Virtual Leased Line: Can it Be a Cost-Effective Solution for your Business?

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virtual leased line

Reliable and high-speed internet connection is an increasing demand for every business. Almost all organizations use leased lines, but virtual leased lines are comparatively new. It is a layer 2 (Ethernet) private connection between physical network sites, such as data centers and offices. Is the virtual leased line an efficient and cost-effective solution that can meet the connectivity and communication needs of the business? In this blog, we will discuss what a virtual leased line is and how it is a perfect solution for your business. 

What is a leased line and a virtual leased line? 

A leased line is a dedicated telecommunication network line with high-performance data connections with symmetrical upload and download speeds. You can lease these lines for a duration, typically one to three years, which provides a dedicated connection solely for your business. However, the leased lines get expensive over long-distance connections because it requires a dedicated T1 line hardwired circuit (or fibre-optic channel) at each leg of the path. 

A virtual leased line is also known as Virtual Private Wire Services (VPWS), a solution that addresses the cost factor of a leased line. It is called virtual because connectivity resources are shared through a privately run Multi-Protocol Label Switching (MPLS) network. This network provides connectivity to the locations you want to connect without committing to the line capacity. 

How do Virtual Leased Lines work?

Virtual leased lines provide a cost-effective and layer 2 network solution to connect large cities and remote areas. Initially, direct lines connected over the PSTN network, but it was costly and difficult to scale.

Suppose you have two offices, one in Mumbai and the other in Delhi. You want to connect their LAN with a 100Mbps Ethernet line.

A 100 Mbps leased line connects the Mumbai office to the network company close to the data centre.

Another 100 Mbps line connects the Delhi office to the network company close to the data centre in Delhi.

A 100Mbps VLL connects the two data centres, having the capacity of about 10Gbps supply over the existing MPLS core. 

Thus, the leased lines are dedicated to your business with the commitment of speed limited available whenever required. The virtual leased line uses standard virtual leased line RFC (Request for Comments) to run the layer 2 networks governed by the IETF (Internet Engineering Task Force). The best way to get constant speed.  

Features of Virtual Leased Line:

Virtual leased lines offer a range of essential features tailored to modern connectivity needs:

  • Dedicated Bandwidth: Ensures consistent and reliable data transmission.
  • Point-to-Point Connectivity: Establishes direct and secure connections between endpoints.
  • Virtualization Technology: Harnesses advanced virtualization for flexible network management.
  • Scalability: Easily adaptable to accommodate growing network demands.
  • Secure and Private: Provides robust security measures to safeguard sensitive data.
  • Quality of Services: Ensures high-quality performance for critical applications.
  • Reliability and Uptime: Maintains constant availability and uptime for uninterrupted operations.
  • Cost-effectiveness: Delivers cost-efficient solutions without compromising on performance.
  • Global Connectivity: Extends global connectivity options across geographic boundaries.


Benefits of Virtual Leased Lines 

Virtual leased lines offer significant advantages for businesses seeking reliable and high-performance connectivity:

  • Enhanced Service Capabilities: Acts as an extended network function, offering enhanced service capabilities for multiple carriers.
  • Efficient MPLS Technologies: Facilitates the implementation of advanced Multi-Protocol Label Switching (MPLS) technologies for unique services.
  • Layer 2 Connectivity: Simplifies connectivity between diverse networks using Layer 2 protocols.
  • Low Latency: Ensures minimal delay in data transmission, optimizing performance.
  • Scalability and Low Maintenance: Easily scalable network architecture with reduced maintenance requirements.
  • Smooth Network Upgrades: Facilitates seamless network upgrades without disrupting services.
  • Transparency and Configuration: Offers transparency in network management, enabling carriers to upgrade networks smoothly without impacting customer configurations.

How Virtual Leased Lines Can Save Money

We have seen that VLL and leased lines offer similar functionalities, but VLL is more cost-effective. MPLS is the backbone of VLL, a type of wide-area network distributed in a full mesh system. The data packets are transported from one node to the other node and are labeled at each node to make the router known until it reaches the destination. It helps VLL providers to cut costs.

The companies that connect with VLLs save on the cost of dedicated lines, reducing communication charges by replacing long-distance links with a connection to a service provider. Also, equipment and administration costs are reduced, as a single connection to a service provider provides access to the corporate network and the internet. This is the reason why VLLs have become more affordable for companies.

This will make you better understand how VLL is cost-effective. The leased line providers set points in multiple locations and link them through ultra-high-capacity circuits. These circuits are of great value for example, a 10,000 Mbit/s connection has 1000 times the bandwidth of a 10 Mbit/s connection, but it costs 10-20 times as much. In other words, the bandwidth on the big circuit is 98-99% cheaper than the bandwidth on the little one. It gives an advantage to your provider in reducing the cost of carrying your data. 


The virtual leased line combines the advantages of dedicated bandwidth, secure connectivity, scalability, and cost-effectiveness, making it an attractive network solution for businesses seeking reliable and high-performance communication channels between their locations. It operates over a shared network infrastructure but offers the same level of security and reliability as a physical leased line. 

Every business has its own needs and requirements. Contact Airtel Business to know more about Dedicated leased line connection and how it can be a cost-effective solution for your business.

Airtel Business is India’s leading and most trusted provider of ICT services with a global network across the USA, Europe, Africa, Middle East, Asia-Pacific, India and SAARC regions. We serve over 1200 global enterprises, 2000 large and 1 million medium/small businesses across India.