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A leased line is a private telecommunications circuit between two or more locations provided according to a commercial contract. It is sometimes also known as a private circuit, and as a data line in the UK. Typically, leased lines are used by businesses to connect geographically distant offices.
Unlike traditional telephone lines in the public switched telephone network (PSTN) leased lines are generally not switched circuits, and therefore do not have an associated telephone number. Each side of the line is permanently connected, always active and dedicated to the other. Leased lines can be used for telephone, Internet, or other data communication services. Some are ringdown services, and some connect to a private branch exchange (PBX) or network router.
The primary factors affecting the recurring lease fees are the distance between end stations and the bandwidth of the circuit. Since the connection does not carry third-party communications, the carrier can assure a specified level of quality.
An Internet leased line is a premium Internet connectivity product, normally delivered over fiber, which provides uncontended, symmetrical bandwidth with full-duplex traffic. It is also known as an Ethernet leased line, dedicated line, data circuit or private line.
Leased line services (or private line services) became digital in the 1970s with the conversion of the Bell backbone network from analog to digital circuits. This allowed AT&T to offer Dataphone Digital Services (later re-branded digital data services) that started the deployment of ISDN and T1 lines to customer premises to connect. [1]
Leased lines were used to connect mainframe computers with terminals and remote sites, via IBM's Systems Network Architecture (created in 1974) or DEC's DECnet (created in 1975).
With the extension of digital services in the 1980s, leased lines were used to connect customer premises to Frame Relay or ATM networks. Access data rates increased from the original T1 option with maximum transmission speed of 1.544 Mbit/s up to T3 circuits.
In the 1990s, with the advances of the Internet, leased lines were also used to connect customer premises to ISP point of presence whilst the following decade saw a convergence of the aforementioned services (frame relay, ATM, Internet for businesses) with the MPLS integrated offerings.
Access data rates also evolved dramatically to speeds of up to 10 Gbit/s in the early 21st century with the Internet boom and increased offering in long-haul optical networks or metropolitan area networks.
Leased lines are used to build up private networks, private telephone networks (by interconnecting PBXs) or access the internet or a partner network (extranet).
Here is a review of the leased-line applications in network designs over time:
Terminating a leased line with two routers can extend network capabilities across sites. Leased lines were first used in the 1970s by enterprise with proprietary protocols such as IBM System Network Architecture and Digital Equipment DECnet, and with TCP/IP in University and Research networks before the Internet became widely available. Note that other Layer 3 protocols were used such as Novell IPX on enterprise networks until TCP/IP became ubiquitous in the 2000s. Today, point to point data circuits are typically provisioned as either TDM, Ethernet, or Layer 3 MPLS.
Terminating a leased line with two PBX allowed customers to by-pass PSTN for inter-site telephony. This allowed the customers to manage their own dial plan (and to use short extensions for internal telephone number) as well as to make significant savings if enough voice traffic was carried across the line (especially when the savings on the telephone bill exceeded the fixed cost of the leased line).
As demand grew on data network telcos started to build more advanced networks using packet switching on top of their infrastructure. Thus, a number of telecommunication companies added ATM, Frame-relay or ISDN offerings to their services portfolio. Leased lines were used to connect the customer site to the telco network access point.
An international private leased circuit (IPLC) functions as a point-to-point private line. IPLCs are usually time-division multiplexing (TDM) circuits that utilize the same circuit amongst many customers. The nature of TDM requires the use of a CSU/DSU and a router. Usually the router will include the CSU/DSU.
Then came the Internet (in the mid-1990s) and since then the most common application for leased line is to connect a customer to its ISP point of presence. With the changes that the Internet brought in the networking world other technologies were developed to propose alternatives to frame-relay or ATM networks such as VPNs (hardware and software) and MPLS networks (that are in effect an upgrade to TCP/IP of existing ATM/frame-relay infrastructures).
In the UK, leased lines are available at speeds from 64 kbit/s increasing in 64 kbit/s increments to 2.048 Mbit/s over a channelised E1 tail circuit and at speeds between 2.048 Mbit/s to 34.368 Mbit/s via channelised E3 tail circuits. The NTE will terminate the circuit and provide the requested presentation most frequently X.21 however higher speed interfaces are available such as G.703 or 10BASE-T. Some ISPs however use the term more loosely, defining a leased line as “any dedicated bandwidth service delivered over a leased fibre connection".
As of March 2018, Leased Line services are most commonly available in the region of 100 Mbit/s to 1 Gbit/s. In large cities, for example, London, speeds of 10 Gbit/s are attainable.
In the U.S., low-speed leased lines (56 kbit/s and below) are usually provided using analog modems. Higher-speed leased lines are usually presented using FT1 (Fractional T1): a T1 bearer circuit with 1 to 24, 56k or 64k timeslots. Customers typically manage their own network termination equipment, which include a Channel Service Unit and Data Service Unit (CSU/DSU).
In Hong Kong, leased lines are usually available at speeds of 64k, 128k, 256k, 512k, T1 (channelized or not) or E1 (less common). Whatever the speed, telcos usually provide the CSU/DSU and present to the customer on V.35 interface.
Fibre circuits are slowly replacing the traditional circuits and are available at nearly any bandwidth.
In India, leased lines are available at speeds of 64 kbit/s, 128 kbit/s, 256 kbit/s, 512 kbit/s, 1 Mbit/s, 2 Mbit/s, 4 Mbit/s, 8 Mbit/s, 1000 Mbit/s T1(1.544 Mbit/s) or E1(2.048 Mbit/s) and up to 622 Mbit/s. Customers are connected either through OFC, telephone lines, ADSL, or through Wi-Fi. Customers would have to manage their own network termination equipment, namely the channel service unit and data service unit.
In Italy, leased lines are available at speeds of 64 kbit/s (terminated by DCE2 or DCE2plus modem) or multiple of 64 kbit/s from 128 kbit/s up to framed or unframed E1 (DCE3 modem) in digital form (PDH service, known as CDN, Circuito Diretto Numerico). Local telephone companies also may provide CDA (Circuito Diretto Analogico), that are plain copper dry pair between two buildings, without any line termination: in the past (pre-2002) a full analog base band was provided, giving an option to customer to deploy xDSL technology between sites: nowadays everything is limited at 4 kHz of bearer channel, so the service is just a POTS connection without any setup channel.
For many purposes, leased lines are gradually being replaced by DSL and metro Ethernet.
Leased lines are more expensive than alternative connectivity services including (ADSL, SDSL, etc.) because they are reserved exclusively to the leaseholder. Some internet service providers have therefore developed alternative products that aim to deliver leased-line type services (carrier Ethernet-based, zero contention, guaranteed availability), with more moderate bandwidth, over the standard UK national broadband network. While a leased line is full-duplex, most leased line alternatives provide only half-duplex or in many cases asymmetrical service.
Asynchronous Transfer Mode (ATM) is a telecommunications standard defined by the American National Standards Institute and ITU-T for digital transmission of multiple types of traffic. ATM was developed to meet the needs of the Broadband Integrated Services Digital Network as defined in the late 1980s, and designed to integrate telecommunication networks. It can handle both traditional high-throughput data traffic and real-time, low-latency content such as telephony (voice) and video. ATM provides functionality that uses features of circuit switching and packet switching networks by using asynchronous time-division multiplexing. ATM was seen in the 1990s as a competitor to Ethernet and networks carrying IP traffic as it was faster and was designed with quality-of-service in mind, but it fell out of favor once Ethernet reached speeds of 1 gigabits per second.
Integrated Services Digital Network (ISDN) is a set of communication standards for simultaneous digital transmission of voice, video, data, and other network services over the digitalised circuits of the public switched telephone network. Work on the standard began in 1980 at Bell Labs and was formally standardized in 1988 in the CCITT "Red Book". By the time the standard was released, newer networking systems with much greater speeds were available, and ISDN saw relatively little uptake in the wider market. One estimate suggests ISDN use peaked at a worldwide total of 25 million subscribers at a time when 1.3 billion analog lines were in use. ISDN has largely been replaced with digital subscriber line (DSL) systems of much higher performance.
A wide area network (WAN) is a telecommunications network that extends over a large geographic area. Wide area networks are often established with leased telecommunication circuits.
Frame Relay is a standardized wide area network (WAN) technology that specifies the physical and data link layers of digital telecommunications channels using a packet switching methodology. Originally designed for transport across Integrated Services Digital Network (ISDN) infrastructure, it may be used today in the context of many other network interfaces.
Synchronous Optical Networking (SONET) and Synchronous Digital Hierarchy (SDH) are standardized protocols that transfer multiple digital bit streams synchronously over optical fiber using lasers or highly coherent light from light-emitting diodes (LEDs). At low transmission rates data can also be transferred via an electrical interface. The method was developed to replace the plesiochronous digital hierarchy (PDH) system for transporting large amounts of telephone calls and data traffic over the same fiber without the problems of synchronization.
Digital subscriber line is a family of technologies that are used to transmit digital data over telephone lines. In telecommunications marketing, the term DSL is widely understood to mean asymmetric digital subscriber line (ADSL), the most commonly installed DSL technology, for Internet access.
The T-carrier is a member of the series of carrier systems developed by AT&T Bell Laboratories for digital transmission of multiplexed telephone calls.
Time-division multiplexing (TDM) is a method of transmitting and receiving independent signals over a common signal path by means of synchronized switches at each end of the transmission line so that each signal appears on the line only a fraction of time in an alternating pattern. It can be used when the bit rate of the transmission medium exceeds that of the signal to be transmitted. This form of signal multiplexing was developed in telecommunications for telegraphy systems in the late 19th century, but found its most common application in digital telephony in the second half of the 20th century.
A symmetric digital subscriber line (SDSL) is a digital subscriber line (DSL) that transmits digital data over the copper wires of the telephone network, where the bandwidth in the downstream direction, from the network to the subscriber, is identical to the bandwidth in the upstream direction, from the subscriber to the network. This symmetric bandwidth can be considered to be the opposite of the asymmetric bandwidth offered by asymmetric digital subscriber line (ADSL) technologies, where the upstream bandwidth is lower than the downstream bandwidth. SDSL is generally marketed at business customers, while ADSL is marketed at private as well as business customers.
In telecommunications, broadband or high speed is the wide-bandwidth data transmission that exploits signals at a wide spread of frequencies or several different simultaneous frequencies, and is used in fast Internet access. The transmission medium can be coaxial cable, optical fiber, wireless Internet (radio), twisted pair cable, or satellite.
A digital subscriber line access multiplexer is a network device, often located in telephone exchanges, that connects multiple customer digital subscriber line (DSL) interfaces to a high-speed digital communications channel using multiplexing techniques. Its cable internet (DOCSIS) counterpart is the cable modem termination system.
Internet access is a facility or service that provides connectivity for a computer, a computer network, or other network device to the Internet, and for individuals or organizations to access or use applications such as email and the World Wide Web. Internet access is offered for sale by an international hierarchy of Internet service providers (ISPs) using various networking technologies. At the retail level, many organizations, including municipal entities, also provide cost-free access to the general public.
Single-pair high-speed digital subscriber line (SHDSL) is a form of symmetric digital subscriber line (SDSL), a data communications technology for equal transmit and receive data rate over copper telephone lines, faster than a conventional voiceband modem can provide. As opposed to other DSL technologies, SHDSL employs trellis-coded pulse-amplitude modulation (TC-PAM). As a baseband transmission scheme, TC-PAM operates at frequencies that include those used by the analog voice plain old telephone service (POTS). As such, a frequency splitter, or DSL filter, cannot be used to allow a telephone line to be shared by both an SHDSL service and a POTS service at the same time. Support of symmetric data rates made SHDSL a popular choice by businesses for private branch exchange (PBX), virtual private network (VPN), web hosting and other data services.
In telecommunications, trunking is a technology for providing network access to multiple clients simultaneously by sharing a set of circuits, carriers, channels, or frequencies, instead of providing individual circuits or channels for each client. This is reminiscent to the structure of a tree with one trunk and many branches. Trunking in telecommunication originated in telegraphy, and later in telephone systems where a trunk line is a communications channel between telephone exchanges.
Digital Signal 1 is a T-carrier signaling scheme devised by Bell Labs. DS1 is the primary digital telephone standard used in the United States, Canada and Japan and is able to transmit up to 24 multiplexed voice and data calls over telephone lines. E-carrier is used in place of T-carrier outside the United States, Canada, Japan, and South Korea. DS1 is the logical bit pattern used over a physical T1 line; in practice, the terms DS1 and T1 are often used interchangeably.
An Integrated Access Device is a customer premises device that provides access to wide area networks and the Internet. Specifically, it aggregates multiple channels of information including voice and data across a single shared access link to a carrier or service provider PoP. The access link may be a T1 line, a DSL connection, a cable (CATV) network, a broadband wireless link, or a metro-Ethernet connection.
A digital subscriber line (DSL) modem is a device used to connect a computer or router to a telephone line which provides the digital subscriber line (DSL) service for connection to the Internet, which is often called DSL broadband. The modem connects to a single computer or router, through an Ethernet port, USB port, or is installed in a computer PCI slot.
The Cisco 2500 series routers are a series of 19" rack mount access routers typically used to connect Ethernet or Token Ring networks via ISDN or leased serial connections. The routers are based on a Motorola 68EC030 CISC processor. This line of routers is no longer sold or supported by Cisco Systems. They were superseded by the Cisco 2600 series, which has also reached EOL now.
A modulator-demodulator or modem is a computer hardware device that converts data from a digital format into a format suitable for an analog transmission medium such as telephone or radio. A modem transmits data by modulating one or more carrier wave signals to encode digital information, while the receiver demodulates the signal to recreate the original digital information. The goal is to produce a signal that can be transmitted easily and decoded reliably. Modems can be used with almost any means of transmitting analog signals, from light-emitting diodes to radio.
ACOnet is the name of the national research and education network in Austria. The ACONET association promotes the development and use of that network. ACOnet is not managed and operated by ACONET, but by a unit in the Computing Centre of the University of Vienna that also operates the Vienna Internet Exchange. The University of Vienna represents ACOnet internationally, for example as a member of TERENA and as a participant in the project that funds the European backbone network GÉANT.