How to Reduce Leased Line Costs Without Compromising on Speed

The high cost of leased lines often makes businesses hesitant to invest in them, but how do you reduce leased line costs?

Want the good news? There are ways to reduce leased line costs without compromising on speed and performance!

Today’s guide will explain cost-saving strategies, as well as factors that influence pricing, and how to negotiate the best deal.

What Influences Leased Line Costs?

Before looking at ways to save money, it’s important to understand what affects leased line pricing:

What bandwidth you choose

✔ Higher speeds (1Gbps+) cost more than lower-speed options like 100Mbps.

✔ Asymmetrical options (where upload speed is lower) can be cheaper.

✔ Multi-site businesses may need more bandwidth, increasing costs.

Your location

✔ Urban areas typically have lower costs due to existing fibre infrastructure.

✔ Rural locations often require additional installation, which = to higher fees.

✔ Distance from the nearest provider exchange impacts the pricing.

What contract length you choose

✔ Short-term contracts (12-24 months) come with higher monthly costs.

✔ Longer contracts (36-60 months) offer lower rates and free installation.

✔ Service Level Agreements (SLAs) with premium guarantees may increase costs.

If you take the time to understand these factors this will help you to make a smart, cost-effective decisions when choosing a leased line.

How to Lower Leased Line Costs Without Sacrificing Speed

Always compare providers

Not all providers charge the same rates (or quality!) So comparing leased line providers can help secure a better deal.

Provider	100Mbps Price (Monthly)	1Gbps Price (Monthly)	SLA Uptime
BT Business	£350 – £500	£900 – £1,200	99.995%
Virgin Media Business	£300 – £450	£800 – £1,000	99.99%
Vodafone Business	£250 – £400	£700 – £900	99.99%
TalkTalk Business	£200 – £350	£600 – £800	99.95%
Colt Technology Services	£400 – £600	£1,000 – £1,500	99.999%

Negotiate your existing contract!

Most leased line providers are open to negotiation, especially if you’re committing to a long-term contrac!!!

✔ Ask for discounts on installation fees.

✔ Request a lower monthly rate in exchange for a longer contract.

✔ Negotiate add-ons like free static IPs or better SLAs.

Choose the most appropriate speeds for your needs

While 1Gbps speeds are great, not every business requires them – which is why we’ve made a handy table to help you figure out what you need:

Activity	Recommended Speed
Emails, VoIP, general browsing	50-100Mbps
Cloud applications & CRM systems	100-500Mbps
Large file transfers & video conferencing	500Mbps – 1Gbps
Big data, AI applications	2Gbps – 10Gbps

Look for Government Funding & Incentives

Businesses in certain areas may qualify for funding programs to help reduce leased line costs.

✔ Gigabit Broadband Voucher Scheme – Grants up to £3,500 for eligible businesses.✔ Local government initiatives – Some regions offer additional subsidies.✔ Rural connectivity grants – Available for businesses in hard-to-reach locations.

📌 Tip: Check with your provider if your business qualifies for government-funded discounts.

2.5 Consider Alternative Connectivity Solutions

If a full leased line is too expensive, consider hybrid solutions that still offer good performance.

✔ Ethernet over FTTC (EoFTTC) – A hybrid option that’s cheaper but still offers uncontended speeds.
✔ 5G Business Broadband – Suitable as a backup or for temporary high-speed needs.
✔ SD-WAN Solutions – Combine multiple internet connections for cost savings.

📌 Tip: If you don’t need a full-time 1Gbps leased line, combining solutions can reduce costs while maintaining speed.

3. Why Cutting Costs Doesn’t Mean Compromising on Speed

By using smart cost-saving strategies, businesses can reduce leased line expenses without sacrificing quality:
✔ Choose the right provider & compare deals.✔ Negotiate contract terms for lower rates.✔ Select the ideal speed for your business needs.✔ Explore funding opportunities & alternative solutions.

📌 Tip: A well-planned leased line strategy ensures reliable, high-speed connectivity at the best possible price.

What do we think of how to reduce leased line costs?

Leased line costs don’t have to be overwhelming but by comparing providers, negotiating contracts, choosing the right speed, and exploring funding options, businesses can save money while still enjoying high-performance connectivity.