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How Much Does VoIP Cost for a Business?

This article was updated on December 27, 2023

When running a small business, it’s critical to weigh costs against benefits. While voice over internet protocol (VoIP) phone systems offer many improvements, you may be wondering if those upgrades mean a higher price tag. We’re here to tell you that if you use VoIP for your business, you won’t normally see an uptick in costs — actually, you’re far more likely to see costs drop. Read on to learn more about how VoIP can be both better and cheaper for small businesses.

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Let’s Look at Costs for VoIP

Phone systems for small businesses have improved greatly thanks to VoIP technology. As a cloud-based internet phone service, VoIP expands communications capabilities while eliminating the headaches of hardware installation and complex troubleshooting. Using VoIP for business phone systems has rapidly become the industry standard, and for good reason. But if you’re looking into upgrading the phone system for your business, VoIP pricing is something you’ll need to consider. Thankfully, as you’ll see, the facts make this an easy choice.

Below, we’ll go over some basics about the cost of VoIP for a small business. This will include how VoIP phone systems are priced, how VoIP saves you money, and how VoIP can benefit your small business as a whole.

Is VoIP Cheaper Than a Landline?

In general, yes — and for multiple reasons. Let’s look at just a few of them:

Reason #1: VoIP Requires Almost No Hardware

A lot of the hidden costs for landline phone systems come from not just purchasing the equipment, but installation, ongoing maintenance, or troubleshooting when something goes down. And if you ever want to expand your phone systems, you have to repeat that same process all over again. But since VoIP is internet-based, the setup is much simpler. VoIP requires almost no additional hardware, and many times you can use the devices you already have. VoIP calls can be made from any internet-capable device, like smartphones, laptops, desktops, and even tablets. This is possible due to the softphone feature, which is simply a software app — no wires required!

Reason #2: VoIP Enhances Business Operations

Most businesses need their phone systems to do more than just make and receive calls. Voicemail, auto attendants, and call routing are among the features that have become all but expected for small business operations. VoIP offers all of those features, plus, in concert with unified communications as a service (UCaaS), a host of other services that a landline cannot typically provide. Video conferencing, instant messaging, and international calling are just a few doors VoIP opens, meaning you don’t have to contract another provider or pay yet another subscription fee for the services you need. As an example of what’s possible, check out Vonage’s list of over 50 available features.

Reason #3: VoIP Saves Time (and by Extension, Money)

Because business VoIP providers know how valuable their clients’ time is, they aim to make their services as simple and consistent as possible. VoIP eliminates the time spent troubleshooting faulty landlines. But more importantly, VoIP lets you easily communicate as a business — both externally and internally. Instant messaging can speed up communication between staff, and features like softphone calling make it possible to field business calls on the go, all from the same service provider. By streamlining your communications, you’re able to worry less about day-to-day operations and more on growing your business.

So, why is VoIP cheaper than using a traditional telephone? Because it uses less hardware, requires less maintenance, and makes running your business more efficient — all of which can save you money in both the short term and the long run. VoIP is also easy to set up and even easier to scale as your business operations grow.

What Is the Average Cost for VoIP?

VoIP can cost anywhere from $20 to $30 a month per user, according to Tech.co. Plus, setup costs are virtually nonexistent if you use existing devices and hardware for your VoIP system. In contrast, Business.com reports that traditional landline systems like Private Branch Exchange (PBX) can cost around $1,500 per user for initial hardware setup and annual maintenance.

Even if you wanted to spend that much per phone (and we’re betting you don’t), VoIP would give you a far greater bang for the buck. For example, if you were on the high end of VoIP service costs, you’d still have money left over for new office phones, headsets, VoIP adapters for your old landlines, and many other features.

The value VoIP provides small businesses is high, especially considering the low price point. This is even more true if you’re using UCaaS — a cloud-based communications platform powered by VoIP. Service providers like Vonage use UCaaS to create customized communications solutions for their customers, adding in the features that help and leaving out the ones that don’t. This, along with VoIP’s low setup requirements, helps save you money and time, with the peace of mind that your business can run smoothly.

Is VoIP Worth It? Yes — With the Right Provider

While VoIP is almost always worth getting for your small business, you still need to pick a good provider. And at Vonage, we believe we’re the best at what we do. We’ve been involved with VoIP since its inception, and with our knowledge, we’re able to craft solutions that fit your unique business needs — and at a price that fits your budget.

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