How much does VoIP service cost?
If you know anyone who’s still using a landline or an on-premise phone system for their business, the first question that will (or should) probably come to your mind is "Why?"
After all, they’re paying more for a less effective product—there are better options, where they’re a small to mid-sized business,
There are secure, reliable, and cheap VoIP services out there—that are infinitely better than old-school phone systems
It’s not a question of which one is better (traditional vs VoIP) anymore. What they should be asking are two simple questions:
- How much would it cost to move to a VoIP phone system?
- How much would it cost in the long run?
Do you know the answers? Let’s find out.
How much does VoIP cost?
VoIP costing is divided into two stages:
- Costs during installation
- Costs after installation
During the VoIP installation stage
There’s a kind of stigma that comes with the word “installation.” For a lot of people, this is when you’d have to spend a lot of money for hardware and equipment or software with licenses—in many office-related systems, you’d have to spend for both
The old days of on-premise phone systems
There’s a reason why you’ll usually see only big companies and corporations using on-premise VoIP phone systems. We’re talking about multiple bulky servers, PBX boxes— and a lot of wires.
Then there are the people needed to actually install it. You can’t do it by yourself, so you’ve got to hire experts to do it for you. Which means spending even more money.
You haven’t used the phone system yet, and you’ve already spent thousands of dollars.
Moving to the cloud
The good news? That doesn’t have to be a thing anymore. The best VoIP phone systems are cloud-based, meaning the service is hosted in a secure data center by the provider, and can be delivered to your company via the internet.
You don’t have to buy any hardware or equipment—the VoIP provider takes care of all that. All you need is a stable internet connection.
Factors to consider during the installation stage of VoIP
The truth is that “installing” a hosted VoIP phone system is almost entirely free. Anything you might have to pay for isn’t really for installation. They’re for add-ons like phone numbers and VoIP phones.
To help you understand the potential costs, here are some of the things you need to consider when installing voice over IP technology.
Do I have to pay for phone numbers?
Most providers give you a free local or toll-free number when you sign up for their VoIP phone system. If you want more business phone numbers, you’ll have to buy them (which you can usually do anytime from your VoIP account). These are normally charged per month, and will be included on your monthly bill.
If you have an existing phone number, you can also port or transfer it to your new VoIP phone system—free of charge. You can ask your provider about their number porting process.
How much is the actual installation?
Well, it’s free because (again) there’s no actual “installation” that needs to happen. The entire process goes like this:
- Sign up
- The VoIP phone system is activated
- The end
Yep, you read that right. It’s that simple.
Once your account is activated, all the features included in your VoIP plan are activated too. Now you can start configuring the system based on how you want it to work.
What you’ll mainly spend money on will be towards making sure you have an internet connection stable enough to handle the number of VoIP users in your company.
Building a robust company local area network (LAN) can really help you manage VoIP traffic better in your physical office. (But you should invest in that regardless of whether you’re getting VoIP or not.)
You may also want to invest in QoS (quality of service) routers, which are routers you can set to prioritize VoIP calls over other internet traffic like downloads and streaming. This is optional, though.
Do I need to hire someone to set up and configure the service?
You don’t need an expert to set up and configure your VoIP phone system (or at least, you shouldn’t). In fact, you don’t need any special IT skills. You can simply go to your online account’s dashboard to set it up. You can even grant administrator privileges to trusted employees so they can help you.
From your admin dashboard, you can do things like:
- Set up how your auto-attendant answers and directs calls
- Set company greetings
- Add, delete, and assign phone numbers and virtual extensions to people or departments
- Define the roles and permissions of each user
You can do even more from the dashboard, depending on your provider and account.
Top VoIP providers will go the extra mile—they’ll typically also help new customers set the system for no extra charge. So, if you need a walkthrough, contact your provider and they should be happy to help.
Do I need a special phone for VoIP?
Nope! VoIP phone systems will work on your laptop or mobile device. You just need to download the softphone app and install it on your computer or smartphone.
But if you’re looking for something a little fancier, there are devices that are specially designed to enhance the VoIP experience. The cost can range from as low as US$60 to as high as US$1,000, depending on the features. The most popular brands are Polycom, Cisco, and Yealink.
There are different types that you can choose from like:
- Desk IP phones – They look like regular phones but are actually special computers that help you make VoIP calls. The best ones support HD call quality, and some even have LCD screens for special functions like caller ID. If you want the familiarity of regular landlines while getting the best VoIP experience, then you should look into getting desk IP phones.
- Conference phones – Also called starfish phones because of their shape, these are VoIP phones with a speaker and a mic with a large area of audio pick up. These phones are perfect for facilitating conference calls.
- Receptionist IP phones – These are desk IP phones with an attached module used for easy manual routing of calls.
As you can see, you’re basically getting your VoIP phone system installed for free—all you need to pay for are additional phone numbers, VoIP devices, and a stable internet connection
The VoIP post-installation stage
Once your VoIP phone system is installed and configured, it’s time to use it. Because VoIP servies are usually subscription-based, you’ll be charged a regular fee until you decide to cancel.
Depending on your provider and the plan you choose, you can be billed monthly, quarterly, bi-annually, or annually.
(Most subscribers choose a per-month bill for budget flexibility.)
How much is VoIP monthly?
One thing you should know is that most VoIP providers charge on a per-user per-month basis instead of charging you for the collective minutes spent by your whole business.
On average, the monthly per-user charge is around $25. This normally includes unlimited outbound calling (U.S. and Canada), toll-free minutes, and basic features like auto-attendant, call forwarding, call screening, and caller ID.
Aside from the features above, RingCentral has plans that include unlimited business SMS, virtual fax, and video meetings. Higher tiered plans have even more toll-free minutes, a higher number of allowed video conference participants, and additional features like automatic call recording and single sign-on (SSO).
How much are long-distance call charges?
Most VoIP providers offer unlimited calling across the U.S. and Canada at no extra charge. For businesses that make a lot of outbound calls, this is pretty much a must-have. That’s especially important because traditional carriers automatically charge you long-distance fees when calling phone numbers with different area codes. Voice over IP nips that in the bud.
But what if you’re calling outside those countries?
Like regular carriers, VoIP providers have international rates. However, VoIP international call rates are typically lower.
Basically, with VoIP:
- calls within the U.S. and Canada are considered local calls
- calls outside the U.S. and Canada are still considered international calls, but the rates are dramatically lower
RingCentral has different international calling plans you can choose from. You can pay-as-you-go with international call credit bundles, or get an unlimited international call plan if you’re always calling outside the U.S. and Canada.
What are toll-free minutes?
If you plan to build a national presence, a toll-free number is a must.
Toll-free numbers are phone numbers with distinct three-digit prefixes (800, 888, 877, 866, 855, and 844) that anyone in the U.S. and Canada can dial without being charged for the call. This allows your business to be accessible to almost anyone for free (on the part of the caller, at least).
This is, of course, where toll-free minutes come in. You usually have an allotted number of toll-free minutes per month included on your VoIP plan. Toll-free calls are automatically deducted from these. When you exceed the allotted minutes, you’ll be charged accordingly.
RingCentral has affordable high-volume toll-free minute bundles that you can purchase on top of the toll-free minutes included in your subscription plan. You can change your bundle anytime to meet your business needs.
What is the cost of getting technical support?
With traditional on-premise systems, repair and maintenance requires expensive expert help. You can either hire a full-time team or you can hire contractors, but either way, you’ll be spending thousands of dollars per year. That doesn’t even include the hardware (parts and replacements) and software (new upgrades and updates) needed by the system.
With VoIP, the management and maintenance of the system falls on the provider, not you. This includes all updates and upgrades, which will automatically be rolled out to all customers at the same time. In other words: no extra fees.
When you encounter a problem, just call your VoIP provider to get help from their expert technical support rep for free.
Basically, you can use the service without worrying about having to deal with technical issues— you can always get help from your provider.
RingCentral has an award-winning customer support team that you can call 24/7. And it’s not just for technical issues; you can also ask about best-practice recommendations for your VoIP phone system.
How much does a VoIP service cost?
It varies by provider, but the structure is usually similar. Let’s take RingCentral as an example. It would depend on:
- the plan you choose
- the number of telephone numbers you got
- the VoIP phones you bought or rented, and
- the toll-free minutes you need
Let’s see how this works out.
Say you’re a 10-user company. You need two toll-free company phone numbers, but you don’t need VoIP phones for them (since they can just use the RingCentral app on their cell phones). Let’s say you chose RingCentral Standard and need 2,000 toll-free minutes per month. How much would you spend monthly?
| Cost | Quantity | Price per item | Total |
|---|---|---|---|
| RingCentral Standard Plan | Quantity10 users | Price per item$34.99 per user | Total$349.90 |
| Toll-free numbers | Quantity2 telephone numbers | Price per item1st telephone number = free 2nd telephone number = $4.99/month |
Total$4.99 |
| Softphone | Quantity10 users | Price per itemRingCentral app is free | TotalFree |
| Toll-free minutes | Quantity2,000 minutes | Price per item1st 1000 minutes = included in the monthly fee 2nd 1000 minutes = $29.99 per month |
Total$29.99 |
| Total cost per month | $384.88 |
As you can see, you’ll only be spending $384.88 per month to equip your 10 employees with an industry-leading VoIP phone system
Compared to on-premise systems, which would cost thousands of dollars to set up and a couple of hundred more to maintain each month, you’re getting a lot more bang for your buck.
What are you getting with RingCentral?
When you subscribe to RingCentral, you get a secure and reliable cloud communications solution that includes enterprise-grade VoIP, cloud PBX, business texting, internet fax, online meetings, and over 50 other communications and collaboration features.
Try it out with a free trial and get a free local or toll-free number—no installation fees. Just subscribe, then use!
RingCentral MVP™* plans for your small business
PAY ANNUALLY AND SAVE UP TO 33%.
- No limit on number of users
- Business phone numbers in over 100 countries
- Unlimited internet fax
- Unlimited audio conferencing
- Video meetings with up to 100 participants
- Up to 24-hour meeting duration
- Quality-of-service reports
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Popular integrations including
Office 365, Google Workspace, Slack,
and more - 24/7 support
- Device status reports
- Device status alerts
- Unlimited storage***
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Pricing
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Annually: $19.99/user/mo
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One phone number for calling, team messaging, and video
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Each user gets a dedicated phone number at no additional cost. Essentials edition doesn't include video meetings.
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Inbound Toll-free minutes
Toll-free minutes are per account regardless of number of lines. Additional minutes are always available for automatic purchase, which bill at 3.9¢/min.
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In addition to unlimited outbound calling minutes, every account gets a set number of toll-free minutes for inbound calls. You can transfer an existing toll-free number or get a new one.
The number of inbound calling toll-free minutes per account is shown in the chart on the right. Additional minutes are always available for automatic purchase, which bill at 3.9¢/min. There are also bundled offers available that can reduce the cost to 1.9¢/min.
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Unlimited calling/phone calls within the US and CA. Plus, choose from affordable and convenient international calling plans that fit your business. Terms and conditions may apply.
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Mobile apps for iOS and Android
Whether you're an Apple or Android user, you can use your smartphones and tablets to make and receive calls, join and host meetings,
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Call log reports
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Administrators can add Video Pro and Video Pro+ users from within MVP.
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Unlimited internet fax
Send and receive faxes from your computer, mobile device, Microsoft Outlook, cloud storage providers (such as Dropbox), and more.
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Host an unlimited number of audio conference calls, with up to 1,000 attendees per conference. Each user gets unique host and participant access codes.
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Hold video meetings with screen sharing, in-meeting public and private chat capabilities—anytime, anywhere, on any device.
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RingCentral delivers crystal-clear HD quality video and voice.
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Quality-of-service reports
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24/7 support
Unlimited chat and phone support.
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Multi-level auto attendant
Answer callers automatically with customized greetings, and ensure every call is directed to the right employee or department.
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Auto-attendant is a virtual receptionist service that greets your callers and routes them to employees, departments, or to any phone in the world (i.e. an employee's mobile phone, an office deskphone, or a virtual phone on the RingCentral app).
With the multi-level auto attendant feature, you can create rules to handle incoming calls for multiple office locations or language selections. For example:
“Press 1 for our New York office. 2 for Chicago office. 3 for Los Angeles office.” OR
“Press 1 for English. Marque 2 para Español.”
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Call recording
Automatic call recording: Set your RingCentral phone system to automatically record inbound and outbound calls for individual users or inbound calls for departments.
On-demand call recording: Allows Users to manually record phone calls anytime using an IP Phone provisioned with RingCentral, Forwarding Number, or RingCentral Phone for Mobile.
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Turn any space into a conference room.
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Hot desking
Allows users to log in to shared phones to access their own RingCentral extensions, voicemail and greetings, and other features.
Hot desking lets employees share office desk phones while keeping their separate extensions, greetings and voicemail access.
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Advanced call management controls (monitor, whisper, barge, takeover) to allow authorized users to listen in on employee calls with clients to monitor the conversation, provide coaching, and facilitate discussion.
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Real-time analytics
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Bring the functions and features of RingCentral MVP into your business apps such as Salesforce, Zendesk, Microsoft Dynamics, ServiceNow, etc.
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Industry-specific integrations with Canvas, Smarsh, and more
Bring the functions and features of RingCentral MVP into your vertical's business apps such as Canvas, Smarsh, etc.
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Developer platform and custom integrations
RingCentral APIs let you create your own custom applications and seamlessly integrate business communications into your key business processes, so you can automate workflows, drive efficiency, and gain valuable
insight from communications data.
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Device status reports
Monitor hard phone registration status globally and gain visibility into your devices' history.
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Device status alerts
Set up automated monitoring rules and receive notifications when devices are offline.
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Unlimited storage***
Store an unlimited* amount of documents, spreadsheets, presentation files, contracts,
invoices, images, videos, and recordings.
*Retention period applies.
Store an unlimited* amount of content within your RingCentral app. This could be documents, spreadsheets, presentation files, contracts, invoices, images, or videos that you send as attachments within messages; or these could be the recordings of your video meetings.
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