Understanding the Pricing Schemes For Business Phone Systems

Dialing in business phoneWhen it comes to business phone systems, companies have more choices than ever. Whether you want on-premises, cloud-hosted system, a Voice over Internet Protocol (VoIP), or a landline, you now have plenty of options to choose from.

But because of this vast selection, you may find it challenging to choose the right phone system for your business. You also need to consider the cost, mobility access, features, and customer service, among many other factors.

Apex Telecom shares a guide to help narrow down your choices:


Business phone systems come in different structures and price points. A major determining factor for the cost is the hosting method, which can be on cloud or on-premises. Cloud-hosted phone systems are usually paid through a monthly subscription, whereas the expenses for on-premises phone systems are mostly one-time and upfront. The number of features you want, the type of provider you get, and the total users in your company can affect pricing.

Cloud-based phone systems typically come at around $10 to $75 per user, per month. It doesn’t require any large upfront installation costs since it’s hosted in the cloud. Meanwhile, on-premises systems can cost anywhere from a few hundred to several thousand dollars per user. You’ll also have to spend for large setup and installation charges since the associated equipment will be housed within your business.


Whichever system you’re getting, you need to make sure you are getting the best deal. For cloud-hosted systems, it’s good to sign for long-term contracts, as they come at discounted prices. You should also see if you can save more by paying a year in advance instead of the monthly installments. As for the hosted system, see if you can get a cheaper deal if you can commit to expanding your service in the future.

Having reliable phone systems allows your staff to communicate better internally and externally. It’s a worthwhile investment that could kickstart the growth of your business.