usually charged a higher cost. Symmetric and flexible bandwidth are essential for enterprises handling heavy workloads and cloud computing. Organisations with high-bandwidth networks need expensive equipment installations. 

Understanding specific business requirements is essential before making a final decision. Advanced technologies like EFM and GEA have emerged as cost-effective solutions for installing leased lines in rural areas.

3. Contract Terms and Length

Long-term contracts typically offer lower monthly instalments. So, choose the best leased-lined solution that fits your budget and business requirements. Many leased-line service providers compensate for the installation costs and cover them throughout the contract term.

4. Service Level Agreements (SLAs)

Leased-line service providers specify the potential, scope, and level of assistance offered in SLAs. It also includes guarantees for repairs, uptime, and performance-measuring metrics. Higher SLAs may increase the leased line cost, but at the same time, they also provide high-end support and customer service as and when required. Businesses seeking critical connectivity must opt for leased lines with high SLAs. 

5. Bundled Services

Leased lines with value-added features like security enhancement, managed router services, and cloud connectivity increase the monthly rent of leased lines. It is advisable to choose bundled services only if they meet your needs.

In addition, there are additional factors that increase the leased-line cost. These include provisions for latency, uptime, customer service level, and resilience. 

Effective Ways to Save on Leased Lines

1. Contention

This networking term refers to sharing a leased line with another business. Contention helps enterprises reduce the overall cost of a leased line, which can increase by 176 per cent if an uncontended network service is used. A lower contention ratio indicates a lower number of users on actual bandwidth. Most businesses prefer to use their own leased lines.

2. Compare Leased lines

To find a competitive price, it is recommended to get quotes from different leased line service providers. Compare bandwidths, as not all service providers offer the flexibility to lease more bandwidth with changing requirements. 

Keep in mind that many market suppliers are resellers and don’t have partnerships with leased line providers. Read the service level agreements (SLAs) before making quick decisions. 

Choose the optimal leased line solutions

To manage the cost-related issues of leased lines, businesses need to understand and evaluate their specific needs. Prioritising reliability, scalability, and performance can encourage businesses to collaborate with experienced leased line providers. 

For a high-performing internet connection that can fulfil all your business needs check out Airtel’s leased line price today for customised services and solutions at the right price.

By Manali