Cost V productivity: what's the real value of a leased line connection?


One of the most common questions we’re asked about business internet solutions is: “how much does a leased line cost?”

While we’re always happy to provide a quote, we’re passionate about explaining the benefits and therefore the overall impact a dedicated leased line will have on a business.

That means looking a little deeper than the price and taking into account the benefits and how they impact your bottom line.

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Leased line prices

So, the key question: how much does a leased line cost? Well, as ever, it’s a subjective answer that really depends on a range of factors. You can expect a monthly charge starting at around £250, but the price can increase for a variety of reasons.

The current and maximum speed

A leased line generally has a capability of a maximum data transfer speed and then the actual speed that the provider will activate this for. The maximum capability that you can upgrade to and the current allowable speed will both impact the cost. For example you may have a line capable of speed up to 1GB but your agreement may be to limit that to only 100MB with an option to pay more for higher speeds in the future; 200MB, 300MB, etc. until you reach the maximum 1GB.

Your chosen internet service provider

The connection will be supplied by an internet service provider (ISP) via the leased line provider. There are many ISPs, and each will come with a different monthly cost. Speak to your leased line provider about your options to find the most suitable for your business.

The leased line provider

The price of the rental service can vary between suppliers. However, before rushing to find the cheapest price, think about other important factors such as their levels of customer service, quality of support, and how trustworthy the provider is; check out their reviews, testimonials and case studies to be sure you’re getting the deal you think you’re getting.

The location of your premises

For premises that are not already well connected (or close to nearby buildings with dedicated connections), the installation process can add high costs to the overall price. However, this is typically less of an issue in bigger cities where connectivity tends to be good. Again, your leased line provider will be able to advise accordingly.

The installation and setup time required

In those areas where setup is not so straightforward, a longer installation process can result in higher costs. Some of this work will need to be completed by construction professionals, which adds to the overall price. However, some providers allow this cost to be paid over a number of years as part of the monthly charges.

Why are leased lines so expensive?

Upgrading your business broadband might feel like a costly exercise, but that’s because you’re paying for a premium service. Of course, comparing the cost of a leased line to a standard broadband connection price is bound to make the leased line option seem more expensive, but that’s because you’re really not comparing similar products.

Unlike a typical broadband connection, leased lines boast a number of advantages that set them apart and justify the additional cost. For example, leased lines:

  • Are ultra-reliable, providing a dedicated line to your business that’s not shared with other premises, and often coming with a fallback option if the main line fails
  • Provide much higher speeds, ensuring that all of your staff, no matter what they are doing or when, get fast and efficient access to all your internet/web based systems
  • Provide simultaneous upload and download speeds, meaning no slowing of performance during exchange of data
  • Are exclusive to your business, avoiding slower speeds during peak times
  • Can be fully managed by your IT service provider, meaning a quicker and more reactive response if there are any issues

All of these are huge pluses when it comes to ensuring a stable internet connection, which is reflected in the price point for a leased line.

The hidden benefits: better productivity

Cost is, of course, a consideration when you’re investing in business IT infrastructure. However, thinking about this in isolation is the wrong approach, because it means you’re not looking at the bigger picture.

A leased line connection is a great example of a wise business investment, because it can more than pay for itself through improved performance and increased productivity.

There are several efficiencies that a leased line can provide which result in a more productive working environment. 

Centralised operations

Having a leased line means that you’re able to more effectively centralise your organisation’s operations. For example, if you’re operating in multiple locations or premises, a dedicated connection makes it far easier for staff and employees to access shared documents and data.

Less downtime

Every minute that your staff can’t access the web, important data or the software and services required to do their job means a minute of lost productivity. And that is costly to any business. A leased line guarantees a faster and more reliable service, which in turn means you’re able to run a more efficient and productive business.

The ability to more readily adopt cloud-based services

On a related note, many businesses are now increasingly using cloud-based services, software and apps as part of their operational infrastructure. A leased line provides a more reliable and robust internet connection for these services to be accessed by staff.

A further benefit of using the cloud is cost savings on things like on-premise data centres and the associated costs (such as power and cooling), as well as reducing the need to buy new servers to store your data.

Focus on productivity over cost

As this article has outlined, there are many more things to consider than purely cost when thinking about having a leased line installed within your business. Though you will want to keep your costs to a manageable level, you should also consider how a dedicated connection will support your business from an operational perspective and enable a more productive workforce.

Only then will you be able to truly gauge the return on your investment.

If you need more information on leased lines and how they can help your business grow and thrive, we’re always happy to answer your questions and provide our expert view.

Get in touch with us today on or call us on 03300 886 116.

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