A leased line is one of the most reliable and secure internet solutions a UK business can invest in, but once you’ve decided on a leased line, the next big question is:
Do you commit to a 12-month or a 36-month contract?
At first glance, the flexibility of a shorter term might seem attractive…but what about the potential cost savings and benefits of locking in a long-term deal?
In this guide, we break down the real differences between 12-month and 36-month leased line contracts, including:
- Monthly cost comparisons
- Hidden fees and installation considerations
- Flexibility vs budget certainty
- Which UK providers offer short- and long-term options
- When to choose each based on your business needs
💡 What Is a Leased Line Contract?
A leased line is a type of internet connection that delivers symmetrical speeds and guaranteed uptime, making them incredibly ideal for VoIP, cloud software, remote access, and high-performance business operations.
When you take out a leased line, you’ll be required to sign a minimum-term contract, typically either:
- 12 months (short-term, flexible)
- 36 months (long-term, better pricing)
These contracts cover your access, bandwidth, service level agreement (SLA), and (in many cases) installation.
🔍 12-Month vs 36-Month: Differences
Feature | 12-Month Contract | 36-Month Contract |
monthly price | Higher | Lower (20–40% savings) |
installation costs | May be charged upfront | Often waived |
contract flexibility | Easy to switch after 1 year | Locked in for longer |
best for | Startups, temporary offices | Established businesses |
risk of price increases | Lower commitment | Lock in current pricing |
💷 Typical Pricing Comparison
Provider | Speed | 12-Month Price | 36-Month Price | Savings Over 3 Years |
BTnet | 100Mbps | £299/month | £199/month | £3,600 |
Zen Internet | 200Mbps | £325/month | £225/month | £3,600 |
TalkTalk Business | 100Mbps | £285/month | £185/month | £3,600 |
Virgin Media Business | 500Mbps | £349/month | £249/month | £3,600 |
Focus Group | 1Gbps | £375/month | £265/month | £3,960 |
📌 These prices are indicative and vary based on location, build cost, and promotions.
✅ Pros of a 36-Month Leased Line Contract
- Significant cost savings – most providers discount longer contracts by 20–40%
- Free installation – often included on 3-year terms, saving up to £2,500
- Budget stability – fixed pricing helps long-term financial planning
- More inclusions – like business-grade routers, static IPs, and proactive support
- Easier approval – longer contracts sometimes qualify for government connectivity vouchers
⚠️ Cons of a 36-Month Contract
Locked in!!! So you may face early termination fees if you need to cancel
- Less agility – not ideal if your business may move or scale quickly
- Market changes – if leased line prices drop, you’re tied to the higher rate
- May delay upgrades- can be harder to switch providers mid-term
✅ Pros of a 12-Month Leased Line Contract
- Flexibility – ideal for fast-growing or relocating businesses
- Test the waters – trial a provider without long-term commitment
- Upgrade sooner- more freedom to switch to faster speeds or better deals
- Minimises risk – suitable for seasonal or short-term operations
⚠️ Cons of a 12-Month Contract
- Higher monthly fees – typically £80–£120/month more than 36-month deals
- Installation fees- sometimes can be payable upfront unless otherwise covered
- Limited support extras – fewer inclusions like managed routers or security add-ons
🧠 When to Choose Each Contract Length
💼 Choose a 36-month contract if:
- You’re in a long-term premises
- You want to maximise ROI
- You have stable infrastructure needs
- You’re budgeting for the long term
- You’re an established business or public sector organisation
🚀 Choose a 12-month contract if:
- You’re in a startup or growth phase
- You’re in temporary premises or trialling a location
- You want the option to upgrade quickly
- You’re unsure about your provider
- You prefer short-term flexibility over long-term savings
🏢 Which UK Providers Offer 12- and 36-Month Options?
Provider | 12-Month Contracts | 36-Month Contracts | Notes |
| ✅ Available | ✅ Available | Higher install costs for 12-month terms |
| ✅ Available | ✅ Available | Price drops significantly on 3-year deals |
| ✅ Available | ✅ Available | Free install on 36 months |
| ✅ Available | ✅ Available | Flexible term options and upgrades |
| ✅ Limited | ✅ Yes | More cost-effective on longer terms |
| ✅ Yes | ✅ Yes | Quick installation on either term, subject to availability |
💷 Are the Savings Really Worth It?
Over a 3-year period, the total difference between a 12-month and 36-month leased line contract could be £3,000–£4,000. That’s a full year of connectivity nearly free, in some cases!!
If your business is stable and not expecting major changes in location or connectivity needs, the savings from a 36-month contract often make it the smarter financial decision.
However, the flexibility of a 12-month term may justify the extra cost in uncertain or transitional scenarios, especially for tech startups, agencies, or construction offices.
📈 Our final Thoughts: Balance Flexibility with Value
Choosing between a 12-month and 36-month leased line contract depends on your business’s:
- Growth trajectory
- Budget planning
- Risk appetite
- Location certainty
If in doubt, consult your ISP or IT provider about hybrid options )such as 24-month terms or scalable bandwidth agreements) to find the right fit.
Whatever you choose, ensure your leased line is backed by a strong SLA, includes 24/7 support, and can scale with your operations.