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How Much Does A Business Phone Cost In 2024?

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How much does a business phone cost in 2024

Even though there are many options for business communication nowadays, regular phone calls 📱 are still going strong.

While live chat may be better in some cases, 81% of customer service professionals still prefer the phone for more complicated problems.

So, no matter the size or type, companies need a phone system. But how much does a business phone cost, and which kind is best🤔?

In this guide, we’ll discuss the costs of different business phone systems, cost breakdown, and how to save on business phone lines. We’ll also break down what impacts the price so you can choose the right solution for your business’s needs and budget.

🔑 KEY HIGHLIGHTS

  • Costs of business phone systems vary significantly depending on the type – traditional landlines, VoIP, cloud-based, or virtual. Landlines have the highest installation and monthly costs.
  • Virtual phone systems tend to be the most affordable option, costing $10-50 per month. Cloud-based VoIP solutions are also reasonably priced at $20-30 per user per month.
  • Other factors that impact phone system costs include the number of users, features used, ability to scale, and maintenance/support needs.
  • Cloud-based VoIP providers like KrispCall offer all-in-one communication platforms with calling, messaging, CRM, and mobile apps integrated at competitive per-user rates.

Costs of Different Types of Business Phone Lines/System

As of now, companies have several choices for their telephone system – a traditional landline, VoIP, cloud-based, and a virtual phone. Each option has different cost factors tied to its specific capabilities. Let’s explore the costs of different types of business phone systems: 

1. How much does a Traditional Landline System cost?

Traditional landline-based systems tend to involve greater expenses. These phone options require actual physical cabling and specialised telephone equipment, driving up the price significantly for smaller companies. Installation costs usually range from $100 to $300 per line, and monthly bills are in the $20 to $60 range. In addition, upkeep and add-on features contribute further to long-term costs.

2. How much does a VoIP (Voice over Internet Protocol) System cost?

Cloud-based phone systems minimise the need for physical infrastructure, resulting in notably lower initial expenses. Businesses can anticipate paying approximately $20 to $30 monthly per user. In most cases, this cost already provides access to improved features like automated receptionists and ways to connect with other tools. 

3. How much does a Cloud-Based Phone System cost?

VoIP systems that are hosted internally within a company incur major upfront expenses for the required PBX equipment, installation work, and setup. These on-premises VoIP options typically have hardware and installation expenditures between $6,000 to $7,000. Plus, ongoing service and upgrade charges frequently represent an extra 15-20% yearly addition to those figures. 

4. How much does a Virtual Phone System cost?

Virtual phone systems tend to be the most reasonably priced telephony options for small businesses. Plans usually range from $10 to $50 per month for a basic package. The costs are low as it runs completely over the Internet without needing much physical equipment. However, the monthly fee can vary depending on which add-on features you utilise through this phone solution. 

Cost Breakdown While Operating A Business Phone System

Operating a business phone system involves several types of costs. Understanding the fixed and variable expenses associated with your phone service is important. Some of the major fixed and variable costs include:

1. Fixed Cost

Fixed costs are one-time fees or ongoing expenses that stay the same each month. Here is a breakdown of fixed costs while operating a business phone system:

Telephony Hardware:

  • Hard Phones (desk phones): These range from basic models for ~$50 to feature-rich models for ~$200+ per phone.
  • Mobile Phones: Business phone plans with compatible phones can range from ~$30 to ~$100+ per month per line, depending on data and feature needs.
  • Softphones (software applications for computers): These can be free or included as part of a cloud-based phone system subscription.
  • Routers and Network Upgrades: Depending on your existing internet infrastructure and the number of users, you may need to upgrade your router or internet plan to handle VoIP calls. Costs can vary.
  • Phone Numbers: Local phone numbers typically cost a one-time setup fee of ~$10 to $40 each, with some providers offering bundled plans with included numbers. Toll-free vanity numbers can cost significantly more, ranging from hundreds to thousands of dollars per year.

2. Variable Cost

These are costs that fluctuate based on your usage patterns. Here is a breakdown of variable costs while operating a business phone system:

Communication Charges:

  • Monthly Service Fees: Cloud-based phone system providers typically charge a per-user, per-month subscription fee (often ~$20 to $40+ per user). This usually includes unlimited calling within a designated area (often US and Canada).
  • Long-distance and International Calls: Calls outside your included area will be billed per minute at a predetermined rate.
  • Overage Fees: If you exceed the minutes or features included, you may be charged overage fees.
  • Data Charges: For mobile phone usage, data charges can apply for using the phone’s internet connection for calls (VoIP) or other business applications.
  • Roaming Charges: If employees travel outside their designated calling area, roaming charges may apply for calls or data usage.

Factors Affecting Business Phone System Cost

In order to accurately determine the expense of a business phone system, several impacting elements must be evaluated.

The five most critical aspects of business phone systems that should not be overlooked are:

1. Number of Users

The size of your workforce is an important factor in determining the business phone line cost. A larger staff indicates more phone lines, extensions, and potentially more intricate routing configurations. The greater the number of employees, the more phone resources needed and the higher the associated costs.

2. Type of System

The design of the phone system is a key factor in determining expenses. Systems are generally categorised as on-premise or VoIP (Voice over Internet Protocol). Traditional on-premise phone networks commonly require physical equipment, typically making an in-house IT team necessary for maintenance, which increases both the initial and ongoing costs

3. Features

The inclusion of advanced features can greatly impact the price aspect. Features like auto-attendant, call forwarding, voicemail, and video conferencing do not only provide extras but also fulfil practical business needs. However, every additional feature typically increases the cost. Choosing only the most useful optional features is key to avoiding unnecessary costs.

4. Scalability

Preparing your investment for the future is a smart strategy. Choosing a telephone system that has the flexibility to seamlessly expand along with your developing business will save you the frustration and substantial cost of needing to replace an outdated system down the road. 

5. Installation, Maintenance and Support

Regardless of which system is selected, continuing maintenance and support will incur costs. Onsite systems typically demand routine hardware upgrades and software fixes that contribute to long-term spending. While VoIP options rely less on physical equipment, software updates and troubleshooting are still needed periodically. 

Total Estimated Cost of Operating a Business Phone Line

The total cost of a business phone system varies greatly depending on multiple influencing aspects, making it difficult to provide a single universal answer. 

KrispCall, a popular virtual phone system, is an illustrative example that involves transparent tiered pricing plans with clearly defined features and costs. 

KrispCall’s Essential plan: $15 per month (voicemail, call history, and basic reporting)

KrispCall’s Standard plan: $40 per month (API and webhook access, Advanced reporting, Call center capabilities, and more integrations)

KrispCall’s Enterprise plan: Custom pricing (all standard features plus Developer support, Bundle calling, and a Dedicated account manager. 

A business with 20 staff on the Standard plan would expect a ($40 per user x 20 users) $800 monthly fee. This estimated starting point does not account for all potential pricing plans. For a customised calculation tailored precisely to an individual company’s specific needs, consult directly with an experienced KrispCall representative to obtain a customised proposal.

How to Save Business Phone Line Costs?

Business phone prices are definitely high. Here is how you can save business phone line costs: 

  • Unlimited Local and National Calls: Choose plans that offer unlimited local and domestic long-distance calls to avoid pay-per-minute fees, especially if your business makes many calls within your area or country. Opting for unlimited local and national calls can save money for companies that frequently communicate within these regions versus paying for each individual call.
  • Bundled Service Packages: Consider bundles that group phone lines with internet services from providers. Packages that combine these can sometimes result in reduced expenditures compared to purchasing each separately. 
  • Call Forwarding & Voicemail: Utilise features like call forwarding and voicemail to guarantee all calls are received, even when unavailable to answer. This decreases reliance on costly call redirection solutions by enabling forwarding incoming calls to other lines or leaving voicemail messages.
  • Focus on Quality, Not Cost: It’s important to prioritise quality over a purely low price point. Simply selecting the most inexpensive phone system option isn’t enough. Consider overall value and support requirements rather than upfront rate for proper budget optimization suited to a business’s communication needs.
  • Allow Bring Your Own Device: Explore allowing a bring-your-own-device (BYOD) arrangement where staff utilises personal mobile phones, but the company compensates for data charges. Permitting the usage of individually owned smartphones and tablets in this way can dramatically decrease expenses associated with purchasing physical phones for each employee.
  • Compare Multiple Provider Quotes: Be sure to obtain quotes from multiple phone system vendors rather than automatically selecting the initial option considered. Seeking competing estimates allows for comparisons between providers’ available plans, pricing models, and inclusive features.

How KrispCall Helps Save Business Phone Costs?

The cost of a business phone depends on who you choose and your needs. It’s super important to do your research before choosing a provider, but cloud-based VoIP systems are really easy to set up and can save you a ton on your phone bill.

In this regard, KrispCall’s payment options are an amazing deal for the money you pay. Everything is clear-cut, with no extra fees. Not only is KrispCall great value for money, KrispCall offers an inclusive UCaaS platform that has many impactful features, such as:

Phone Tree (IVR): Streamline call handling using KrispCall’s automated phone menu to quickly direct callers to the appropriate team or data. KrispCall’s IVR solution can significantly reduce your monthly business phone bills by streamlining call flows and decreasing reliance on costly staffed phone lines.

Business phone system: Make and receive calls using a dedicated business number from any location with an internet connection. KrispCall’s cloud-based system ensures high-quality calls and reliability. No need to pay for expensive on-premise phone equipment that quickly becomes outdated.

Messaging: Teams can collaborate effectively through instant messages within a secure interface that allows file sharing and group chats. Companies save money by supporting virtual cooperation that avoids expenses related to in-person meetings, like travel costs and unused office space. 

Shared phone number: KrispCall offers a single shared phone number that multiple team members can access, which allows businesses to save on the costs of multiple phone lines and numbers.

Global Calling: KrispCall’s global calling feature enables businesses to make cost-effective international phone calls across borders, reducing expensive long-distance charges

Conclusion

The cost of a business phone system is dependent on several factors, including the selected solution, desired functionality, and company scale. 

On-site systems frequently involve greater expenditures because they require installation, upkeep, and physical infrastructure. In comparison, cloud-based VoIP phone options are typically more affordable for smaller organisations because they require minimal hardware. 

If your objective is enhancing business communications, take a look at KrispCall’s VoIP phone solutions. KrispCall provides a range of services that assist small companies. From gathering all messages in a single location to streamlining the return of missed calls, you can find helpful offerings at a much lower price point.

KrispCall’s near-complete telephony solution, with its seamless telephony and response capabilities, has the potential to increase sales and customer satisfaction. 

Therefore, schedule a demo today to see how KrispCall can elevate your business communication. 

FAQ

How much should a business phone line cost?

A business phone line should cost around $20 to $140 per user per month depending on factors like the type of service (VoIP vs. landline), number of users, desired features, and whether it’s a basic or enterprise-level plan.

How much does VoIP cost for a business?

A VoIP, on average, can cost a business between $25 and $35 per line monthly.

How long does a business phone system last?

Most phone systems these days can be expected to last around 5 to 8 years on average before needing an upgrade. 

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Dinesh Silwal

Dinesh Silwal is the Co-Founder and Co-CEO of KrispCall. For the past few years, he has been advancing and innovating in the cloud telephony industry, using AI to enhance and improve telephony solutions, and driving KrispCall to the forefront of the field.

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