Your Guide to Leased Line Costs in the UK in 2020

Posted by Nicola Scoon on 10-Oct-2019 10:41:00

In Advice Guide, leased line, business fibre, business broadband, Superfast

Leased line costs are increasingly affordable, especially if you opt for a 100Mbps line. While they once were seen as out of reach to many, they’re now an easier investment for growing businesses.

 

How much does a leased line cost? 

For the figures below, we researched leased line costs for a location in central Manchester. These quotes are all based on a three-year term, with free installation fees.

 

What does a 100Mbps leased line cost?

100Mbps leased lines are growing in popularity with businesses. They offer you plenty of bandwidth, especially if you opt for a line with a 1Gbps bearer so you can upgrade in the future. 

Thanks to their popularity, 100Mbps leased lines are affordable. There are a number of providers competing for your business at this level, so costs are comparatively low. 

Using our free leased line costs search tool, we found quotes for a 100Mbps leased line ranging between £260 and £342 per month. These quotes include both major and alternative providers.

 

What does a 100Mbps leased line cost?

 

How much is a 500Mbps leased line?

For businesses that need extra capacity and higher speeds, a 500Mbps leased line is a great option. As with before, you can request a 1Gbps bearer relatively inexpensively to future-proof your connection. 

Although you receive an extra 400Mbps of bandwidth at this level, you’ll pay less than double what you would for a 100Mbps line. If your budget can stretch to it, we’d recommend opting for the plan with higher bandwidth. 

Leased line costs for a 500Mbps connection start at £411 per month, with our highest quote coming back at £673 per month. When you consider what you could do with all the extra bandwidth, the price difference between this line and a 100Mbps line is minimal.

 

What does a 1Gbps leased line cost? 

At the higher end of the leased line speed spectrum, 1Gbps lines are perfect for businesses with a heavy reliance on a fast internet connection. 

We found there to be a very minimal price difference between 500Mbps and 1Gbps leased lines. If you’re considering a 500Mbps line, it’s worth checking to see if you could upgrade to double the bandwidth for a very small price increase. 

Our research found quotes for a 1Gbps leased line that range between £437 and £994 per month. There’s a noticeable difference between the lowest and most expensive quotes here, which is why it pays to use a comparison tool like our free leased line quote search.

 

What influences leased line costs in the UK?

While leased lines are growingly affordable, there are a number of factors that influence pricing. The most obvious of these is the speed you choose, followed by your provider choice, contract length and location.

 

What influences leased line costs in the UK?

 

Leased line speed

The biggest influence on what your leased line costs will be the speed you choose. Like any other broadband connection, leased line pricing is based on how much bandwidth you want to use. 

There’s a huge range of bandwidth options available, with popular choices ranging anywhere from 10Mbps to 1Gbps. For businesses with a heavy reliance on data transfer, 10Gbps leased lines are now also available. 

When deciding which speed suits your business best, consider how this might change in the future. If you only need 100Mbps at the moment but want to future-proof your connection, opt for a 100Mbps leased line on a 1Gbps bearer. This bearer gives you additional capacity to increase your bandwidth in the future, inexpensively and with minimal delay.

 

Provider 

Competition between providers has reduced leased line costs in the UK, which is great news for businesses. There are now multiple providers to choose from, each keen to attract your interest and business. 

Surprisingly, there’s a wide difference in cost between providers when it comes to leased lines. This is especially true at the most popular bandwidth options, like 100Mbps, 500Mbps and 1Gbps. There’s no correlation between big brands and an affordable rate either, with industry giants BT being one of the more expensive providers for leased lines. 

Currently, our research has found that CityFibre offers highly competitive leased line pricing. This alternative provider offers a range of business broadband connections, including affordable leased lines. These start around £260 per month for a 100Mbps leased line. In comparison, the same speed connection costs closer to £417 per month with TalkTalk Business and £472 per month with BT Business. If you want to keep costs low, this is a great option.

 

Contract Length

While most providers don’t charge you more per month for a shorter contract, your term can influence other costs – including installation fees. 

Let’s take a 500Mbps leased line with BT Business as an example. For a one year term, you could pay £897 per month plus one-off installation costs of £2,079. That’s a total cost for one year of £12,843. The same pricing applies for a two-year term. With a three year term, you benefit from free installation costs. 

Leased lines are an investment in your business, so if you’re ready to commit it makes sense to opt for a longer contract to secure a lower cost overall.

 

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Location

There’s some fluctuation in pricing when it comes to different towns and cities. It’s not as noticeable as you’d think though, with pricing and availability generally good across the UK. We found that many cities across the UK can access a 1Gbps leased line for around £500 per month

The main impact your location has on pricing is your distance from your provider’s access point. If your premises is more than 20 miles from the ‘point of presence’ (PoP), your leased line costs could be higher. Our research into leased line costs by distance found that premises at this distance could see costs rise by up to 50 per cent. 

In general, pricing is consistent – you can enjoy a 100Mbps leased line starting close to £260 per month in most locations.

 

How to lower your leased line costs in the UK 

When you’re investing in a service for up to three years, you want your money to go as far as possible. That’s why we’ve made it easy to compare and save on leased line costs with our free leased line comparison tool.

With a few details, we can scan the latest leased line deals to bring you a tailored list of quotes based on your criteria. From there, you can compare offers and make a decision – without the need to call multiple providers or spending hours on research. It’s a time-saving way to find a better deal on your new leased line, plus you could save up to 37 per cent!

 

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