Leased Line

A permanent telephone connection between two points set up by a telecommunications common carrier. Typically, leased lines are used by businesses to connect geographically distant offices. Unlike normal dial-up connections, a leased line is always active. The fee for the connection is a fixed monthly rate. The primary factors affecting the monthly fee are distance between end points and the speed of the circuit. Because the connection doesn’t carry anybody else’s communications, the carrier can assure a given level of quality.

For example, a T-1 channel is a type of leased line that provides a maximum transmission speed of 1.544 Mbps. You can divide the connection into different lines for data and voice communication or use the channel for one high speed data circuit. Dividing the connection is called multiplexing.

Increasingly, leased lines are being used by companies, and even individuals, for Internet access because they afford faster data transfer ratesand are cost-effective if the Internet is used heavily.

Vangie Beal
Vangie Beal
Vangie Beal is a freelance business and technology writer covering Internet technologies and online business since the late '90s.
Get the Free Newsletter
Subscribe to Daily Tech Insider for top news, trends & analysis
This email address is invalid.
Get the Free Newsletter
Subscribe to Daily Tech Insider for top news, trends & analysis
This email address is invalid.

Related Articles

Embedded Analytics

Embedded analytics brings self-service business intelligence to everyday application users.

HRIS

Human resources information system (HRIS) solutions help businesses manage multiple facets of their workforce operations. They provide a central platform for human resources professionals...

Complete List of Cybersecurity Acronyms

Cybersecurity news and best practices are full of acronyms and abbreviations. Without understanding what each one means, it's difficult to comprehend the significance of...

Human Resources Management System

A Human Resources Management System (HRMS) is a software application that supports many functions of a company's Human Resources department, including benefits administration, payroll,...

ScalaHosting

ScalaHosting is a leading managed hosting provider that offers secure, scalable, and affordable...

HRIS

Human resources information system (HRIS) solutions help businesses manage multiple facets of their...

Best Managed Service Providers...

In today's business world, managed services are more critical than ever. They can...