What Does 'Leased Line' Mean?

A “leased line” is a dedicated communication line that is rented by a customer from a telecommunications provider. The line is typically used for data transfer and provides a dedicated, always-on connection between two or more locations.

Leased lines are generally used by businesses and organizations that need to transfer large amounts of data between sites or that require a guaranteed level of service for their communications.

They are commonly used for Internet access, Voice over IP (VoIP), and video conferencing. Leased lines can be delivered via a variety of technologies, including fiber optic cables, copper cables, or wireless links, depending on the distance and bandwidth requirements of the customer.

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Leased lines can be used to connect a business’s various locations together, to connect a business to the Internet, or to connect a business to a third-party data center or cloud provider. Because leased lines are dedicated and always on, they offer a higher level of reliability and performance than shared Internet connections like DSL or cable modems.

Leased lines come in different speeds, such as symmetric or asymmetric, and can provide bandwidth from a few Mbps up to multiple Gbps. They can be configured as Point-to-Point or Multipoint.

• Symmetric leased lines have the same speeds for both uploading and downloading. This makes them perfect for applications that need to send and receive large amounts of data in both directions, like video conferencing or sending large files.
• Asymmetric leased lines, on the other hand, provide different upload and download speeds. This is suitable for applications where data is primarily transferred in one direction, such as streaming video or online backups.
• A Point-to-Point leased line is a dedicated connection between two locations, like a business’s main office and a remote branch office.
• A Multipoint leased line allows multiple locations to connect to a central point, such as a data center or cloud provider.

Redundancy options, such as dual-path or multi-path routing, can also be used to protect leased lines and keep communication going even if one path fails.

Leased lines are usually more expensive than broadband or other shared Internet connections because they provide a dedicated, always-on connection and a higher level of service. They are best suited for businesses and organizations that require a high level of performance and reliability for their communications or for businesses with multiple locations that need to be connected.