WAN Costs: What Site Connectivity Really Costs
Trusted Advisor for IT & Telecommunications Sourcing
More than the monthly price
Calculating WAN costs correctly
It is not the monthly price that decides, but the total cost over the term, including one-time costs, operation and contract traps.
For site connectivity, many companies compare only the monthly line price. But the real cost comes from several blocks that often do not appear in the first quote at all. Anyone who sees only the monthly price miscalculates in either direction.
Auf den Punkt gebracht:
- The monthly price deceives: the real cost emerges only over the contract term plus one-time and operating costs
- Think MRC plus NRC: a low monthly fee with high one-time costs in the fine print is a common pattern
- Hidden blocks: installation, CPE hardware, change fees and bandwidth upgrades add up quickly
- TCO decides: only the total cost calculation over three to five years shows which offer is really cheap
Die Lösung: Calculate the total cost of ownership over the entire term, uncover hidden costs, and make offers comparable vendor-neutrally across 80+ carriers.
Worum es in diesem Beitrag geht: Why the monthly price misleads, what MRC and NRC mean, which hidden cost blocks exist, how MPLS, DIA and SD-WAN compare on cost, and which contract traps and switching costs lurk.
Why the monthly price misleads
The advertised monthly price of a site connectivity says little about the actual cost. It is only one of several cost blocks, and often not the largest over the full term.
Two offers with an identical monthly price can differ widely in total cost once setup, hardware, operation and contract conditions are added. This is exactly where it is decided whether an offer is cheap or only looks cheap.
Anyone who wants to compare WAN costs seriously thinks in terms of total cost of ownership, the total cost over the planned contract term. Only this view makes offers truly comparable.
MRC and NRC: the two cost types
WAN costs split into two basic types: MRC and NRC. MRC stands for Monthly Recurring Cost, the recurring monthly fee for the line. NRC stands for Non-Recurring Cost, the one-time charges at order.
NRC includes activation, last-mile installation, any civil works and the CPE hardware. These items often appear less prominently in the quote than the monthly price, but they can be substantial, especially when construction work is needed.
A common pattern is a low MRC combined with high NRC in the fine print. Only MRC over the term plus NRC plus operating costs give a reliable picture. SAVECALL makes both cost types transparent in every comparison.
The hidden cost blocks
Besides line and setup, there are cost blocks that are rarely clearly stated in offers. The following table places them in context.
| Cost block | Type | Examples | Often overlooked? |
|---|---|---|---|
| Line, monthly | MRC | Port, bandwidth, QoS classes | No, it is in the quote |
| Setup | NRC | Activation, last mile, civil works | Partly |
| Hardware | NRC/MRC | CPE, router, SD-WAN appliance | Yes |
| Operation | ongoing | Monitoring, management, support | Yes |
| Changes | variable | Change fees, bandwidth upgrades | Yes |
| Exit | one-time | Penalty for early termination | Yes, often only late |
Circuit installation often runs several hundred to over a thousand euros per site. Professional services frequently amount to 10 to 20 percent of first-year costs. Add CPE hardware, change fees for later adjustments and bandwidth upgrades as demand grows. These items decide the real total cost, yet often do not appear in the first quote.
MPLS, DIA and SD-WAN cost comparison
The technology choice is the biggest cost lever. MPLS delivers guaranteed quality but is considerably more expensive per Mbit/s than internet or DIA bandwidth. Industry analyses put MPLS ports at a multiple of comparable broadband prices.
| Item | MPLS | DIA / SD-WAN |
|---|---|---|
| Line 100 Mbit/s (reference) | high, often a multiple | far cheaper per Mbit/s |
| Provisioning time | 8 to 16 weeks | days to a few weeks |
| Cloud connection | usually via central node | direct internet breakout |
| Price spread per provider | moderate | up to 2 to 3x at same bandwidth |
| Typical WAN saving | reference | often 30 to 60 percent |
SD-WAN is often 30 to 60 percent cheaper than pure MPLS, mainly because it uses inexpensive internet lines and connects cloud services directly. But SD-WAN is not automatically cheaper. At the same bandwidth, provider prices differ by a factor of two to three, and security through SD-WAN with SASE can raise costs. For many companies a hybrid of MPLS for critical sites and internet for the rest is the most economical solution.
Contract traps and switching costs
The biggest surprises are in the contract, not the price sheet. Automatic renewal, long notice periods and penalties for early exit often tie companies down longer than intended.
When switching carrier, additional costs arise: penalties with the incumbent, parallel operation of both networks during migration, and renewed activation fees. Anyone who does not know the terms of the existing lines misses notice periods and pays twice.
A clean migration is therefore aligned with the termination calendar and, at best, makes the switch cost-neutral. SAVECALL checks the contract terms of your existing connections and plans the switch so that no unnecessary penalties arise.
How SAVECALL supports you
SAVECALL compares WAN offers vendor-neutrally across more than 80 carriers and makes the true total cost transparent, not just the monthly price. We check MRC, NRC, contract terms and hidden fees and calculate the TCO over the planned term, whether MPLS, SD-WAN or Ethernet. Through the procurement pool you secure conditions below market price. For your entire site connectivity we bundle everything into ONE point of contact and ONE invoice.
Conclusion: the cheapest line is rarely the cheapest solution
The cheapest line is rarely the cheapest solution. Anyone comparing only the monthly price overlooks one-time costs, hardware, operation and contract traps that tip the balance over the term. What matters is the total cost calculation over three to five years, honestly drawn up and across all sites. SAVECALL calculates this TCO vendor-neutrally, uncovers hidden costs and negotiates conditions through the procurement pool that bring companies on average at least 20 percent savings.
Written by
Frank Frommknecht
Key Account Consultant, SAVECALL
Has supported companies for over 20 years in selecting and optimizing their connectivity solutions. His focus: making complex telecommunications understandable from the customer’s perspective and finding the right solution strategically.
Sources
- TeleGeography, WAN Geography and MPLS pricing data (port prices in market comparison)
- Lightyear, SD-WAN and MPLS Total Cost Comparison 2026 (MRC bandwidths and one-time costs)
- SAVECALL, WAN and site connectivity
Frequently asked questions
Frequently asked questions about WAN costs
Costs depend heavily on technology, bandwidth and location. An MPLS connection with 100 Mbit/s often runs 1,500 to 3,000 euros per month and site depending on the country, while a comparable internet or DIA line is considerably lower. Managed SD-WAN starts at around 100 to 300 euros per site and month, more with security and premium features. What matters is that the monthly price is only one part of the total cost. One-time charges, hardware and operation belong in every serious calculation.
MRC stands for Monthly Recurring Cost, the recurring monthly fee for the line. NRC stands for Non-Recurring Cost, the one-time charges at order, such as activation, last-mile installation, civil works or CPE hardware. Many quotes emphasise a low MRC while high NRC hide in the fine print. Only MRC over the term plus NRC plus operating costs reveal the true total cost. Anyone comparing only the monthly price regularly underestimates the actual investment.
Because the monthly price hides several costs. Circuit installation often runs several hundred to over a thousand euros per site, professional services frequently amount to 10 to 20 percent of first-year costs, plus CPE hardware, change fees and bandwidth upgrades. Contract traps such as automatic renewal, long notice periods and penalties for early exit also have an effect. Only the total cost calculation over three to five years shows which offer is really cheap.
In many cases noticeable savings are possible, because internet and DIA bandwidth is far cheaper than MPLS. Industry figures often cite 30 to 60 percent lower WAN costs, depending on the site mix and requirements. However, SD-WAN is not automatically cheaper. Prices from different providers can differ by a factor of two to three at the same bandwidth, and security via SASE can raise costs. What matters is a vendor-neutral comparison across the entire site mix, not a blanket percentage.
A switch often creates costs that are not visible in the first quote. These include penalties for early contract termination with the incumbent, parallel operation of both networks during migration, renewed activation and installation fees, and internal project effort. Anyone who does not know the contract terms of the existing lines risks missing notice periods and paying twice. A clean migration is aligned with the termination calendar and, at best, makes the switch cost-neutral instead of expensive.
SAVECALL compares WAN offers vendor-neutrally across more than 80 carriers and makes the true total cost transparent, not just the monthly price. We check MRC, NRC, contract terms, notice periods and hidden fees and calculate the TCO over the planned term. Through the SAVECALL procurement pool you secure conditions below market price. For your entire site connectivity we bundle everything into ONE point of contact and ONE invoice. This is how companies achieve on average at least 20 percent savings with us.
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