How Much Does VoIP Cost? | Guide + VoIP Provider Quotes - TechCo

How Much Does VoIP Cost? | Guide + VoIP Provider Quotes - TechCo

How Much Does VoIP Cost? | Guide + VoIP Provider Quotes - TechCo

Posted: 05 Jun 2019 12:00 AM PDT

FAQs on VoIP Costs

Is VoIP cheaper than regular landline phones?

Yes, a VoIP system offers the same functions as a landline phone system, but costs far less as there's no need to install additional wiring or hardware. A hosted VoIP system can run entirely on an existing internet connection and desktop computers.

This doesn't mean landlines aren't without their merits. You can visit's VoIP vs landline page for a more detailed look at the differences.

Is VoIP free?

Some VoIP services are available for free, but none of them are likely to work well for a business, as they have limited functionality and bandwidth. If you're using VoIP services day in and day out, your operation will save more money by opting for a paid, hosted VoIP service in the range of $25 and $40, per user per month. A paid monthly service will ultimately increase your productivity far more than a limited free service.

What is the cheapest VoIP service?

RingCentral is one of the cheapest VoIP services, starting at just $19.99/user/month for between one and ten users.

But there are plenty of factors to consider, and another top VoIP provider might beat them out for your operation in particular. The only way to know for sure is to collect customized quotes from each of the best services, and the fastest way to accomplish that is to fill out's quick quotes form here.

What can go wrong in a VoIP system?

A VoIP system offers more features than a landline system, at a cheaper price. So what's the catch? Below are the factors you'll need to keep an eye on  — and that might cost a little extra to address.

  • Internet security – Data leaks, breaches, and password phishing are all potential risks when using any internet-based system, including VoIP. If you're using a hosted VoIP system, your provider should cover most of the security, but your users will need to understand the basics of password protection.
  • Shaky internet – VoIP calls on a poor internet connection can be choppy or might even drop. You'll need to ensure your bandwidth is strong enough to handle your daily internet use.
  • Poor call quality – Even if the call goes through, it might not be crisp and clear. Upgrading your router or handset may resolve the issue. If not, it might be time to switch to a better VoIP provider.

Does VoIP slow down my internet?

In a word, yes. Running a VoIP system will take a toll on an internet system, and you won't want to run them on a public network. You should factor in the costs of running a top-notch broadband network when looking to get a VoIP system for your business.

VoIP Total Cost Example

VoIP costs for a company of 20 users would be around $500 per month, depending on the package

We know there are a number of factors at play when establishing total VoIP cost, but let's break down a typical example.

We'll assume that your business has 20 members of staff, and wishes to make the leap to a full VoIP system from a traditional PBX setup.

We'll take RingCentral, one of the providers we recommend, and a popular provider of VoIP. They charge $24.99 per user per month, if you sign up for an annual account (otherwise its $34.99). That's just under $500 as an ongoing monthly cost for 20 employees, and includes a toll-free or local number, 1,000 toll free minutes, and video conferencing.

In terms of equipment, in this scenario we'll assume that each user needs a new phone. The Polycom VVX-101 is available from RingCentral for $79, or $5 a month. If you purchase 20 phones outright, that's a cost of $1,580. For staff that spend most of the day on the phone, a headset is invaluable. RingCentral recommends the EncorePRO 710/720, at $79.

To sum up:

  • $24.99 per user per month for 20 users is a total ongoing cost of $500 per month.
  • $79 phones for 20 users is a one-time cost of $1,580
  • $79 headsets for 20 users is another one-time cost of $1,580

Add this all together, and you have a one-off setup cost of $3,160, and ongoing monthly costs of $500.

Without the need to host any of your own equipment, maintenance or dedicated staff, it's a small price to pay for what you're getting. And of course if you can reuse some existing equipment such as softphones or headsets, it works out even cheaper and helps to minimize the total VoIP cost.

Next Steps Getting a VoIP System

Moving over to VoIP is an excellent way to modernize your business and fulfill your customer needs, without having to invest heavily. For a few hundred dollars a month you can ditch your traditional phone system, saving money and increasing the features available to you, such as automated call handling, video conferencing, and real time call monitoring.

If you're ready to start benefiting from productivity gains and a streamlined, internet-powered workflow, your next step is to begin connecting with the best VoIP providers to figure out which one of them offers the features you need at a price you want. Take one minute to use our quick VoIP comparison form, and you can start collecting quotes today.


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