e justified. Private networks are more secure than even MPLS networks for transmitting sensitive military information and financial transactions. An important factor when deciding to use dedicated services is the desire for secure transmissions. Some firms believe that network services such as MPLS are too public or prone to hacking for confidential applications such as funds transfer. They want to control their own networks and have staff members available to monitor transmissions over these facilities. Additionally, encryption is used to further ensure privacy and security. Local and Inter-Exchange Channels Rates for private lines are based on distance and speed. Higher-speed lines that run over longer distances cost more than slower circuits that run over shorter distances. A 10 Gigabit line is less expensive than a 100 Gigabit line. Pricing for dedicated, private lines consists of two items: www.TechnicalPDF.com Local channels Local channels run from a customer's premises to the carrier's equipment. One local channel is required at each end of the private line in a point-to-point circuit. Local channels are also referred to as local loops. The incumbent telephone company often supplies local channels. Because of limited competition for this service, pricing on these short links is often close to the same as that for the longer inter-exchange circuit. Local channel fees are also charged for circuits used to access the Internet, SDN networks, and MPLS networks. Inter-exchange miles Inter-exchange mileage is the portion of the circuit located within a carrier's network. The mileage runs from the access point, where it enters the carrier's network, to the egress point, where it leaves the carrier's switch. Organizations that lease T1 circuits for Internet access also pay for the local loop that connects their site to their carrier. The local loop is a private, dedicated service from the customer to the local provider. When traffic reaches the Internet, it is carried over a shared network. The same is true for acc