Leased lines have long been the go-to connectivity solution for businesses that need reliable, high-speed connections. However, they don’t come cheap. Here are some viable alternatives to leased lines that can save you money without compromising on performance.
What Are Leased Lines?
Leased lines, also known as dedicated internet access (DIA), are private network connections leased from a telecom company. They provide an unshared, symmetrical, high-bandwidth connection between two or more locations.
Key features of leased lines:
- Guaranteed bandwidth – You pay for a guaranteed level of bandwidth that is symmetrical (same speed up and down).
- Low latency – Leased lines provide very low latency as you don’t share the connection with others.
- Reliability – Leased lines offer superior uptime compared to broadband connections.
- Security – Traffic flows over a private connection and does not traverse the public internet.
However, leased lines are costly, with prices starting from $300 per month for a basic 10Mbps line. The price goes up sharply as bandwidth increases.
Why Are Leased Lines Expensive?
There are several reasons why leased lines are an expensive proposition:
- Dedicated connection – The bandwidth is fully dedicated to you and not shared with other customers.
- Active network equipment – The provider must install dedicated routers, switches and monitoring systems.
- Cost of laying cables – Fiber or copper lines often need to be laid exclusively for your connection.
- Business-grade SLA – Leased lines come with robust Service Level Agreements (SLAs) promising uptime and support.
As a result of these factors, prices for leased lines are steep, especially if you need high bandwidth capacity.
Alternatives to Leased Lines
If you find leased lines too expensive, here are some alternative connectivity options to consider:
1. Broadband Internet
Broadband internet connections via cable or DSL are cheaper than leased lines. While speeds may not match high-bandwidth leased lines, broadband can offer sufficient performance for small to medium businesses at a fraction of the cost.
However, bandwidth is shared and latency depends on how congested the network is. Uptime SLAs are also weaker compared to leased lines. Broadband is best suited if budget is a major constraint and you don’t need QoS guarantees.
2. Wireless Broadband
Wireless broadband utilizes radio waves instead of cables to provide internet access. Options include:
- 4G/LTE – Can offer speeds comparable to DSL/cable broadband. More suitable for mobile usage.
- Satellite – Lets you get high speed broadband in remote locations where cable/DSL are not available. But latency is very high (~600ms).
- Microwave – Microwave transmission between two points can be a good option for point-to-point connectivity. Latency is lower than satellite.
Wireless options are generally cheaper than leased lines, but reliability and latency varies. Make sure to get an SLA guaranteeing uptime and performance from your wireless provider.
3. Metro Ethernet
Metro Ethernet provides high speed connectivity by utilizing existing metro fiber networks instead of having to lease dedicated end-to-end lines.
Speeds can match or even exceed leased lines at significantly lower costs. It can also be scaled up as your needs grow. Latency and uptime are good but still trail behind dedicated connections. Metro Ethernet works well if you need high bandwidth and some QoS assurances without paying full leased line costs.
4. MPLS
Multi-Protocol Label Switching (MPLS) uses shared network infrastructure to provide private connections between locations. It prioritizes your traffic and takes a direct route avoiding the public internet.
MPLS offers good speeds, low latency, QoS control and enhanced security at reasonable rates. It does not match the performance and reliability of a leased line, but is much cheaper while still giving you required QoS parameters.
Key Considerations When Choosing an Alternative
Here are some key criteria to evaluate when choosing a leased line alternative:
- Bandwidth needs – Select an option that can meet your speed and capacity requirements.
- Reliability and uptime – Check provider SLAs for uptime guarantees and meet your reliability needs.
- Latency and jitter – Ensure latency and jitter levels offered will support your applications.
- Scalability – Can the alternative solution scale up bandwidth in the future as your needs grow?
- Security – Does the alternative provide sufficient encryption and avoid public internet risks?
- Price – Compare total cost of ownership against your budget. Don’t select an option just because it is the cheapest.
- Ease of implementation – Consider how easy it is to setup and manage the connectivity solution.
Do a thorough evaluation of all alternatives against these criteria before selecting a replacement for expensive leased lines. This will ensure you get optimal performance and reliability at a feasible cost.
When Leased Lines May Still be The Right Choice
While leased line alternatives can save money for many businesses, they are not suitable for everyone. Some cases where paying for leased lines still makes sense:
- If you need very high, dedicated, symmetrical bandwidth of 1Gbps or more.
- For mission-critical applications demanding no packet loss and very low latency.
- If your business involves activities like high frequency trading where network delays can’t be tolerated.
- When security is paramount and you want total isolation of business network traffic.
- When you need robust SLAs assuring 99.99% or higher uptime.
For everyone else, carefully evaluating alternatives like Metro Ethernet and MPLS can provide the desired performance improvements at a fraction of the cost of leased lines.
Summary
Leased lines deliver very high speeds, low latency, reliability and security. But you pay a premium for these benefits. Many businesses can achieve sufficient performance – while significantly reducing costs – by using alternative solutions like broadband, wireless, Metro Ethernet or MPLS.
I recommend listing your essential connectivity requirements like speed, uptime, scalability and budget. Then thoroughly assess different alternatives against these criteria. This will help you find the ideal replacement; one that delivers the performance your business needs at a cost you can justify.
With the right alternative, you can reduce connectivity costs without taking a big hit on service quality. But if you do have mission-critical needs demanding the highest levels of speed, reliability and security, leased lines may still be your best bet despite the price.
