Less costly business leased line alternatives

Less costly business leased line alternatives


A leased line connects two locations for private voice and/or data telecommunication service. It can be termed as a reserved connection between two places. In the U.K., providers offer leased line connectivity at speeds ranging from 2.048Mb/s over a channelised E1 tail circuit and at speeds between 2.048Mb/s to 34.368Mb/s via channelised E3 tail circuits.
 
Leased lines are said to be more suited for businesses that require dedicated, always-on, fixed bandwidth connectivity between two places for transporting voice, video and internet data. A major advantage of leased line is it is not contended or shared and offers dedicated internet bandwidth straight to the network backbone.
 
Dedicated leased lines have higher installation costs than other connectivity options but like others leased lines do not have contention issues – a 2 Mb leased line will offer 2 Mb transfer rate always and a 10 Mb line will always offer 10 Mb speed.
 
The high cost of leased lines is the main factor that is forcing smaller businesses to look into other alternatives. Though larger corporations show more inclination to leased lines, smaller businesses are looking into inexpensive leased line alternative solutions such as bonded DSL and Ethernet circuits.  These options are stated to offer similar performance at a greatly reduced cost and with a simplified infrastructure installation.
 
Digital Subscriber Line (DSL), a family of technologies that provides digital data transmission over the wires of a local telephone network is often cited as a low cost alternative to leased lines. In telecommunications marketing, the term Digital Subscriber Line is widely understood to mean Asymmetric Digital Subscriber Line (ADSL), the most commonly installed technical varieties of DSL. In bonded DSL, two or more independent DSL lines are merged together in a single logical channel using line aggregation technologies for high speed connectivity option.
 
The advantage of bonded DSL is if one link fails data can be rerouted via the active link until the failed link is fixed and this facility only increases the redundancy of the service. Businesses who previously did not consider DSL as a viable option because of its bandwidth limitations are now looking into the bonded DSL as a cost-effective replacement for their leased lines. There are many service providers in the U.K. who claim to offer bonded DSL services at rates multiple times lesser than leased lines.
 
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Also combining two inexpensive DSL lines is also an inexpensive process as it can be done by low cost appliances and technologies. DSL lines can be bonded to offer more than 14 Mbps transfer speeds. Since bonded DSL uses consumer grade bandwidth it does not have any service level agreements (SLA) but on the other hand leased lines are backed by a 100% service availability target at all times and money back SLA available for failing to hit this target.
 
Ethernet circuits are virtual private networks (VPN) built over Ethernet links and can act as a less cost option for organisations that seek a high bandwidth corporate connectivity solution. The Ethernet circuit can be implemented over a regional or a national scale. The Ethernet Circuit technology enables the construction of multiple streams of information and users can also control the various constraints that define these information streams. Also it is said that the provisioning of Ethernet circuit requires no manual reconfiguration and if users decide to upgrade their 2 Mbps circuit (E1) to a 45 Mbps connection (DS3) they can do so with software without any physical reconfiguration.
 
Ethernet networks are more easy to deploy and uses up less resource and cost for management. One major advantage of VPN built over Ethernet is it enables the organisation to offer the same level of broadband connectivity to many offices and remote locations as necessary and allow users to access geographically-specific resources from anywhere within the network. The Ethernet circuits are also highly scalable and have lesser installation and connection costs.
 
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