VoIP is a modern phone system that has the potential to save businesses money over traditional systems. However, like other technology services, VoIP has a variety of costs that must be considered.
These costs can include a startup cost and ongoing (monthly) costs. To understand these costs, let’s take a look at some key factors that affect the price of VoIP.
Cost of Equipment
When you switch to VoIP, you will likely have to invest in a few things. You will need desk phones, headsets, and a VoIP adapter, also known as an ATA. You will also need a good quality internet connection with plenty of bandwidth to support the call volume and features you are going to need.
In addition, you may need to invest in QoS routers that prioritize VoIP calls over other internet traffic like streaming and downloads. You will probably need a tech support team to help you set up your VoIP system and troubleshoot any issues that may arise.
Luckily, most companies find that switching to VoIP saves them money on long-distance costs. In addition, many VoIP providers offer videoconferencing capabilities at a low cost or for free. You can take advantage of these features to help your business increase efficiency and productivity. However, the exact amount you will save depends on your particular provider and subscription plan.
Cost of Installation
In addition to the monthly cost of VoIP, businesses will have to invest in a good internet connection that’s fast enough for VoIP. In most cases, VoIP requires a minimum of 10 Mbps. You may also want to consider investing in QoS (quality of service) routers, which prioritize VoIP traffic over other online activities like streaming and downloading.
The initial investment in a VoIP system is significantly lower than for an on-premise traditional phone system. Unlike traditional systems, which require multiple bulky servers and PBX boxes, VoIP can be installed on a single PC. This saves companies thousands of dollars in installation costs.
Additionally, VoIP can reduce long-distance costs by eliminating the need for costly PSTN infrastructure. This will help businesses cut their telecom expenses by up to 70%. In addition, most VoIP providers offer a variety of additional features that can improve productivity and collaboration in the workplace. These include videoconferencing, instant messaging, and more.
Cost of Maintenance
VoIP systems require fewer maintenance costs than traditional on-premise hardware. However, you must invest in a good quality internet connection that is fast enough to handle the volume of data packets needed to deliver the best call quality. You may also need to purchase QoS routers, which prioritize VoIP calls over other internet traffic like streaming and downloading.
You will also need to buy VoIP phones and headsets, which can range from $60 per phone to more than $1,000 depending on the model and features. Most VoIP providers offer a professional services team that can help you set up and configure your hardware.
In addition, your business should evaluate its communication needs to determine the type of VoIP system that meets them best. This will help you avoid overpaying for features that your business doesn’t need.
Cost of Software
If you use a hosted VoIP system, the monthly subscription fee is the largest cost element. The amount depends on your business’s needs and the type of VoIP system. Some providers have different prices for unique needs, such as security features and always-on support.
If your business makes international calls, you can realize significant savings on international calling rates as well. In addition, many VoIP systems include videoconferencing for free or for a nominal fee.
Traditional on-premises phone systems require substantial upfront costs and can consume a lot of IT staff time to set up and maintain. By contrast, most businesses opt for a hosted VoIP system that a provider hosts and updates on their servers. This eliminates most upfront expenses and allows you to reduce your IT budget. In addition, hosted systems typically require much less hardware than traditional PBX systems. Some VoIP providers even offer softphone software that lets employees use their existing computers to make business calls, eliminating the need for desk phones and adapters.
Also Read: The Hospitality Industry Has Embraced VoIP Technology – Note the Beneficial Aspects
