The Top 7 Problems Businesses Face with Leased Lines

You’ve probably heard that a leased line is the gold standard for business internet — and it is. On paper, it sounds perfect: dedicated, symmetrical and as reliable as it gets. But for many SMBs, the bigger picture looks quite different. Between high costs, long lead times, and rigid contracts, I’ve seen too many companies end up frustrated, regretting their decision to make the switch, or worse, stuck with a connectivity solution that no longer fits their needs.

I’ve spent years helping businesses upgrade their connectivity, and you can trust me when I say that leased lines aren’t a silver bullet. Don’t get me wrong, leased lines absolutely have their place and have earned their stripes. But they also come with hidden challenges that don’t always get discussed at the sales stage.

In this article, I’ll walk you through the biggest problems businesses face with leased lines. This isn’t to put you off, but to help you make an informed decision that protects your budget and allows your business to remain flexible.

–

What This Blog Covers:

• The Cost Is High — and Often Hard to Justify
• Hidden Costs Lurk Behind the Quote
• Contracts Can Lock You In
• Lead Times Are Long (and Sometimes Much Longer Than You’re Told)
• Reliability Isn’t Absolute — and SLAs Don’t Cover Everything
• Coverage Is “Everywhere” — But Not Always Affordable
• Leased Lines Aren’t as Flexible as You Might Think
  

1. The Cost Is High — and Often Hard to Justify

It’s no secret that leased lines are expensive, and usually cost up to five times more than broadband. This is ultimately because you’re paying for dedicated infrastructure from the exchange to your premises, premium routers with strong security, and a service that comes with higher-level Service Level Agreements (SLAs) and support.

For some businesses, that cost is justified. Take a garden centre I worked with, for example. They were struggling with painfully slow broadband and had four separate surgery lines just to cope. They eventually bit the bullet and paid extra for a leased line. This resulted in faster speeds, reliable card payments, and even the ability to split their Wi-Fi so customers in the café could use a public connection while keeping their business traffic secure on their private network.

But for many smaller businesses that don’t heavily depend on cloud-based technology and can afford the downtime risks, the cost isn’t always justified. I’ve seen companies paying thousands of pounds a year for a line they simply don’t use to its full potential. Meanwhile, that money could have gone into other, more crucial parts of the business.

How to get it right:

• Be clear about your usage. If you’re not running multiple offices, hosting servers, or moving huge amounts of data daily, you may not need a leased line.
• Compare alternatives like FTTP, SoGEA, or hybrid solutions before signing up.

2. Hidden Costs Lurk Behind the Quote

Even when the sticker price looks reasonable, site surveys can uncover unexpected costs. You can expect to pay excess charges for installation, early termination fees, rigid contract lengths, and costs for bandwidth upgrades, which all quickly add up.

I’ve had customers sign contracts with “free installation” — only to be told after the survey that extra works are needed. Land registry issues, digging, or rerouting cables can suddenly add thousands to the bill.

The good news is: if those costs come back and the customer doesn’t accept them, they aren’t bound to the contract. But it’s still a shock that most businesses aren’t prepared for.

How to get it right:

• Always ask: “Are these costs final, or could a site survey add more?”, “What additional costs could I face outside of the monthly rental?” If the answers aren’t clear, that’s a red flag.
• Don’t sign anything until you’ve had every single clause explained, and if you aren’t happy, don’t be afraid to walk away if unexpected charges appear.

Check out this article to take a closer look at why leased lines are pricier (and what you get in return).

3. Contracts Can Lock You In

This is something that catches a lot of businesses out: leased line contracts are long and rigid. So before you sign anything, always take a closer look at the small print that often doesn’t get discussed at the sales stage. I’ve seen customers tied into three- and five-year agreements — and when the needs of their business change or they move premises, they’re still liable for the remaining term.

I’ve had to tell customers: “Sorry, you’ve got 12 months left, so that’s 12 times your monthly cost that you’d need to settle.” Or worse, someone signs a three-year deal, then moves after six months and has to pay out the remaining 2.5 years. That’s brutal for a small business.

Similar to contract restrictions, if you’ve signed with a vendor that happens to provide customer terrible service, you’re a sitting duck. I’ve seen businesses suffer from outages, slow response times, and high costs, but aren’t able to switch providers because of their stuck in a fixed contract.

How to get it right:

• Avoid five-year contracts if possible. Stick to shorter terms unless you’re 100% certain you’ll be in the same premises long-term.
• Budget for potential move-related costs before you commit.
• Look for providers who can design multi-vendor or multi-path solutions to reduce dependency.

4. Lead Times Are Long (and Sometimes Much Longer Than You’re Told)

Providers often promise 60 to 90 days to install a leased line, but in reality, it can take much longer. In fact, it’s not unusual for it to take 120 days or more because there are so many factors at play. Wayleave agreements, roadworks, delays with Openreach, and sometimes even things as simple as digging a trench across a car park can all add weeks, if not months, to the timeline.

The garden centre I mentioned earlier waited far longer than 90 days for their installation because their site was next to a motorway. So, road closures and traffic management approvals significantly dragged the process out.

You can only imagine how much of a nightmare this would be if your small business were moving into a new office and you had to wait months for the internet to be sorted. You wouldn’t be able to onboard staff properly, serve customers efficiently, or grow as you planned.

How to get it right:

• Always have a backup connection (broadband, SoGEA, or 5G) in place while you wait.
• Don’t just take the provider’s timeline at face value — ask for realistic estimates based on your location and similar installations in your area.

5. Reliability Isn’t Absolute — and SLAs Don’t Cover Everything

One of the main reasons businesses choose leased lines is for their reliability. Sure, leased lines are generally very stable and prioritised when issues occur. Engineers are usually dispatched quickly, and fixes get escalated. But they aren’t without fault. Outages still happen, and when they do, the SLA compensation is often quite low compared to the real impact of downtime.

Let’s say a digger accidentally cuts through your line. The fix might involve laying an entirely new circuit. That could take weeks because it’s basically the same process as installing a new one. Larger companies often pay for a backup (like SoGEA or FTTP), but many small businesses don’t want the extra £40 a month. And when the line fails, they’re left offline until the issue is eventually resolved.

How to get it right:

• Don’t just rely on the SLA and build redundancy into your setup.
• Always invest in a backup – like a secondary broadband line, a 5G backup, or a hybrid solution – even if it feels like an unnecessary cost. You’ll thank yourself the first time your line goes down.

6. Coverage Is “Everywhere” — But Not Always Affordable

If you’re in London, Manchester, or Birmingham, leased lines are relatively straightforward. But if you’re in smaller towns or rural areas, things get a little tricky (and costly). The further you are from existing infrastructure, the more expensive and complex the build becomes.

I’ve had customers quoted tens of thousands in “excess construction charges” just to get connected. That’s not a surprise any business wants. So while availability isn’t usually the issue, affordability certainly is.

How to get it right:

• Before committing, check availability and request a survey to uncover any potential build costs to have a realistic budget.
• If you’re in a rural area, consider hybrid solutions that combine broadband and wireless to give you resilience without breaking the bank.

7. Leased Lines Aren’t as Flexible as You Might Think

For now, leased lines still represent the gold standard. You can even get 10-gig bearers today — speeds that make 5G look tiny in comparison. That’s why large enterprises will continue to use them for their critical connectivity needs. I’ve mentioned before that alternatives like FTTP, hybrid setups, SD-WAN, and 5G are more than enough for most SMBs. Plus, they’re cheaper, more flexible, and quicker to install.

As you begin to consider your options, it’s worth noting that while leased lines are known for their reliability, they aren’t as easily scalable. In other words, increasing your bandwidth isn’t always as simple as flicking a switch or adding more users. It might mean a contract renegotiation, more infrastructure work, or waiting weeks for the upgrade.

That lack of flexibility can hurt any business – especially SMBs. For example, if your business takes on a big project or hits a seasonal peak, your current connectivity setup might not be able to scale quickly enough to match your demand.

How to get it right:

• Don’t assume a leased line is the only way to get reliable internet. Work with a partner who can explain all the options and help you pick the right one for your business.
• If scalability is important to you, ask your provider how long it would actually take to upgrade. Explore whether SD-WAN or flexible broadband solutions could give you on-demand bandwidth without the delays.

Let’s Make Sure You Get the Right Connection

If your business needs guaranteed bandwidth, symmetrical speeds, and 24/7 reliability, leased lines are absolutely the right choice. But if you’re a growing SMB, it’s worth pausing before you commit. There are smarter, more flexible ways to stay connected that don’t tie up your budget or limit your options.

From high costs and long installs to rigid contracts and hidden fees, we’ve covered the biggest pain points. These are the traps that too many businesses fall into when they rush into a leased line agreement, under the misbelief that it’s the “only” premium option.

Over the years, I’ve helped UK businesses like yours find the right connectivity for their size, setup, and goals. My job isn’t to push a product: it’s to give you the full picture so you can make a decision that genuinely supports how you work, not just today but in the future too.

If you’re unsure whether your current setup is holding you back — or if a leased line is really worth the cost — let’s have a chat. Book a free connectivity assessment with Babble, and I’ll help you uncover hidden costs, test your performance, and explore better-fit alternatives like FTTP, SD-WAN, or 5G.

You’ll walk away knowing exactly what your business needs — and what it doesn’t.