By: John Shepler
Leased lines have been a popular choice for businesses since they were introduced by telephone companies decades ago. This article explores the concept of virtual leased lines and their potential benefits for businesses.
Before delving into virtual leased lines, let’s review traditional leased lines and their functionality.
Leased Lines vs Shared Bandwidth
A leased line is a dedicated telecommunications line rented for a specific duration, usually 1 to 3 years. This grants exclusive usage rights for your applications.
In contrast, shared bandwidth, commonly used on the Internet, does not involve leasing the entire infrastructure. Instead, you lease access to the Internet, where your traffic competes with others, traversing various networks to reach its destination.
Last Mile Often Determines Performance
While the core of the Internet functions efficiently, congestion and latency typically arise in the access or “last mile” connection. Shared bandwidth services, like cellular, satellite, DSL, or cable broadband, operate on a “best effort” basis. Performance fluctuates depending on the bandwidth consumption of other users sharing the same pool.
How Can You Improve This Situation?
Dedicated Internet Access (DIA) through leased lines offers a solution. Common types include T1 (1.5 Mbps), Ethernet over Copper (10 to 50 Mbps), DS3 (45 Mbps), OCx (155 Mbps and up), and Ethernet over Fiber (10 Mbps to 10 Gbps and beyond).
This hybrid approach combines dedicated access with the public Internet to enhance end-to-end performance. DIA enables seamless connectivity with customers, vendors, and access to the vast content of the World Wide Web, ensuring optimal business performance.
Dedicated lines extend beyond internet connectivity. They existed before the internet, used by radio stations for signal transmission and fire alarm systems for alerts.
Rise of the T1 Line
The T1 line, a dedicated private leased line offering 1.5 Mbps bandwidth, gained popularity with business computerization. It connects retail franchises, provides connectivity in areas with limited options, and connects cell phone towers, although fiber optic lines are replacing it for 4G and beyond. T1 lines can be combined for higher bandwidth, and a specialized version, ISDN PRI, supports PBX telephone systems.
Besides dedicated capacity, T1 and leased lines offer low latency, jitter, packet loss, and enhanced security, crucial for security-sensitive institutions like banks.
Low latency is vital for voice quality, teleconferencing, and fast responses from cloud-based services.
Addressing the Cost Issue
Leased lines can become costly over long distances due to dedicated hardware requirements. Are there alternatives?
Virtual Leased Lines: A Cost-Effective Solution
Virtual leased lines (VLL) provide a cost-effective alternative. While “virtual” might imply similarity to the Internet, VLLs utilize a privately operated MPLS (Multi Protocol Label Switching) network.
MPLS offers cost-effective private bandwidth for national and international connections. It leverages a private core fiber optic network with extensive reach, providing ample bandwidth without upfront commitments.
How MPLS Works
MPLS employs proprietary label switching to establish communication paths supporting IP traffic. This private network, separate from the public internet, enhances security, further strengthened by optional encryption.
MPLS providers create point-to-point virtual leased lines with guaranteed bandwidth (CIR). Some even allow temporary bursts above the CIR, unlike traditional circuits. Service level agreements ensure predictable latency, jitter, and packet loss.
Related Services
VLLs may also be referred to as Virtual Private Wire Service (VPWS) or EoMPLS (Ethernet over MPLS). Virtual Private LAN Service (VPLS) is a related service that creates a meshed network, interconnecting business locations over a large MPLS network.
For more information and pricing on dedicated leased private lines and virtual leased line options, explore the provided resources.
