What Are The Advantages And Disadvantages Of Leased Lines

A leased line is a dedicated data connection that is rented every month. It is a suitable option for businesses that require high-speed and reliable connectivity, especially for connecting multiple offices through MPLS (Multiprotocol Label Switching). With the rapid improvement in internet technology, sluggish internet connections are becoming a thing of the past. Faster fibre internet solutions like Virgin Broadband and BT infinity are replacing them.

A leased line can be a suitable option for data connectivity, especially for larger businesses connecting their offices through MPLS and attaining faster speeds and dependability. The choice of a leased line will depend on the specific requirements of a business.

What Is A Leased Line?

A leased line is a dedicated data circuit that allows for fast data transfer from one location to another, including multiple locations. With a leased line, you don’t have to share the bandwidth with anyone else, as it is reserved exclusively for your use at all times.

The connection is not shared, ensuring consistent speeds even during peak hours when others using the same ISP may be experiencing high usage.

Difference Between Broadband And Leased Line

Standard broadband connections like ADSL and FTTC are commonly used in homes and small to medium-sized businesses. They provide a stable and dependable connection through home telephone lines, but the speed of the connection can be affected by the distance from the house to the local telephone exchange.

Leased lines generally offer faster upload speeds than standard broadband due to the 1:1 connection ratio. By reserving a circuit through a leased line, you don’t have to worry about congestion during busy periods

On standard broadband, the bandwidth is shared among customers who use the same service provider, whereas the circuit is solely dedicated to a leased line.

Advantages Of Leased Line

The leased line brings numerous benefits to your business, some of which are as follows:

  • Reliability

For businesses that rely on the internet for their daily operations, standard DSL broadband may not provide the necessary reliability. A stable, consistent, “uncontended” internet connection is crucial for a business to run smoothly.

A leased line provides a dedicated line that is not shared with other businesses or individuals, ensuring a reliable connection to the web.

With a leased line, there’s no need to worry about the Fair Usage Policy (FUP), as you can consume as much data as needed for the agreed monthly rate.

The dedicated line, exclusive to your business, ensures stable and consistent performance 24/7, eliminating concerns about internet connection drops. It provides peace of mind and confidence to meet deadlines, communicate effectively with your workforce, and close deals easily.

  • Faster Upload And Download Speed

A dedicated line provides bandwidth transmission speeds ranging from 10 Mbps to 10 Gbps for both upstream and downstream, known as a synchronous connection, in a standard leased line setup. Additional redundancy and resilience options can also be included for added security.

Unlike DSL or cable modem Internet connections, a dedicated line gives you full control over how the bandwidth is distributed since your location only uses it. It means large files can be transmitted quickly from one location to another without being limited by bandwidth restrictions.

A leased line is essential for businesses that rely on the internet for daily operations. It offers consistent and uncontested access to the web, ensuring that the connection remains reliable 24/7. It is particularly important for businesses that need to transfer large files, run in-house servers, stream, use VoIP telephony, host video conferences, or share big data.

With a leased line, you have the advantage of being the line’s sole user and can control bandwidth distribution, ensuring that large files are transmitted quickly from one location to another. Bandwidth speeds of a standard leased line range from 10 Mbps to 10 Gbps, with the option to add redundancy and resilience.

There are no restrictions on the amount of data you can transfer with a leased line, unlike standard broadband, which often has usage caps. Additionally, a leased line provides ultra-low packet latency, ideal for high-end applications such as Voice over IP and high-definition video.

  • Security

A leased line is also known as a dedicated internet access (DIA) line, as it provides a private and exclusive connection between two locations. Using a DIA line with a secure router and firewall configurations minimises security risks as the connection is not shared with other users, unlike a DSL circuit.

Disadvantages Of Leased Line

Along with the advantages, there are some disadvantages of leased lines; there are disadvantages of leased lines that you must be aware of:

  • Cost

The cost of leased lines can be higher than that of ADSL or FTTC connections, as the price of a leased line depends on several factors such as the amount of bandwidth required, desired connection speed, availability of the service in your area, whether you want voice and data transmission capabilities, and your budget.

While leased lines offer many benefits, they come at a much higher cost than standard broadband options like ADSL or FTTC. The amount you’ll need to spend on a leased line will depend on several factors, such as the amount of bandwidth you require, the speed of the connection, service availability in your area, the addition of voice capabilities, and your budget. Additionally, there’s a separate setup fee per line, and if you have multiple locations that need dedicated lines, the costs can add up quickly. However, the Gigabit Voucher Scheme can offset up to £3000 of the initial installation and equipment costs.

  • Longer Wait Times

Installing a leased line requires a more involved process than the quicker installation of standard ADSL or FTTC connections. It is because a leased line requires a new dedicated circuit to be installed and connected from your premises to the network of the leased line provider, which may take several months. On the other hand, ADSL or FTTC connections can use an existing phone line circuit.


To conclude, a leased line offers several advantages, including reliability, faster upload and download speeds, and increased security. However, it also comes with disadvantages, such as a higher cost, longer wait times, and the responsibility for maintenance. The decision to use a leased line will depend on the specific needs of a business, including its priorities for reliability, speed, security, and budget.











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