VoIP 
Customers have tons of ways to reach you. But forget the endless tweets and impersonal chatbots — a genuine voice conversation still builds trust and strengthens relationships. That’s where a powerful business phone line comes in.
However, the cost of implementing a high-quality business phone line can be hefty (especially for startups and small businesses), and many don’t know where to start.
This guide will break down everything you need to know about business phone line cost, from system types to popular features, and provide estimated costs. You’ll know how much to spend on an affordable business phone system and choose the most cost-effective communication solution for your needs.
How Much Is a Business Phone Line?
A business phone line can cost anywhere from $20 per month to $30 per month per user.
However, the exact cost depends on several factors, including:
- Type of service: Traditional landlines, VoIP (Voice over Internet Protocol), or virtual phone systems can have different pricing structures.
- Number of lines and users: The more lines and users you need, the higher the overall cost, although some providers offer discounts for multiple users and lines.
- Features: Advanced VoIP features like call forwarding, voicemail-to-email, auto-attendants, and call analytics may come at an additional cost or be included in higher-tier plans.
- Location: Phone line costs can vary by country, state, or region due to differences in infrastructure, regulations, and service providers.
- International calls: Frequent international calls can significantly increase your bill. Be sure to inquire about pricing structures for calls outside your region.
- Contract length: Some providers may offer discounts for longer contract terms or charge higher prices for month-to-month services.
- One-time fees: Installation, activation, and equipment fees can add to the initial cost of setting up a business phone line.
On average, a small business can expect to pay between $20 and $30 per month per user for a basic VoIP or virtual phone system, while traditional landlines may cost $50 to $100 or more per line.
Make sure to compare options from multiple providers and consider your business needs to find the most cost-effective communication solution.
Here’s an example of the estimated average cost of a cloud-based business phone line per user:
- Low-end plan – $200 per user
- Mid-range plan – $400-600 per user
- Enterprise plan – $1,000 per user
Business Phone Line Costs By System Type
When choosing a phone system for your business, there are three main options to consider: traditional landline phone systems, virtual phone systems, and cloud-based phone systems. Each type has its own set of costs and benefits, so let’s break it down and have a closer look.
Traditional landline phone systems
These are the old-school systems that have been around for ages. While they’re reliable, they do come with some hefty costs.
You’ll need to shell out for professional installation, which can be quite pricey. Plus, you’ll be paying monthly rental fees for each phone line that add up quickly, especially if you have a large team.
The per-minute call charges can be a real budget-buster if you make long-distance or international calls. Desk phone purchases and potential maintenance contribute to the overall cost.
Cloud-based phone systems
Cloud-based phone systems offer a more modern approach. They operate entirely over the internet, so there’s no need for any physical installation.
You just pay a monthly subscription fee per user or phone line, and you’re good to go. The best part? Most cloud-based systems come with a ton of features like call routing, auto attendants, voicemail, and even video conferencing.
Some providers, like Nextiva, offer a complete unified communication solution that includes virtual faxing and integrations with other business tools. While basic plans are usually sufficient for most businesses, you can opt for premium features, but they may cost a bit extra.
Virtual phone systems
With a virtual phone system, you can use your existing phones (like your cell phone or home phone) and just forward calls to them. You’ll get a main business number that customers can call, and then the system will route the calls to your designated phones.
The best part about virtual systems is that they’re super flexible and affordable. You typically pay a low monthly fee, and you can add or remove lines as needed.
Plus, you can access features like voicemail, call forwarding, and auto attendants without any extra hardware. It’s a great option for businesses that want a professional phone presence without the high costs.
| Feature | VoIP (Internet-based) | Landline (On-premises) |
|---|---|---|
| Cost | Generally more affordable | Generally more expensive |
| Features | More features and functionalities available | Limited features |
| Mobility | Accessible from anywhere with internet | Restricted to physical location |
| Scalability | Easily scales up or down as needed | Difficult to scale without additional hardware |
Total Estimated Cost of a Business Phone System
Several factors influence the total cost of a business phone system, making it difficult to give a one-size-fits-all answer.
Let’s consider Nextiva, a popular cloud-based VoIP provider, as an example. Nextiva offers tiered pricing with clear features and costs per plan:
- Core: As low as $30 per user/month (unlimited calls, voicemail, texting, local & toll-free numbers)
- Engage: As low as $40 per user/month (all Basic features + mobile & desktop app, messaging, CRM integrations, unlimited conferencing)
- Power Suite: As low as $60 per user/month (all Pro features + website live chat)
A company with 20 users on the Enterprise plan would pay $659 per month ($32.95 per user x 20 users).
This is just a starting point. For a more accurate estimate for your business, speak with a knowledgeable Nextiva professional and get a tailored quote.
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Best Practices To Save Business Phone Line Costs
How do you save on business phone costs?
Let’s look at some tips to keep your business phone line costs in check:
- Unlimited local and national calling: Opt for plans with unlimited local and national calling to avoid per-minute charges, especially if you make frequent calls within these regions.
- Bundled packages: Explore bundled packages offered by internet service providers that combine phone service with internet access, potentially leading to cost savings.
- Call forwarding and voicemail: Use call forwarding and voicemail features to ensure you never miss a call, reducing the need for expensive call rerouting services.
- Quality over price: A cheap phone system doesn’t necessarily mean it’s more affordable. Many business phone plans may exclude key calling features and capabilities (and support) a fast-growing business needs.
- BYOD options: Consider a BYOD policy for employee phones, allowing them to use personal devices while reimbursing data usage. This can significantly reduce hardware costs.
- Compare quotes: Don’t settle for the first provider you come across. Get quotes from various phone service providers and compare plans, pricing structures, and features before making a decision.
How Nextiva Helps Save Business Phone Costs
Nextiva is more than just a phone service provider. We offer a comprehensive unified communication solution that integrates a range of powerful features, including:
- Business phone system: Make and receive calls using a dedicated business phone number from anywhere with an internet connection. Our cloud-based system ensures crystal-clear call quality and reliability, allowing you to stay connected with your team and clients at all times.
- Team messaging: Collaborate effectively with your team members through instant messaging. Share files, create group chats, and keep everyone on the same page, all within a secure and user-friendly interface.
- Video conferencing: Conduct high-quality video meetings with colleagues and customers, regardless of their location. Our platform supports HD video and audio, screen sharing, and virtual backgrounds, making remote meetings feel as engaging as in-person gatherings.
- Contact management: Organize and manage your business contacts in one central location. Our built-in CRM functionality allows you to store contact information, track interactions, and personalize your communication for better customer relationships.
- Mobile app: Stay connected on the go with our mobile app, available for iOS and Android devices. Make and receive calls, send messages, and access important features right from your smartphone or tablet.
At Nextiva, we believe in transparency and simplicity. Our pricing plans are straightforward, with clear features and costs associated with each tier. Whether you’re a small startup or a large enterprise, we have a solution that fits your needs and budget.
Our dedicated support team is always ready to assist you, ensuring a smooth and hassle-free experience. From onboarding and training to ongoing technical support, we’re here to help you every step of the way.
By choosing Nextiva as your business phone partner, you can focus on growing your business while we handle the rest. Our platform empowers your team to work smarter, collaborate seamlessly, and deliver exceptional customer experiences.
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