How Much Does VoIP Cost? | UK Business Pricing Guide

The honest answer is that "how much does VoIP cost" has no single number, because the bill is built from a monthly per-user fee plus a handful of one-offs. Below we break down every component so you can build a realistic budget before you ever speak to a salesperson. If you want the full feature picture first, our guide to a hosted phone system covers what each tier actually includes.

How much does VoIP cost per user per month?

Hosted VoIP is almost always priced per user, per month. You pay for the number of extensions you need and scale up or down as headcount changes. UK plans cluster into three tiers, and most SMEs find the mid tier covers everything they use.

A 15-user business on a mid-tier plan should budget roughly £180–£270 per month (typical UK 2026 range) for the VoIP service alone. The figure scales linearly with users, which makes forecasting straightforward — unlike legacy systems where you paid for capacity in fixed blocks.

What hardware do you need, and what does it cost?

Hardware is optional. If your team wants physical desk phones you need IP handsets, which cost roughly £80–£220 each (typical UK 2026 range) depending on the model. Many businesses skip handsets entirely and use softphone apps on laptops and mobiles, removing the upfront cost altogether.

• Entry IP phone (e.g. Yealink T31P): £80–£100 — solid audio, general office use
• Mid-range IP phone (e.g. Yealink T54W, Cisco 7800): £120–£160 — colour display, Bluetooth headset support
• Executive IP phone (e.g. Yealink T57W): £180–£220 — touchscreen, built-in Wi-Fi, expansion modules

If you already run Microsoft 365, Microsoft Teams calling can replace desk phones for anyone comfortable working from a laptop. Microsoft 365 Business plans run £4.60–£16.90 per user per month (microsoft.com), with Teams Phone calling added as a paid licence on top — worth modelling against the per-user cost of a standalone VoIP platform.

What one-off fees should you budget for?

Beyond the monthly licence, expect a few one-off charges: number porting and managed setup. Porting your existing numbers to a new provider usually costs £5–£20 per number (market rates as of 2026), covering the admin of coordinating the transfer with your old carrier — though not every provider charges for it.

Managed setup is the other variable. Basic provisioning is normally included in the monthly fee, but a full managed installation — engineer time, handset configuration, call-routing design and staff training — can run £100–£500 as a one-off (typical UK 2026 range), depending on complexity. Ask exactly what "setup" includes before you sign; the cheapest headline price often excludes the work that makes the system usable on day one.

Does VoIP need a connectivity upgrade?

Usually not. VoIP runs over your existing internet connection, and a single call uses only around 100 kbps. Most business FTTP lines comfortably carry 10+ concurrent calls alongside normal data. You only need to spend more if your connection is unstable, congested, or shared with heavy traffic.

Where call quality is mission-critical, a dedicated leased line removes the risk entirely by guaranteeing bandwidth with a Service Level Agreement — from around £69/month for a 100 Mbps connection. For most SMEs on reliable business broadband, no upgrade is needed; the test is whether your current line holds up at peak. The looming PSTN switch-off makes this timing relevant — Openreach is withdrawing the analogue network, with the all-IP migration now scheduled to complete by 31 January 2027 (openreach.com).

What about call charges?

Most hosted plans bundle unlimited UK calls to landlines and mobiles, so for typical office use your call charges are effectively zero. The variable is international and premium-rate traffic. European calls start from roughly 1–3p per minute and US calls from 1–2p per minute, billed on top of the licence.

If you make significant outbound volume to international numbers, always request a destination-specific tariff rather than trusting the "unlimited UK" headline. Confirm in writing whether UK mobile calls are included — a meaningful share of UK business calls now terminate on mobiles, and some entry plans quietly charge for them.

What is the total cost of ownership?

Total cost of ownership is where VoIP usually wins. For a 10-user business moving off ISDN30 and a legacy PBX, the recurring saving from scrapping line rental and maintenance typically outweighs the new monthly licence — often producing net savings from month one if no handsets are bought.

Most businesses recover handset costs within two to three months, and those moving to softphones see net savings immediately. The PSTN switch-off makes this a forced decision rather than an optional one — see our breakdown of the PSTN switch-off in 2025–2027 for the migration timeline. Ofcom publishes ongoing guidance on the move to digital voice that is worth reading before you commit (ofcom.org.uk).