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