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What is a leased line technically and why is it expensive?

In Technical terms, Leased Lines are private circuits between two points, with one end being your premises and the other being a network provider’s nearest point-of-presence (PoP). While being single and dedicated line, Leased Lines turn to be expensive due to following reasons : 
  • We get a SLA (Service Level Agreement) as part of the contract with the leased line provider and hence a better customer service. Moreover, there are very little  chances  for the connection to fail.
  • It’s like a pay more and get better kind of service and when we pay for a specific  speed of connection, we should receive that speed. For eg. If we pay for a 1Gps (gigabit per second) connection, that connection is all ours.
  • Better customer support services are provided by leased line providers and you will most of the times receive 24 x 7 technical support, within a guaranteed time,engineer will visit and fix the problem.
  • Security is another reason why leased line comes expensive as it is more secure and reliable than shared connections like fibre broadband. For example, we can send files between our offices straight on the dedicated line. Since, it is not shared,There is no risk of data hacking.

Hence, the leased line might look costlier but it is justified for the quality and reliability that we get with a leased line connection and future problems are minimum.
Leased Lines enable Speedier and Secure Business transactions

As we are aware that Business transactions on computers consist of extremely critical and confidential data and Leased Lines provide more safety being a dedicated and unshared connection. Leased Lines provide uninterrupted Internet Speed and prevents employees from getting irritated due to internet outages, slow page loading, and non-responsive web applications.
Hence, Leased Lines are tested solution for both large and small business companies. A dedicated internet connection is now considered an important tool for businesses due to the fast delivery of a huge amount of bandwidth for downstream. Usually, the downstream in bandwidths offered by a dedicated connection is 10,000 Mbit/s that is more than any other ADSL connections can deliver. Since ADSL only provides a limited amount of bandwidth, which makes more businesses choose to make use of the dedicated ones to ensure fast online transactions.
When is the Leased Line not so important? 
Although coming with great benefits, Leased lines cannot always be preferred mode of internet due to cost reasons. For instance, small businesses or startups would prefer to go for consumer broadband connections which provide enough access for a family or small businesses establish flexible workplace environments that today’s employees have grown office. . The costs of any changes have to be built into the cost of your service – your provider can’t average them out across all customers using the connection. For many companies, if their needs are undemanding, a standard fibre connection may be adequate.
Moreover, Companies may opt for an IP VPN system that needs to connect several different sites. While a leased line has two endpoints, an IP VPN system is a ‘mesh’ network that can connect a number of different points.
Overall, setting aside the cost factor, the Leased lines remain an important part of the business IT landscape. They’re still the most reliable way to get a guaranteed connection into your company. Hence, a careful planning and evaluation of your requirements would be feasible before making the choice of internet connection.

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