VoIP phone system costs: How much is a VoIP phone, and what affects the cost?

In this article, we’ll explore the different factors that impact VoIP phone system costs. By the end of this article, you should better understand how much you expect to pay for a VoIP service and what factors you should consider when selecting a plan.

Voice over Internet Protocol (VoIP) is an increasingly popular choice for businesses seeking a business phone system that offers flexibility to make and receive incoming calls from any location (with an internet or data connection). 

VoIP solutions can offer better call quality, flexibility, and cost savings than traditional landline phone services. However, with so many VoIP providers and plans available, it can take time to determine how much you should expect to pay for this service.

If you want to discuss the cost of a new VoIP phone system setup based on your specific business needs, contact us here at Kingstar Services, and we’ll be happy to help. 

Types of VoIP phone services

Hosted VoIP services

Also known as cloud-based VoIP services, hosted VoIP services are the most popular for small and medium-sized businesses. With hosted VoIP, your provider hosts your VoIP system on their servers and manages all the technical aspects, such as software updates, maintenance, and security.

All you need is a stable internet connection, and you can access your phone system anywhere. Hosted VoIP plans typically charge on a per-user, per-month basis, and the costs can vary depending on the number of key VoIP features you need. This is a popular choice for a small business looking to grow, as monthly costs only increase when the business does. 

On-premise VoIP services

On-premise requires businesses to purchase and install their VoIP system on their premises. This option is more suitable for larger businesses that have their own IT teams and can manage the system themselves.

While on-premise VoIP can offer more control over the system, it requires a larger upfront investment when you upgrade to VoIP. The business must purchase the necessary equipment and infrastructure to support the system. This could include the number of VoIP desk phones required, the cost to migrate to a VoIP number, and the software installation to allow employees to make phone calls over the internet. 

Once the new VoIP system is installed, subscription costs will depend on the number of users using the system to make and receive calls. 

Virtual VoIP services

Virtual phone systems are a hybrid of hosted and on-premise services. Virtual VoIP allows businesses to keep their existing phone system but still take advantage of the benefits of VoIP technology. With virtual VoIP, businesses can connect their existing phone lines to a virtual PBX (Private Branch Exchange) hosted in the cloud.

This allows businesses to have access to features such as voicemail to email transcription, call forwarding, and call routing without having to invest in new equipment.

Virtual VoIP plans usually charge on a per-minute or bundled plan basis, and the costs can vary depending on the number of phone lines and the features required.

How much does a VoIP phone system cost?
Photo by Andrew Neel on Unsplash

Factors affecting VoIP phone system pricing

The cost of a VoIP service can depend on numerous factors, and there are various expenses associated with VoIP. If you’re considering a VoIP telephone service, get a good idea of how much you can expect to pay by talking to a VoIP provider

Some key factors that can impact VoIP pricing are:

  1. The number of users: The more users you have, the higher the cost will be. Many VoIP providers charge per-user, per-month basis, so how much you’ll pay will change when users go up or down.
  2. Features: VoIP service providers offer a range of features, such as call forwarding, voicemail, and conference calling. The more features you need, the more expensive the service will be. If you’re just using it to make VoIP calls, this will be a fraction of the cost of a VoIP service with many features. The key is to determine what you need and weigh this against monthly VoIP costs. 
  3. International calling: If you need to make international calls, you may need to pay additional fees. International call pricing varies from country to country. Some providers offer a flat-rate pricing for unlimited international calls. If you are making many overseas calls, some providers (Kingstar Voice included) can arrange a fixed price or bundle, this would be priced based on the number of calls you make and where you call. (Kingstar Voice also offers a rare provision of free calls to mobiles). It’s important to check with your VoIP provider for their international calling rates. 
  4. Type of phone system: The type of phone system you choose can also impact the cost. Hosted VoIP services are typically the most cost-effective option for small and medium-sized businesses, while on-premise VoIP systems can require a larger upfront investment. 
  5. Cost of equipment: There can be costs to purchase equipment. If you need VoIP desktop phones, PBX systems, or have existing phones you want to convert to IP phones (not all phones will convert to VoIP, you may need a VoIP adapter or a new phone). If mobile phones or computers are used to make phone calls, you may have service costs for softphone apps (such as Mobex). Again, costs vary depending on how many VoIP users you have. 
  6. Service provider: The VoIP service provider you choose can also impact the cost. Different VoIP providers offer different pricing models and service plans, so shopping around to find the best VoIP provider for your business needs is important.
  7. Number porting fees: Users who want to keep their existing phone number may need to pay a one-time fee to transfer their number to the VoIP service.

How much does VoIP cost? Price breakdown

OK, let’s talk actual figures. The cost of Voice over IP services in the UK can range from £4 to £25 per month for residential users, depending on the selected service provider and plan. A £4 starting point would allow a number to be forwarded to a mobile, and will likely not allow outgoing calls. The higher end will include things such as HI HI systems, which can be expensive. 

For most businesses, the cost can range from £10 to £50 per user (seat) per month, depending on the features required.

Some providers offer free VoIP services for users needing basic calling features. These free services may be limited in terms of call duration or the number of calls allowed per month. They may include advertisements or require users to listen to a message before making a call.

As we detailed above, in addition to the monthly subscription fee, there may be additional costs associated with VoIP services. You’ll need to research your business communication requirements to establish the best VoIP phone system for you, and then you’ll be able to find out how much it costs.

Overall, the cost of VoIP services in the UK can be a cost-effective alternative to traditional phone systems for businesses and individuals. The advantages of VoIP will make the work to switch to VoIP worth it. 

Choosing a VoIP provider and the best VoIP service for your business 

When it comes to choosing a VoIP service, you should consider your specific needs and budget. As we’ve discussed, the type of VoIP service you choose can significantly impact the cost of the service, and it’s important to consider the specific needs of your business when making a decision.

We recommend you research and compare different providers and plans to determine which option best fits your needs and budget. 

Kingstar Services is a top VoIP provider in Hampshire and beyond, so we will be happy to help

How much does a VoIP phone system cost?
Article authored by Laura Bean Creative Little World

Philip Gilkes

My aim and mission are to provide a personal level of service that keeps your tech running correctly and helps your business thrive.

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