For a busiA leased line vs broadband connection are different but knowing which suits your business can be difficult to decide. Most businesses use computers and the internet to some degree and many rely upon technology for their everyday operations. In addition, larger companies are becoming more geographically spread and almost all businesses are storing increasing amounts of their data in the cloud. All of this means that having reliable connections to the internet and to other office locations is essential.
Because it is in widespread domestic use, many people think of broadband as the only answer to internet connectivity. But broadband has drawbacks in terms of speed and reliability that mean it may not be the best choice for business use. There is an alternative in the shape of leased line connections, so let’s look at the leased line and broadband difference and what it means for business.
What is broadband?
In order to understand the leased line vs broadband difference you first need to understand what broadband is and how it works. Because most of us have it in our homes, broadband is familiar, and for home use (and probably for smaller businesses as well) it’s a perfectly good way of connecting to the web.
However, broadband is not always the perfect choice for business users. Having an asynchronous connection, often known as ADSL, gives you fast downloads but upload speeds are slower.
On a typical UK fibre broadband service you might get 40Mbps or better downloads, but only 1.5Mbps uploads. While this isn’t a problem when you’re streaming from Amazon Prime or iPlayer, it is an issue if you need to send large files to another site or backup big volumes of data to a cloud service.
Broadband contention
With broadband, once the line leaves your premises you’re sharing it with other people. This is something called contention; typical UK broadband has a contention ratio of between 20:1 and 50:1. You can think of this rather like the rush hour; if everyone’s travel was spread out through the day there would be no congestion, but because we all travel to and from work at the same times, the road and rail networks become busy and struggle to cope.
The same thing happens with broadband; when everyone else is online in the evenings, all streaming movies and ordering groceries, your connection will slow down. This is something you can check out for yourself by running a speed check (there are plenty of free sites that will let you do this) at different times of day and noting the difference.
Leased lines differ significantly from broadband in terms of data usage. Unlike broadband, which often imposes caps on data transfer volume, leased lines typically offer unrestricted data usage without any additional charges for exceeding limits. Even when broadband services claim to be ‘unlimited,’ they usually have fair usage restrictions in place, which can pose challenges during peak times when large amounts of data are transferred.
For businesses, this means greater flexibility and reliability in data transfer. With leased lines, there’s no need to worry about exceeding data caps or facing extra charges. Ensuring consistent and uninterrupted connectivity is essential for business operations, especially during periods of high demand.
What is a leased line?
Firstly and most significantly, a leased line is synchronous so you get the same transfer speed for data in both directions. If you have systems in the cloud, it means many of your critical business processing may be reliant upon having an internet connection, so this equal speed is a significant advantage. It also makes for more reliable use of communication services such as video calling and VoIP telephony which are increasingly used to reduce business communication costs.
Ethernet first mile (EFM) leased lines use a combination of linked pairs of cables and clever signal processing technology to deliver fast speeds over a conventional copper circuit. There are also fibre carrier (or Ethernet over fibre) leased lines.
This means that you get guaranteed download speeds with leased line vs broadband connection. While the speeds may not seem ultra-quick in the light of some broadband offerings, having a dedicated circuit makes a big difference to everyday usability.
You also get faster upload speeds thanks to the synchronous circuit. In the age of the cloud where many of your critical business systems may be reliant upon an internet connection, this is a big advantage. It also makes for more reliable video calling and VoIP telephony.
Leased line contention
You don’t have to worry about contention when using a leased line. The circuit is exclusively for your use, ensuring the connection isn’t slowed because of increasing demand from others. This is a key consideration for internet-based businesses, especially if you intend running your own in-house web servers where a fast connection in both directions is crucial. It also means that there aren’t any usage caps on the amount of data you can transfer. At busy times, you’re not going to face an unexpected bill for going over your data allowance.
You need to consider reliability too. Leased line services cater to businesses and offer guaranteed levels of service. The support is tailored to acknowledge the essential nature of the service for your business as well as the need to swiftly resolve any issues for minimal downtime.
Disadvantages of a leased line
Of course, there are some disadvantages of leased lines. Firstly, there’s the cost factor. Leased lines have become more affordable compared to before, but they still tend to be pricier than broadband. Costs depend on your location and the length of the circuit, as well as the type of circuit required. Signing a longer contract may help you to get a better price, provided that this works in the long term.
However, you should weigh the costs against the advantages. Examine how your business will benefit from a leased line and have those discussions with leased line providers.
Another drawback is the lengthy installation process. Broadband using existing telephone lines is a swift installation. Conversely, a leased line demands the installation of a new circuit, potentially involving substantial work to connect your premises to the service provider’s network. Consequently, obtaining a leased line installation may take several months compared to just weeks for broadband.
If you’re planning on relocating your business, it’s vital to plan ahead.
Business advantages of a leased line vs broadband
So, why is a leased line likely to be a better choice for your business? For small businesses, it may not be. However, if you have a few employees using systems, or have more than one location, a leased line is an attractive proposition.
A leased line will be able to deliver better connection speeds all day, so you’ll have no concerns if you’re working outside normal office hours. For a business using the cloud to store data or to run systems then you need a reliable connection. Being unable to access your systems will mean you’ll be losing trade and losing money.
If your business has several sites relying upon a central data centre for their computing needs, then a leased line makes sense. The asynchronous nature of the connection makes it easier and quicker to transfer large files between your sites. It’ll also be better for data-hungry cloud applications. It’s good for video calling and VoIP phone calls too, which are increasingly popular with businesses looking to keep down calling costs.
