How Much Does VoIP Cost? Pricing Guide & Best Providers

Are you switching from a traditional landline to VoIP at your workplace? Well, it’s a good decision. A bundle of benefits of VoIP like mobility, scalability, and good call quality are enough to compel professionals to choose it.

However, before stepping forward, one thing that you can’t ignore is cost. Many professionals are curious to know how much VoIP costs.

You must be familiar with the cost to avail the best value in return to your expenditure. This article will help you to guide well on the same.

How Much Does VoIP Cost?

One thing you must keep in mind is that VoIP costs vary according to the service provider. A common monthly cost is $20 and $40 per user.

Some service providers have a clear cost structure. That means users don’t get confused and pay separately for each service. This is because the cost structure includes softphone functionality, free number porting, installation, and setup.

Several factors decide the VoIP cost depends –

• Price plan and features
• Service provider
• Number of users
• VoIP Hardware
• Calling destinations
• Hidden fees
• Phone number and its type

Below table will introduce you to the VoIP pricing structure.

From the above table, you can easily grab an idea of VoIP rate comparison. This is a complete structure of the cost of different service providers.

How Price Is Decided for VoIP Services?

There is a different and unique cost structure with every VoIP service provider. Any VoIP phone price depends on the subscription plan that you choose. Other variables affect the VoIP phone system cost which are as follows.

• Advance Features
• Phone number
• Monthly VoIP Service Subscription
• Add-Ons
• VoIP Hardware
• International Calling
• Toll-Free and Metered Calling
• Setup and Installation
• Hidden Fees and Taxes

So when the question of how much does VoIP cost is raised. Professionals always need to focus on the above points.

Advanced Features and Communication Channel

It’s simple: the more advanced the features, the higher the price of a VoIP phone system. IVR, call control and voicemail are some of the basic phone system features.

Phone Numbers

There is a local or toll-free number in each VoIP subscription. For the additional virtual phone number, there will be extra charges applied.

Following are VoIP phone number types and their cost

• International numbers – This business phone number is available around the world with an area code. The cost is $5 monthly per number.
• Local or toll-free numbers – This is a domestic business phone number in your chosen area. The cost is $5 monthly per number.
• Vanity numbers – This is a toll-free number that companies use to serve customers’ queries. The cost is $30 monthly per number.

Monthly VoIP Service Subscription

The VoIP subscription is a monthly or annual cost that you pay to your VoIP provider for cloud-hosted VoIP phone service. The average price is $15 to $35 monthly per user. Voicemail, phone service, and routing features are included in a VoIP subscription.

Three factors decide the monthly VoIP subscription cost.

Number of Users: There is an additional subscription fee applicable to every sign-up performed by the user. The per-user subscription cost is reduced with an applicable discount.

Service Provider: Each VoIP provider has a different price range. Some providers offer plans like $10 monthly per user while some offer $50 monthly per user. The higher-price plan includes more features as compared to the low-priced plan.

Annual vs. Monthly Pricing: The monthly subscription fees of VoIP providers are cheaper in the case of annual billing.

Add-Ons

The VoIP subscription costs between $15 to $35 for the small to medium business. Some service providers also provide add-ons that include advanced features and phone numbers. Users need to buy these. The price can range from $5 to $100 monthly, ranging from basic plan to advanced plan.

Phone numbers ($5 to $15 monthly): Purchase additional virtual phone lines for the user.

Calling features ($5 to $15 monthly per feature): Some providers also provide standalone features like auto attendants and call recording.

Software packages ($20 to $100 monthly per package): Some providers also offer add-on advanced software packages like analytics platforms.

VoIP Hardware

Users can opt for VoIP hardware purchasing like conference phones, VoIP desk phones, handsets, or headsets. This hardware makes the calling highly efficient.

International Calling

International calling charges are an extra cost. There is unlimited calling available in most VoIP software subscriptions. The usual international calls cost is $0.03 to $0.07 per minute as per the location of the user.

Toll Free and Metered Calling

Many big enterprises use toll-free numbers. Charges are applicable for international toll-free incoming calls. All the domestic calls are free of cost. Business professionals need to pay for the customer’s international carrier fees. This can double the rates such as $0.03 to $0.07. Metered per-minute calling is applicable in some VoIP plans that cost $0.01 to $0.03 per minute. This cost is even applicable for domestic calls.

Setup and Installation

There are no setup fees or installation fees applicable for VoIP softphone functionality in any company. The setup and installation costs can reach several hundred dollars if you plan to establish an in-person call center.

SIP Trunking: It is applicable when you convert your analog PBX phone system to a virtual PBX system. This makes VoIP calls possible.

In-person hardware call center: In this case, you need to plug the phone into the user’s computer to complete the installation. Establishing an on-premises call center with VoIP hardware costs the sum of all VoIP hardware you purchase.

Hidden Fees & Taxes

Hidden fees are usually applicable in every VoIP, which is usually $10 monthly per user. However, the three most common types of VoIP hidden fees are as follows.

• Electronic 911 (E911) charges
• State sales and service taxes
• Regulatory recovery fees

Hidden VoIP Costs You Should Be Aware Of

Several hidden fees are applicable in addition to the monthly subscription plan billing. Sometimes, the hidden cost may be applicable even to the cheapest VoIP phone service. The following hidden fees are applicable in different forms –

Add-Ons or Additional Features

VoIP service providers provide basic plans with access to limited features. So when the user needs to avail advanced features, upgrading is the only option.

Taxes and Fees

Various taxes and fees apply to VoIP services. It can be a local tax, federal tax, local tax, or regulatory fee. The fees and tax rates depend upon geographical locations. There is a 20% to 30% tax applicable. However, it might vary as per the location.

Network Upgrades

VoIP systems mostly depend on internet bandwidth to provide high-quality calls. When the existing bandwidth is not sufficient, upgrading the package is the right option to choose. However, upgrading the package will also need additional cost.

Integrations

Upgrading of the existing plan is also required when you move for integration with business tools. Always check the integration cost before upgrading.

Different Hidden Fees

911 fees ($5 to $10 monthly per account): VoIP providers can charge for their 911 through emergency 911 fees. The cost is usually $5 and $10 per account.

State-specific sales taxes ($5 to $10 monthly per user): State taxes and fees apply to VoIP services like SIP trunking and business phone systems.

Regulatory recovery fee ($10 to $30 per account): This fee applies to VoIP provider’s government expenses like contributing to the FCC.

What Is the Cost of International VoIP Calls?

There is unlimited calling available in most of the VoIP plans within the USA and Canada. However, charges (on a per-minute basis) are applicable in an international calling. The most popular international destinations usually cost $0.03 per minute to $0.07 per minute. Here is an international calling cost.

• India: $0.04 per minute
• United Kingdom (UK): $0.02 per minute
• Australia: $0.03 per minute
• China: $0.03 per minute

Each VoIP provider provides unique international calling rates. Some service providers offer unlimited calling areas that include many countries. Companies need to pay for the customers’ expenses in the case of international calling for toll-free calling.

VoIP: Is It Worth It?

After getting a detailed guide on VoIP cost, you may have a clear idea to justify the decision to choose VoIP. So do you think is it valuable to choose VoIP? Well, the answer is yes.

It offers advanced concepts which are not available in the traditional phone services and phone calls. It also eliminates the need for high-priced telephony equipment. There is no need to worry about the upgrades or maintenance. A user can work from anywhere, regardless of the location.

Frequently Asked Questions