Understanding Business Phone System Pricing

One of the first questions every business owner asks when looking at phone systems is "how much will it cost?" The answer depends on several factors, but the good news is that modern VoIP systems are significantly cheaper than the traditional phone systems they replace.

Let's break down every cost you need to consider so there are no surprises.

Hosted VoIP Costs (The Most Popular Choice)

Hosted VoIP is the most popular choice for UK businesses in 2026, and for good reason — it's affordable, flexible, and requires minimal upfront investment.

Monthly Per-User Costs

• Basic plans: £8-10 per user/month — includes UK calls, voicemail, call forwarding
• Standard plans: £12-18 per user/month — adds call recording, auto-attendant, mobile app
• Premium plans: £20-30 per user/month — adds CRM integration, analytics, wallboards

Hardware Costs

• Entry-level IP handsets: £50-80 per handset (e.g., Yealink T31)
• Mid-range IP handsets: £100-180 per handset (e.g., Yealink T43U)
• Premium IP handsets: £200-400 per handset (e.g., Yealink T58W with video)
• Conference phones: £200-600 per unit
• Headsets: £30-150 per headset
• Softphone only: £0 — use the mobile/desktop app instead of a physical phone

Setup and Installation

• Self-install: Free with most providers (plug in handsets, configure online)
• Professional installation: £200-500 depending on complexity
• Number porting: Usually free (transferring your existing numbers)
• Training: Often included, or £100-300 for on-site training

Real-World Cost Examples

Small Business (5 Users)

• Monthly service: £60-75 (£12-15 per user)
• Handsets: £400-600 one-time (mid-range)
• Setup: Free to £200
• Year 1 total: £1,120-1,700
• Ongoing annual cost: £720-900

Medium Business (20 Users)

• Monthly service: £240-300 (£12-15 per user)
• Handsets: £2,000-3,600 one-time
• Setup and training: £300-500
• Year 1 total: £5,180-7,700
• Ongoing annual cost: £2,880-3,600

Larger Business (50 Users)

• Monthly service: £500-750 (£10-15 per user, volume discounts)
• Handsets: £5,000-9,000 one-time
• Setup and training: £500-1,000
• Year 1 total: £11,500-19,000
• Ongoing annual cost: £6,000-9,000

On-Premise PBX Costs (Traditional Approach)

Some larger businesses still opt for on-premise PBX systems. These involve higher upfront costs but can work out cheaper over 5+ years for very large deployments:

• PBX hardware: £2,000-15,000+ depending on capacity
• Installation: £500-2,000
• SIP trunks: £5-10 per channel per month
• Maintenance contract: £500-2,000 per year
• Handsets: Same as hosted VoIP

For most small and medium businesses, the upfront cost and ongoing maintenance of on-premise systems makes hosted VoIP the smarter choice. Read our full comparison of hosted VoIP vs on-premise PBX.

Hidden Costs to Watch For

Some providers advertise low headline prices but add costs elsewhere. Watch out for:

• Per-minute call charges — ensure UK calls are included in your plan
• Feature add-ons — call recording, auto-attendant, and mobile apps should be included
• Long-term contracts — avoid being locked in for 3-5 years
• Number porting fees — this should be free
• Cancellation charges — check the exit terms before signing
• International call rates — if you call overseas, check the rates

How VoIP Compares to Traditional Phone Costs

A typical Northern Ireland business with 10 users on traditional phones might pay:

• Line rental: £200/month (10 lines × £20)
• Call charges: £100-200/month
• Maintenance: £50/month
• Total: £350-450/month (£4,200-5,400/year)

The same business on hosted VoIP:

• Service: £120-150/month (10 users × £12-15, calls included)
• Maintenance: £0 (included)
• Total: £120-150/month (£1,440-1,800/year)

That's a saving of £2,760-3,600 per year — plus you get far more features. See our full VoIP vs landlines comparison.

Getting the Best Value

• Get quotes from multiple providers and compare like-for-like
• Ask for a free trial or demo before committing
• Consider softphones to reduce hardware costs
• Bundle services (phones + broadband + mobiles) for better rates
• Choose a provider with transparent, all-inclusive pricing