How Much Does VoIP Cost? | UK Business Pricing Guide
Hosted VoIP for UK businesses typically costs £8–£25 per user per month depending on features and provider. Additional costs include hardware (£80–£200 per handset), number porting, and potentially connectivity upgrades. This guide breaks down what you'll actually pay and where the hidden costs tend to appear.
Nathan Hill-Haimes
Technical Director
VoIP Pricing: What to Expect
One of the most frequent questions from businesses evaluating VoIP is simply: what will it cost? The answer depends on how many users you have, which features you need, whether you require physical desk phones, and which provider you choose. This guide breaks down each cost component so you can build an accurate budget.
Per-User Monthly Costs
Hosted VoIP is almost universally priced on a per-user per-month basis. You pay for the number of users (extensions) you need, and you can typically add or remove users as required. UK pricing bands by tier:
- Entry tier (£8–£12/user/month): Core calling, voicemail, basic hunt groups, mobile app. Suitable for businesses that need a professional phone system without advanced features.
- Mid tier (£12–£18/user/month): Adds call recording, detailed analytics, auto-attendant with multiple levels, CRM integrations, and larger storage for recordings.
- Enterprise tier (£18–£25/user/month): Contact centre features, advanced IVR, wallboard displays, API access, full integration suite, and dedicated support.
Most SMEs find the mid tier covers their requirements. A business with 15 users on a mid-tier plan should budget approximately £180–£270 per month for the VoIP service itself.
Hardware Costs
If your team uses physical desk phones, you will need IP handsets. These are purpose-built for VoIP and typically cost £80–£200 per device depending on the model and features. Common choices include:
- Entry-level IP phone (e.g. Yealink T31P): £80–£100 — suitable for general office use, good audio quality
- Mid-range IP phone (e.g. Yealink T54W, Cisco IP Phone 7800): £120–£160 — colour display, programmable keys, Bluetooth headset support
- Executive IP phone (e.g. Yealink T57W): £180–£220 — large colour touchscreen, built-in Wi-Fi, expansion modules available
Many businesses reduce or eliminate hardware costs by using softphone apps — software on existing laptops and smartphones. For businesses that already use Microsoft 365, Teams Phone can replace desk phones entirely for users who are comfortable working from their laptop.
Number Porting Fees
Transferring your existing phone numbers to a new VoIP provider may incur a one-off porting fee. This is typically £5–£20 per number and covers the administrative cost of coordinating the transfer with the previous carrier. Not all providers charge for porting — it is worth clarifying upfront.
Setup and Installation
Most hosted VoIP providers include basic provisioning in the monthly fee. If you require a managed installation — engineer visit, hardware configuration, staff training, call routing setup — there may be a one-off setup charge, typically £100–£500 depending on complexity and provider.
Connectivity Costs
VoIP runs over your internet connection. If your current broadband is not adequate for VoIP (unstable, high latency, or shared with heavy data usage), you may need to upgrade your connectivity. Options range from upgrading to a business-grade FTTP service (typically £30–£80/month more than a basic broadband) to installing a leased line (from around £199/month for a 100 Mbps dedicated connection). For most SMEs with reliable FTTP, no connectivity upgrade is necessary.
Call Charges
Most hosted VoIP plans include unlimited UK calls (to landlines and mobiles). International calls are typically charged at per-minute rates: Europe from around 1–3p/minute, USA from 1–2p/minute. If your business makes significant outbound call volume to international numbers, request a specific quote for those destinations.
Total Cost of Ownership
For a 10-user business moving from ISDN30 with a legacy PBX to hosted VoIP:
- VoIP service: £120–£180/month (mid tier)
- Hardware (if needed): £1,000–£1,600 one-off
- Number porting: £50–£100 one-off
- Legacy line rental and PBX maintenance saved: typically £400–£700/month
Most businesses achieve payback on hardware within 2–3 months and see net savings from month one if they have no hardware to purchase. AMVIA can provide a tailored cost comparison based on your current telephony setup.
How Much Could You Save?
Tell AMVIA about your current setup and we'll show you exactly what VoIP would cost — and how it compares to what you're spending now.
Frequently Asked Questions
Entry-level hosted VoIP plans for UK businesses start at around £8–£10 per user per month. For a five-user business, this is £40–£50 per month — typically much cheaper than the equivalent traditional phone system. Providers such as bOnline, Vonage, and 3CX offer competitive entry-level plans.
The main areas where unexpected costs appear are: hardware (if IP phones are needed), number porting fees, international call charges, and connectivity upgrades. Reading the contract carefully — particularly call tariff schedules and minimum terms — helps avoid surprises. Ask specifically whether unlimited UK mobile calls are included or an add-on.
Most mid-tier and above plans include unlimited calls to UK landlines and mobiles. Entry-level plans may restrict mobile calls or charge per-minute. Since a significant proportion of UK business calls now go to mobile numbers, confirming mobile call inclusion is important before selecting a plan.
Call recording is included in most mid-tier plans. Where it is a paid add-on, costs are typically £1–£3 per user per month plus storage fees for archived recordings. Cloud storage for recordings is usually priced per GB per month. For compliance-focused industries, confirm how long recordings are retained by default.
In most cases yes. A single VoIP call uses approximately 100 kbps of bandwidth. For businesses with up to 10 concurrent calls, most business broadband connections have sufficient capacity. Where quality is critical or the connection is shared with heavy data usage, a leased line provides dedicated, guaranteed bandwidth.
Contract terms vary by provider. Many providers offer rolling monthly contracts (popular with businesses wanting flexibility) as well as 12 or 24-month terms at lower monthly rates. Longer contracts typically reduce the per-user monthly fee by 10–20% compared to monthly rolling arrangements.
Related Reading
Is VoIP Cheaper Than a Landline for Business?
A direct cost comparison between VoIP and traditional landlines — with real pricing examples for UK businesses.
5 Best Business VoIP Phone Systems | UK Comparison
AMVIA ranks the five leading VoIP platforms on features, pricing, and reliability for UK businesses.
How Much Bandwidth Do I Need for VoIP?
Calculate how much bandwidth your business needs to run VoIP reliably, based on user count and call patterns.