Over time, more and more businesses are shifting towards VoIP communication setups from traditional phone setups. VoIP calling setup satisfies the communication needs and keeps things under budget.
The system is the latest high-speed broadband or cable connection system that helps you make phone calls via the Internet, unlike traditional phone systems. We cannot specify the cost of VoIP setup and fees as it is something that cannot be predicted or specified.
It depends on different factors and mainly on the service providers. Here in this guide, we will look at the information related to the price breakdown and hidden fees of VoIP cost, how much it costs in 2024, and answers to some of the frequently asked questions related to VoIP expenses.
VoIP costs are different in different scenarios. It is comparatively less expensive than traditional phone service. Each and every VoIP provider has its own set of expenses depending upon the tools, machinery, and services it is providing.
Here are some of the frequently asked questions related to VoIP call settings that should be answered beforehand. All these questions are related to VoIP costs so you can have an idea about what you have to pay and you can save yourself from the stress of overpaying.
The basic costs of VoIP are somewhere between $25 to $35 per line per month. You will be charged extra for additional features like toll-free numbers, call recording, and equipment rental costs. Keep in mind this VoIP is comparatively affordable and much less in cost as compared to traditional phone service.
The basic cost varies depending on the services provided by the VoIP service provider. There are several elements that play an important role in depicting the charges and expenses when you convert from a traditional system to a VoIP phone system.
The costs are generally one-time expenses and not the ones that you have to pay again and again. Once you get the setup you only have to pay monthly or yearly according to the service you have taken. Let’s put light on the closer details of these expenses.
After getting the service you have to pay for the phone service in the form of subscription fees. You have to pay the subscription fee either on a monthly basis or on an annual basis. These monthly and annual subscription fees cover the basic VoIP services.
These basic services include the making and receiving of phone calls using an internet connection. There are several subscription plans that offer you different packages right from the basic one to premium options.
The basic packages come with standard features and the premium plans offer you more advanced and latest features. Let’s put light on monthly plans and annual plans so you can have an idea about which one would be beneficial for you.
Monthly plans are highly reliable for those who want more flexibility and short-term commitments with their service providers. These monthly plans do not put you in the cage of long-term commitments and you can make changes just after a month if you want.
Monthly plans are ideal for small businesses and allow you to bring change in the package without waiting for a year, unlike yearly plans. But keep in mind they are comparatively expensive in the long run as compared to the annual plans.
When we talk about the annual plans of VoIP we get to know that they reduced the monthly cost significantly. They are comparatively affordable and are good options for established businesses.
Keep in mind when you get the annual plans you have no choice of making changes in the contracts before the end of the year. However, because annual plans are comparatively affordable most business owners prefer to go with annual plans for their VoIP call setup.
Another thing that depicts the cost of VoIP is the number of users and the number of lines that are needed. Almost all VoIP providers structure their costs based on the number of lines or users. Keep in mind the more phone lines you have, the more expensive the setup will be.
Similarly, the more employees you have, the higher the cost will be. You need to make sure to accurately check the number of lines or users you have in your business so that your service provider can exactly tell you what you have to pay.
This also saves you from overpaying. Let’s look at the description of the costs of the VoIP service based on the number of users and the number of lines.
Costs Per User
Some service providers determine the cost based on the number of employees. This means that your charges will be determined by the number of users of the system.
Per-user cost is basically the common pricing model for VoIP services. It is ideal for those businesses in which there is a specific number of employees.
Costs Per Line
Alternatively, there are some VoIP service providers that charge the VoIP system on the basis of phone lines. If there are multiple phone lines in the call system of your business, going with the VoIP service providers that charge on the basis of per line would be better as compared to the service providers that charge on the basis of per user.
Related: Voip Call Recording
The VoIP system varies on the basis of the requirements of the business. This also affects the cost that you have to spend on the VoIP system. Specific features and functionalities are comparatively more expensive than the basic and simple features of a VoIP system.
Features like conference calls, auto attendance, call recording, toll-free numbers, and virtual meeting capabilities are always expensive and come in premium packages. Alternatively standard features like voicemail and call forwarding come in the base subscription fee.
They are quite affordable too. Now let’s look at the details of the difference between the cost of standard features and advanced features of VoIP setup.
The basic features that come with VoIP simple setup include call forwarding, voicemail, and domestic calling. They usually come with the base subscription free and you don’t have to pay extra for these standard features. Moreover, you also get unlimited incoming calls and outgoing calls throughout the nation in the basic setup of VoIP.
Alternatively, the premium features for which you have to pay extra include unlimited calling, international calls, Customer Relationship Management Integration that is CRM Integration, and advanced analytics. Similarly, premium customer support is also something that can increase the cost of VoIP setup.
Well, now it’s clear that the basic and standard features that you get with VoIP setup come in the base subscription fee and for them, you don’t have to pay extra. Whereas, advanced features and premium specs are offered to you always with extra additional cost.
If you want one of the cheapest and least expensive VoIP services, going with Zoom Calling or Google Voice would be the best choice for you. They are as cheap as only $10 per user per month. This is the lowest rate that you can get for the features enough to satisfy you.
VoIP systems use an internet connection to establish phone calls. This means VoIP is comparatively cheaper and very affordable as compared to regular calling systems.
Moreover, domestic calling over VoIP systems is generally included in the subscription charges of the setup. Whereas the charges for international calls are notably lower for VoIP users as compared to those who choose standard landline setups to make international calls.
The cost of VoIP systems in businesses varies drastically based on different factors. The charges are determined on the basis of the features and specs you choose, the size of your business, and the type of service you need for your business calling system.
Well, there are 2 different types of VoIP systems available. Let us look at the in-depth details of hosted VoIP costs and on-premise VoIP costs. We will also look at their comparative study and will also discuss VoIP broadband costs later on.
VoIP costs vary according to the type of service you opt for for your business. This VoIP generally comes in two choices: hosted and on-premise. Generally, we can say that for a Hosted VoIP system, you pay directly to the service provider and the service provider will host the VoIP service for you.
The equipment and tech will be handled by the service provider on his own. Alternatively, if you want to get an on-premise VoIP setup, you will be responsible for everything right from setup to equipment to the technical needs and all that maintenance.
How expensive is the setting up of a VoIP system cannot be answered with some particular amount. This is because it depends on the setup you select. It varies based on different factors.
Factors like what type of service you want to get from your service provider and what features you are looking for in your VoIP setup depict the cost in general. Let’s look at the details about the cost of hosted VoIP and on-premise VoIP.
When it comes to Hosted VoIP Service you don’t need to worry about any additional charges. What you have to make sure of beforehand is that you have a great internet speed to initiate the setup and that’s it. When it comes to Hosted VoIP settings you pay on the basis of per user-per month free.
The total monthly cost varies on the basis of the number of employees that are using the system. You can expect to pay somewhere between $10 to $30 per user in a hosted VoIP system monthly. In this type of VoIP setup, your service provider handles everything right from maintenance, and support, to tech costs and additional equipment.
Related: Is VoIP Reliable For My Business?
The cost of on-premise setup is comparatively higher and much greater as compared to hosted VoIP service. This is because there is specialized equipment that is needed to set up such a system and you have to purchase that equipment on your own.
It has been noticed that an average of approximately $14000 is charged for on-premise VoIP setup even before you have initiated your first call. Now you can expect the expense as a whole.
On-premise VoIP setup is quite expensive and not reliable for small businesses. So it is highly recommended that you go with a Hosted VoIP system because the overall cost that you have to pay for a Hosted VoIP system is 10 times less than what you have to pay for an on-premise VoIP setup.
Small to medium-level businesses can rely on a hosted VoIP system without thinking twice. Whereas fully established and larger businesses should go with an on-premise setup.
Always keep in mind that VoIP works with an internet connection and for good VoIP service you need to make sure that your internet connection is excellent. You should look for an internet speed of 10 MBPS which is quite reliable for a flawless calling experience.
The broadband cost is also something that should be kept in mind when depicting the overall cost of VoIP settings. These rates vary greatly starting just from $35 and reaching even 100s of dollars per month.
Another thing that you have to keep in mind is to always consider the size of your business before finalizing the broadband connection and VoIP service providers. This can help you get exactly the type of setup according to your needs.
Now let’s look at the cost that you have to pay for the equipment and tools you need to complete the setup of VoIP calling. There are different types of phones that you can go with to set up and complete your VOIP calling system.
Well, this is one of the main costs that you must have to keep in mind. You have got three options of phones for VoIP settings.
The options are VoIP adapters, VoIP phones, and VoIP softphone apps. Let’s look at the details of each so you can finalize which one would be the best choice for you.
Softphone is software that is designed for internet-enabled devices like tablets, computers, and mobiles. It is used to establish phone calls and is something just like the Zoom phone provides you with.
Since most of the employees in the businesses have computers on their tables so going with VoIP softphone apps is one of the quite affordable and cheap ways to get VoIP setup for your business. Well with this Softphone app, you will not need dedicated telephone hardware to establish a call. This means it is something not only affordable but also very easy to manage.
The second choice that you have is spending on a VoIP adapter. It costs you somewhere around $60 and not more than that. It is a type of device that is used to convert the signals in a standard phone into a VoIP signal.
This adaptor is simply attached to your old telephone hardware. And the only work of this adapter is to convert the signals into VoIP signals. But keep in mind, with this, you will be missing some very premium VoIP-specific features that you only can get on specific and particular VoIP phones.
VoIP phones are dedicated phones that are made specifically for VoIP calling setups. The phone not only allows you to get basic calling features but also allows you to do video calls that are actually very necessary for video conferencing. VoIP phones come with approximate charges of somewhere around $40 whereas those with all the bells and whistles can even charge you around 100s of dollars too.
Installation costs vary on the basis of the service providers but you can expect to pay somewhere between $25 to $50 for both labor and installation. It doesn’t matter whether you are getting a hosted VOIP setup or an on-premise VoIP setup.
What you have to keep in mind is that you have to pay somewhere between $25 to $50 per single device installation; for both installation and labor. Alternatively, if you are going to install the VoIP software on already existing business devices like your laptops, tablets, or smartphones there would be no charges that you have to pay for installation.
There are some of the less obvious charges that jump up in the final price of VoIP. These are some of the important charges that you must have to pay but are often overlooked when getting the service. Let’s look at the hidden costs of VoIP and what you should be aware of beforehand.
Just like everything else in life and the world around you, VoIP services are another thing for which you have to pay taxes. The taxes and fees that you have to pay for the VoIP service include local taxes, federal taxes, and state taxes.
These charges vary based on geographical factors which means the applicable taxes would be exactly according to the ones that are standardized in your area. They vary by location and considerably depend upon the phone numbers used and business location.
If you want to get additional extra features like advanced call analytics, and hands-on customer support, of course, you have to pay extra. Similarly, if you want to get premium features like additional lines and call center functionality, you again have to pay extra.
Keep an eye on the features that you want to get and discuss them with your service provider beforehand. This is important so that they can tell you how much cost you have to pay for the service. Understanding the additional features and add-on costs beforehand helps you stay away from unexpected expenses that can trigger financial stress all of a sudden.
If you are planning to integrate the VoIP setup with already existing business tools like CRM systems or artificial intelligence, the package will become more expensive for you. Be prepared to spend some extra to get some extra features or to make integrations with already existing setups in your business.
Another important thing that you have to keep in mind is how many countries or areas you are going to make calls in. This is because different VoIP service providers charge differently for international calls and at different prices on the basis of geographical location.
For example, there are some service providers that give you lower charges to make calls in Mexico as compared to other areas. Keep in mind this because international call rates are something that can lead you towards overpaying at the end of the month. Regardless of all this, the best thing is VoIP international calls are much more affordable and comparatively cheaper than traditional landline international calling rates.
Let’s say there is an office in which the boss is going to get a VoIP system for calling. There are 20 employees in the office.
Let’s calculate the average VoIP system cost the office has to pay to get the service. We will take an example of let’s say “A” service provider.
The cost per user is $19.95. It will become $399 for 20 users. This cost by a service provider is the cost per month.
Now, let’s say the office also wants new VoIP phones. The average cost of one phone is $ 89. And you will need 20 phones for 20 employees so the total cost of the phones becomes $1780.
When you combine these two basic costs, the cost of service and the cost of equipment, it becomes $2179 in total for 20 employees in the office.
The monthly cost of VoIP setup in this 20-employee company is no more than $399 per month. But the initial setup cost is $2179.
These costs are calculated based on a particular service provider. Keep in mind the charges vary on the basis of different service providers according to the services and features they are offering in their setups.
You can expect to save approximately 50% of expenses after shifting to VoIP systems than traditional phone systems. This is because VoIP costs are much lower in not only their calling rates but also when it comes to hardware, maintenance, and international calling.
Moreover, keep in mind the VoIP system not only saves you financially but also provides you with flawless call quality and boosts the overall efficiency and productivity of the business as a whole. Switching to VoIP calling setup is always recommended in businesses to get better calling time.
No doubt, this voice-over-internet protocol system is taking the world by storm. It is quite cost-effective and is a comparatively better option when compared with the landline phone system. This article shows you the approximate costs and charges that you have to pay if you are switching to a VoIP calling system in your business.
We will discuss some of the key points here like going with a Hosted VoIP system is considerably cheaper than choosing the on-premise set-up. But keep in mind for larger and much bigger businesses it would be better to go with an on-premise VoIP setup.
Keep an eye on installation costs, labor costs, monthly subscription plans, yearly plans of the service providers, and the specific features that you are going to take from your VoIP service providers. Make sure to look for these details beforehand so you do not end up overpaying or paying what you have not even thought about while getting the system.