Business Phone

How much does a phone system cost?

If you choose an on-site phone system, expect fairly high upfront costs and setup fees, and your running costs will primarily be for maintenance and configuration. So for our purposes, your phone line costs are what’s left over after you’ve already paid for hardware and setup and bought your desk phones. These are the ongoing monthly costs that you must budget for as long as you use your phone system. With lower monthly costs, no hardware to manage, and an impressive list of call management tools, a cloud-based business phone system is a very compelling option for many business owners and managers.


cost of business phone systems can vary significantly depending on whether you opt for a generic model, a mid-range brand model, or a premium brand model. The cost and pricing structure of a small business phone system depends on where the system is hosted. Today, the term “phone line rental” is also sometimes used in connection with VoIP to refer to the cost of paying each employee to use a hosted VoIP system — even though there are no literal phone lines. While a phone system can be an expensive investment for a small business, the annual maintenance and training costs are far cheaper than the original installation.

This is primarily due to the higher cost of maintaining the copper wire infrastructure for fixed lines compared to cloud and Internet-based telephone services. Training costs A new phone system requires some type of staff training, an often overlooked factor when budgeting for a new phone system. The installation costs for a company with 20 customers in a single location will ultimately be lower than the cost of setting up phone lines at numerous locations. The cost of a VoIP telephone system can only be a fraction of the cost of a traditional local telephone system with copper wire landline connections.

On this page, we’ve covered all typical costs associated with hosted VoIP, local VoIP, and analog phone systems. Small business phone systems are surprisingly cost-effective these days, especially if you opt for VoIP (Voice over Internet Protocol) technology. Systems can be connected to Internet services to reduce the cost of long-distance and international calls, thus reducing overhead costs for business phone systems.