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How Much Does a Business Phone System Cost in 2025?

Lola Lin •
Understanding the average costs for business phone systems helps small businesses budget wisely. No matter if you're starting a new company or upgrading your current setup, knowing phone costs is key. The average costs for business phone services vary widely based on system type, features, and number of users. In this guide, we'll dig in to real pricing for different phone systems in
  • We'll cover VoIP, traditional landlines, and PBX options to help you find the best value. Let's look at what impacts the average costs for business phone services today.
    • Business phone system cost comparison

  • VoIP Phone System Costs

    • VoIP (Voice over IP) systems often offer the lowest average costs for business phone service. As Ultatel's research shows, VoIP can save businesses up to 75% compared to traditional phone systems.
  • Monthly costs:
  • Basic plans start at $15 per user
  • Mid-range plans average $25 per user
  • Premium plans reach $40 per user
  • Add-ons like call recording cost extra
  • One-time costs:
  • IP phones range $50-$300 each
  • Headsets $50-$200
  • No installation fees for cloud systems
    • VoIP phone on desk

  • SecondLine Business Phone Setup for Professional Communication

    • SecondLine provides an affordable way to get a business phone number without high costs. It's a smart choice for solopreneurs and small teams looking to keep average costs for business phone services low.
  • Pricing breakdown:
  • Basic plan: $9.99/month
  • Includes unlimited texting
  • Call forwarding to any device
  • No contract required
  • WhatsApp integration:
  • Use your SecondLine number for WhatsApp
  • Keep personal and business separate
  • No extra hardware needed
    • Traditional business phone system

  • Traditional Landline Costs

    • Traditional phone systems still have their place, though average costs for business phone landlines are higher than VoIP. The IRS publication on business expenses notes these can be deductible.
  • Monthly expenses:
  • Base line: $50 per month
  • Additional lines: $20 each
  • Long distance charges vary
  • Maintenance fees $30-$100
  • Setup costs:
  • Installation: $150-$500
  • Desk phones: $50-$200 each
  • Wiring updates if needed
    • PBX phone system

  • PBX System Pricing

    • PBX systems serve larger businesses but come with higher average costs for business phone infrastructure. Business.com's software cost guide shows similar pricing patterns for communication tech.
  • On-premise PBX:
  • Hardware: $5,000-$15,000
  • Installation: $2,000-$5,000
  • Phones: $150-$400 each
  • IT staff needed
  • Hosted PBX:
  • Monthly: $20-$50 per user
  • No hardware costs
  • Includes maintenance
  • Scales easily
    • Business cost analysis

  • Hidden Costs to Watch For

    • Beyond the base price, several factors can increase average costs for business phone services. Progressive Commercial's cost analysis reveals how small fees add up.
  • Common extras:
  • International calls: $0.01-$0.50/min
  • Toll-free numbers: $5-$15/month
  • Conference lines: $10-$30/month
  • Number porting fees
  • Unexpected charges:
  • Early termination fees
  • Equipment rental costs
  • Overage charges
  • Tax and regulatory fees
    • Small business budget planning

  • Cost Comparison by Business Size

    • The average costs for business phone systems change based on employee count. NerdWallet's startup cost guide confirms communication expenses vary by company size.
  • Solo entrepreneurs:
  • VoIP: $15-$30/month
  • Mobile business line: $20-$50
  • SecondLine: $10/month
  • Small teams (2-10):
  • VoIP: $100-$400/month
  • Landline: $150-$500
  • Basic PBX: $200-$600
  • Larger businesses:
  • Full PBX: $500-$2,000
  • Enterprise VoIP: $1,000+
  • Call centers: Custom pricing
    • Robocall impact on businesses

  • Reducing Unwanted Phone Costs

    • Unnecessary calls can inflate average costs for business phone services. A GlobeNewswire study found robocalls cost businesses $9.46 per unwanted call.
  • Cost-saving tips:
  • Use call screening features
  • Block known spam numbers
  • Train staff to handle calls efficiently
  • Monitor call analytics
  • Security measures:
  • Enable fraud protection
  • Use strong voicemail passwords
  • Update system regularly
  • Consider cybersecurity budgeting
    • IRS business expense document

  • Tax Deductions for Phone Costs

    • Many business phone expenses can be deducted. The IRS business expense guide explains how to claim these deductions properly.
  • Deductible costs:
  • Monthly service fees
  • Equipment purchases
  • Installation charges
  • Repairs and maintenance
  • Documentation needed:
  • Keep all receipts
  • Separate business/personal use
  • Log business call details
  • Track home office percentage

    • Final Thoughts

    The average costs for business phone systems range from $10/month for basic services to thousands for enterprise solutions. VoIP typically offers the best value, while traditional systems provide reliability at higher costs. SecondLine stands out as an affordable middle ground for many small businesses. Remember to factor in all potential expenses when budgeting, and don't overlook tax deduction opportunities for your business communication costs.

    See Also

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