• Telecomms

Business VoIP costs

The cost of commercial VoIP systems varies widely, from a few hundred pounds to tens of thousands per year, depending on the system’s size and complexity.

For many businesses in sectors like logistics, technical support, and telesales, these costs are often outweighed by the benefits, especially when compared to the hidden costs of not having an efficient VoIP system when it’s most needed.

This article will break down VoIP’s initial and ongoing costs, explain the factors that affect them, and highlight the hidden expenses your business may face without a reliable VoIP solution.

Contents

• The rise of VoIP
• How much does a commercial VoIP phone system cost?
  • Initial costs
  • Recurring costs
• Factors affecting business VoIP costs
• Costs of not having a commercial VoIP system

The rise of VoIP

Industries like technical support, call centres, telesales and logistics rely heavily on robust telephone systems to handle high call volumes across multiple staff members. Historically, these setups depended on standard business phone lines running on the ageing copper telephony network. However, with the UK’s upcoming PSTN Switch Off, these systems are no longer offered and are increasingly outdated within modern business operations.

VoIP offers the next generation of internet-based telephony. Everyday VoIP apps like WhatsApp and Google Meet have revolutionised communication worldwide, and soon, all UK landlines will be VoIP-based, transmitting voice data as packets over the internet instead of through copper wires.

Commercial VoIP systems go a step further, providing the highest call quality and reliability standards alongside features tailored for business needs—such as call routing, file sharing, video, and CRM integration (UCaaS).

How much is a commercial VoIP phone system?

The total cost of a commercial VoIP phone system varies widely, from a few hundred pounds per year to tens of thousands, depending on your business’s size and system complexity. The following list provides a comprehensive overview of the costs of a cloud-hosted VoIP network, including often-overlooked expenses such as compliance requirements and uptime guarantees.

Initial one-time costs (£50 – £10,000+)

Initial costs are those incurred as one-time payments at the start and include:

• Setup and installation: Many VoIP providers charge a one-time setup fee, covering account configuration, call routing, number porting, VoIP integrations, etc. The fee range from £50 to £200.
• Equipment: VoIP phones, headsets, and adapters. Quality desk phones can range from £50-£300 per device, headsets between £20-£200, and adaptors from £20-£100. In all cases, high-end models offer advanced features like video conferencing and noise cancellation.
• Local Area Network: An office VoIP system is interlinked via Ethernet cables and controlled by network switches. Basic switches cost between £10 – £30, while larger managed switches are more expensive, ranging from £70 – £200. Bulk Ethernet cables are affordable, with 50-metre lengths costing around £30.
• Servers (for self-hosted VoIP): Businesses with strict cybersecurity compliance requirements may opt to host their own VoIP system for more control. This option requires an investment in servers, storage, and other infrastructure, amounting to several thousand pounds.

Recurring costs (£50 – £10,000+)

Recurring costs are incurred throughout the duration of your VoIP and business broadband contracts:

Ongoing VoIP service costs

These recurring costs cover essential VoIP services, including:

• Line rental (service) fees: Monthly or annual fees vary based on features and payment plans. Basic plans start at around £10 per line, while larger organisations might pay £30+ per line for packages with advanced features like business VoIP analytics.
• Call rates: Pay-as-you-go, subscription, and hybrid call rates are available. Many businesses opt for hybrid rates, including a set number of minutes for domestic and international calls and per-minute costs.
• Additional features: Most providers offer optional add-ons such as call analytics, virtual receptionist services, and 24/7 support, typically costing an extra £5–£10 per user per month.
• Uptime guarantees: VoIP is reliable, but connection issues can impact performance. Some providers offer uptime guarantees through Service Level Agreements (SLAs) for an additional fee to assure higher reliability.
• Compliance and security: Security and regulatory compliance features like encryption, data redundancy, or call recording storage also cost extra.

Business Broadband connection

VoIP phone systems require the stability of a tethered connection. VoIP systems for small businesses (less than 10-20 devices) can rely on a standard full fibre connection (~£30/month), especially with added broadband redundancy. At the same time, medium and large setups benefit the most from a leased line (£90 to over £800/month).

See our article on VoIP requirements for in-depth details.

Total costs of commercial VoIP

Add your capital and ongoing costs based on your needs, and you’ll have an estimate of what to expect. Compare business VoIP phone systems to receive actual quotes for your business.

Factors affecting business VoIP costs

The costs of a business VoIP system ultimately boil down to a couple of factors:

1. The number of VoIP devices
2. The complexity of your VoIP
3. The length of your contract

Let’s have a look at each of them:

Number of VoIP devices

The number of devices significantly impacts your costs for the following reasons:

• Each VoIP device and headset carries its own cost
• Service fees are usually per line, so more devices mean higher recurring costs.
• More devices generally lead to higher call volumes and so higher rates.
• More VoIP devices pose increased demands on your network and require more expensive connections (e.g. full fibre or leased lines) and infrastructure (e.g. expensive managed switches, SD-WAN and SASE).

The complexity of your business VoIP

The complexity of your VoIP setup also affects costs. The more of the following features are added, the higher the costs:

• Additional VoIP features (virtual receptionist, call routing, etc).
• UCaaS integrations (CRM, project management software, supply chain management software).
• Enhanced encryption and dedicated cloud or in-house data storage for strict compliance requirements.
• Additional licenses for VoIP on mobile devices.
• 24/7 support.

Length of your VoIP contract

Longer-term contracts generally reduce recurring costs, as providers often offer discounts for extended commitments. Many businesses start with a monthly rolling contract to trial VoIP services before moving to a long-term contract.

Costs of not having a commercial VoIP system

Finally, consider the indirect costs of NOT having a VoIP system. With the appropriate VoIP implementation, businesses can often improve the quality of their services and future-proof themselves as new technologies are rolled out.

Consider the following when doing your cost-benefit analyses:

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