If you're searching for leased line costs, you're probably looking to buy or renew a leased line. If so you're in the right place to access current market trends, benchmarking data for 100 Mb, 1 Gb leased lines as well as the prevailing market pricing from BT, TalkTalk, Virgin, Vodafone, SSE and many more providers. If you want to save time, you can navigate to the relevant sections using the shortcuts below.
How are the costs of leased lines determined?
Leased line costs are determined by numerous factors. In this analysis we will look at the key factors which determine the cost of a leased line. We'll compare geographic areas in the UK, speeds, technologies and analyse the bearing these factors has on the price quoted.
How much does a 100 Meg leased line cost?
100Mb leased line costs range from £230.33 to £277.87 depending on the speed of service you require, the service level agreement commitment made by the provider and your service location's distance from the carrier's network or BT Openreach infrastructure.
London is the cheapest location Amvia analysed with a 100 Mb leased line cost £233.33/month and Bristol was the most expensive £277.87/month.
These prices are based on a leased line price comparison of London, Manchester, Birmingham, Leeds, Glasgow, Sheffield, Bradford, Edinburgh, Liverpool and Bristol in December 2017. BT leased line costs were included as were TalkTalk, Virgin, Vodafone, SSE, M247, City Fibre and several more. 100Mb and 1Gb leased lines speeds were compared and compiled in the graph above.
1 Gb Price Range Across the UK
1Gb leased line costs range from £495.00 to £729.17. The main impact on 1Gb monthly rental charges is the provider. We often see huge differentials in prices for effectively the same 1 Gb service, the only difference can be whether you choose BT, Virgin or TalkTalk.
Highlighting The Importance Of Price Comparison
There is a lot of competition for 1Gb fibre lines in UK cities. It is very important that when you are buying or renewing a leased line you get a comparison of all your options. This is usually the biggest factor when it comes to getting the best leased line prices.
Bradford is the cheapest location Amvia analysed for a 1Gb service costing £495.00, closely followed by London at £501.22. Liverpool was the most expensive at £747.17/month.
These prices are based on a 1 Gb leased line price comparison of London, Manchester, Birmingham, Leeds, Glasgow, Sheffield, Bradford, Edinburgh, Liverpool and Bristol in December 2017. BT leased line costs were included as were TalkTalk, Virgin, Vodafone, SSE, M247, City Fibre and several more. 1Gb leased lines speeds were compared and sumarised in the graph on the left.
BT Are Banding The Cost Of A Leased Line By City
By analysing the 10 largest UK cities and the price BT is charging for a 100Mb leased line on a 100 Mb bearer it is clear there are 3 price bands. £317.07 in London, £389.79 in the majority of the other cities and £458.02 in Glasgow and Liverpool.
Competition In The Major Cities
When analysing BT leased line costs throughout the UK, in most cases Virgin & TalkTalk provided a more competitive cost. Competition for leased lines in the major cities and significant savings can be made by comparing providers.
Using a tool to compare leased lines can create significant savings. One of the challenges with comparing providers is knowing who is at your location and then getting the best quote from each provider. A tool like AmviaSearch™ can help you make this work very easy and you can get a whole of market leased line price comparison in seconds.
How bandwidth speed impacts the cost of a leased line:
The speed of a leased line is a significant contributory factor to the cost of a leased line.
To demonstrate this in more detail, we compared pricing from the same provider at the same location for a 10 Mb / 20Mb / 50 Mb / 100 Mb / 200Mb / 500Mb and 1Gb leased line. The location we chose to analyse was the HQ of Kidderminster-based Titan.
What we analysed:
Titan supplies steel wheels to significant excavator manufacturers such as Caterpillar, Komatsu, Volvo and Liebherr. Titan is located at: Bridge Rd, Cookley, Kidderminster DY10 3SD. The 10 Mb / 20Mb / 50 Mb / 100 Mb leased line costs are on a 36 month, wires only contract on a 100 Mb bearer. The 200Mb / 500Mb and 1Gb leased line costs are on a 36 month, wires only contract on a 1 Gb bearer. The provider used was TalkTalk.
The costs were as follows: 10 Mbps, £311.69/month; 20 Mbps, £326.09/month; 50 Mbps, £371.21/month; 100 Mbps, £397.60; 200 Mbps, £601.90/month; 500 Mbps, £1272.79/month; 1 Gbps, £1599.26 It should be noted that TalkTalk had the lowest prices up to 200Mbps, then Virgin had the cheapest pricing for 500Mbps and 1Gbps at £845.13/month for either speed! The difference between the cost of a 10 Mb leased line and a 1 Gb leased line is: £1287.57 or based on a 990 Meg difference £1.30/Mb of speed.
What is a contention ratio?
Contention ratio is a networking term that refers to "the ratio of the maximum potential demand to the actual bandwidth." The higher the contention ratio, the greater the number of users that may be trying to use the actual bandwidth at any one time and, therefore, the lower the effective bandwidth offered, especially at peak times.
Contention ratio. (2017, October 11). Retrieved December 06, 2017, from https://en.wikipedia.org/wiki/Contention_ratio
Why is contention ratio important?
Most leased lines are only used by the business that purchases them, and the bandwidth is dedicated to that single customer. The fibre line and the bandwidth are not shared so it is uncontended. If you order a service advertised as 1:1 contention then you'll be sure you will receive the entire capacity you order 24 x 7. If your business orders a 100Meg line then the guaranteed bandwidth over the service is 100Mb. The contention has an impact on the telecoms network provider's costs. A 1:1 contention ratio is far more expensive to guarantee than a 5:1 contention ratio. This is because the carrier can sell the 5:1 contended service's bandwidth five times. You should expect a 1:1 contention ratio leased line to be more expensive than a 5:1 contended leased line.
To directly compare the impact of contention on leased line costs we compared 2 services with the same supplier, Cityfibre, at EH2 4HQ. At this location Cityfibre offer an 8:1 contended 1Gbps leased line for £350.00/month and an uncontended 1:1 1Gbps leased line for £617.00/month.
What we found:
In this instance the cost of an uncontended leased line is £267.00/month or £3204.00/annum. This represents a % cost increase of 176%.
How does distance impact on leased line prices?
The distance between the carrier PoP and the customer termination of a leased line is commonly cited as a significant contributory factor to the cost of a leased line. To demonstrate this in more detail, we compared pricing from the same provider at the same speed for a 0.5 miles, 1 miles, 2 miles, 5 miles, 10 miles and 20 miles distance.
What we analysed:
The location we chose to analyse was MANAP the Manchester internet exchange at TelecityGroup, Kilburn House, Lloyd Street North, M15 6SE where BT have a PoP. IT Farm is in Kilburn House, Manchester Science Park, Manchester M15 6SE. 0.5 miles away is Asda Hulme Store, 100 Princess Rd, Manchester M15 5AS. 1.0 miles away is Job Centre Plus, 96 Wilmslow Rd, Rusholme, Manchester M14 5BJ. 2.0 miles away is Withington Library, 410 Wilmslow Rd, Manchester M20 3BD. 5.0 miles away is Northenden Golf Club, Palatine Rd, Manchester M22 4FR. 10.0 miles away is Manchester Airport, Manchester M90 1QX. 20.0 miles away is W Mandeville, 2 Macclesfield Rd, Holmes Chapel, Crewe CW4 7NE. We chose BT as the price supplier for a 100 Mb leased line 36 month contract, wires only.
IT Farm, £458.02/month; Asda Hulme Store £458.02/month; Job Centre Plus £458.02/month; Withington Library £458.02/month; Northenden Golf Club £458.02/month; Manchester Airport £458.02/month; W Mandeville £872.29/month.
If a business is located under 20 miles from a BT PoP the price of a leased line is not significantly likely to be impacted by distance from the local PoP.
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How important is price comparison on the cost of a leased line?
Put simply, if you aren't making a full leased line price comparison of the market when your leased line comes up for renewal or when you're buying a new service you're probably losing money. Supplier choice for leased lines has rapidly evolved since the deregulation of the telecoms market. More choice equals more competition and lower prices. If you aren't comparing all providers you probably ren't getting the best leased line costs.
What we analysed:
To demonstrate this in more detail, we compared 5 providers at the same location and performed a leased line price comparison. We compared prices for a 30 Mb leased line on a 100Mb bearer. The terms were kept consistent, 36 month contract, wires only. The location we chose to analyse was Wolverhampton Wanderers football stadium, Molineux Stadium, Waterloo Rd, Wolverhampton WV1 4QR.
What We Found:
The results were as follows: Virgin £210.89/month, TalkTalk £242.02/month, Vodafone £256.77/month, BT £305.52/month, SSE £718.67/month. The price differential between the lowest cost provider and the highest cost provider for a 30/100 Meg leased line was an incredible, £507.78/month or £6093.36/annum. The most expensive 30 Mb circuit was 340% more expensive than the cheapest!
If you only do one thing when you are buying or renewing a leased line, make a market comparison!