How Much Does VoIP Cost:
The Ultimate Breakdown

Voice over Internet Protocol delivers flexibility by providing phone solutions for mobile devices and desk phones using your internet connection. But, VoIP pricing isn’t always straight forward, and your final cost may vary significantly.

Upgrading your company’s PBX (Private Branch Exchange), which is your business’s private telephone network, may save you hundreds of dollars every month and improve communications between your teams and customers.

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How VoIP Solutions Save You Money Immediately

Small business phone systems use Voice over Internet Protocol technology to connect desk phones, cell phones, and desktop computers for seamless communication. Feature-rich VoIP solutions deliver big without the huge price tag of conventional PSTN systems.

Although traditional hosted PBX systems vary due to different business requirements, Fit Small Business estimates, “Five lines for a New York small business, companies can spend $435.33 per month, including taxes.” When you compare that number to the starting prices of Voice over IP services, the potential cost savings are enormous.

Typical business VoIP solutions cost $20 to $40 per user each month. For larger organizations that want hosted PBX services or need to staff a contact center, various business VoIP systems offer price discounts for a higher number of users, which should factor into your decision.

Top Money-Saving Benefits of Voice over Internet Protocol Services

Regardless of which calling features you choose, Voice over IP increases productivity, lowers maintenance costs, and saves you money over the life of your business. VoIP technology benefits your budget starting from the day you sign-up.

Grow and scale your business without costly hardware and installation common with legacy phone systems. You won't need new phone lines to make VoIP calls.
Eliminate your current landline phone bill. Replace it with a much smaller price tag on a VoIP small business phone system. Utilize existing technology, like your mobile phones and handsets.
Save on moving costs as your Voice over IP number isn’t tied to your company’s address. VoIP services go wherever there’s an internet connection. Some of the best VoIP systems even feature a mobile app for utilizing their services.
Avoid expensive maintenance expenses and IT services. With hosted cloud PBX, problems are usually handled in the cloud by VoIP providers. Because VoIP systems are cloud-based, there are no setup fees, making this a cost-effective choice for small businesses.
Make better business decisions impacting your budget. Advanced features offer integrations with your sales and marketing software.
Reduce costs from long-distance calling. Voice over IP providers give you options for lower-priced international and national calls. This allows for unified communications with your team from anywhere in the world, without sacrificing call quality.
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Unmasking the Cost: 8 Voice over IP Price Factors

Since 2005, the number of business cutting services with local telephone companies and embracing VoIP solutions has nearly doubled. While several reasons exist, many small business owners point to a requirement for advanced features that address the communication needs of their staff and customers.

For an SMB with a few employees, including on-premise staff and remote workers, you may find phone solutions for as low as $20 per person per month. However, each company has unique needs and that factors into your overall price.

1. Weigh the Pros and Cons of VoIP Hosting

Typical VoIP setups put the phone provider in charge of the technical side of hosting your telephone system. However, some businesses opt for on-premise PBX or a hybrid combination of solutions.

Most Expensive Option: On-Premise PBX. Small to medium-sized companies rarely invest in the infrastructure needed to host your VoIP system in-house. On-premise PBX gives you more control over your equipment. But, without a knowledgable IT staff, you’ll spend time and money repairing and maintaining older phone networks for optimal uptime.

 

 

Least Expensive Choice: Hosted PBX. With a hosted VoIP system, the provider handles your small business phone system in the cloud. Your chosen Voice over IP company manages the operational system, updates, installation, and overall maintenance.

 

Mid-Range Option: Hybrid PBX Solutions. Businesses that go this route use a gateway or IAD (Integrated Access Device) to use their current small business phone system with VoIP phone numbers. While cheaper than on-premise PBX, you’re still looking at hundreds of dollars expenditure each month.

2. Calculate Your Voice over IP Setup Costs

Since Voice over Internet Protocol relies on the cloud, you’ll pay minimal setup costs. Although some providers offer extra equipment, features, or support services, many waive any startup fees. To get started, you’ll use your current desktop and smartphones. Doing so means you won’t need expensive equipment, as your computer and headset work as a softphone. The business VoIP provider hooks you up to the cloud, and you’re ready to go.

3. Estimate Your Price Per Employee

Many VoIP systems charge a per-user rate. This means that to calculate your VoIP phone system cost, you’ll pay a monthly fee based on the total number of employees using the phone system. Several Voice over IP providers use a tiered pricing system. This fee structure helps lower pricing for contact centers and a larger staff. Consider the pricing for each service and estimate your costs based on potential bulk discounts.

4. Determine Which VoIP Subscription Level Provides Essential Calling Features

Your total cost depends on the level of support, advanced features, and options you choose as part of your Voice over IP phone provider subscription level. Base fees include voice technology services for smartphones and computers (via desktop apps) using your business phone number. However, before choosing a small business phone system, it’s important to read the fine print and make sure that your subscription level provides for essential calling features.

5. Estimate Voice over IP Desk Phones and Equipment Costs

To make phone calls using VoIP systems, you’ll only need headsets that connect to your work computers. This is an inexpensive cost compared to legacy PBX systems. But, your organization may also want equipment adaptors or new desk phones. Several Voice over IP phone providers offers equipment for leasing or purchasing. Companies that frequently use fax machines may also require equipment adaptors for those needs.

6. Consider Current Price and Quality of Your Internet Connection

Although you’ll dump your landline phone bill, you’ll still need a quality internet connection with enough bandwidth to handle a robust VoIP system. While reviewing the cost of switching services, consider what you currently pay for broadband internet and if you’ll need to upgrade to account for using your small business phone system in the cloud.

7. Add-in Overall Cost of Switching Your Small Business Phone System

Startups without an on-premise PBX system in place don’t have to worry about the cost of switching. However, for companies using traditional landline networks, there may be some extra costs of migration. Before making a final decision, you should weigh the total cost of ownership (TCO) for new business VoIP solutions.

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Which Advanced Features Do You Need for Your Small Business Phone System?

Before we get into the price breakdown for the best small business VoIP phone system providers, let’s briefly look at the features necessary to SMB owners, staff, and (although indirectly) customers. Some of the cheapest VoIP providers may not offer advanced features at all subscription levels or may charge additional fees.

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Text Messaging
Not all Voice over Internet Protocol providers include text messaging in the base price. Text messaging is often critical for customer communications.
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Mobile and Desktop Apps
Smartphone apps and desktop apps give your team the freedom to answer calls, emails, and messages from anywhere.
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Voicemail-to-Email
Some VoIP plans give you the option to transcribe voicemails so your team can stay in the loop even if they’re in a meeting.
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Team Chat Rooms
This is a feature that gives your contact center access to managers and other staff that may help them resolve problems faster.
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Conference Calling and Video Conferencing
Conferences with remote staff and customers are crucial. These features may cost more but improve communications.
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Advanced Analytics
Certain VoIP providers offer integrations that provide your team with the data to make essential sales, marketing, and customer service decisions.
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Call Monitoring and Recording
This option isn't always standard, but it's vital for companies required to record business communications.
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Long Distance Outbound Calls
While many providers offer free incoming calls, you may pay extra fees for outbound long distance calling.
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Price Breakdown: What It'll Cost for These 7 Business VoIP Solutions

Fortunately, plenty of feature-rich Voice over IP options exist for small companies. Many providers offer free trial periods and demos to help you make the best decision. Consider how much your business will ultimately pay by reviewing the details of each high-quality VoIP phone service provider. Then, tally up your overall costs before making your final decision.

Best Cheap Business VoIP Phone Service

Plan Starting Price (per month/user) Features Learn More
Nextiva $19.95

Customer Voted Top VoIP Provider 100+ Premium Features Free Unlimited Calling & Faxing Free HD Phone for Every Business 24/7 US Based Support

View Plans
Onsip $18.85

Unlimited Calling, Video Calling, Every Month Free Desk-phone for Every Business 5 or More Users, Monthly Contract

View Plans
Jive $19.95

Very Simple to Use for Admins and Users Free Upgrades, Features & Any Add-ons Use Your Computer, Mobile, or Desk-phone

View Plans
Mitel $19.95

Unlimited Calling/Faxing & Conferencing Award-winning Customer Support User-friendly & intuitive control panel

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Fonality $29.95

Voicemail to Email Unlimited Calls 99.9% Uptime

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Grasshopper $24.00

One Free Toll-Free/Local number per Line 24/7 award winning customer support Run your office from you mobile device

View Plans
Vonage $19.99

Unlimited calling in the U.S. and Canada 24×7 support and live chat No special IP phones required

View Plans

1. Nextiva

Nextiva offers one of the best selections of low-priced calling plans for VoIP solutions. Nextiva charges a monthly per-user fee that varies in price and features according to the chosen subscription level and number of users. Customers also receive a discount for selecting a contract over a month-to-month plan.

All three versions include free:

Along with these plans, Nextiva provides PBX SIP trunking for legacy phone systems starting at $14.95 per month. The company also recommends contacting Nextiva for custom phone solutions and features. Plus, you can purchase or lease desk phones, headsets, and other types of equipment.

$20-$35 Basic Version.

This plan includes the above features, along with some service and sales CRM features. A company with one to four employees pay $30 per person under contract, whereas for 100+ team members, the price drops to $20 per user per month.

$25 Pro Version.

This configuration adds text messaging / SMS and unlimited conference calling. You’ll also get custom survey and analytics options. It’ll cost a small business with one to four employees $33 per user per month as opposed to larger companies with 100+ that’ll pay $25 per user per month.

$30 Enterprise Version.

You’ll get key features with this configuration, including call recording, voicemail to text delivery, voice analytics, and live chat options. Small companies that need big features pay $45 per person a month. Companies with over 100 team members pay $30 per user each month.

2. OnSip

OnSIP provides two main Voice over IP calling plans: unlimited and pay-as-you-go. For small organizations that don’t require advanced features, this VoIP option may appeal to you. The pay-as-you-go plan gives you three auto attendants, five voicemail boxes with voicemail-to-email, and a sayso website chat option.

On the unlimited plan you’ll get unlimited:

Before choosing a service plan, consider how the additional fees affect the overall cost. For example, you’ll pay a one-time fee of $7 to set up a business phone number and a one-time fee of $15 to port your existing number. Review all fees to determine your total overall cost.

$18.95 Unlimited Plan.

This amount is charged monthly per person and includes unlimited standard calling minutes. But, you’ll incur extra charges for a net conference suite, in-bound bridge, queues, and reporting dashboards. This version also includes Polycom phones.

$49.95 Basic Plan.

You’ll pay this amount monthly per account, plus per-minute charges and add-on fees. It’s important to note the fee structure here to avoid an unexpected enormous bill. For example, Alaska callers to your toll-free number add $0.75 per minute to your monthly cost.

3. Jive Communications

Jive is a feature-rich VoIP solution that delivers more than 80 voice features for every plan. This provider uses a tiered payment plan according to the number of users. There are extra fees for specific functions such as number porting, toll-free business phone numbers, and international calling.

Here are a few standard features found at every plan level.

All fees are charged at a per month, per-user rate. Jive recommends calling them for custom solutions, including a potential price break for a long-term contract. Regardless of which tier you choose, you’ll get identical Voice over IP features.

$29.95 Tier 1. 1-4 employees

$25.95 Tier 2. 5-9 employees

$23.95 Tier 3. 10-24 employees

$21.95 Tier 4. 25-49 employees

$19.95 Tier 5. 50+ employees

4. Grasshopper

Grasshopper offers three payment plans, and you’ll save 10% under an annual contract. This VoIP provider doesn’t charge extra to port your existing business phone number. Depending on how many phone numbers and extensions you need, your monthly cost ranges from $26 to $80.

Features on all Grasshopper plans include:

Subscription pricing is based on a monthly per-user rate. If you want more extensions, then you’ll need to upgrade your plan. However, you can add extra business phone numbers for a small fee. None of the plans include international calling or offshore calling in its unlimited minutes, so you’ll pay according to Grasshopper’s per-minute fee schedule.

$26-$29 Solo Plan

Touted as suitable for entrepreneurs, you’ll get one business phone number and up to three extensions.

$44-$49 Partner Version

This plan works well for one to three employees and includes three phone numbers and six extensions.

$80-$89 Small Business Package

If your company is growing, then this plan provides unlimited extensions and five business phone numbers.

5. Dialpad

Dialpad offers a few distinct services, including a small business phone system. Many small business owners are comfortable using their standard or pro plan. But, if you need more substantial conference calling capabilities, inbound call center options, or integrations for your sales team, then you’ll want to choose the appropriate add-on packages.

Standard plan VoIP features consist of:

Along with the plans below, Dialpad Talk, Dialpad Sell, and Dialpad Support, all offer enterprise versions. Dialpad recommends calling for a custom quote. Plus, you can apply for Dialpad’s fast start program for VC-backed startups which includes ten free seats for life for Dialpad Pro and UberConference Business. Each subscription level is charged at a per-user monthly rate.

$15-$20 Standard Dialpad Talk Plan.

Along with the features above, this plan includes real-time transcription, chat, and real-time analytics.

$25-$30 Pro Version Dialpad Talk Package.

This plan adds hold queues, Salesforce integration, and advanced analytics.

$75 Pro Dialpad Support Version.

You can address your contact center needs with features like SMS between agent and supervisor and superior customer support options.

$95 Pro Dialpad Sell Plan.

Designed for coaching sales teams, this plan adds direct lines for all reps, real-time call monitoring (listen-in, barge, take over), and live call sentiment analysis.

$15 Business UberConference.

If you hold conferences with more than ten people and longer than 45-minutes, then you’ll want to add the Business UberConference plan.

6. Ooma

Ooma is built with small businesses in mind. This Voice over Internet Protocol service provider offers two service plans. Each plan includes more than 35 standard features. Plus, Ooma’s website provides a convenient savings calculator to determine how the VoIP solutions fit into your budget.

Features include:

If the following plans aren’t quite what you’re looking for, then contact Ooma about their customized enterprise VoIP solutions. Ooma’s agents can help you add a contact center, replace your current PBX system, and unify your communications. Otherwise, the following plans are charged per user per month.

$19.95 Ooma Office Plan.

This basic VoIP phone service plan includes all of the standard features above plus several more for a total of around 35 features.

$24.95 Ooma Office Pro Version.

This plan adds voicemail transcription and includes higher usage limits for extension monitoring, call park, conference calling participants, and call recording.

7. VoIPstudio

VoIPstudio delivers a feature-rich PBX system that integrates with your CRM. This provider offers three plans, including an international plan for companies with global reach. VoIPstudio plans don’t offer unlimited VoIP calling, so it’s important to consider your outbound call volume before signing up.

All plans include the same calling features:

If you need equipment, then you can purchase desk phones, VoIP adapters, conference phones, and accessories. You’ll want to look at VoIPstudio’s call rates if you frequently call or receive calls from a certain country. Plus, consider how various fees like a charge for outbound SMS messages, affect your bottom line. All plans charge per user per month. If you have a contact center or more than 100 users, contact VoIPstudio for a custom phone solution.

$$4.99 Pay as You Go Plan.

Best for low-volume outbound calls, with this plan you’ll pay per minutes for calls that you make.

$19.99 National Program.

With this VoIP plan, you’ll get a 2000 minute bundle and can make outbound calls to one country of your choice.

$39.99 International Plan.

This version also includes 2000 minutes. You can make outbound calls to all countries on VoIPstudio’s list and some cell phones.

8. Vonage

Vonage provides a high-quality service with more than 40 available features. Although different packages add more features, you can also choose from several add-on options. A couple of popular add-ons are Vonage support and toll-free numbers.

Basic features on all calling packages include:

Vonage also sells equipment and adapters. Plus, you can check if your current phones are compatible on their support page. All three plans charge a fee per month and per line. But, you’ll receive a price break based on the number of users. The tiers for users consist of 1-4, 5-19, 20-99, and 100+ users.

$14.99-$19.99 Mobile Plan.

The mobile plan works with cell phones and your desktop computer. This plan does not work on desk phones.

$24.99-$29.99 Premium Package.

This VoIP package adds CRM integrations with Salesforce and Office 365 along with others. You’ll also get a multi-level auto-attendant instead of the standard virtual receptionist.

$34.99-$39.99 Advanced Plan.

The advanced plan provides 15 hours per month of on-demand call recording. This package also includes a support team for help with setup and onboarding.