How Much Does a Business Phone System Cost March 2024
If you have been looking at buying a business phone system or business phone line, you naturally would want to know what budget you need to make available for it. Typing that into google will leave you inundated with prices & responses, the top result being written in 2011 casts some doubt on the accuracy. We will explain what we know about business phone line costs & some tips on how to reduce your expenditure.
For further information and pricing on phone systems, click here.
Average Costs of Phone Systems
Here’s a rough estimate of the cost range for different business phone systems:
- Cloud-based: £15 – £35 per user per month
- On-premise: £160 – £1,000+ per user (one-time cost) + ongoing maintenance costs
- Virtual PBX: £20 – £50+ per user per month
Factors Influencing the Cost of a Phone System
- Type of System:
- Cloud-based (Hosted PBX): Typically ranges from £7 to £30 per user per month. Costs can increase based on additional features and functionalities.
- On-premise: Requires an initial investment in hardware and software, typically ranging from £160 to £1,000 per user. There are also ongoing maintenance costs.
- Virtual PBX (VPBX): Costs usually fall between cloud-based and on-premise options, starting at around £20 per user per month, with additional charges for hardware and features.
- Number of Users:
- Most providers offer tiered pricing based on the number of users. Generally, the more users you have, the lower the per-user cost.
- Features:
- Additional features like call recording, video conferencing, and advanced call analytics may come with additional costs.
- Contract Length:
- Some providers offer discounts for signing longer contracts.
Hosted PBX Costs
Hosted VoIP phone system software costs |
|
Price range per month/user |
Package features |
Basic package |
£6–£15 |
- Limited inclusive minutes
- Auto attendant
- Mobile and desktop apps
- Call logging, routing, forwarding, hold, and transfer
- Limited video meetings and audio conferencing
- Team messaging and file sharing
|
Standard package |
£15–£25 |
- Everything above and
- CRM system integration
- More inclusive minutes
- Call recording, queueing, monitoring, and analytics
- Multi-level IVR (interactive voice response)
- Video meetings and audio conferences with higher capacity
|
Premium package |
£25–£50+ |
- Everything above and
- Contact and call centre features
- Unlimited minutes
- Unlimited video meetings and audio conferencing
|
For Hosted VoIP systems, installation costs can vary depending on the provider and the level of support you require. Here’s a breakdown of potential costs:
- Configuration and Installation Fee:
- Some system providers may charge a fee for configuration and installation, typically around £250 for half a day of engineer support.
- This fee covers the cost of an engineer helping you set up the system, including installing apps and connecting IP phones.
- Self-Installation:
- Hosted VoIP systems are generally straightforward to set up, often requiring little more than installing the necessary apps and connecting IP phones.
- Many providers do not charge installation fees for Hosted VoIP, as they expect businesses to handle the setup themselves.
PBX Phone System Costs
For optimal functionality, an analogue business phone system requires either a PBX (private branch exchange) or a key phone.
The distinction between a PBX and a key phone lies in their operation: a PBX digitally directs callers to the appropriate handset through an auto-attendant, whereas a key phone employs a light system to indicate when a line is busy, facilitating the right individual to answer the call.
Here’s an overview of costs:
- A PBX with two phone lines and six handsets typically costs around £160.
- A PBX supporting 16 lines and up to 64 handsets costs approximately £900 or more.
- A key phone accommodating 16 handsets ranges from £125 to £250.
It’s important to consider that key phones lack the scalability of a PBX. Investing more upfront in a PBX may result in reduced future expenses.
Multi-Line Phone System Costs
If you believe your business doesn’t require numerous phones, you might consider a multi-line phone system.
These systems include several phone lines and typically feature two to 10 handsets but lack advanced call handling features like an auto-attendant.
For instance, Panasonic offers four-handset multi-line phone systems starting from £109.99. Additionally, BT typically charges around £140 to install a new landline. Therefore, upgrading to a two-line phone system with six handsets would cost approximately £350.
IP Handset Costs
IP Handset Costs |
|
Low spec: avg. £35 |
Medium spec: avg. £100 |
|
2-30 handsets |
£70 – £1,050 |
£200 – £2,000 |
|
30-60 handsets |
£1,050 – £2,100 |
£3,000 – £6,000 |
|
60-100 handsets |
£2,100 – £3,500 |
£6,000 – £10,000 |
|
Self-Hosted System Costs
Implementing a self-hosted system entails investing in a self-hosted PBX, and the procurement and setup of a PBX can be costly. When factoring in handset expenses, a self-hosted PBX phone system typically ranges from £600 to £800 per employee.
Moreover, you must account for the expenses associated with hiring an internal or external technical team to install and configure the system. These costs vary based on your business size and the required phone system features.
For instance, Asterisk offers free software that can transform an office computer into a dedicated onsite telephone system host. However, the primary expense lies not in the software or the server/dedicated computer itself but in the technical team required to construct and maintain your telephone system from scratch.
UK VoIP Providers
UK VoIP Providers |
Company |
Price |
Free Trial |
Customer Rating |
Who is it Best For |
|
£19 per user, per month |
✓ |
4.7 |
Small businesses with big growth plans
|
|
£9 per user, per month |
✓ |
4.6 |
Small businesses looking for a cheap and easy solution
|
|
£12 per user, per month (billed annually)
|
✓ |
4.4 |
Telesales teams and small businesses with high turnover
|
|
£6 per user, per month |
✓ |
4.4 |
|
|
£10 per user, per month |
✓ |
4.3 |
Companies that need to communicate remotely
|
|
£7.99 per user, per month (billed annually)
|
✓ |
4 |
Small businesses with varied departments
|
|
£14.99 per user, per month
|
X |
3.9 |
Small companies that are based online
|
Other Links We Thought You Might Find Useful
Other Useful links about phone systems:
Free Call Centre Software
VoIP Phone Systems For Schools
How to Lower Your Business Phone Bill
Remember to Compare Your Business Costs is here to help your business every step of the way, from business advice or saving you time and money on your business purchases such as:
James Ward is CEO and founder of CompareYourBusinessCosts.co.uk, a website that won the Prestigious ‘Website of the Year’ only in its second year of operations in 2015. The website has grown organically since then offering comparisons on over 20 different products including insurance, energy, telecoms, card machines, coffee machines and much more. James has a range of interests including horse racing, skiing, rugby and boxing. He splits his time between home family life, friends, exercise and socialising.