20 Feb 2024

When you start a business, figuring out what expenses are necessary can be tricky. Some may wonder if a business phone line is worth it when everyone has a mobile phone. However, a dedicated business line is crucial for talking directly with customers. While it can be expensive, it's an important investment for effective communication. To get started, find out how much it costs and explore different options available. ISDN and PSTN lines, landlines or phone lines will be phased out or switched off in 2025.

What is a business phone line?

A business phone line is a dedicated phone number for your business, separate from personal or residential phone lines. It allows you to make and receive calls specifically for your business operations. This office phone cost is often associated with features like voicemail, call forwarding, and other business-related communication tools. Having a distinct business phone line helps maintain a professional image, provides a central point of contact for customers, and enables efficient communication within the business context.

Benefits of having a business phone line

In comparison to other technological inventions, business phone lines or digital phone lines are still a top necessity for every business to succeed.

Accessibility 24/7

A business phone line ensures your company is reachable round the clock, allowing customers to contact you whenever they need assistance.

Location-specific numbers

If your business has multiple locations, assigning a distinct business phone number to each location facilitates direct calls. This can lead to quicker responses to customer service inquiries and cost savings on long-distance calls.

Professional brand image

Your dedicated business line becomes synonymous with your brand, portraying your company as a serious entity rather than a solo operation.

Enhanced features

Useful features like call forwarding, screening, and voice-to-email transcription ensure that you never miss a customer's call, contributing to efficient communication and customer service.

Factors that influence the cost of a business phone line

If you are wondering how much does it cost to buy a phone number then you must consider some important factors. Following are the key factors that influence the cost of a business phone line, and understanding these aspects can help businesses make informed decisions customised to their unique communication requirements.

1. Type of business phone system

The first decision businesses face when considering phone lines is choosing between a traditional landline and Voice over Internet Protocol (VoIP).

(i). Analog PBX or traditional phone systems

Analog PBX systems, legacy solutions, use analog copper wiring to connect phones to the traditional landline network. They have high upfront costs, require new hardware, and involve hefty installation and maintenance expenses. Lacking modern features, they are less scalable and not suited for remote work.

(ii). On-premise PBX phone systems

On-premise PBX systems create a private network of desk phones without relying on telephone wires. They have no long-term contracts, lower international calling rates, but come with higher monthly costs, requiring new hardware and substantial upfront installation and maintenance expenses.

(iii). VoIP phone systems

VoIP, or Voice over Internet Protocol, is a virtual phone solution that connects through WiFi and strong internet. It requires no new hardware, resulting in lower upfront costs and no installation or maintenance fees. Ideal for remote work, it offers modern features like SMS messaging and internal threads.

Traditional landline vs. VoIP

Traditional landlines, provided by telecom companies, involve physical infrastructure and may have higher setup costs. VoIP, on the other hand, operates over the internet, making it a more cost-effective and flexible option for many businesses.

2. Initial setup costs

How much does a business phone cost for traditional landlines typically require professional installation and may involve setup fees. The business phone prices of VoIP systems, however, often have lower initial setup costs as they can be installed and configured by internal IT teams or third-party providers. Additionally, VoIP systems may offer the flexibility to use existing internet infrastructure and reduce the need for significant upfront investments. So, making it a cheap business phone line.

3. User count

The size of your workforce directly affects the expenses associated with a business phone system. The business phone line cost is decided by the number of users necessitating additional phones. Moreover, increasing both initial purchase and ongoing maintenance costs.

4. Features

The functionalities integrated into a business phone system impact its overall cost. Basic plans with limited features are more budget-friendly compared to advanced plans offering extras such as call recording, voicemail transcription, and analytics. Further Advanced features like computer telephony integration (CTI), find me/follow me, and remote location capabilities are often available without additional cost on VoIP phones, providing enhanced functionalities not found in traditional phone systems.

Basic features

  • Automated directory: Streamline contact access with an automated directory.
  • VoiceMail: Enable customers to leave messages for prompt responses.
  • Conference calling: Facilitate collaborative discussions among team members.
  • Call forwarding: Redirect calls efficiently to designated recipients.
  • Hold music: Enhance the caller's experience with music during holds.
  • Call hold: Temporary pause calls with a professional hold function.
  • Call routing by auto attendant: Direct incoming calls efficiently with automated routing.

Advanced features

  • Computer telephony integration (CTI): Integrate phone systems with computers for seamless operations.
  • Find me/follow me: Stay accessible on the go by routing calls to various devices.
  • Remote location: Enable remote work with seamless connectivity to the phone system.

5. Monthly service fees

Both traditional landlines and VoIP systems come with monthly service fees. The phone line cost per month of traditional landlines may have higher monthly charges, especially if additional features such as voicemail, call waiting, or conferencing are included. The phone line price by VoIP providers often offer scalable plans with various features at competitive prices, allowing businesses to choose a plan that aligns with their specific needs.

6. International calling and long-distance charges

For businesses with global reach, international calling and long-distance charges can significantly impact the overall cost of a business phone line. VoIP providers often offer more favourable rates for international calls compared to traditional landline services, making them a cost-effective solution for companies engaged in international business.

7. Scalability

As businesses grow, their communication needs evolve. Traditional landline systems may require additional physical lines and infrastructure, resulting in higher costs. VoIP systems, on the other hand, are highly scalable and can easily accommodate the changing needs of a growing business without significant additional expenses.

8. Maintenance and support

Consideration should be given to ongoing maintenance and support costs. Traditional landlines may require regular maintenance and repairs, which can incur additional charges. VoIP providers often include maintenance and support as part of their service, reducing the risk of unexpected costs associated with system downtime.

9. Phone models

The choice of phone models significantly influences the cost of a business phone system. For example, video phones are pricier than traditional desk phones. Advanced features like touchscreens contribute to an overall higher system cost.

  • Wireless IP phones

Integrated with Wi-Fi or DECT transceivers, wireless IP phones allow free movement while connected to a network access point. Users can make and receive calls even in hotspots, enhancing mobility within homes or businesses.

  • Desktop VoIP phones

Typical for business use, these phones connect to VoIP systems or service providers via Ethernet. They offer standard phone functions and contribute to a seamless communication experience.

  • Conference phones

IP conference phones, akin to their analog counterparts, facilitate multi-party phone conversations. Commonly found in large offices and conference rooms, they serve as a crucial tool for collaborative discussions. Video conferencing phones, functioning as IP phones with built-in cameras, provide video capabilities. An affordable solution for virtual meetings and face-to-face interactions, they enable visual communication from any location globally.

  • Hard phones

Resembling ordinary phones, hard phones are stationary devices kept on desks or in meeting rooms. They are versatile, serving purposes like conference calls, voicemail access, and direct calls. Communication is facilitated through handsets, headsets, Bluetooth, and speakerphones.

  • USB phones

Connecting to computers via USB ports, these phones are compatible with softphone programs like Skype. Offering a convenient way to make calls through computer systems, they add flexibility to communication setups.

10. Integration with other business tools

Many modern businesses rely on integrated communication solutions that connect phone systems with other tools such as email, customer relationship management (CRM) software, and collaboration platforms. VoIP systems are often more adaptable to integration, providing a seamless communication experience and potentially reducing the need for multiple standalone services.

Cost breakdown of hosted VoIP business phone line

Hosted VoIP business phone systems offer convenience as your provider hosts the software on their servers, handling maintenance and updates for you. It's the most popular type of VoIP phone system. Providers often offer annual billing options with discounted rates, though monthly billing is available at a slightly higher cost. It's essential to consider your business's specific needs and budget when choosing a hosted VoIP system.

Opting for a hosted VoIP system entails minimal setup fees or upfront costs, but you will incur ongoing monthly charges. The costs to consider include:

(i). Monthly subscription fee

  • Basic package: Ideal for sole traders and microbusinesses, ranging from $6 to $25 per user, per month. This package typically includes essential VoIP features.
  • Premium package: Suitable for small to medium businesses, costing between $25 to $40 per user, per month. It often offers more advanced features like unified communications tools and CRM integrations.
  • Advanced package: Catering to large businesses, with prices ranging from $30 to $140 per user, per month. This package includes sophisticated features and comprehensive support for extensive communication needs.

(ii). Add-On costs

Additional features may require extra fees, particularly for contact center functionalities like call monitoring and advanced call queuing. Prices start at around $4 per user, per month, and can go up to $49 per month for premium add-ons.

(iii). Phone costs

IP phones vary in price from $50 to $600 each, depending on their features and sophistication. Some providers may offer leasing options to spread out the cost.

How much does a business phone system cost for different business sizes?

When considering the cost of a business phone system, factors such as pricing structure and scalability options of the phone system is a deciding factor. For large enterprises, medium-sized businesses, and small-sized businesses its alike. We have already discussed how the size of your business influences the cost of your telephone system.

We highly recommend hosted VoIP systems for businesses due to their affordability, simplicity in setup, ease of maintenance and scalability, as well as their flexibility and mobility, enabling team members to access the system from any device, in any location with an internet connection. Therefore, the costs outlined in this section pertain specifically to hosted VoIP systems. Now, let's evaluate the pricing you can expect depending on the scale of your team.

Phone System Cost for Small and Midsize Enterprise (SME)
Plans and Cost Small Business / about 1 - 49 users Medium-sized / about 50 - 200 users Large Enterprise / about 250+ or more users
Basic plans pricing $6 - $308 / per month $320 - $1260 / per month $1580 / per month
Standard plans pricing $12.60 - $617 / per month $500 - $2000 / per month $3000 / per month
Advanced / premium plans pricing $30 - $1470 / per month $1500 - $6000 / per month $7500 / per month

 

Hosted VoIP vs. Traditional phone lines

Here's a comparison table outlining the costs for VoIP (hosted) and traditional phone systems:

 

Cost Category Hosted VoIP (Cloud Based) Traditional / On-Premises
Initial Setup Fees
  • Minimal to None
  • Significant investment for equipment
Monthly Charges
  • Ongoing monthly subscription fees
  • Potentially lower, but maintenance and upgrades may incur additional costs
Add-On Features
  • Additional fees for premium features
  • Often included in initial investment
Phone Costs
  • IP phones priced per unit
  • Often bundled or separately purchased
Maintenance
  • Handled by service provider
  • In-house maintenance required
Scalability
  • Easily scalable with flexible plans
  • May require additional investment for expansion
Mobility
  • Accessible from any device with internet
  • Limited mobility without additional infrastructure
Reliability
  • Relies on service provider uptime
  • Dependent on internal infrastructure

 

How affordable is the Wavetel Business phone system?

Wavetel Business phone system offers an affordable and efficient solution for businesses, starting with a basic plan priced at £4.99/$6 This plan provides unlimited calls to UK landline and mobile numbers, making it a cost-effective option for small and medium-sized enterprises. Its integration with top-notch Yealink devices, proves to be a reliable and comprehensive choice for businesses seeking cost-effective and feature-rich communication solutions.

Partnership with Yealink for cutting-edge devices

Wavetel Business collaborates with Yealink, a leading brand in VoIP technology, to offer the latest models of Yealink phone sets. This partnership ensures businesses have access to high-quality, reliable devices designed to meet diverse communication needs.

Desk phones catering to specific requirements

Yealink's desk phone options include models like T46U for high-demand professionals, T43U for medium to high call volume, and T33G as an entry-level phone. Each model is tailored with specific features to enhance communication efficiency in various business settings.

Advanced wireless solutions for mobility

Wavetel Business integrates Yealink's cordless phones, such as the W60B base station providing mobility within the office. For more advanced solutions, the W73P offers extended coverage and scalability, while the W53P/W53H provides flexibility and mobility for businesses on the move.

Conference room phones for seamless collaboration

Yealink's conference room options, like the CP960 for large meeting rooms and the CP920 for small to medium-sized spaces, ensure clear audio and efficient communication during collaborative discussions.

Microsoft Teams integration with dedicated phones

For businesses using Microsoft Teams, Yealink provides dedicated phones like the MP50, MP58, MP56, VP59, and MP54, designed to enhance collaboration and productivity within the Teams environment.

Hands-Free communication with Yealink headsets

Yealink offers hands-free communication options with headsets like the WH62 Mono Headset and WH62 Dual Headset, providing flexibility for individual and collaborative work environments.

No Extra Spending, Just Extra Features – Discover Our Business Phone System!

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