If you have ever asked for the price of a leased line and been told "it depends", you are not alone. Unlike home or business broadband, which is sold as a package at a set monthly price, a leased line is built for your premises. That means two businesses on the same street can be quoted different amounts. This guide explains what drives the cost, which charges to look out for, and how to get a quote you can rely on.
Why leased lines are quoted, not listed
A leased line is a dedicated fibre connection between your building and your provider's network. The capacity is reserved for your business, the speed is the same in both directions, and it comes with a service level agreement. If you are still deciding whether you need one, our guide to leased lines and business broadband covers the differences.
Because the line is physically built to your address, the price reflects the work involved in getting fibre to you. The main factors are bandwidth, distance, contract length and any extra construction.
1. Bandwidth
The most obvious factor is how much capacity you want. Openreach's Ethernet Access Direct (EAD) product, which many UK leased lines are built on, is available in 10Mbps, 100Mbps, 1Gbps and 10Gbps bandwidths.
A common approach is to install a bearer (the physical connection) that is larger than you need today, then choose a lower bandwidth on top of it. For example, a 1Gbps bearer might carry a 200Mbps or 500Mbps service. Upgrading later can then be a change of settings rather than a new installation. Ask your provider whether this is possible, as it can save time and disruption as your business grows.
Not sure how much you need? Our guide on how much speed a business needs walks through it.
2. Distance from the fibre network
The further your premises are from suitable fibre, the more work it takes to reach you. A unit on a business park with existing ducts may need little more than a short cable run. A rural farm office or a converted mill may need new ducting, poles or digging along a road. That is why location has such a big effect on price, and why an address check is always the first step.
3. Contract term
Leased lines are usually sold on terms of 36 months or more. Longer terms often reduce the monthly price or the upfront charge, because the cost of building the line is spread over more time. Before you sign, think about how long you expect to stay at the premises. If a move is likely, ask what happens to the contract if you relocate. Our moving office checklist may help with timing.
4. Excess construction charges
Excess construction charges, often shortened to ECCs, apply when building the connection needs more work than a standard installation includes. This might be new ducts, extra cabling inside a large building, or civil works such as digging across a car park or road.
They are more common than many people expect. ISPreview reports that around 30% of Openreach EAD orders may incur excess construction charges. ECCs are usually confirmed after a survey, so a quote given before the survey may say they are possible but not yet known.
How extra construction is quoted
How excess construction charges are worked out depends on the network and on your provider, and they are only known once the site has been surveyed. Always ask your provider to explain any ECC on your quote, and make sure you can decide whether to go ahead before any work starts. With us, if extra construction is needed we tell you the exact cost after the survey, and you can accept it or cancel with nothing to pay.
5. Installation and connection charges
Most leased line quotes include a connection or installation charge as well as a monthly rental. Some providers spread this across the contract and others ask for it upfront. When comparing quotes, add up the total cost over the full term rather than looking at the monthly figure alone.
It is also worth checking what equipment is included. A leased line normally arrives with a network terminating unit fitted by the network operator, and many providers supply a router or firewall too. Find out who owns, manages and replaces that equipment if it fails.
Other things that can affect the price
- Building access. If you rent, the landlord may need to give permission for cabling. In shared buildings, routing the line to your floor can add work.
- Resilience. A second line, or a backup connection over a different route, adds cost but protects you from a single fault. Our guide to backup and failover explains the options.
- Extras. Additional IP addresses, managed firewalls and enhanced support all appear on the quote.
How to get an accurate quote
- Start with your exact address and postcode. Pricing depends on location, so this matters more than anything else.
- Know your bandwidth needs now and in three years. This helps you choose the right bearer.
- Tell the provider about your building. Mention whether you own or rent, which floor you are on, and whether there is an existing comms room.
- Ask whether the price is subject to survey. If it is, ask what kinds of extra charges might arise and how you will be told about them before work goes ahead.
- Compare the total cost over the term. Include connection charges, rental and any equipment.
- Read the service level agreement. A cheaper line with weaker fix commitments may cost more in lost time when something goes wrong.
Get a leased line quote
Our team is based in Sunderland and works with businesses across the North East and the rest of the UK. You can check prices for your address online at our leased lines page, or ask for a tailored leased line quote. If you would rather talk it through, call us on 0191 543 3432 and we will explain exactly what is in the figure and why.