All about how much a VoIP phone system costs. Two main options are hosted and on-site. One costs way more than the other. Find out why.
VoIP, also known as Voice Over IP, allows you to send and receive calls over the Internet rather than through a traditional landline. In order to deliver this phone system to their customers, VoIP providers use a PBX or Public Branch Exchange. A PBX manages your VoIP service, routes your calls and allows you to personalize the service to your specific needs.
VoIP Phone System Cost
The main advantage to switching to a VoIP phone system is price. VoIP provides cheaper local and international calls than a traditional phone line and there is much less hardware involved.
If you’re interested in setting up a VoIP phone system, the first step is deciding which type of PBX would work best for you.
A Hosted PBX Service leaves the work to your VoIP provider. This option saves you from having to purchase and manage your own PBX system. With this option, your VoIP provider securely manages your PBX from a remote location.
- There are a variety of plans are on the market including bundle packages, unlimited plans and monthly rate. The price can range from $14.99 and up depending on which service and features work best for you.
An On-Site PBX Service requires a little more work since it will need to be maintained in-house.
- This option costs roughly $5,000 for the initial installation and equipment. You’ll also need to account for continual maintenance and operation of the PBX system.
When making the decision to switch to an VoIP phone system, there are a few other costs to keep in mind.
- Remember, a VoIP phone system is completely dependent on reliable Internet service. Make sure that your service and Internet technology (routers) can handle this type of telephony system.
- Not all phones are created equal. Make sure that your phones are equipped for VoIP calls. If not, you’ll need to factor the price of replacement phones into your start-up costs.
As cloud technology expands even further, it’s easy to see that an VoIP phone service is the wave of the future. It is an extremely cost-effective, secure and reliable telephony solution for homes and businesses of all sizes.