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VoIP Phone System Cost

Compared to your old legacy phone system, you can expect to save money when installing a VoIP phone system. The main reason you’ll save money is the cost of making phone calls, because that cost is minimal when you send a converted digital signal over the Internet. It will always be more expensive to convert audio to analog before sending it over a telephone cable, and that’s where you’ll realize the big savings.

In addition to the lower cost, a VoIP system is extremely feature-rich, so your place of business will have a number of options you never had before, all of which will tend to make your business more efficient. If it sounds like switching to VoIP is a no-brainer – it really should be. Your only challenge will be to find a reputable and reliable VoIP provider, so you can get the most out of your new phone system.

Breaking down the costs

Most VoIP providers will charge you for two different kinds of cost – a monthly fee for renting the line, and a usage cost. The monthly fee amounts to paying your provider for their services, and the usage cost will only sometimes come into play. Various providers adopt different kinds of packages for which you would pay, some of which are based on the total number of minutes you use, and some of which include unlimited minutes.

Practically all VoIP providers will bill you based on the number of users in the system. However, that doesn’t mean you’ll be charged for the number of employees you have, but instead the charge will be based on the number of open phone lines you need at any given time. That being the case, if you have a maximum of 12 users who could be on the phone simultaneously, you would be billed for 12 users, even if you have 100 at the workplace.

You can expect to get discount pricing on the number of users you’re billed for, when you have a higher number of users. Thus, the rate per user would be significantly lower when you’re billed for 100 users than it would be if you’re only billed for 10. This is an area you may be able to negotiate with your provider, since they will probably do their best to accommodate you as a new VoIP customer.

Feature costs 

The real cost of your VoIP system will generally depend on how many features you add on to the basic system. Some of these features are considered must-have features, while others are in the ‘nice-to-have’ category, and can be added on to improve efficiency or convenience for staff members. Here are some of the most popular features from each category:

  • Must-have features – outstanding customer service, cost savings and cost-effectiveness, single-click management from an online portal, superior reliability and uptime, calling from any device at any location.
  • Nice-to-have features – call recording, call queueing, Internet integration, virtual extensions, voicemail to text, conferencing, and phone number management.

One of the most appealing aspects of any VoIP system is its ease of adaptability and upgrading. If you don’t choose a certain feature at the outset, you will always have the option of adding it on later, and it will be very easy for your provider to make the change. There won’t be any need for an expensive overhaul to incorporate the greater functionality.

Phone costs 

If you stick with your existing handset phones, it will be cheaper of course, because you can just add on an adapter to make them work with the new  VoIP system. However, since you’re upgrading to this highly capable new system, it makes more sense to take full advantage of all, or at least some of, the features it has to offer.

You can only do that by having Session Initiation Protocol (SIP) phones installed at your workplace. This SIP software does all the managing of setting up a phone call, then transmitting the signal. By using SIP-enabled phones, you’ll be able to take advantage of all the modern features now available in telephony, including:

  • video conferencing capability
  • ability to manage 16 phone lines all at the same time
  • fast linkage with a VoIP provider
  • full-color LCD screens for the easiest recognition and management
  • high-definition voice recognition
  • web application built-in to the phone system

In most cases, it would be a mistake to simply go with the cheaper handsets in an effort to save money. By making use of the advanced and sophisticated features available on a modern VoIP phone system, you can bring your business into the 21st century, and instantly become more competitive in your market.


If you’re ready to upgrade your business phone system, please click here to contact one of our VoIP phone system experts. We’ll help you to choose the VoIP phone system and features that are right for your business!

At Telco Data, we are able to provide the kinds of services you need to conduct efficient and streamlined communications. Contact us when you need structured cabling solutions, cell signal boosting, business VoIP phone systems, or Internet data and voice services and much more. You can count on us to deliver the most affordable and most effective possible solutions for your business needs.

FAQs About VoIP Phone Cost

Will the cost be affected by whether or not I sign a contract?

In most cases, yes it will. The longer the contract period you sign for, the more of a discount you’ll get on the cost.

Is it better to buy SIP-enabled phones, or to add an adapter to my existing phones?

Although both systems work well, the newer SIP-enabled phones have many more features that your existing phone does not.

Should I consider using ‘softphones’ at my business?

Softphones will free up your employees from having to use physical phone sets, and they are extremely affordable.

Will my communication costs go down using VoIP?

For almost all businesses, the cost of phone calls will definitely be reduced. You’ll also gain some new features that will make your office much more efficient, and that may save you even more money.

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