• Telecomms

The cost of a business VoIP phone system

Business VoIP systems can range from a few hundred to tens of thousands of pounds each year, depending on setup, scale, and features.

This guide breaks down typical VoIP costs, including setup fees, monthly charges, and the key factors that impact pricing for businesses.

Here’s what we cover:

• How much does a VoIP phone system cost?
• Factors affecting the cost of a VoIP phone system
• The costs of missing out on business VoIP

How much does a VoIP phone system cost?

A VoIP phone system is a digital alternative to traditional business phone lines that operates over the internet, offering more flexibility and lower running costs.

With the upcoming PSTN switch off, businesses still using traditional landlines will need to upgrade to digital phone systems like VoIP to maintain continuity.

The following list provides a comprehensive overview of the costs of a cloud-hosted VoIP solution, 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 business VoIP providers charge a one-time VoIP phone system installation fee, covering account configuration, call routing, number porting, business VoIP integration, 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.

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: Some providers offer service level agreements (SLAs) for added reliability, helping ensure high VoIP call quality.
• Compliance and security: VoIP 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 phone systems for small businesses (less than 10-20 devices) can rely on a standard fibre optic business broadband connection (£30/month). At the same time, medium and large setups benefit the most from a dedicated 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 bespoke quotes for your business.

Factors affecting the cost of a VoIP phone system

The total cost of a VoIP system varies depending on a few core factors. Below, we explore the main factors that influence business VoIP pricing.

Number of VoIP devices

The number of devices directly influences both setup and ongoing costs:

• Each VoIP phone and headset adds to your initial investment.
• Service charges are typically priced per line; more devices mean higher monthly fees.
• Higher call volumes often result in increased usage costs.
• Larger setups place greater demands on your connectivity and infrastructure.
• Businesses may require advanced SD-WAN solutions or SASE to support reliable and secure VoIP use at scale.

Complexity of your VoIP setup

The more advanced your VoIP system, the more it costs to deploy and maintain. Key complexity drivers include:

• Premium VoIP features such as auto-attendants, call queues, analytics, voicemail-to-email, or interactive voice response systems.
• Integration with UCaaS platforms that combine voice, video, messaging, and CRM tools.
• Security upgrades, such as encryption, firewalls, and dedicated cloud or in-house storage for call recordings and sensitive data.
• Licensing for add-on tools, multi-site support, or large user volumes.
• Support for remote VoIP solutions, including softphones, mobile apps, and home office setups.
• 24/7 technical support or a managed service contract.

Length of your VoIP contract

Contract duration also affects pricing:

• Monthly rolling contracts offer flexibility but often come at a premium.
• Longer commitments typically reduce per-user costs and may include discounted features or installation.

Some providers offer trial periods or introductory offers before committing to longer-term contracts.

The costs of missing out on business VoIP

Delaying or avoiding VoIP adoption doesn’t just keep your systems outdated; it can lead to rising inefficiencies, higher operating costs, and reduced competitiveness over time.

Below are examples of how traditional phone systems fall short compared to a commercial VoIP setup:

Back to blog Back to broadband guides

• Share:
• 
• 
• 
•