Ask three internet leased line providers for a quote on “100 Mbps” and you can get three very different numbers back — sometimes for what looks, on paper, like the same product. That’s not because pricing is arbitrary; it’s because “100 Mbps” alone doesn’t actually describe what you’re buying. This is a guide to the variables that genuinely move the number on a leased line quote, not a price list — treat any published “starting from” figure you see elsewhere with some skepticism until it’s been checked against your actual building and requirement.
Why There’s No Single Answer
An Internet Leased Line’s price is really a function of several independent variables stacked together: the bandwidth tier, the contention ratio, how far your site is from the provider’s existing network, the contract term, and what’s bundled in (static IPs, redundancy, hardware). Two businesses asking for “100 Mbps ILL” can end up with genuinely different products — and genuinely different prices — once those variables are accounted for.
The Variables That Actually Drive the Number
1. Bandwidth tier
The obvious one: more Mbps costs more. But cost doesn’t scale linearly — the jump from 10 Mbps to 50 Mbps is proportionally larger than the jump from 100 Mbps to 500 Mbps on most provider pricing structures, because a share of the cost is the dedicated circuit itself, not just the bandwidth riding on it.
2. Contention ratio — the single biggest hidden variable
This is the one that makes cross-provider quotes hard to compare directly. A “cheap” 100 Mbps connection at 1:20 or 1:30 contention (shared among other customers) and a true 1:1 dedicated 100 Mbps leased line are not the same product, even though both might be labeled “100 Mbps business internet.” Always confirm the contention ratio in writing — it’s the difference between a leased line and rebranded shared broadband.
3. Last-mile distance from the existing network
If your building already sits on the provider’s optical route (“on-net”), activation is largely a matter of terminating the existing fiber — faster and cheaper. If it requires new fiber to be trenched and spliced to reach you (“off-net”), that civil work is a real cost that gets reflected in either a one-time installation charge or amortized into the monthly rate over the contract term. This is a significant factor for sites in developing industrial estates and GIDC belts where fiber infrastructure is still being extended.
4. Contract tenure
Longer lock-in terms (2-3 years vs. month-to-month) typically bring the effective monthly rate down, since the provider is recovering installation cost over a longer, more predictable period. Shorter terms cost more per month for the same flexibility.
5. Redundancy & failover requirements
A single circuit costs less than a primary-plus-backup dual-ISP configuration with automatic failover. If your operation genuinely can’t tolerate any single point of failure, budget for the redundant path as a distinct line item, not an assumed inclusion.
6. Static IP allocation
A single static IP is often included; a larger subnet (/29 or /28) for multiple servers, VPN endpoints, or a PBX system may be priced as an add-on depending on the provider and tier.
7. Customer premises equipment (CPE)
Whether the router/ONT at your end is provided, leased, or purchased outright affects both the upfront and ongoing cost — confirm which model applies before comparing two quotes.
Hidden Costs Worth Asking About Upfront
- Installation / one-time activation fee — ask whether it’s waived for a longer contract term
- Early termination charges — what you owe if you need to exit before the contract term ends
- SLA credit mechanics — whether service credits for missed uptime are automatic or something you have to formally request (see our SLA Disclosures for how this works with Navneet)
- Post-contract auto-renewal terms — some contracts roll over at a different rate if not renegotiated before expiry
Why a Real Quote Requires a Feasibility Check
Because last-mile distance and on-net/off-net status are such large swing factors, any leased line price quoted without a site-specific feasibility survey is necessarily a rough estimate. A serious provider will want to confirm your building’s actual route before finalizing a number — if a quote comes back instantly with no site check at all, treat it as provisional.
A Short Checklist Before You Sign
- Is the contention ratio explicitly 1:1, in writing?
- Is the uptime commitment a contractual SLA with defined service credits, or a “best-effort target”?
- Is the quoted price inclusive of installation, or is that billed separately?
- What’s the contract tenure, and what’s the early-termination cost?
- Is a static IP subnet included, and how large?
- What’s the target Mean Time to Restore (MTTR) if something goes wrong?
Frequently Asked Questions
Why did one provider’s quote come in far higher than another for the same Mbps?
Almost always one of the variables above — most commonly contention ratio (1:1 dedicated vs. shared) or whether your site is on-net or requires new fiber. Ask both providers to state the contention ratio explicitly before comparing the numbers.
Is it worth paying more for a shorter contract term?
It depends on how confident you are in your bandwidth needs and location for the next few years. If your business is scaling or might relocate, the flexibility can be worth the premium; if the site and requirement are stable, a longer term usually brings a genuinely lower effective rate.
Can we get an accurate price without a site visit?
You can get a realistic estimate based on bandwidth and rough location, but a firm number depends on confirming whether your building is on-net — that’s exactly what a feasibility check establishes.
For a quote based on your actual building and requirement rather than a generic estimate, request a feasibility check, or see the full specification on our Internet Leased Line page.