Leased Line Buying Guide - XINIX

Leased lines are private, high-performance circuits capable of transporting voice and data, and are leased by a common carrier between customers and a specific service provider’s network. Commonly used to provide internet access (Internet Leased Line) or to connect two locations (Point to Point Leased Line), a leased line differs from standard dial-up connections by being permanently active; and from broadband connections by supplying guaranteed bandwidth that is not contended by other users.

Leased line components

    • Router: Presented with an RJ45 connector as standard, the router is installed in a customer’s comms room and is usually managed by the service provider.
    • Local loop circuit: Linking the router to the service provider’s local point or presence, the local loop circuit connects to network termination equipment local in the customer’s comms room.
    • Back haul circuit: Depending on location, the customer link to the point of presence and onto the internet gateway may be via a back haul circuit.
    • Bandwidth: Speeds of up to 1,000mbps can be provided, depending on customer requirement.

    Why leased lines?

    Whether or not to invest in a leased line will be determined by your specific requirements. Businesses that need round-the-clock connectivity, are running critical applications, require fast upstream speeds, or need to view real-time bandwidth monitoring statistics are among those that will benefit most from the service.

    Types of leased lines

    • E1: The E1 leased line is the European and Asian standard, capable of supporting data rates in excess of 2mbps. The US equivalent is called the T1 and runs at 1.5mpbs.
    • E3: As the European equivalent of the US T3 circuit, the E3 provides long-distance, point-to-point connectivity at speeds of up to 34mbps.
    • DS3: Capable of supporting data rates of up to 45mbps, DS3 lines are a popular choice for businesses for use as an internet access local loop delivery.
    • OC: Optical Carrier is used to specify the speed of fibre optic networks conforming to the SONET standard
    • Frame Relay: A packet-switching protocol for connecting devices on a Wide Area Network, Frame Relay speeds in Europe vary from 64kbps to 2mbps.
    • Ethernet Extension Services (EES) Circuit: A point-to-point circuit available with speeds of 10mbps, 100mbps and 1,000mbps, many internet service providers use EES circuits to provide low-cost internet access over short distance in metropolitan areas.

    Advantages of leased lines

    • Private and secure
    • Uncontended bandwidth
    • Reliable
    • Resilient
    • Wide selection of speeds

    Disadvantages of leased lines

    • Can be expensive to rent and install
    • Uncontended bandwidth
    • Not suitable for home workers
    • Distance dependent to nearest POP


    Investing in a leased line for your business often involves an installation fee followed by fixed monthly, quarterly, or annual rentals. A number of factors influence the exact cost you pay, including the distance to the nearest POP and the speed required. In addition, installation costs may vary according to the type of equipment you require, and whether you have fibre already installed.

    The cost of your leased line rental will, however, feature a number of additional extras, including:

    • A preconfigured router
    • Static IP addresses
    • POP3 accounts
    • Domain name hosting
    • 24-network monitoring and fault detection
    • Access to technical support

    To find out more about the costs associated with leased line rental, contact XINIXWORLD today. We will be able to identify the perfect solution for you based on your specific requirements.

    Choosing a leased line provider

    Before investing in a leased line, it’s essential that you first identify the precise requirements of your company. Once you’re confident that you know the speed and type of leased line required, and a suitable budget on which to spend, you should always compare the offerings of multiple providers, and determine whether the price on offer suits the level of service you desire.

    In addition, you should remember that price isn’t everything. When sourcing a leased line provider, you should consider the service level agreements, technical support, company stability, and reputation among customers, building a comprehensive picture of the organisation you plan on entering a contract with.

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