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Cost comparison of VoIP phone vs traditional phone line

Posted by Amina Addow on Sep 24, 2020 3:06:30 PM
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Cost comparison of VoIP phone vs traditional phone line

Choosing the right type of phone system is a big decision for small businesses, playing a central role in communications. There are two primary formats to choose from: traditional business phone systems or upgrading to Voice Over Internet Protocol (VoIP). We've weighed up the costs of both to allow you to make an informed decision.

The costs of traditional phone systems for business

Traditional phone systems work via a copper wire attached to the premises. Normally the maintenance of this telephony can be costly, if there is a problem with the lines a professional engineer would need to be dispatched. There are a variety of other setup expenses to be considered.

Hardware and equipment

For traditional landlines there are various hardware and equipment required for the setup and use of traditional landlines. Such as handsets, wires, headsets and additional accessories. Furthermore, desk handsets may need additional features such as video screens to switch lines and forward calls.


To install physical lines requires individual wiring each desk phone to the network. The labor costs as well as materials can rack up easily depending on the size of the business. In fact, set-up and installation can set your small business back by £100 via BT and additional charges also incur when opting for an additional line.


Choosing advanced hardware can also further costs onto your business. The maintenance costs relating to telephone systems and wires can cost a considerable amount.

This can also apply for cost of calls and airtime. Traditional phone calls are charged by the minute without a call plan and can lead to very expensive phone bills. International calls can even be more costly that can send your telecom costs higher.

The costs of VoIP phone systems for business

VoIP works by making calls through the internet through a software-based solution. While it does encounter the same costs such as calls and landline minutes. There are various savings that VoIP can bring your business.

Noticeable changes include:

Hardware and Equipment

Hardware is often cheaper as advanced features like conferences and virtual calls can be made via preexisting computers. Calls are also made virtually via app based software or mobile phones meaning that handsets are not needed.


When installing a VoIP phone there is no need for an engineer to visit the property as existing internet lines are used for calls. Opening up to the possibility of remote working and cutting down on office space required to host the phone system. Overall, lowering operating costs when choosing to move business locations.


In addition to the setup of the VoIP phone system your small business can also save money on the subscription. Unlike traditional landlines these software applications use internet lines rather than copper lines. For costs, your business is only charged by the internet provider for bandwidth used rather than minutes or international calls.

In fact,  switching from a landline to VoIP, you can cut your phone bill by more than half. Software updates are often included in the costs of your package, ensuring that maintenance costs remain low as well.

Final thoughts

Overall, VoIP systems are a cost-effective solution for small businesses. From the initial setup fee to hardware, software and service costs. VoIP phone systems offer cost savings and features that can't compete with an traditional phone. This brings additional benefits such as the freedom of remote work and to set up offices internationally while still using a UK number.

VoIP phone systems are versatile and can be used for any industry or business size. However, it's important that the setup and service of your new phone system fits your small business specifically and not go with a one-size fits all approach. 

To find out how much you can save with a VoIP phone system check our packages specifically for small businesses.

Topics: Latest, VoIP

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