The problem with offering information on leased line pricing is that the prices vary quite considerably. The following analysis is based on quotes to over 20 locations, some remote, others relatively central, across the UK from six different network operators and all based on a minimum contract term of 3 years.
Internet Leased Line Pricing (Feb 2012)
Service
|
Lowest (Per Annum)
|
Average (Per Annum)
|
Highest (Per Annum)
|
10Mb EFM Internet (3 year)
|
£ 3,888 |
£ 4,554 |
£ 5,940 |
10Mb Fibre Internet (3 year)
|
£ 5,796 |
£ 8,667 |
£15,004 |
25Mb Fibre Internet (3 year)
|
£ 7,596 |
£12,193 |
£18,996 |
50Mb Fibre Internet (3 year)
|
£ 8,796 |
£13,876 |
£16,776 |
100Mb Fibre Internet (3 year)
|
£18,150 |
£20,133 |
£21,750 |
Some conclusions:
- EFM (Ethernet First Mile), in case you hadn't heard, is generally speaking significantly lower cost than Fibre Internet leased lines. However, 10Mb Fibre Internet prices are becoming more and more competitive with 10mb EFM Internet
- For speeds of 10Mb, 25Mb and 50Mb, prices vary quite considerably between providers and between locations. It is not uncommon to see some quotations which are more than twice the price from other providers. For speeds at these levels, it is really worth looking to get quotes from several different providers
- For 100Mb Fibre Internet, prices vary less. Maybe its because the market is more intense at this bandwidth, and less so at the sub-100mb speed levels. It seems the step up in price from 50mb to 100mb is relatively small, probably pointing to the fact that most providers are encouraging prospects to consider going for the full 100mb.
Notes:
- Internet Leased Lines are different from broadband services in that the bandwidth is guaranteed and uncontended, offering symmetrical upload and download speeds.
- Prices submitted are all budgetary and subject to site survey and contract.
- Set up costs, or installation fees, are amortised into the 1st year costs to allow for a fair comparison. Some providers are able to offer zero set up costs, others offered set up charges of between £700 and £2500
Carrier Ethernet is the use of high-bandwidth Ethernet technology for Internet access and for communication among business, academic and government local area networks (LANs). Carrier Ethernet can be deployed in three ways:
1. Conventional or "pure" Ethernet;
2. Ethernet over Synchronous Digital Hierarchy (SDH);
3. Ethernet over Multiprotocol Label Switching (MPLS).
Conventional Ethernet is the least expensive type of system but it can be difficult to modify or expand. Ethernet over SDH can be an ideal solution in regions already having an SDH infrastructure. However, most SDH-based systems are comparatively inflexible and may not offer the desired level of bandwidth management when network communications volume fluctuates rapidly and dramatically. Ethernet over MPLS offers superior scalability and bandwidth management but is the most expensive technology of the three.
Carrier Ethernet circumvents bandwidth bottlenecks that can occur when a large number of small networks are connected to a single larger network. Carrier Ethernet has minimal configuration requirements and can accommodate individual home computers as well as proprietary networks of all sizes. Most major network hardware vendors offer Carrier Ethernet equipment.
The use of Carrier Ethernet technology within a metropolitan area network (MAN) is known as Metro Ethernet.