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SubscribeVoIP is a modern phone system that helps businesses save tons of money compared to old and legacy telephone systems. It’s one of the biggest reasons behind its growing popularity, compelling even small businesses to migrate from their traditional systems.
In this blog, we will walk you through the cost of setting up a VoIP system and everything you need to know regarding the same.
What is a VoIP Phone System?
VoIP stands for Voice Over Internet Protocol- it is a set of standards for making voice-based phone calls via the internet rather than through a local telecom service provider.
VoIP requires a SIP-compatible desk phone or a VoIP calling app with an IP address that allows users to make calls from your network. They can make high-definition (HD) phone calls, unlike landline telephones.
Recommended Read: All You Need to Know About VoIP Phone Systems: A Complete Guide
How Much Does a VoIP Phone System Cost?
A VoIP phone system typically costs between $100 and $500 per extension. Monthly expenditures, including maintenance and service fees, usually range from $10 to $25 per extension.
However, please note that VoIP costs per minute vary, as they do with many other IT solutions. VoIP packages often have two price models, depending on your VoIP provider: a monthly line rental fee and usage fees. In other words, you will pay a monthly VoIP cost to use your provider’s services, and you may incur additional charges for outgoing calls. Some service providers provide call packages that include a set amount of minutes or even unlimited calls for a monthly charge.
The Cost of New VoIP Phone Equipment
Among all US households in 2018, 92% had at least one sort of computer, and 85% had access to high-speed internet.
Assuming that every premise today, be it a household or an office, has a desktop or a laptop, there is usually no requirement to buy a new phone for VoIP.
If you need to install new VoIP desktop phones, expect to pay between $100 and $200 per phone. Installation and configuration typically cost a labor and professional services fee of $25 to $50 per phone.
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How Much Does the Installation Cost?
If you are wondering how much the installation costs, it’s not a dime. It’s free since there’s no actual “installation” to be done. The entire procedure is as follows:
- You Register
- The VoIP phone system gets activated.
All of the features included in your VoIP plan are activated once your account is verified. You can then begin setting the system according to your preferences.
The actual money you’ll spend will only ensure that your internet connection is stable enough to manage the number of calls you make and receive in your organization. If you build a solid enterprise, a Local Area Network (LAN) can significantly improve the management of VoIP traffic in your shared workspace.
Cost and Benefits of VoIP for Small Businesses
Small businesses benefit from VoIP because it’s a low-cost method of communication.
You can easily add or remove lines and you will be invoiced accordingly.
From functionality to accessibility, VoIP reigns supreme. The VoIP phone system cost benefits alone are enough to make you choose VoIP over legacy phone systems for your small business. Still, let’s dive a little deeper. Here are the advantages that VoIP provides for small and medium-scale businesses:
- Cost-effective: One of the main benefits of VoIP is that it doesn’t demand any gear or maintenance from the customers. Therefore, the investment in VoIP cost is reduced drastically.
- Versatility: A softphone that works through your desktop or laptop can also be used with VoIP. Since a virtual phone system does not require any hardware, you can acquire high-quality software at a lesser price.
- Seamless: Long-distance and international calls are free of charge because they are made over the internet.
- Enhanced Communication: VoIP phone systems come with cutting-edge attributes such as instant messaging, video conferencing, and call forwarding, which help to enhance communication and cooperation within a small business. Furthermore, embracing this technology can facilitate your business operations, improve interaction and cooperation, and remain ahead of the competition.
- Improved Mobility: With VoIP, employees can receive and make calls from anywhere with a steady internet connection, improving the mobility and adaptability of the workforce. In addition, you only need to pay for the hardware, software, and internet access, and there are no monthly expenses for regional and long-distance calls.
- State-of-the-art features: VoIP phone systems offer cutting-edge features such as call recording, call forwarding, and conferencing, allowing you to enhance your business operations. Besides, the exceptional scalability that this phone system provides makes it an ideal solution for thriving small businesses. And VoIP technology decreases the quantity of hardware needed, lowering your carbon footprint and helping to safeguard the environment.
- Increased Security: VoIP phone systems are exceptionally secure, using encryption and other safety standards to safeguard your data and confidential data. Furthermore, one of VoIP’s most significant security advantages is data encryption during transmission, where all voice data is encrypted to safeguard it from hackers and unauthorized users. It implies that even if any person blocks the transmission, they will not be able to comprehend the data
- Smooth Integration: VoIP (Voice over Internet Protocol) technology has transformed how companies communicate and become an integral tool for modern companies. VoIP can be integrated with other tools and applications, such as project management applications and customer relationship management (CRM) software. It assists in streamlining business processes, boosting efficiency, and improving productivity.
Hence it is pretty evident that VoIP is the best option for small-scale businesses, especially from the business VoIP pricing point of view.
Recommended Read: 13 VoIP Benefits for Small And Large Businesses
Factors That Can Affect Your VoIP Implementation Costs
Below are some factors that influence your VoIP implementation costs.
Number of users
Rather than levying a rental cost for each user profile on a VoIP system using a VOIP cost calculator, most VoIP providers charge based on the number of lines available at any given time. Hence it is one of the key factors that affect VoIP implementation costs.
Agreement duration
While VoIP costs are usually settled every month, the chance of locking into an agreement exists for conventional telephone systems. And in such cases, entering an agreement for a longer duration, such as 24 or 36 months, can lower your VoIP implementation costs.
The Bottom Line: The Costs of Upgrading Your VoIP Phone System
It is essential to understand that virtual phones are the future of commercial telephony. You must use all the capabilities a VoIP phone system has to offer whether you’re a small or large business.
A VoIP system’s total cost is significantly lower than a conventional analog PBX system. It also has a streamlined cost structure that is substantially less expensive for most businesses.
Moreover, choosing a low-cost VoIP partner is necessary to attain a low-cost framework. If you want desired services at reasonable prices, you must choose the right service partner.
