What Is a Leased Line and How It Works?

What Is Leased Line

Are you tired of broken conference calls, slow streaming, and even slower downloading? Does your business need a perfect internet connection 24/7? Don’t worry, there is a solution. A leased line might be the best choice for you. Many companies are using it nowadays and claim it has helped them grow their business and improve productivity.

If you are interested in this topic, please continue reading. Here we will explain what a leased line is, how it works, and how can it benefit your company. Let’s begin!

What Are Leased Lines?

A leased-line is a fixed-bandwidth, dedicated data connection that provides high quality and a reliable internet connection to your business. It guarantees certain download and upload speed, as well as resilience and uptime. What basically happens is that an Internet Service Provider rents the internet connection to a company and it’s often much better than what standard providers can offer.

Companies usually prefer leased lines because they delivered stable internet, high speed, and symmetrical download and upload speeds. Nowadays many companies use cloud-based phone systems and having a leased line is the best choice for them. If you have a big business and multiple people need to use the Internet, don’t worry. This will have no impact on the performance since your leased line is reserved for your company only.

Leased lines often have these specific characteristics:

  • They are symmetrical (it means that the upload and the download speed must be the same)
  • They are uncontended (meaning they aren’t shared with any other user)
  • “Point to point” (leased lines connect two points, for example, your business location with the ISP)

Standard internet connection may have worked for you in the past, but nowadays it can get a bit problematic. You see, when every user in your area is using the connection at the same time, especially if many people are downloading something, it can really slow down your internet speed. With standard internet, bandwidth is shared amongst many people in the area.

On the other hand, if you want a bandwidth that is only yours and only you can have access to it – choose a dedicated leased line. Your internet connection will be perfect throughout the whole day and you won’t have to worry about a slow connection ever again.

This is especially important for business owners. Slow internet connections can cause many problems, from interrupting conference calls to sending large files.

How Do Leased Lines Work?

A leased line sends pulses of light down your optic cable. This means that the data is traveling at the speed of light, which is astonishing. It is actually physically impossible for it to go any faster. The speed can even go up to 10Gbps (gigabits per second), although it can be tailored to your exact needs. When you are choosing a leased line, consider your budget requirements and your capacities. Leased lines can be an expensive solution but it gives amazing results. Your business will be much more productive and it’s worth it. 

Just to compare it – the maximum speed of most fiber optic connections is around 75Mbps, which isn’t bad for domestic use. Still, your business needs better connection and speed. You don’t want anything to slow your connection down when there are many users at the same time. The leased line is dedicated to you and your business and you should enjoy all the amazing advantages it provides.

What Are the Different Leased Line Options?

Usually, a leased line belongs in one of the following categories:

  • Full Fibre (also known as “Ethernet Access Direct” and “Fibre Ethernet”)

It is direct, very fast, and delivers a speed of around 1Gbps. Experts are currently testing 10Gbps, which would be astonishing. It is the most expensive one but it’s also the most reliable and fastest. 

  • EFM (Ethernet in the first mile, also known as “Ethernet Broadband”)

This leased line uses the traditional copper network to deliver a connection to your business but it uses a full-fiber connection from the exchange. Therefore, it’s perfect for a business that doesn’t have a local fiber cabinet. It always uses two sets of copper to ensure the best service. For example, if one fails – the other will take over. 

EFM is much slower than fiber but it’s also cheaper. If you are looking for a mid-price option, this is ideal for you. The service is still fully symmetrical and it also provides SLAs and resilience guarantees.

  • Ethernet over FTTC

This one is also called EoFTTC and it’s the best for companies without any access to local fiber-based cabinets. It’s even cheaper than EFM but very similar. The only drop-off in speed is because of the distance between the local cabinet and your business.

EoFTTC uses a mixture of fiber and copper and offers a completely symmetric connection. Still, it’s capable of increasing the download and upload speed according to your needs.

Do You Need a Leased Line?

Having super fast access to the internet is a dream come true in this digital era. Many business owners are very attracted to leased lines mainly for their speed. However, there are many other benefits you should consider:

  • SLAs that come with leased lines are great because you will know that any problem can be fixed in a few hours. This will reduce your usual stress levels and you will feel more confident and relaxed. 
  • Symmetrical connections have many benefits, which we have already discussed.
  • VoIP for communication and business telephony will be much more reliable.
  • A Leased line will make your day-to-day operations easier, especially if your company has a high reliance on data. 

If you run a business that is internet critical, a leased line may be just the thing you are looking for. It’s especially useful if you often need to contact geographically distant offices and you are required to upload and send large files constantly. Your employees will be able to connect their work computers from various locations with ease, simultaneous work in the cloud won’t be a problem, and you will forget about interrupted conference calls forever.