How Much Does VOIP Cost? Explained

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Plenty of businesses are offering VOIP services to businesses and making all the virtual mobile phone journeys for businesses efficient.

Costs for Voice over Internet Protocol (VoIP) communication range from about $20 to $30 per month per user, with some flexibility built for switching providers or adding hardware.

How Much Does VOIP Cost

The minimum cost of most services is around $20 per month in our comparison table below, but that’s not the whole picture. So, how can you pick the most reliable service? Depending on the specifics of your company, our free tool can help you quickly choose the solution that will best meet your needs at the most affordable cost.

Top VOIP Service Providers in the UK offer competitive and affordable pricing to attract more clients and businesses.

VOIP Cost Explained

Pricing for cloud-hosted VoIP typically starts at $20 per user per month, with additional costs for hardware such as VoIP phones (starting at around $50) and headsets (starting at approximately $80) if they are required. Voice over Internet Protocol (VoIP) systems installed on a company’s servers have a much higher initial investment, often exceeding $10,000.

The price of VoIP can vary greatly based on the provider and plan you select. This is because there are two primary types of VoIP: hosted and unhosted (on-site). Don’t worry; we won’t overwhelm you with jargon. The reason is fairly simple:

Hosted means paying a service provider to host your VoIP service and take care of all the necessary hardware and software on their end.

Local hosting at customer locations; in this model, you are responsible for any hardware upkeep and issues that arise at your locations.

These days, a lot of companies prefer the hosted alternative. It’s more cost-effective because there’s no up-front investment, and it eliminates the stress of worrying about possible technical difficulties (because they’re not your responsibility). When a company needs additional control and visibility into the system, it may choose to host the hardware independently.

These days, a lot of companies prefer the hosted alternative. It’s more cost-effective because there’s no up-front investment, and it eliminates the stress of worrying about possible technical difficulties (because they’re not your responsibility). When a company needs additional control and visibility into the system, it may choose to host the hardware independently.

Many firms prefer alternative since it is more cost-effective than in-house solutions and removes the burden of troubleshooting any technical issues.

The question is, how much should you anticipate spending? Based on our examination of the pricing policies of industry leaders, we’ve calculated that the going rate for a hosted VoIP system is somewhere between $20 and $30 per user each month. This is a good ballpark estimate; the actual cost will likely be higher or lower depending on the number of users, the type of equipment used, and the cost of international calls.

Hosting your VoIP system comes with significant upfront fees. A new VoIP system, from the start, must be built on your premises. Count on spending between $500 and $1,000 per user to cover all of this, and that’s before you factor in ongoing maintenance and other IT costs. Our free comparison tool can help you locate the best VoIP service provider, whether you want hosted or on-premises systems.

Setting up a VOIP System:

If you go for hosted VoIP, as we’ve discussed, you’ll need only a reliable internet connection and phones that are compatible with the service to get started. The cost would be fixed each month regardless of the number of users. You can anticipate paying $20 to $30 for each user, though this may vary depending on the type of plan you select and the number of employees you desire to enroll.

The prices are even greater if you want to set up your on-premise VoIP solution since you will need to buy expensive specialist hardware to build your system (known as a PBX).

So, how much would you say is the going rate for this kind of thing? The total cost might differ widely, but as an example, RingCentral provides the following average costs: PBX hardware $6,495, VoIP phones $3,000, setup $1,000, and software licenses $4,000 more. This assumes a team size of 20 but does not include any IT support or training funds. In this case, you’d be looking at almost $14,500 in costs, and that’s before you make your first call. Though it may sound complicated, our quote comparison tool is fast and easy to use and will provide you with an intelligible and competitive quote for your company.

There is a further expense that we haven’t discussed up until now, but we assume you’ve already budgeted for it in light of your commitment to broadband. Unlike conventional telephone systems, VoIP cannot function without access to the internet. If you want to use a reliable VoIP service, you need to have at least a 10 Mbps download speed; this is more than sufficient, and most business internet packages already exceed this minimum.

On the other hand, it’s something to think about when you’re first getting started. Small businesses might expect to pay as little as $35 per month for broadband, while larger, more demanding firms can expect to pay hundreds.

What to Look for in a VOIP Provider?

So, aside from a reasonable and clear price model, what else is important to look for when comparing VoIP programs?

Based on our findings, there are four primary considerations to keep in mind when selecting a VoIP provider.

Scalability:

The “scalability” of a VoIP service is measured by how easily users can upgrade or downgrade their service. One provider’s lack of price flexibility can be another’s opportunity for growth.

Why it’s important to have scalable solutions:

Stop you from shelling out money for unused options.

Give your business room to expand with your VoIP service (by adding users and/or services).

If you can find “cheaper service” elsewhere, you should still aim to provide the best possible value.

Think about whether or not the provider allows you to go from a basic business phone system to more advanced features like a contact center or unified communications platform. You won’t have to switch service providers only to add features like video conferencing or real-time chatting.

Available Features:

When evaluating a service provider’s skills, more is not always better. Having too many options might overwhelm first-time users and create more work than they were supposed to alleviate.

Instead, you should check to see if the provider has the functions your business requires.

For instance, if you’re in the medical field, you must use a VoIP service that complies with HIPAA regulations. If you’re in charge of an outbound call centre, you probably won’t give visual voicemail the attention it deserves in favour of one of the several calling options at your disposal.

Compatibility:

No matter how inexpensive or feature-rich a VoIP system may be, it will be useless to your organization if it is incompatible with the software and hardware already in use.

Check for compliance with the following standards with any potential service provider:

  • Your mobile gadgets (Apple and Android mobile apps, etc.)
  • You’re using that operating system (Mac, Windows, etc.)
  • Which internet web browser do you use the most (Google Chrome, Safari, Firefox, etc.)
  • Extraneous programs (CRM system, project management tool, team chat app, etc.)
  • Any supplementary apparatus (analog phones, headsets, etc.)

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