With all the activities from grocery shopping to business activities happening online, the demand for fast internet connection is high. There is a lot of debate about leased line vs broadband and the need to select the right kind of connection per your necessity.
There is a stark difference between leased line vs broadband connection. You can get an insight into each of these connections and their pros and cons as we explain the broadband vs leased line difference further in this article. You can then make an informed decision about the kind of connection you require.
Leased line vs broadband connection-the comparison
There are various broadband vs leased line difference listed below for your understanding.
The key distinction while comparing leased line vs broadband connection lies in their technology.
The Internet Service Provider will supply a lot of broadband connections to a cabinet along your lane or in the vicinity. These cabinets are not noticeable as they are painted in dull green or grey colour. They are visible only when you look closely. From there, a cable is sent to your house or place of business where a broadband connection is to be established.
But in the case of a leased line, it is a point-to-point connection, and the middleman is eliminated. There is no contention, i.e., the connection happens directly to your home or business rather than through the street cabinet. It will be a dedicated line and will not be shared with any third parties, unlike broadband which is shared by several users in the locality.
Unlike a leased line, broadband is not a private or dedicated connection. The ISP provides the connection to various users in the locality from a single cabinet. Technically, there will be a slow down when many users access the internet at the same time. When traffic is heavy, i.e., during morning hours when many individuals working from home are accessing the connection and evenings when it is time for streaming favourite programmes and playing games, the traffic will be heavy, and there will be a slump in the speed.
For businesses and organisations where large data transfers happen and numerous users are accessing the connection simultaneously, interruptions can be business-critical, given the choice of leased line vs broadband — leased line will score better.
Data speed is one aspect that has to be considered while gauging the broadband vs leased line difference. A leased line is a dedicated connection will comparatively have a greater speed than broadband, depending on the traffic. Leased lines offer symmetric speed that enables both downloads and uploads at the same speed.
With broadband, the download speed will be much higher than the uploads. This will not be much interference if the connection is for homes where the facility of uploading large files is rarely required. But for large businesses and corporates, a symmetric speed of a leased line is a great advantage.
Off-site backups are time-consuming in a regular broadband connection, while they are significantly faster with a leased line connection. Modern telephone technology like VoIP, which improves business performance, is an added facility possible with leased lines only.
In a leased line connection, the speed and bandwidth defined initially will be consistently provided, and you will receive what you have paid for. Whereas in a broadband connection, the ISPs try to give the best, but it may not always be possible. There are bound to be setbacks often, which in a business environment is not a good idea.
Service Level Agreements
From the business perspective, the most significant leased line vs broadband connection difference is that leased lines come with a Service Level Agreement by default, whereas broadband connections are not provided with one.
Service Level Agreements define key aspects, including the time taken for troubleshooting, contention ratios on internet connections, system uptimes, etc. With technology services, SLAs play a key role in proper maintenance. This is one good reason why leased lines score higher when there is a comparison, i.e., leased line vs broadband. If there is any violation of terms stated in the agreement, the ISP is bound to compensate for such violations.
Broadband, on the other hand, does not give an assurance of resolving any issue within a specific time. There is no guarantee of reimbursements in case of outages. Also, in a leased line, there is continuous monitoring so that issues that crop up can be resolved within a given time, whereas it is not so in the case of broadband.
A leased line is more preferred for large businesses where interruptions in connectivity can be business-critical and affect performance and productivity. The business may incur huge losses in case of a defective or unstable connection. The reimbursement condition available in the SLA for such disruptions will be a great advantage for businesses under such circumstances.
Leased lines being dedicated lines are priced higher than broadband connections. The broadband vs leased line difference in terms of price is a common feature. It is important to understand why there is a pricing difference. If you contemplate switching from a broadband connection to a leased line connection, you have to pay a higher price but will be getting the price worth, i.e., a higher and consistent internet speed.
The contract is another factor that has to be considered while deciding between leased line vs broadband connections. In a leased line connection, the contracts will be generally long-term in comparison with broadband connections. The leased lines generally come with a contract for 24 to 36 months. The contract period for a broadband connection, however, will be shorter and will range between 12 months to 24 months.
Long-term contracts are beneficial in terms of price fluctuations as they will not affect you during the contract period. Also, long-term contracts provide more stability. At the same time, if you have entered into a long-term contract and there is a dip in the price during the contract period, you will not be able to terminate the contract even if you want to. Any exit from the contract may prove expensive.
When it comes to cost, it is a good idea to scrutinise any potential unforeseen fees associated with your connection. The leased line is generally unmetered and uncontended. You can use the connection as frequently as you wish without incurring any additional costs as long as you abide by a ‘fair usage policy.’
Leased line vs broadband-Which is right for you?
Broadband connections are economical when compared to a leased line and are a perfect fit for a home setup where there is not much data transmission happening, and the activities and users are limited.
For a business, you have a choice, i.e., leased line vs broadband. Leased lines are a far better choice though it is a long-term contract considering the numerous advantages.
- The speed is symmetric and consistent.
- The internet speed provided is high and can go up to 10 Gbps.
- A dedicated connection that is not shared by any other user or business in the vicinity.
- Leased lines provide a wide area network and are beneficial for businesses that are spread over various locations.
- The outages are limited.
- Fibre technology adopted makes the connection faster and more reliable.
When a choice for connection is provided, i.e., leased lines vs broadband, a leased line is better for large businesses where various activities and large data transmissions happen. The SLAs that you have a consistent and reliable internet connection.
Broadbands are a better choice for homes where the usage is limited. It is because homes don’t need any advanced features and better pricing is beneficial for households.
How is a leased line different from broadband?
A leased line is a dedicated line with advanced features, whereas a broadband connection is shared by several users and businesses in the vicinity. In a leased line, the destination is connected directly to the local exchange and so need not be shared with local residents or businesses.
Which is considered better? Leased line or broadband connection.
A leased line which is technologically advanced is ideal for businesses that need advanced features with consistent speed and connectivity. For a household where there is not much data transmission and does not need advanced features, a broadband connection is better.
What should be looked into while considering the pricing?
You should look for hidden charges while considering the pricing. In the case of a leased line which is unmetered and uncontended, there is no limitation for the extent of usage and so no additional costs. But in the case of broadband, there is a limit set for the usage depending on the plan you choose. Any usage above the set limit will be at an additional cost.
How are long-term contracts beneficial?
Leased lines are generally for long-term contracts ranging from 24 months to 36 months, and broadband connections range from 12 months to 24 months. These contracts are beneficial in terms of pricing as any kind of fluctuation will not affect you.
Do long-term contracts have any disadvantages?
The only disadvantage is that if you intend to switch to a better plan or a better connection, you will in no way be able to terminate the contract without revenue loss.