How much does a business phone line cost per month?

Running a business means you need to have some smart ways of keeping in touch with clients and potential clients, and a dedicated business phone line is one option.

However, you can’t just purchase a basic phone line and expect that it’s going to be efficient and protect your business. You need to figure out how much it will cost per month.

It’s no secret that most companies use cloud-based phone systems such as VoIP to enhance their workflow and communication with clients. What you might not know, however, is that by choosing the right service and plan, you can cut your monthly bill by up to 60%.

Factors That Determine The Monthly Cost Of Your Phone System

When considering phone systems for your business, you’ll probably get lost in the lingo of PBX, VoIP, Least Cost Routing, among hundreds of other phrases that are important to how your system works.

But when it comes down to cost, oftentimes there is a disconnect in understanding how each piece is configured and costing your business money. It would be useful to understand how they affect your monthly cost so you can accurately budget support costs.

The cost of a VoIP business phone system depends on so many factors –the number of phones, users, call features and extensions – that it can be hard to keep track of. Let’s look closely at some of them.

The Size Of Your Organisation/Number Of Users

There is a direct relationship between the number of users and the total monthly cost of your phone system. The lower the number of employees, the smaller the size of your organisation, or if you are just starting out, then you have no option but to go for a smaller number of lines.

The size will also play a huge role in the features you will require which, together with the number of users, will ultimately determine the cost of your phone system. Some features might be more or less important for you compared to those that are extremely critical for an enterprise-level business, for example, and so on.

The Type Of Phone System

One of the first cost-related factors to consider is the type of phone system you want to install. There are two main types of phone systems that most businesses invest in; the first is known as an on-premise or on-site system; this is installed at your business premises.

The second type of phone system is known as a hosted system; there are some companies that charge an annual fee to maintain and support their hosted phone system.

  • On-Premise Phone System:
    An on-premise phone system is a phone system where the switch and other hardware is installed in your office.  You probably need to pay for the installation, maintenance and equipment cost. Though this terminal is more expensive than the other options, it will be a perfect choice for voice features and call recording you need with very high fidelity.

The advantage of an on-premise phone system is that it provides high reliability. It is much simpler to keep this kind of system up and running. If you have a small organization, then it could be a good choice for you.

  • Hosted System Phone System:
    If you need flexible phone service and want to choose your phone features, Hosted System Phone System is the way to go. There’s no need to lease or purchase equipment.

Hosted system phone systems are great for any business that has more or less than 50 employees. They generally include an onsite server, combined with virtual servers that are hosted off-site.

The benefit of this is that you’ll never have to worry about your server room getting flooded, burned down, or any natural disasters like tornadoes, hurricanes, ice storms, or earthquakes.

The Special Service Package
Every business is unique when it comes to the type of features they require when it comes to their phone system. The way you work will determine what service package you want.

However, there are some common features that most businesses will need, including call forwarding, automatic attendant, conference calling and voicemail. Some companies may opt for additional items like predictive dialling or live assistance.

There are many different packages that you can choose from, and they carry their own specific pricing. It will be easiest to determine the true cost of your VoIP system by the service package that you choose. These services can range from an unlimited calling plan to calling features like central dispatch or customized call routing.

Maintenance Cost

The cost of maintenance and support is among the most important factors that determine the monthly cost of your phone system. The cost of maintaining the System depends on the extent of services provided, frequency of changes needed by you, and frequency of change to technical services such as updates and patches.

Maintenance contracts are often bundled into the cost of your system. However, it is possible to find vendors that do not include this within the price of your purchase. If you opt for this option you’ll likely need to hire someone to maintain your system on-site.

Multiple Office Locations

A business with multiple office locations in multiple cities will have a different monthly cost of a phone system compared to a small company in a single location.

If you have multiple office locations, you know how challenging it can be to manage your customers. Each of your office locations has the potential to handle customers separately. You also know that handling customers separately is not easy. You can invest in a phone system that allows you to handle customers efficiently.

If you have several office locations, your monthly phone bill can be quite substantial. One simple way to cut back on your monthly bill is to find a VoIP provider that offers toll-free long-distance calling. You’ll still be able to enjoy the best quality phone service while paying significantly less than if you used traditional phone lines.


It’s not difficult to find out what the cost of your phone system will be. All you have to do is contact a company that offers phone system services. They will be able to tell you what it will cost.

Most of the time, you will be able to find a quote online. However, you should never assume that you can get a quote online. It’s important that you call and talk to a real person before you order your phone system. You should always compare quotes from multiple companies. It will help you to get the best possible deal.

With this information, you should be able to determine the cost of your phone system.

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