How Much Does a VoIP Service Cost?

Introduction

Finding out VoIP phone costs while switching from traditional landlines is quite tricky as it involves various parameters. For a hosted VoIP system for small businesses, you can expect around  $10 to $30 per user, per month, whereas an on-premise VoIP system can cost you as much as $10,000 with all the costs calculated. From understanding pricing structures to knowing the costs involved you need to consider each and everything so that you can meet your business needs. 

Switching to VoIP is not only a switching to a phone system with added features but it is also an investment that can scale your business communication. Here in this blog, we will delve into the complexities of VoIP pricing, and VoIP cost comparison to give you a clear idea about how much is a VoIP phone system to help you make the best financial decision for your business. 

All you need to do is sit back, relax, and keep reading as we break down the different VoIP phone costs associated with VoIP services and what you need to know before making a decision.

Common VoIP Pricing Structures

To know how much is a VoIP phone it is important to understand the VoIP phone pricing structures. Here are some common pricing structures that you will come across: 

Unlimited Plans With Monthly Fees

This pricing model provides a fixed monthly rate for unlimited calling. Thus, companies with a high number of calls will benefit from using this plan, such as an outbound sales group or a large customer service center. Predictable costs will be the best asset for businesses as there will not be fluctuations in the cost of VoIP for small businesses throughout the month. This could be a bad deal if your business won’t take maximum advantage of the unlimited minutes allowed.

Pay-As-You-Go Pricing

Pay-as-you-go pricing is also known as metered pricing and is based on your actual usage. This pricing structure is based mainly on the minutes or features you use on a monthly basis which also means you pay for what you use. It is an ideal choice for businesses that have constant fluctuations in call volume. Conversely, the disadvantage is that if you are expecting a surge in call volume shortly or have long calls, then the costs can creep up at a relatively alarming rate. To know how much is a VoIP phone you need to calculate all the costs together. 

Tiered Pricing

The third number in line to know how much does VoIP costs is the tiered pricing plan, various providers offer various kinds of fixed-price subscriptions at varying service levels. For example, a basic plan may offer limited VoIP call minutes or basic features. However, a premium plan may have unlimited calls along with extra perks and added features. These plans are flexible to let businesses scale up to higher service levels with their growth or scale down and enjoy the non-core call features.

Alternatively, pay-as-you-go (metered) pricing charges based on actual usage, so you only pay for the minutes and features used each month.  Therefore, it is ideal for businesses whose volumes peak at specific periods in a year, whether seasonality or when business just starts.

Freemium Model

As it is already clear the term “Freemium”, refers to the free version of a product or VoIP service which also has an option of paid one for more advanced features and functionalities. It’s a great opportunity for those who are new to VoIP and want to understand what it might mean for your business. Free editions often have a reduced feature set, and most will generally affect the quality of your calls. You may need to identify a free trial of a paid edition to really get a feel for what VoIP can do. 

Bundled Pricing

The other great option is bundled VoIP service if you want a feature-complete product. For example, you could be charged a flat fee for unlimited calls, call recording, PBX, or voicemail transcription. This method suits businesses that are looking to standardize the communication and the billing process.

Factors That Affect VoIP Phone Costs

New Phone Equipment

Switching to a VoIP phone system at times also requires the purchase of new hardware which includes VoIP-enabled phones or headsets. As per a study, in 2018 among all US households, more than 90% of them had at least one computer and more than 80% had good access to high-speed internet. 

This data indicates that every premise today be it a household, office or business has a computer or a laptop, there is generally no need to buy a new phone for a VoIP system. 

However, If you still need to purchase a new one then you can expect a VoIP phone cost somewhere around  $100 and $200 per phone. Installation and configuration cost labor and professional services around $25 to $50 for each phone. It is an important factor that plays an important role in understanding how much does a VoIP phone system costs.

Network Infrastructure

A reliable internet connection is important for VoIP to function properly.  While switching to VoIP it is important to upgrade the network infrastructure which also includes routers, switches, or even the internet bandwidth, to ensure high-quality voice transmission without lags or disruptions. These upgrades and arrangements affect the overall VoIP phone cost.

Phone Number Migration

Number porting or phone number migration means transferring your existing phone number to the new VoIP phone system. It may also come with fees specifically when there are more than one number or multiple numbers involved. Some providers also provide free phone number portability services, while others may charge for the service, making it an additional cost of VoIP for small businesses to consider when switching to VoIP.

Installation and Set Up

The setup process of VoIP systems typically starts with the installation of software, setting up devices, and connecting them to the network. Some companies opt for doing so by themselves while others would opt for hired installers which may translate to added total cost depending on the complexity of the system and the amount of support required.

Monthly VoIP Phone Service

To understand how much does VoIP costs per month it is important to understand that the main expense of hosting a VoIP system is the monthly service fee, as charged by the service provider. Costs can further be broken down based on the number of users, features provided within the service package (voicemail, call routing, video conferencing), and type of service plan, that is, basic or premium. Thus, all these come at a cost that a company needs to account for in some regular time cycle.

How VoIP Phone Services Are Priced

Recurring Expenses

Monthly VoIP Service Subscription

Monthly VoIP service subscription is actually the annual  VoIP phone cost that businesses need to pay to the VoIP provider for the cloud-based VoIP phone system. It basically depends on the service provider. The answer to how much does VoIP costs per month is somewhere between $15 to $35 monthly per user. The basic monthly cost of VoIP for small businesses covers your VoIP application, phone services, voicemail, routing features, multiple communication channels, and software maintenance. 

Advanced Features and Communication Channels

To get a clear idea about how much does a VoIP phone system costs is it necessary to understand that the monthly VoIP service subscription includes a VoIP solution that incorporates a plethora of features and business communication needs. VoIP solution providers such as Emitrr offer flexible pricing plans based on several pricing tiers in which each tier offers its own unique benefits and features. One more thing you need to consider is the more features and channels you want for your business in your VoIP phone systems the charge of the monthly VoIP subscription will go up. 

Therefore, the more features and channels you want for your VoIP phone system, the higher your monthly subscription will be. Some VoIP solutions give basic phone system features, such as IVR, voicemail, and call controls. On the other hand, some VoIP software supports unified communications tools, which offer collaborative options such as team chat, video-conferencing, intelligent routing, call queues, and even analytics for calls, and for these features, you can expect to purchase a higher-tier VoIP subscription

Add-Ons

To know exactly how much does a VoIP phone system costs is it crucial to know that VoIP solutions for small and medium-sized businesses usually fall in the $15 to $35 range per month. However, most service providers provide add-ons to the basic plans through features or premium packages that can be included with the standard VoIP plans for enhanced functionality. Add-ons that you opt for depending upon the service provider and the additional features that you are opting for.

International Calling

Most VoIP software subscriptions include unlimited calling within the United States and Canada as part of their standard plan, but if you need to make international calls, there are usually extra fees that will apply. These usually range between $0.03 to $0.07 per minute, depending on both the country’s destination as well as the cost of telecommunications in that country. To understand how much does a VoIP phone system costs it is necessary to take into account the international calling cost. 

Toll-Free and Metered Calling

Domestic VoIP calls are free of charge, your company will incur costs for international toll-free incoming calls, covering both your and the customer’s carrier fees for long-distance calls. Thus, doubling the rates it can range from $0.03 to $0.07 per minute.

Some VoIP plans, like Zoom Phone’s Pay-As-You-Go option, charge on a per-minute basis even for domestic calls ranging from $0.01 to $0.03 per minute.

One-Time VoIP Phone Cost

VoIP Hardware

VoIP phone system does not require extensive installation and heavy wiring the only things that you need are a phone, routers, headsets, routers, and adapters. The cost of this equipment varies depending upon the brand and quality of the products. You can expect around  $150 to $300 per telephone station and if you are going to buy new headsets then it will cost you somewhere between  $50 to $150 each. 

Setup and Installation

If you are installing the VoIP software on any existing business device that you already use such as smartphones, tablets, or laptops, then you need not pay any charges for it, it’s free of cost. however, installation of  VoIP phone costs would typically fall in the range of $25-$50 per device for using VoIP desk phones. This will be either on a hosted or on-premise system, and installation costs for a team of 20 could be up to $1,000.

Number Porting 

Many providers support the porting of existing numbers to their system free of charge, though some might charge a small fee for this operation. You can port any number into your VoIP system be it a landline number or a mobile number. 

Training and Onboarding Costs

Training and Onboarding Costs are one-time expenses for getting your employees trained on the new VoIP system. It includes training employees on feature usage, handling call operations, and solving simple technical problems. Training and onboarding costs usually range from $100 to $500 per employee, depending on the complexity of the system and the degree of training needed. 

How Much Does VoIP Cost: VoIP Cost Comparison 

Hidden Cost of VoIP For Small Businesses 

Network Upgrades

VoIP systems depend upon internet bandwidth to ensure clear, high-quality calls. If your current bandwidth isn’t enough, then you need to upgrade your internet plan to support the requirements of the VoIP system. Evaluate your current bandwidth to ensure it can handle the added burden generated by the VoIP system. It is an important factor that is usually hidden which is why businesses do not get a clear idea about how much does VoIP phone service costs.

If an upgrade is needed, consider the potential costs, the upgrades may sometimes be necessary and you need to take into account that they vary as per the internet service provider and the plan you opt for. Upgrading your network is an additional cost of VoIP for small businesses that businesses may not initially account for, but it’s necessary to ensure the system runs smoothly.

Taxes and Fees

The hidden nature of taxes and fees makes it harder for businesses to get a clear picture of how much does VoIP phone service costs. When it comes to taxes and fees traditional landline and VoIP phone systems are the same. VoIP systems are also subjected to different types of taxes and fees which include federal, state, and local taxes along with regulatory fees. It is important to note that taxes and fees vary as per geographical location which makes it crucial to understand the tax that is applicable in your area. According to phone system consultants, it’s not uncommon to pay taxes ranging from 20% to 30%.  

The tax rates and fees vary between geographical locations, making it imperative to understand the applicable taxes in your area. Phone system consultants say paying between 20% and 30% in taxes isn’t unheard of. You need to keep in mind that VoIP tax rates differ based on location and are mainly influenced by where the business is situated and the phone numbers being used.

Additional Features or Add-Ons

Many VoIP providers offer customers the ability to buy their basic service with the option of adding additional features or add-ons such as advanced analytics, call center capabilities, extra lines, or premium customer support for an added charge.

To understand how much does VoIP phone service costs, you need to review a plan to understand what is included in the standard package. Decide which additional features your business will require. Knowing the VoIP phone cost of add-ons will avoid any surprises or unexpected charges.

Integrations

You will likely have to move to a costlier package if you’re looking to integrate your new system with existing business tools, such as a CRM application, or if you need a functionality similar to an AI.

The cost of integration with your current business tools to be connected via the VoIP system should also be taken into account. If you really need some advanced capabilities, then that would be something you’ll have to add when calculating the overall VoIP phone cost. At times integrations make VoIP phone costs even more expensive making it complex to understand how much does VoIP phone service costs.

Why VoIP Is Worth It In Cost

Upfront Savings

The cost of VoIP for small businesses is something through which you save a lot of money. In VoIP systems, there are very few requirements for hardware purchase, fewer setup fees along no expensive installation. It reduces the cost of VoIP for small businesses significantly as compared to traditional landline phone service. Switching to VoIP businesses can save as 60% in telecommunications costs.

Team Productivity

Apart from upfront saving in VoIP phone system it also helps in increasing team productivity. VoIP systems offer a plethora of advanced features that ensure better collaboration and cooperation among teams. Whether in the office or working remotely, team members can easily share files, collaborate, and exchange information.

Quality of Service 

The VoIP phone system quality mainly depends on the stability of your internet connection. There are providers who offer facilities such as HD call and video quality to ensure clear communication that is as good as or even better than traditional landline phones.

Advanced Features

VoIP phone systems offer a wide array of features that improve team productivity as well as collaboration. VoIP offers you a lot more than traditional landlines. The features offered by VoIP include call forwarding, voicemail transcription, video conferencing, mobile integration, call analytics, auto Responses, IVR, and a lot more without any additional need for hardware or services. 

Uptime

Phone outages are considered an unavoidable part of business operations.  But with VoIP system not you can count on exceptional uptime. Providers such as Emitrr offer 99.999% uptime meaning your phone system will experience less than six minutes of downtime each year. This level of reliability ensures that your business runs smoothly without interruptions.

Increased Business Continuity

VoIP systems contribute much to business continuity due to the fact that they are more reliable communication systems. VoIP systems are less likely to be out of order as compared to traditional phone lines. VoIP has advanced features including automatic call forwarding, and voicemail-to-email, voicemail-to-text, as well as advanced integration and features for team collaboration that allows employees to stay connected irrespective of their location. Through minimizing the chances of interruptions, productivity can be maintained in the business for proper service to the customer and smooth operation.

More Operational Flexibility

What VoIP introduces to businesses is an increase in operational flexibility: it enables employees to work almost anywhere. Unlike old classical telephone systems, which have a tendency to be attached to a single location, VoIP lets the user receive and make calls on all sorts of devices. Such flexibility is very helpful in remote and hybrid work arrangements so that team members can easily collaborate without location difficulties. Companies then adjust quite fast to new workforce patterns while saving overhead costs from offices.

Why is Emitrr the Most Cost-Effective VoIP Platform

Emitrr stands out among the rest mainly because of its comprehensive pricing structure that eliminates any chance of hidden costs which is generally related to other VoIP phone systems. Here are the reasons why Emitrr is the best choice for businesses – 

• Emitrr VoIP plan starts at $30 per month per user through which businesses can enjoy a predictable monthly cost without any surprising or unexpected charges which in turn makes their budget management easier and smooth.
  
• Emitrr tailors the cost of VoIP for small businesses to match the specific needs of each business size.
  
• The platform also offers numerous features at a very cost-effective pricing to improve functionality without any extra need of services which helps in overall cost savings.
  
• The intuitive interface and easy setup process of Emitrr minimize extensive training or technical support requirements and thus lower operational costs.
  
• Businesses can easily adopt the system without significant onboarding or implementation expenses.
  
• Moreover, Emitrr comes with great reliability and guarantees a 99.99% uptime, which helps you keep your phone system running almost always, ensuring that you are connected to your customers without interruptions.

Emitrr is a pocket-friendly VoIP system that offers a wide range of features without breaking the bank, Here are some robust suites of features offered by Emitrr that enhance communication and collaboration –

Easily Add Numbers, Teams, or Locations

With Emitrr, scaling your business is effortless and is a matter of just a few clicks. You can easily add new phone numbers, create teams, or establish additional locations without any hassle. This feature supports business growth by enabling you to expand your communication capabilities as your business needs evolve.

Advanced Call Routing/Trees and Queues

Emitrr facilitates great customer service by offering various call routing options, call trees, and call queues. It directs customer calls to the proper department or person in an effective manner that in turn reduces the wait times and improves overall customer experience.

Call Recording and Monitoring

Emitrr also offers the capability to record calls that help businesses monitor call quality. It plays an important role in supporting training and ensuring the company meets quality standards. This also allows teams to review calls for performance evaluation and improvement.

Missed Call-to-Text Capabilities

With Emitrr say no to missed calls as Emitrr equips you with the capability to send text messages every time you miss a call. This ensures you can follow up promptly which also results in enhancing customer satisfaction.

Advanced Analytics

Emitrr provides a strong analytics feature for tracking key performance metrics such as average handle time, average response time, and missed calls by day and hour. This sort of data enables businesses to identify trends, measure performance, and make better decisions. It also helps to improve both customer service and operational efficiency.

Text, Webchat, and Automation

Emitrr is known for going beyond other VoIP phone systems as it excels when it comes to automation, texting capabilities, webchat, and a lot more. These features are crucial for a business to keep its customers engaged through their preferred method of communication. 

Integration with 1000+ Business Software

Emitrr goes well with others which means it integrates seamlessly with your existing software such as CMS, EMR, etc. This seamless integration facilitates smooth operations of businesses as they need not juggle between multiple platforms and all the customer data is readily available at one central platform. 

The system supports extensions that allow internal team members to communicate easily with direct-dial capabilities. This feature streamlines communication within the organization, enabling quick connections between colleagues.

Call Pop Feature

The call pop feature comes in handy while communicating with customers as it ensures that you have all the customer information available as soon as you receive a call. This capability not only reduces the call time but also helps your business to offer personalized services to the customers. 

Auto Responses

The auto-response feature offered by Emitrr that customers call does not go unattended. It sends a message to the customer every time you miss a call guiding them or asking for further assistance. You can also set it up in a way where it can send an automated message acknowledging the missed call. It further provides the next step which helps in ensuring that the customers are being heard even when there is no one available. 

Smarter Workflows and Automation 

Emitrr and automation go hand in hand, from sending automated text messages to sending automated reminders everything can be done in just a few clicks. The automation offered can also reduce the daily manual tasks. The automation allows employees to work on other important tasks making the workflow more efficient. 

For more detailed insights, you can check out this YouTube video –

Frequently Asked Questions

Conclusion

Switching to a VoIP phone system is indeed a smart move towards transforming your business communication to fulfill today’s modern customer needs. It is an investment as well as a cost. VoIP pricing does not have to be complex, all you need to do is to identify the needs of your business, customers, and where your business is heading shortly. 

Yes, every business looks for an ideal VoIP platform but ends up hustling between the multiple software but with Emitrr by your side, you can transform the way of communication effortlessly. You can opt for a centralized communication platform like Emitrr. Through Emitrr, businesses can stay abreast and interact with customers, respond to changing demands, and spur growth without the extra burdens of high costs. Interested to change the way you communicate!! Then book a demo now!!