Is VoIP Cheaper Than a Landline for Businesses?
A clear, direct answer to this question — written for UK business owners and IT decision-makers.
Direct Answer
VoIP is consistently cheaper than a traditional landline for UK businesses. Cloud-hosted VoIP costs £8–£25 per user per month, compared to £15–£35 per line for PSTN line rental alone — before call costs. Most businesses save 40–60% on total communications spend after switching. With the PSTN switch-off scheduled for January 2027, migration is no longer optional — it is a deadline.
Key Points
What you need to know.
The Short Answer
31% of UK businesses have switched to VoIP as of 2025 — the fastest adoption rate of any business communication technology in recent history.
For UK Businesses
The PSTN will be switched off by 31 January 2027. Over two-thirds of UK landlines have already been upgraded to VoIP.
Cost Considerations
VoIP systems can reduce communication costs by up to 75%. Small businesses typically see 25–50% lower costs than traditional telephony.
Next Steps
About 1 in 5 business leaders say they have lost business due to poor communication.
Quick Comparison
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Frequently Asked Questions
Cloud-hosted VoIP typically costs £8-£25 per user per month depending on features. This includes calls, voicemail, mobile apps, and call recording. Most businesses save 40-60% compared to traditional PSTN costs. Microsoft Teams calling plans offer another option within the M365 ecosystem.
Yes. UK businesses can port their existing geographic and non-geographic numbers to their new VoIP provider. Number porting requires a minimum lead time of 4-7 working days. Under the PSTN switch-off, phone numbers are not lost — they transfer through the porting process.
VoIP transmits voice calls over your internet connection instead of traditional phone lines. It requires stable broadband or a leased line. Businesses typically save 40-60% on call costs compared to traditional telephony. Over 4.9 million UK businesses now use VoIP.
The PSTN switch-off is scheduled for January 2027. Around 2.4 million UK businesses still operate on PSTN or ISDN lines. FTTC broadband that relies on PSTN copper lines will also cease to function. Businesses must migrate to IP-based telephony and connectivity before the deadline.
Yes, when paired with adequate connectivity. Modern VoIP systems on leased lines or FTTP deliver HD voice quality with latency under 9ms. 97% of UK workers say communication impacts their daily task efficiency. VoIP outperforms traditional telephony on features, cost, and flexibility.
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