VoIP, also known as Voice over IP (Internet Protocol), allows you to send and receive calls over the Internet instead of a traditional landline. To provide this telephone system to their customers, VoIP providers use a dedicated or shared IP telephone exchange or a private IP telephone exchange in the cloud. How much is VoIP?
VoIP and conventional telephone systems: How do they compare costs?
The fact that VoIP telephone systems are cheaper than conventional telephone systems is a fact. But why is that so?
Well, the key reason for the relatively low VoIP price is that VoIP systems are software based.
VoIP software uses an existing broadband connection to work, transmitting calls over the Internet. So VoIP does not require paying, establishing and maintaining a line – it rather uses the service you pay for, regardless of whether you choose VoIP or not.
Similarly, VoIP does not require much expensive equipment to work.
Yes, you can decide to buy VoIP phones if you prefer (more on those below), but it is also possible to make VoIP calls simply by means of software and a computer – and its built-in microphone and speakers – or a mobile device.
How much does VoIP cost?
Here’s the breakdown:
Depending on the VoIP provider, VoIP packages generally have two types of costs: a monthly line rental fee and user costs. In other words, you will pay a monthly fee for access to your operator’s services and you may pay additional fees for outgoing calls.
Some providers may also include call packages, which gives you a certain number of minutes or even an unlimited number of calls for a monthly fee.
At Nextiva, we have three line rental packages, none of which charge extra monthly fees. Our most basic package includes key features such as:
- Cloud PBX – An easy way to manage your online phone system, set up new users and forward calls with a single click.
- Free local and free number – you don’t have to pay extra for renting the number, it’s included in the price.
- Voicemail to email – Missed call? Nextiva will automatically notify you of your voicemail in your inbox.
- Shared call appearance – Easily display your extension’s number on more than one phone so you can receive calls on behalf of another person.
VoIP hosting costs
The first decision to take when considering a VoIP phone system is where to host it. VoIP providers usually take care of hosting, which significantly reduces costs because there is no specialized equipment to buy, no maintenance costs and you do not need to hire employees to operate the system.
However, this means that your business is dependent on a supplier in some cases and will not have direct control over downtime or other issues.
- Hosting on site
- It starts from around $ 20 per user per month
- Installation can cost USD 500 – USD 1,000 per user
- Cost of living pending
- Significantly cheaper
- No maintenance costs
- Low equipment costs
- Dedicated helpline
- Build a system to order
- Greater autonomy
- Does not depend on the supplier
- Lack of flexibility
- Monthly subscription fee
- Strong internal IT resources are needed