Are you still relying on a traditional phone system that keeps you tied to your desk? In today’s fast-paced business environment,It’s time to upgrade to a smarter solution: a VoIP (Voice over Internet Protocol) phone system. VoIP allows you to make and receive business calls from anywhere—whether you’re in the office,
However, switching over to a VoIP Phone System from a traditional phone system can be expensive, because they are introducing new features. Before choosing the right phone system for your business, you need to study the cost of different communication platforms and what features they are providing in the subscription plan.
The following blog will break down the cost of VoIP phone system, their pricing plans and everything you need to know.
How VoIP Pricing Works?
The cost on a telephone line for Voice over Internet Protocol (VOIP) phone system is between $25 and $40 on average on a monthly basis. Other features such as call recording and toll-free numbers and rentals of equipment are paid for separately.
With VoIP phone systems, you actually have a very much more cost effective option over traditional analog based phone services. In contrast to VoIP, with its own list of expenditures for providers and only indirect costs (high-speed internet connection), savings over legacy systems are significant.
The costs involved in switching to a VoIP phone service can be broadly divided into those which are re-occurring and one time.
1. Ongoing (Recurring) Costs
refer to the regular expenses associated with maintaining a VoIP service. These typically include monthly subscription fees, user licenses, call charges, support services, and any additional features or add-ons. Understanding these recurring costs is essential for budgeting and comparing different VoIP providers.
i. Monthly/Annual Subscription Fees
Typically $15–$40 (peruserdepending on plan tiers and features.
Subscription plans normally start with the basics: standard calling with call waiting for a base fare but with the option of moving up to premium/enterprise plans which can also include video conferencing, CRM integration, analytics, etc..
Monthly plans are more flexible giving the businesses enough time without long time commitment and work well with small businesses. However, they come with a higher per month price as compared to annual plans in which they companies are able to lock discounted rates when they pay for 12 months of service.
ii. Per-User or Per-Line Fees
Other than subscription fees, commonly VoIP providers arrange Pricing around per-user/per-line.
Per user/per line charges for standard packages offered by VoIP phone systems are likely to range from about $15 to $40 per month. Regular plans begin at $15-$25 per user which includes basic calling features, while mid-level plans that offer call recording, video conferencing cost $25 $40 per user per month. Enterprise plans with a full host of features tend to be over $40 per user per month.
There are some providers that start at a lower costing option near $10 per user, but they have limited features. Per-user is ideal for business that can define their employee headcount, while per-line is better suited for call-intensive business that needs a lot of lines as well as numbers.
The higher the number of users/lines, the higher becomes the overall total recurring cost.
iii. Metered Calling Rates
In VoIP, the metered calling is paid by the minute for calls even international or toll-free calls that exceed certain number of minutes.
Corporate VoIP providers provide unlimited calls throughout the nation. But do make sure to check on the rates of international call also. International calls to other countries are 90 percent cheaper when going through voip providers compared to giving calls through regular phone companies, paying for calls might arise if staff calls numbers outside the US or Canada.
The international VoIP calling rates may be everywhere from about $ 0.01 to $ 0.05 per minute, depending on the destination country, amount of calls made and the time of day, but typical rates normally go from approximately $ 0.01 – $ 0.05 per minute for countries that are very popular such as the UK, Canada or Australia. Considering calls to less visited or distant locations, they can be as expensive as $2 per minute.
Providers can offer clients the flat rate plans for specific countries or lowered rates to those high volume international callers.
iv. Feature Add-Ons
VoIP providers’ charges for various features and functionalities are based on workers’ needs in a given business environment. These constant features include call forwarding, voicemail and unlimited domestic calls among others are bundled. However, advanced capabilities require extra rate.
But before buying any of these additional features, you need to make sure that your business really need them, because it will cost you extra.
2. Upfront (One-Time) Costs
The implementation of VoIP also implies certain one-time upfront costs of implementation businesses need to pay for:
i. VoIP Equipment
IP phones, headsets and softphone licenses. Quality IP phone will for instance cost anywhere from $50- $300 per unit. Hardware bundles and rentals are how a VoIP provider can reduce cost upfront.
ii. Installation & Set-Up Fees
One would need anywhere from $100 to $500 for a professional VoIP setup which heavily depends upon the level of complexity, and most of the providers do not charge for this once you purchase an annual plan.
iii . Number Porting
Switching existing phone numbers to the new VoIP phone system usually runs $ 10 – $30 per number, but some providers offer it at no charge.
iv. Training
Training for the agents is necessary, to make effective use of a voip system and its features, within an organization. The basic trainings are included free of charge. However, advanced sessions or a custom onboarding can be an extra $500+ based on the size of the team.
Even though the regular and upfront investment for VoIP may sound to be quite high, customers see potentially significant cost savings, up to 90%, when compared with traditional telephony – particularly for international calls. The use of VoIP is expected to increase by 35% by the year 2036 as a result of the benefits justifying the implementation costs of the majority of organizations.
3. Hidden VoIP Costs
Switching to a VoIP phone system will ultimately save money in the future but for this to occur you need to understand hidden cost or unanticipated charges.
Estimated costs for hidden fees in Business VoIP services such as might be encountered are :
i. Add-on Features
If you want high call recording, auto-attendants, CRM integrations, or call analytics then expect to pay anything from $5 up to $20 per user per month.
ii. Hardware and Equipment
The cost of purchasing an IP phone and perhaps paying an optional lease will run from $150 to $200, and then monthly fees that may vary from $5 to $20 per device with the installation costs costing over $50 per IP phone.
iii. International Calling Charges
per minute will be different for common countries as usual from 0.01$ up to 0.03$ and can be up to 2$ by less popular destination.
iv. Tiered Pricing and Scaling Fees
The price for extra users, or voicemail users, can be anything from $10 to $30 per month, depending on a given VoIP service provider and the plan chosen.
v. Contract and Termination Fees
Conventionally, early termination charges take the form of a lump sum or a fraction of the remaining balance at rates between 50% and 75% of the total outstanding contract value.
vi. Taxes and Regulatory Fees
Conventionally, early termination charges take the form of a lump sum or a fraction of the remaining balance at rates between 50% and 75% of the total outstanding contract value
vii. Network Upgrades
Costs for changes in internet bandwidth or equipment for VoIP ranges from $50 per month to several hundred dollars per month or it can incur only once time charge.
viii. Software Add-ons and Integrations
Remember that CRM or collaboration solutions integration cost ranges from 10 to 50 USD per user per month; and the integration itself can require additional costs.
Final Words - Voip Cost
VoIP technology is highly advantageous in saving and convenience, both for the personal as well as for the business use. You can choose the best VoIP plan based upon your needs when getting to know about the price structure, features, and hidden charges.
However, although some VoIP services tend to be cost-centric, they need a dependable internet connection. Poor internet can discourage call quality and cause unnecessary frustration.
FaQ's - Voip Cost
Yes, some VoIP companies may impose setup fees, taxes, and charges for added features such as international calls.
Yes, VoIP is generally very reliable, particularly with a robust internet connection. Several business VoIP services ensure guaranteed uptime.
Most VoIP providers support number portability, allowing you to keep your current phone number when transitioning to VoIP.
Setting up VoIP at home is quite straightforward—simply select a provider, obtain the required equipment, and adhere to the provided installation instructions.
Yes, VoIP can be utilized internationally, often at a much lower cost than conventional international calling methods.
