What is a leased line? Benefits & how it works
A leased line provides consistent business internet speeds, making it ideal for companies that rely on cloud applications, VoIP, or large file transfers. Standard broadband speeds can fluctuate throughout the day, but a leased line delivers a stable, dedicated connection. Not every business needs one, and costs depend on location and bandwidth.
We'll be taking a look at:
- What a leased line actually is, and why businesses use it
- How leased lines work and what makes them different from broadband
- Types of leased lines and which one fits your business needs
- Comparing leased lines and DIA to find the right solution
- Why businesses choose leased lines over standard internet connections
- Potential downsides and what to consider before making the switch
- Finding the right provider and avoiding common pitfalls
- What to know before installation to prevent delays
- FAQs about leased lines and what businesses ask the most
- How Meter Connect simplifies leased line procurement
What is a leased line?
A leased line is a private internet connection that businesses use to avoid the headaches of shared broadband. Instead of fighting for bandwidth with neighbors streaming videos or downloading massive files, companies get a dedicated link with consistent speeds—no slowdowns, no surprise buffering.
How it works
Think of a leased line like a VIP lane on the internet highway. Instead of merging into traffic with everyone else, your business gets a direct line to your internet service provider (ISP). The connection can be fiber-optic or copper, but the key is that it’s always on and always yours—no sharing, no interruptions.
A big advantage is you get symmetrical internet (i.e. upload and download speeds are similar). Home internet usually prioritizes downloads, leaving uploads sluggish. A leased line keeps both fast, so your business can send large files, run video calls, and back up data without hitting a wall. That makes a huge difference for cloud-based work, VoIP calls, and any company that relies on real-time data flow.
Dedicated vs. shared connections
A leased line gives your business its own private lane on the internet highway. Broadband, on the other hand, is like rush hour—everyone in the area is fighting for bandwidth, and speeds can slow to a crawl. Here’s how dedicated internet vs. broadband stacks up:
Broadband, even fiber-optic, runs on a shared network, meaning your connection depends on how many others are online. A leased line avoids this mess by giving you a direct, private connection with speeds that never dip. If your business can’t afford internet slowdowns, this is the better bet.
Symmetric upload & download speeds
One of the biggest perks of a leased line is getting the same fast speed for uploads and downloads. Most broadband plans focus on downloads, leaving uploads painfully slow. That’s fine if you’re just streaming movies, but terrible for video calls, cloud backups, or sending large files.
A leased line makes sure your business can upload just as fast as it downloads, so there’s no waiting around for files to send or calls to buffer. It also helps keep video meetings clear and lag-free—because no one likes talking to a frozen screen.
Types of leased lines
Some leased lines connect your business directly to the internet, while others link multiple offices or create private networks. The right choice depends on how much speed, security, and reliability your business needs. Here are your options.
Internet leased line (ILL)
Think of an ILL as your company’s private internet highway. Instead of sharing bandwidth with everyone in the area, you get a dedicated, high-speed connection that stays fast no matter how many people are online. This is perfect for businesses that rely on cloud applications, VoIP calls, and big data transfers—or just don’t want to deal with random slowdowns.
Ethernet leased line
An ethernet leased line connects your business to the internet using ethernet technology, which means low latency, high speeds, and rock-solid reliability. It’s a great choice for companies that need stable performance for critical applications. Plus, it’s scalable, so as your business grows, your connection can keep up.
MPLS leased line
A Multiprotocol Label Switching (MPLS) leased line is for businesses with multiple locations that need to stay connected without relying on the public internet. It prioritizes speed, security, and performance, making it great for companies with remote offices, data centers, or cloud-based operations. If you need a private, high-priority network that won’t lag, this is the way to go.
Point-to-point leased line
A point-to-point leased line is the internet’s version of a direct flight between two offices—no layovers, no detours, just a fast, secure connection between locations. Businesses use this for private communication, data transfers, or connecting remote servers without worrying about security risks from public networks.
Leased line vs. DIA (Dedicated internet access)
A leased line and Dedicated internet access (DIA) both give businesses a high-speed, private connection, but they serve different purposes. The easiest way to think about it? DIA is a leased line that connects you directly to the internet, while other types of leased lines (like point-to-point or MPLS) can create private networks between locations.
If your business needs a rock-solid internet connection with guaranteed speeds and low latency, DIA is a great fit. But if you’re connecting multiple offices, data centers, or internal systems, a private leased line might be the better choice.
Here's a detailed look at the differences:
When to choose a leased line vs. DIA
A leased line is best when your business needs a completely private, high-speed network. Companies with multiple offices, remote servers, or internal data transfers often choose a leased line that doesn’t touch the public internet, keeping things secure and running with low latency.
DIA, on the other hand, is the best fit for businesses that need dedicated internet access without interruptions. Some companies will even integrate it with Network as a Service solutions to simplify network management (hint: Meter does it). If you rely on VoIP, cloud computing, video conferencing, or massive data transfers, DIA ensures your connection stays fast, even during peak hours.
A good rule of thumb is if you just need great internet, go with DIA. If you need a private network, go with a leased line.
10 advantages of using a leased line for business
A leased line isn’t just another way to get online. It’s a dedicated, high-performance connection built for businesses that rely on fast, consistent, and private network access. A leased line delivers uninterrupted connectivity without the burden of shared broadband.
Here are 10 solid reasons why businesses choose a leased line over other internet options.
1. Dedicated, uncontended bandwidth
A leased line is all yours—no sharing, no competing for bandwidth, and no slowing down during peak hours. Whether you're transferring files, hosting video calls, or using cloud applications, your connection stays consistent.
2. High-speed, stable connectivity
Speeds on a leased line are fixed, so if you’re paying for 1 Gbps, you get 1 Gbps, all day, every day. No surprise slowdowns, no throttling—just reliable performance.
3. Private connection with security options
A leased line keeps your traffic separate from public broadband users, reducing the risk of data interception. While it’s not encrypted by default, businesses can layer on VPNs, firewalls, and encryption to create a secure network.
4. Guaranteed uptime with SLA support
Most leased lines come with Service Level Agreements (SLAs) that guarantee uptime—typically 99.9% or higher. If there’s an outage, the provider has a contractual obligation to fix it fast, so your business isn’t left in the dark.
5. Low latency for real-time applications
Latency—the time it takes for data to travel across the network—is significantly lower on a leased line than on broadband. This makes a huge difference for businesses that rely on VoIP, video conferencing, financial trading platforms, and remote desktop applications. No awkward call delays, no lag, no dropped connections.
6. Symmetric upload and download speeds
Broadband is built for consumers who stream more than they upload, so it prioritizes downloads over uploads. A leased line keeps both equal, so businesses can upload large files, run cloud applications, and host live streams without a bottleneck.
7. Customizable bandwidth options
Businesses can choose the speed they need with a leased line—whether it’s 100 Mbps, 1 Gbps, or more. If your company grows and needs more bandwidth, many providers let you upgrade without replacing infrastructure.
8. Works well for multiple locations
A leased line must be about more than internet access. It can also connect multiple offices, data centers, or remote sites with a private, high-speed link. This is especially useful for companies that need secure internal communication without using the public internet.
9. No fair usage policies (FUPs) or throttling
Some broadband providers limit speeds during peak hours or restrict high-bandwidth activities—a practice known as Fair Usage Policy (FUP) enforcement. A leased line has no such restrictions, so businesses get full speed, all the time.
10. Reliable performance for cloud-based work
With businesses moving to cloud storage, SaaS platforms, and remote collaboration tools, a stable, high-speed connection is non-negotiable. A leased line gives companies the bandwidth and reliability to handle cloud computing without disruptions.
The 10 drawbacks of a leased line
A leased line is a great option for businesses that need fast, stable, and private internet access, but it’s not perfect. While it delivers dedicated bandwidth and guaranteed speeds, there are a few trade-offs to consider.
1. Higher costs than standard broadband
Leased lines don’t come cheap. Since you’re getting dedicated bandwidth with guaranteed speeds, costs are higher than broadband. The price depends on speed, location, and how far your business is from the provider’s nearest fiber connection. If you’re in a major city, it’s usually more affordable. If you're in the middle of nowhere? Expect to pay more.
2. Limited availability in rural areas
Not every location has leased line access, especially in rural or remote areas. If there’s no existing fiber, installation might require new infrastructure, which means higher costs and longer wait times. Some businesses turn to wireless leased lines or satellite options when fiber isn’t an option.
3. Longer installation times
Installing a leased line isn’t a quick process. It usually takes 30 to 90 days, but it can stretch longer if new cables need to be laid. The delay comes from site surveys, fiber availability, and getting permits for construction work. If you need a connection fast, broadband or temporary wireless solutions might be better short-term options.
4. Higher setup and installation fees
Even if a provider already has fiber in the area, installing a leased line isn’t free. Setup costs can range from a few hundred to several thousand dollars, depending on how much work needs to be done. If fiber isn’t nearby, additional charges apply for digging trenches, laying cables, or using third-party infrastructure.
5. Contract lock-ins
Most leased line contracts require long-term commitments—typically 12 to 36 months. That’s because providers invest in the setup, and they want to recoup those costs. If your business needs flexibility, a long contract might not be ideal. Early termination fees can also be steep.
6. Power dependency
A leased line needs network hardware, routers, and fiber infrastructure to keep running. If your area has frequent power outages and you don’t have a backup power solution, even the best leased line won’t keep your internet up. Businesses in areas prone to blackouts should invest in uninterruptible power supplies (UPS) or backup generators.
7. Limited provider choices
Unlike broadband, which has plenty of competition, leased line providers are fewer in number. In some areas, you might only have one or two providers, which means less room to negotiate pricing or service terms. If you’re unhappy with your provider, switching could mean another long installation process.
8. No Wi-Fi included
A leased line gives you a super-fast connection, but it doesn’t come with built-in Wi-Fi. Unlike home broadband, which includes plug-and-play routers, businesses need to set up their own network hardware, firewalls, and access points. If you don’t have an IT team, managing this setup can be a hassle.
9. Potential performance overkill
Not every business needs a dedicated 1 Gbps connection. If your internet usage is light—mainly emails, web browsing, and the occasional video call—a leased line could be overkill. In that case, fiber broadband with a business-grade SLA might be a better fit.
10. No quick speed changes
With broadband, you can often upgrade your speed instantly. Leased lines don’t work that way. If you need more bandwidth, your provider might need to reconfigure the network or even install additional fiber, which takes time. If your business has sudden spikes in demand, you’ll need to plan for it in advance.
What to look for in a leased line provider
Some leased line providers specialize in enterprise-grade networks. Others focus on affordable business connections. Before signing a contract, here’s what to check.
Cost isn't just about the monthly fee
Leased lines cost more than standard broadband, but the real expense depends on location, bandwidth, and contract length. Businesses in fiber-dense urban areas usually get better rates, while those in rural locations may face extra installation fees. Some providers offer introductory discounts, but prices may jump mid-contract—so always check the fine print.
Speed matters, but scalability is the real game
Every provider offers different speed tiers, but what happens if your business outgrows its current plan? Some providers make scaling up easy, while others require contract renegotiations or expensive infrastructure upgrades. If your data needs could double in the next year, make sure your provider can keep up.
Uptime SLAs are more than marketing promises
A 99.9% uptime guarantee sounds great—until you realize it allows over 8 hours of downtime per year. The best providers offer 99.99% or better, along with response and fix-time guarantees. If an outage happens, how fast will they act? Some SLAs promise repairs within 4 hours, while others leave you waiting until the next business day.
Not all leased line providers own their networks
Some providers own and operate their fiber, while others rent access from larger carriers. Why does this matter? If your provider doesn’t own the infrastructure, they have to go through third parties for repairs, which can slow down issue resolution. If speed and reliability are priorities, ask whether the provider controls their network or just resells access.
Hidden costs hide everywhere
The monthly fee is only one piece of the puzzle. Some providers charge hefty installation fees, especially if new fiber needs to be laid. Others include equipment like routers and firewalls, while some make you buy or lease them separately. Early termination fees, additional static IP charges, and SLA upgrades for faster issue resolution can all add unexpected costs.
Contracts aren’t always flexible
Leased line contracts typically last 12 to 36 months, and breaking them early can cost thousands. Some providers offer shorter terms or flexible exit clauses, but many don’t. If your business might relocate or change needs before the contract ends, check the cancellation terms before signing.
Customer support can make or break the experience
Not all providers offer 24/7 support, and even fewer have local engineers ready to fix issues fast. Some rely on chatbots and ticketing systems, while others provide real human support. If an outage happens, do you want to wait in a queue, or do you want a direct line to an actual engineer?
Installation can take longer than expected
Leased line installation typically takes 30 to 90 days, but delays happen. Site surveys, permits for roadwork, and provider scheduling can push the timeline even further. Some businesses use temporary broadband or 4G backup while waiting for installation—something to consider if you need connectivity sooner rather than later.
Mid-contract price increases happen more than you think
Some providers lure businesses in with low introductory pricing, only to increase rates after 12 months. Others bake annual price hikes into contracts, meaning your bill could go up every year. Always read the terms carefully and ask about potential price changes before committing.
Tips for choosing the right business leased line
Choosing a leased line is a long-term investment, and getting it right means thinking beyond today’s needs. The wrong decision could leave your business stuck with slow speeds, unexpected costs, or a contract that’s impossible to escape. A little planning now can save frustration, downtime, and unnecessary expenses later.
Here’s how to make sure your leased line actually works for your business—now and in the future.
Don’t let bandwidth bottlenecks sneak up on you
Most businesses underestimate how much bandwidth they’ll need. Today, it might seem like 100 Mbps is plenty, but what about next year? With cloud storage, video calls, and remote teams growing fast, you don’t want to be stuck upgrading within months. A good rule of thumb? Plan for at least 20-30% more bandwidth than you need right now.
Speed is great, but reliability matters more
A 1 Gbps connection sounds amazing, but speed doesn’t mean much if the network is unreliable. If your business depends on uptime, look beyond the numbers—check historical reliability, redundancy options, and provider response times. A slightly slower, rock-solid leased line beats a faster one that drops out at the worst moments.
Match your connection to your business goals
Not every company needs a maxed-out, high-speed leased line. A video-production firm pushing terabytes of footage? Absolutely. A law office sending emails and holding Zoom meetings? Maybe not. Choose a connection that fits how your business actually works, not what looks good on paper.
A leased line that can’t grow with you isn’t worth it
Your business won’t stay the same size forever, so why choose a leased line that locks you into a fixed speed? Some providers offer on-demand upgrades, while others require new contracts, extra fees, or even fresh installations. Make sure scaling up is simple and cost-effective.
Latency isn’t just for gamers
If your team relies on VoIP, video conferencing, or real-time applications, latency matters just as much as speed. A leased line should offer low-latency connections, so calls don’t lag, files don’t take forever to sync, and transactions process instantly.
Symmetric speeds keep everything running smoothly
Most broadband connections prioritize downloads, leaving uploads crawling at a fraction of the speed. A leased line fixes that by offering equal upload and download speeds—which is a must-have for businesses that rely on cloud computing, large file transfers, or remote teams.
Hidden fees love to appear when it’s too late
Think the monthly fee is all you’ll pay? Think again. Some providers charge extra for installation, hardware, static IPs, or faster SLA response times. Always ask for a full cost breakdown before signing anything.
Redundancy could be the difference between business as usual and total panic
A leased line is more reliable than broadband, but no connection is perfect. If downtime is a deal-breaker, consider a backup option, like a secondary connection, 4G failover, or even a second leased line with automatic failover. It’s an extra cost, but a worthwhile one if staying online is non-negotiable.
Your leased line should work with your existing network
Some businesses forget to check if their network gear can handle a leased line. If your router or firewall can’t support gigabit speeds, you might be paying for performance you can’t even use. Always confirm that your infrastructure is up to the task before upgrading.
A bad provider can ruin a great leased line
Even the best leased line won’t help if the provider’s support is terrible. Look for real customer reviews, uptime guarantees, and SLA response times before committing. The last thing you want is a provider that disappears when things go wrong.
Leased line installation checklist
Getting a leased line takes planning, coordination, and a bit of patience. Delays happen when businesses aren’t prepared, so having a clear checklist can speed things up and prevent last-minute surprises.
Confirm availability before you commit
Before signing a contract, check if fiber is already in place at your location. If it’s not, the provider may need to dig trenches, lay cables, or get third-party approvals, which could push back your installation date.
Schedule a site survey early
A site survey helps the provider figure out how to connect your building and if any extra work is needed. If your office is in a business park, high-rise, or remote area, expect extra steps like wayleave agreements (landlord permissions) or network extensions.
Plan for installation access
If your provider needs to install fiber or network hardware inside your building, someone will need to be on-site to grant access. If you're in a shared office or data center, coordinate with building management to avoid delays.
Check your internal network setup
A leased line is only as good as the network supporting it. Make sure your routers, firewalls, and switches can handle the new speeds. If your infrastructure is outdated, your business won’t get the full benefit of the connection.
Clarify your IP address needs
Some businesses need static IPs for hosting, VPNs, or remote access. If you need more than what’s included, check if your provider offers additional IPs and if they charge extra for them.
Set up a backup connection
Even though leased lines are reliable, unexpected issues like fiber cuts or power outages can still happen. Having a secondary internet connection, like a 4G failover or an additional broadband line, can keep your business online if something goes wrong.
Review your SLAs
Not all SLAs are the same. Some providers guarantee faster repairs if downtime happens, while others offer basic support with longer fix times. Make sure you know what’s covered, how fast they’ll respond, and what compensation applies if service is interrupted.
Prepare for testing and go-live
Once installation is complete, your provider will run speed tests, latency checks, and network diagnostics to confirm the connection works as promised. Make sure your IT team is available to test internal systems and troubleshoot any last-minute issues.
Frequently asked questions
How long does it take to install a leased line?
Expect 30 to 90 days, depending on fiber availability, site conditions, and provider scheduling. Delays can happen if new infrastructure needs to be built.
What to expect during installation?
The process includes:
- Site survey to check feasibility
- Fiber installation (if not already in place)
- Configuration and testing before activation
If digging permits or third-party approvals are needed, installation may take longer.
How much does a leased line cost?
Leased line pricing depends on location, bandwidth, and provider infrastructure, with urban areas typically seeing lower costs than rural locations. Factors like contract length, service level agreements, and required hardware can also affect the total price.
Is a leased line better than broadband?
Depends on your business needs. A leased line gives businesses a dedicated, high-speed connection that doesn’t slow down during peak hours. Broadband is shared with other users, so speeds can be inconsistent, and uploads are usually much slower.
Can small businesses use leased lines?
Yes, but the higher cost means leased lines are most useful for data-heavy operations.
What are the best leased line providers?
The best provider depends on location, service level agreements, and customer support.
Partner with Meter Connect
Procuring leased lines is more than getting a connection. You need to have a provider that handles the details, so your business stays online without the burden. Finding the right ISP, managing contracts, and ensuring performance can be a time-consuming, frustrating process. But this is where Meter delivers.
Meter Connect simplifies leased line procurement by sourcing the best options, negotiating with top ISPs, and overseeing installation and ongoing management. Instead of dealing with ISPs, slow support, or unexpected downtime, we take care of everything—from setup to maintenance.
Our vertically integrated networks go even further, handling monitoring, security, and network optimization. So, now your IT team isn’t stuck troubleshooting internet issues. Whether it's high-speed, dedicated connectivity for a single site, or a multi-location network, we make sure you get the best possible service.
Request a quote from Meter Connect.