Office phone system prices – complete average costs guide

Selecting the right office phone system is crucial for ensuring seamless business communication. It’s not just about making and receiving calls anymore; modern phone systems integrate with customer relationship management software, offer video conferencing, and include powerful call analytics. As the features of these systems expand, understanding their pricing structures becomes increasingly important. Here’s an ultimate guide on office phone system prices for your business.

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Types of phone systems

Traditional landline

Traditional landlines, also known as PSTN (Public Switched Telephone Network), involve copper wiring infrastructure and legacy technology. These systems offer reliability but lack the advanced features of modern systems. Pricing includes the initial installation and monthly line rental fees. Costs can range from £20 to £60 per user per month.

VoIP (voice over internet protocol)

VoIP systems rely on internet connectivity, converting audio signals into data packets. They offer advanced features and greater flexibility at lower costs than traditional landlines. You can choose between on-premise and cloud-hosted VoIP:

  • On-premise VoIP: Initial costs can be high due to the purchase of equipment, with setup fees between £1000 to £5000. Maintenance and support are ongoing expenses. Per-user licensing fees are usually £20 to £40 per month.
  • Cloud-hosted VoIP: Providers manage the system off-site, reducing your upfront investment. Pricing ranges from £10 to £30 per user per month, depending on features. Additional expenses include internet bandwidth and compatible handsets.

Virtual phone systems

Virtual phone systems are designed for remote businesses or freelancers who only need call forwarding and minimal features. They cost around £10 to £20 per user per month. These systems often integrate with existing mobile or home phones.

Average prices explained

Phone System TypeInitial CostsMonthly Costs per UserKey Features
Traditional Landline£100 – £500 (installation fees)£20 – £60Reliable connectivity, basic calling features
On-Premise VoIP£1000 – £5000 (equipment purchase)£20 – £40Advanced call routing, integration with CRM, requires in-house IT support
Cloud-Hosted VoIP£0 – £200 (minimal equipment)£10 – £30Auto-attendant, conferencing, scalable, remote management
Virtual Phone Systems£0 (no special equipment required)£10 – £20Call forwarding, voicemail to email, suitable for freelancers
Additional CostsVariableIP Phones (£50 – £300), headsets (£20 – £100), conference equipment (£100 – £500)


  • The prices mentioned above are indicative and may vary based on providers, feature sets, and contract terms.
  • Traditional landline systems are often phased out for businesses seeking modern features.
  • Cloud-hosted VoIP offers flexibility and scalability for growing businesses without significant upfront investments.
  • Be sure to factor in the need for high-speed internet connectivity for VoIP systems.

Factors affecting prices

Features and integrations

Advanced features like auto-attendants, call analytics, or CRM integrations can increase costs. Assess what features your business needs, balancing functionality and affordability.


Systems that allow seamless scaling as your business grows may cost more initially but offer long-term savings by preventing frequent upgrades.

Maintenance and support

On-premise systems require in-house IT support, while cloud systems provide this through their monthly fees. Additional support services can be charged per hour or included as part of a premium plan.


Handsets, headsets, and conferencing equipment can significantly affect the total cost. For instance, high-quality IP phones cost around £100 to £300 each, while basic handsets may only cost £50.

Contract terms

Monthly and yearly contracts vary in cost. Monthly contracts are more flexible but typically cost more than long-term commitments.

Final thoughts

When evaluating office phone system prices, consider the total cost of ownership, including upfront fees, monthly subscriptions, and maintenance. Make sure the system aligns with your business’s communication needs and growth plans. A well-chosen phone system can enhance productivity and customer satisfaction while offering flexibility and cost savings in the long run.

FAQ – Office phone system prices

Which phone system is the most cost-effective for small businesses?

Cloud-hosted VoIP is often the most cost-effective for small businesses due to its low initial costs and flexible monthly pricing. It also offers advanced features and scalability without significant upfront investments.

What are the hidden costs of an office phone system?

Hidden costs may include additional licensing fees, premium support services, equipment upgrades, increased bandwidth requirements for VoIP, and charges for specialised features like call analytics.

How does contract length affect pricing?

Longer contracts usually offer lower monthly rates, while shorter contracts provide flexibility at a higher cost. Businesses should weigh the benefits of commitment discounts against the need for adaptability.

Do I need to purchase specialised hardware for my office phone system?

It depends on the system. Traditional landlines require specific hardware, and on-premise VoIP systems need compatible handsets and headsets. Cloud-hosted VoIP and virtual systems often integrate with existing devices, but higher-quality IP phones may enhance the overall experience.

What determines the pricing differences between VoIP providers?

Pricing variations arise from differences in features (e.g. video conferencing, call recording, or analytics), the provider’s network quality, customer support services, and the number of users included in each plan.

How does the size of my business impact costs?

Larger businesses can often secure discounts based on bulk licensing. However, their costs may also rise due to the need for extra features like auto-attendants or integration with CRM systems.

Are there any ongoing maintenance costs for office phone systems?

For on-premise VoIP systems, businesses may incur ongoing maintenance costs for hardware and software. Cloud-hosted systems generally include maintenance in monthly fees, while traditional landlines might require additional charges for technical support.

Can office phone systems improve productivity, and is the cost worth it?

Yes, office phone systems can improve productivity through features like call routing, conferencing, and CRM integration, streamlining communication. Investing in a suitable system can enhance customer satisfaction and reduce communication bottlenecks, yielding positive returns in the long term.

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