VoIP Pricing Guide: Business Phone System Costs Explained

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The cost of VoIP phone software ranges from about £7 to £30 per user, per month. VoIP pricing is generally structured into different tiers, and how much you’ll pay will depend on how sophisticated you need your system and its features to be. You’ll also need to factor in additional costs for VoIP phone equipment, broadband, and setup.

With the Big PSTN Switch Off looming in 2027, it’s time for UK businesses to make the jump from traditional phone landlines to a Voice over Internet Protocol (VoIP) provider. In this guide, we’ll run you through all the factors associated with getting your VoIP system up and running, and explain how much they’ll cost.

💡 Key takeaways

You can expect to pay £7 to £30 per user, per month, for a VoIP phone system.
Smaller teams and microbusinesses can get by on a basic plan, which typically cost from £7 to £13 per user, per month.
If you need unlimited calling you’ll be roughly looking at spending between £14 to £20 per user, per month.
The four main costs you’ll need to budget for are VoIP software, minutes, equipment (such as headsets) and business broadband.
You’ll also need to be aware of potential one-off costs like number porting, which can cost around £20 to £30.
Some premium plans include a desk phone, like bOnline’s Unlimited Calling Plus plan.

How many employees do you need a VoIP system for?

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This article will answer the following questions:

How do VoIP system costs break down?
How much do the different elements of a VoIP system cost?
Are there any hidden costs or extra fees?
How can I save money on a VoIP system?
Next steps: how do I choose a VoIP provider for my business?

What is the Big Switch Off?

In 2027, the Public Switched Telephone Network (PSTN) is due to be completely switched off. This copper-wire based system will be retired as the infrastructure is now old and difficult to maintain.

By January 2027, all analogue phones will stop working and all businesses will need to move to an internet-based provider.

This is only good news for business owners, though, as VoIP is more reliable, cheaper and can support more functionality than phone systems running on the traditional PTSN network.

How do VoIP system costs break down?

There are essentially four main costs to consider when you’re budgeting for a VoIP phone system for your small business. These are:

1. Software

This will be the main cost of your VoIP telephone service. It comprises all the capabilities and features of your VoIP system, and is available from VoIP providers. VoIP software plans can range from basic entry-level tiers up to expensive advanced tiers.

Which software tier is right for me?

The easiest way to determine which software tiers to look into is by the size of your business. If you’re a micro-business with fewer than 10 employees, start by looking at the entry-level service. If you’re a medium sized business with 50 to 100 employees, you should be looking at the higher-level tiers.

The cost of your VoIP software will be determined by:

What features you need

The more basic, starting tiers will include features like:

Localised and toll free numbers
Voicemail
Call screening
Team messaging
A mobile and desktop app

The mid- to higher-end tiers will come with more advanced features, like:

Unlimited UK landline and mobile calls
A virtual receptionist
Customisable call routing
Ring groups
Video conferencing
CRM system integration
Analytics and reporting
24/7 customer support

Before selecting a plan, determine which features are “must haves” and which you can do without, to make sure you’re getting the best VoIP system you can for your business.

For example, if you think you’ll be receiving a lot of incoming calls but you’ve got a skeleton crew, a good virtual receptionist feature could be critical.

Virtual landlines

Virtual landlines are VoIP services primarily run through a mobile or desktop application. They’re perfect for mobile workers or on-the-go businesses, and you can find our recommendations for the very best virtual landlines here.

The number of employees you need on the system

In almost all cases, VoIP services are charged per user, so if you need VoIP accounts for three of your employees, your total will be three times the cost of the software plan.

For example, if your software plan costs £15 per month and you’ve got four people using the VoIP system, your total rental cost is going to come to £60 per month.

So a microbusiness of around five employees will be spending roughly £75 per month on a VoIP software plan.

Whereas a mid-sized team of around 40 employees will be spending roughly £600 per month on its VoIP software plan.

The length of your subscription agreement

VoIP subscriptions are generally charged monthly, but can also be billed annually. Different providers will require different levels of commitment.

For the most part, VoIP contracts tend to be 12 or 24 months long, though some platforms may let you negotiate a custom contract length.

The longer your contract, the cheaper your monthly payments will be. That said, for most startups, we would recommend a shorter contract to start with. Running a new business can unfortunately be an unpredictable process, and you don’t want to be locked into a long contract you might not end up needing.

2. Minutes

Most modern VoIP providers offer call packages on which each user will get a certain number of, or unlimited, minutes. This will be bundled into your monthly cost – essentially, the same as a mobile phone contract.

However, there are some VoIP providers that will charge you usage costs for the number of minutes you use (essentially, how a traditional phone plan works), so keep an eye out for this.

3. Equipment

VoIP systems are software-based, so a traditional phone isn’t necessary to make calls. You can use your system to make calls on desktops, laptops, tablets and smartphones (depending on what your provider enables).

Though not strictly required, here are the key pieces of equipment you might choose to buy:

VoIP phones: Also known as IP phones, these look like your traditional desk phones, but connect to the internet in order to take and make VoIP calls. They either using an Ethernet connector, a built-in modem, or Wi-Fi.

While desk phones are no longer universally popular (we conducted a communications survey to better understand the needs of our readership, and only 46% of the business leaders we asked told us they still use desk phones!), there are some employees who still feel more comfortable using them.

Headsets with microphones: These are a popular option as you can easily connect them to your computer and they allow for better call quality and privacy.

ATAs (analogue telephone adaptors): This is a device you plug into a traditional landline phone to transform it into a VoIP phone.

The pros and cons of using an ATA adapter

Using ATAs to turn your old phones into VoIP phones is an excellent way to save money and prevent waste. However, there are some pros and cons to consider.

ATAs are generally considered to be useful on one-off cases, rather than to convert a full suite of phones. The sound quality will be worse than that of an IP phone and ATAs are known to have an issue with echo.

You also won’t get access to the full range of features you would with an IP phone, which means you’ll be missing out on a lot of the benefits of VoIP. So, while it can be tempting to save on costs if you have a lot of old phones, it might be worth investing in IP phones instead.

4. Business broadband

Chances are you already have a business broadband service in place – but you’ll need to ensure that service is excellent. Your phone calls will be 100% reliant on your internet connection, and you’ll want them to come in crystal clear (we’ve all had that frustrating call with a customer service agent or help desk operator that sounds like they’re speaking through a tin can and string).

Even basic business broadband plans will have a fast enough speed to handle VoIP calls. But it never hurts to invest in an ultra-fast, fibre optic broadband to make sure your customers and clients are getting the highest quality call possible, especially if you expect a high volume of calls.

How much do the different elements of a VoIP system cost?

So now you know what the four main points of cost will be, let’s break down the average cost for each of these elements.

How much does VoIP software cost?

Software packages generally fall into basic, mid and premium tiers:

	Average cost	Features
Basic	£7-£13 /user/month	These tend to be good for micro businesses and smaller teams. They come with the basic features needed to make calls, and will have a limited number of inclusive minutes
Mid	£14-£20 /user/month	These tiers will generally be aimed at smaller-to-medium-sized businesses. They should include a more comprehensive range of features, and some will offer unlimited calling
Premium	£20-£30 /user/month	A common feature of premium tiers is that they often include VoIP phones as part of the cost. These are good for larger businesses who don’t mind shelling out to be fully equipped

Below, we compare the entry-level, mid-level and advanced tiers of three different major VoIP providers, to give you a clear idea of what you’ll get for your money.

RingCentral’s VoIP pricing

	Plan	Pricing	Features

Essentials	Standard	Premium	Ultimate
£7.99-£12.99 (billed annually) £12.99-£17.99 (billed monthly)	£12.99-£19.99 (billed annually) £16.99-£23.99 (billed monthly)	£17.99-£24.99 (billed annually) £21.99-£28.99 (billed monthly)	£22.99-£29.99 (billed annually) £26.99-£33.99 (billed monthly)
Mobile and desktop apps Team messaging Voicemail Call logs Customisable hold music Call routing	On-demand call recording Unlimited audio conferencing Virtual receptionist (with customisable greeting and call routing) Ring groups	Video meetings with up to 200 participants CRM integrations Advanced call handling Hot desking	Device status reports Device status alerts Unlimited storage (retention period applies)
Inbound: 0 Outbound: 100	Inbound: 250 Outbound: 750	Inbound: 1,000 Outbound: 2,000	Inbound: 2,000 Outbound: 4,000

bOnline’s VoIP pricing

	Plan	Pricing

Starter	Unlimited Calling	Unlimited Calling Plus
From £7 + VAT (billed annually)	From £9.95 + VAT (billed annually)	From £15.50 + VAT (billed annually)
Voicemail and voicemail transcriptions Caller ID and call blocking Call forwarding Team messaging Call monitoring	Virtual receptionist functionality Call queue Ring groups Customisable call routing Video conferencing Analytics and reporting	All the features of Unlimited Calling but it also includes desk phones
Inbound: Unlimited Outbound: 100 UK landline minutes	Inbound: Unlimited Outbound: Unlimited UK landline and mobile calls	Inbound: Unlimited Outbound: Unlimited UK landline and mobile calls

NBC’s VoIP pricing

	Plan	Pricing

Cloud Voice Call Centre Basic	Cloud Voice Enterprise	Cloud Voice Complete Mobility
From £9.99 + VAT	From £17.99 + VAT	£24.99 + VAT
No call package included Voicemail and voicemail transcriptions Call forwarding	Desktop app Call blocking Ring groups Customisable call routing Team messaging Video conferencing	All the features of Unlimited Calling but it also includes desk phones
No inclusive minutes	Unlimited UK landline and mobile calls	Unlimited UK landline and mobile calls

Starting prices from the best VoIP providers

You can also compare the starting costs of our favourite VoIP providers in the comparison table below:

	Provider	Best for	Pricing from
BEST ALL ROUND
bOnline	RingCentral	Dialpad	GoTo	Google Voice	NBC Cloud Voice
A budget-friendly VoIP provider	Improving customer service	Small customer service teams	Multiple locations	Google Workspace users	Call centres who need unlimited minutes
£7/user/month	£12.99/user/month (paid annually)	£12/user/month (paid annually)	Bespoke	$10/user/month (Google Voice is only priced in US dollars)	£9.99/user/month
Get Quotes	Get Quotes	Get Quotes	Get Quotes	Get Quotes	Get Quotes

Worth knowing

While VoIP plans are priced per user, it’s worth knowing that, with some providers, the per-user cost will get cheaper the more users you add. For example, RingCentral’s Standard plan is priced at £19.99 per month for one user, when billed annually. But for 20 to 99 users, the price drops to £13.99 per month, when billed annually.

How much do minutes cost?

As we’ve shown above, some providers include unlimited minutes in their software packages, whereas others will only include a limited number on their plans. If you have a limited call package, you will be charged for exceeding it.

These rates will be set by your provider, and you’ll have to contact them directly to understand what they charge, as rates will vary. Generally though, for domestic calls, these can cost from around 1p to 10p per minute.

While many VoIP providers do provide unlimited calling, this is restricted to the UK. For international calls there will be an additional charge, either per minute or bundled into a package.

For example, with RingCentral, if you call a regular US number, you will be charged 1p per minute. Meanwhile, bOnline charges £6 + VAT for a package of 500 international minutes, or £10 + VAT for 1,000 international minutes.

How much do VoIP phones and headsets cost?

If you choose to buy dedicated devices for your VoIP system, you can expect to pay anywhere from £20 for basic models to over £400 for high-end VoIP phones and headsets.

For example, the cheapest IP phone supplied by RingCentral is the entry-level Yealink T33G for £81. The most expensive is the Poly CCX 700 (its standout feature is the ability to make video calls on a large touchscreen) for £458.

These are the average costs you can expect to pay for VoIP equipment:

	Basic models	High end models
VoIP phones	£20	£400
Headsets with microphones	£25	£400
ATAs (analogue telephone adaptors)	£40	£100

The costs of phones and headsets can add up quickly, so it may be worth considering a high-tier software package that includes phones in the price, as this could work out considerably cheaper than buying the phones separately.

It’s also worth remembering that buying phones isn’t strictly necessary. VoIP is software-based, and you can access and use the system on smartphones, tablets, and computers.

How much does business broadband cost?

You need a static IP address in order to make VoIP calls. You’ll also need a fast, high-quality internet connection. Prices for this can range from roughly £22 to £45 per month.

Most businesses will already have a broadband connection setup, but if you don’t, or you need to switch to a better service, factor this into your overall VoIP cost.

Read more: Our picks for the best telephone line providers

Are there any hidden costs or extra fees?

You’ll need to make sure you’re budgeting for certain one-off fees. The most common are setup and installation charges (around £200) for complex systems, and number porting (around £20 to £30) if you already have a business phone number. Here are the extra fees you should look out for:

What are the setup and installation costs?

Because VoIP is software-based, installing a VoIP system is largely an easy task that you can do yourself, so in most cases you won’t have to pay installation costs. However, with some more complex setups that involve lots of hardware, a technician may be sent by your provider to assist you. Generally this costs around £200.

How much will additional software and integrations be?

Sometimes, providers will give you the option to add-on extra features, such as CRM integration or helpdesk solutions, for an additional cost. This is generally about £5 per month on top of your plan price.

How much does number porting cost?

It makes sense that, for business continuity, you’d want to keep the same number when switching providers. You can do this through the process of number porting.

A number of VoIP providers take care of this at no extra cost. However, some charge a small, one-off porting fee, which should generally only cost £20 to £30. If you have several numbers to switch over, you might be able to get a reduced fee.

You can read more in our essential guide to UK business phone and mobile numbers.

Top tip: ask for a detailed quote

When you’re contacting VoIP providers to learn more about their prices, we recommend asking for a full breakdown of all the costs involved. Specifically, make sure you ask about setup fees, early contract termination fees, and whether any desk phones or other hardware will be provided, and for how much.

How can I save money on a VoIP system?

The best way to save money on your VoIP phone costs is by choosing the right plan for your needs, only including necessary staff on your plan, and looking for broadband package bundles. Let’s explore these tips and more in our list of tips and tricks to save money on your VoIP system:

Make sure you’ve chosen the right plan for your business. There’s no point paying for a premium plan that includes advanced features you won’t actually need.
Keep an eye out for providers that charge bespoke pricing. GoTo and 8×8 will both give you a bespoke quote, rather than charging a set plan price, so you might be able to negotiate yourself a good-value deal.
Remember that all VoIP plans are priced per user. Only pay for plans for staff members who need them. There’s no point paying for a VoIP plan for your accountant if they don’t make calls in their day-to-day role.
If you’re switching broadband providers, or getting set up with a new one, look out for providers that can offer VoIP capabilities bundled in with a broadband package.
Use your existing hardware. As we mentioned before, you can use ATAs to turn old phones into VoIP-compatible hardware.

Next steps: how I do choose the right VoIP provider for my needs?

In order to determine the right VoIP phone system and price for your budget, you’ll need to consider the following checklist:

All-important features: decide what calling features your business absolutely needs, such as voicemail, virtual receptionists and more, and what premium features you can do without.
The support you’ll need: most small businesses will need more thorough help and support from their VoIP provider. For example, some cheaper plans don’t come with any onboarding support, so consider whether you’ll need this.
Contract length: think about how long a contract will suit you. While you can get rolling contracts, the standard is usually 12 or 24 months. Just remember, you don’t want to get locked into a longer contract you won’t need, even if it’s cheaper.

Choosing a VoIP provider for your small business will depend on the specific tools and features you need, but our overall top choice is bOnline, as it offers unlimited calling at a competitive price point.

If you want to find out more, head over to our roundup of the best VoIP providers for your small business. You’ll find a full ranking of the top providers, including pros and cons, and pricing.

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