VoIP Phone System Cost: Things You Need And What You Don’t

There are several things that you need for a VoIP phone system and some you do not. Here’s a breakdown on VoIP phone system costs.

As globalization and the world economy booms, communication has become a top priority for many businesses. The rise of the internet has brought us VoIP which has become an integral part of our daily lives.

VoIP streamlines the communication process so interactions are more convenient and consumer friendly. According to a Future Market Insights report, the revenue from VoIP subscribers is predicted to increase to $204 billion by 2020.

These systems offer businesses cost-efficient options and updated software so they have an appropriate channel of communications.

There’s an overload of VoIP services and it can feel overwhelming finding a cost-effective service. If you want to know the breakdown of the VoIP phone system cost, read on.

What Is a VoIP Phone System?

VoIP stands for ‘voice over internet protocol’. Instead of using a traditional telephone system, voice communications are sent via the same network as your Internet.

Voice over IP converts voice, an analog signal format, into small-sized digital IP packets which are sent via the Internet to the receiver. Before reaching the final destination, the system reconverts these digital IP packets into analog signals (aka. your voice).

As businesses aren’t limited by traditional phone lines, it’s more economical to choose a VoIP phone for cheap. VoIP services cost between $25 and $40 per user per month depending on the number of users, onetime hardware costs and any extra network enhancements.

Benefits of a VoIP Phone System

There are many advantages for implementing a cheap VoIP phone service into your business, consider:

Cost deduction: compared to traditional phone networks, VoIP cuts down the cost of calling. VoIP services use a cloud-based voice technology with large-scale efficiencies as opposed to a legacy phone system.
Convergence: VoIP converges voice, data, and video through the Internet which is useful for representatives away from the office.

Efficiency: As VoIP uses packet switching instead of circuit switching, the process becomes far more streamlined. This helps boost businesses productivity as communication is far clearer.
Flexibility: This key technology lets you use VoIP services across the globe regardless of the networks you are connected to. Flexibility is crucial for remote staff who work on the road or from home.Remote employees can use their laptop and headset as long as they have a reliable Internet connection which will save the company long distance charges.
Access to More Features: You get access to more free features than a traditional phone line. For example, call forwarding and three-way calling are possible using a VoIP service at no extra charge.

What to Look for In Low-Cost VoIP Systems

To help you connect with a suitable VoIP provider, there are a few features to consider:

Automated Attendant: An auto-attendant answers and transfers callers to the right department which will increase the chances of good customer experience.
Call Forwarding: This phone feature ensures a customer’s call never goes unanswered. Inbound calls are redirected to another designated phone or another answering service.
Call Recording: Business owners can record calls for training and quality assurance purposes. Companies that take an influx of customer calls will enjoy this feature.
Call Hold and Transfer: Most VoIP providers offer this feature. When a caller is put on hold, users can transfer them to another extension or phone number.
Conference Bridge: Businesses can use this to hold meetings with hundreds of participants via a computer or smartphone. This feature is useful for those in sales who often make multi-person calls.

For an in inexpensive VoIP service, choose a Basic plan and see how many users are covered. For example, a small business with 1-4 users will cost $35 per user per month. For larger businesses for over 100 users, businesses will pay $24 per user per month, as it’s cheaper to connect a larger group of employees.

VoIP Cost Factors

Before transitioning to a low-cost VoIP provider, these factors will affect the overall price:

VoIP Hosting Costs: Buying a hosted VoIP costs $20 per user as opposed to hosting your own which can cost $500 – $1,000 per user.
VoIP Setup Costs: One-time setup costs can include installation and training depending on the provider. There are many providers who set up for free.
VoIP Costs Per User: Consider how many employees need to be wired up as VoIP services base their per-user costs on the total number of employees at a business.

Features You Don’t Need in VoIP

If you’re after a VoIP phone cheapest, businesses should forgo these services:

Hot Desking: This lets users log into a shared desk phone to access personalized profiles and settings. Employees can access their own voicemail and other VoIP features from office phones without investing in new hardware. Costs around $15 per user per month.
Barge Monitor Whisper: This add-on lets office managers and supervisors track employee phone conversations. Costs around $10 per user per month.
Call Queuing: Businesses can place their callers in a queue while employees are busy with other calls. Costs around $55 per user per month.
4-Line Appearance: With this feature, you can handle 4 calls at once. Costs around $15 per user per month.
Virtual Extension: This feature is useful for information-only mailbox announcements such as addresses, driving directions and business hours. Costs around $20 per user per month.
Additional Ring Groups: Teams or departments can share the distribution of incoming calls to streamline the process. Basic packages already have several ring groups included, so this is for larger companies. Costs around $15 per user per month.
Switchboard: This software improves live call handling and lets team leaders see the presence of each employee. Costs around $20 per user per month.

Now Do You Know How Much Your VoIP Phone System Costs?

VoIP systems have a lower cost for businesses and they offer a versatility that traditional phone systems can’t. It’s important to understand how much a VoIP phone system costs to ensure VoIP features align with your business’s needs.

You need to find the right provider so you can enjoy good, reliable service without breaking the bank.

If you are looking for a cheap VoIP service, we’d love to hear from you. Click Below for more information.

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