Breaking Down the Costs of a VoIP System

Cost is always an important consideration when deciding whether to migrate to new technology.

Often, technology investments represent a trade-off: you pay more for the new technology but you get a better service in return. But this isn’t always the case. Sometimes you get a better service at a lower cost.

This is the true for VoIP. Most companies switching to VoIP will see reductions in their overall telecom costs. In fact, it’s one of the major drivers of VoIP adoption.

Still, it’s important to understand the complete breakdown of VoIP costs because they won’t be the same for every company. This will help you decide which features you want to invest in, and which ones you want to save for another time.

A lot of VoIP providers advertise their low price to entice you to get on board. This is perfectly reasonable, but the advertised price often misses some of the additional expenses you may incur when you switch to VoIP. This blog post is an attempt to shed light on those expenses so you’re not surprised down the line.

Let’s break down the costs of VoIP.

VoIP Installation Costs

These are usually pretty easy to determine. Your provider should be able to quote you an exact price. Keep in mind that installation costs are going to be far lower than the cost of installing traditional telephone equipment. Why? Because you don’t actually need to install any new hardware at your location.

You should also consider the time it takes to set up your VoIP connection. VoIP is notoriously fast to set up compared to traditional phone systems. It can often be done in as little as a few hours, but typically takes 1-2 days. During this time, you might lose access to your phone system. Small hiccups as employees get used to the new system are possible too.

VoIP-Compatible Phones

Even though you can make VoIP phone calls using any internet-connected device, you may choose to invest in VoIP-ready desktop phones. These will be an additional cost on top of your VoIP service subscription, so be sure to include this in your calculations. One way to save money here is to only purchase VoIP phones for employees who need to make a lot of phone calls. Other employees can communicate via computer or smartphone.

Some providers might include VoIP handset rentals with your subscription, so be sure to compare the costs with and without handsets and choose the option that makes sense for you.

Network Costs

Since VoIP consumes bandwidth, you might have to bolster your network to ensure a high quality of service. If your VoIP provider is also your business internet provider, it should be super easy to increase your bandwidth appropriately. If you use different providers, ask your VoIP provider about the recommended bandwidth requirements for optimal performance.

You should also ask your provider about network security. Some networks will need upgrades to ensure the integrity of VoIP phone lines.

VoIP Training Costs

One of the great things about VoIP is how easy it is to use. Still, employees might need help getting acquainted with the new technology. Depending on the technical know-how at your office, you may consider running a seminar to review the new system, or producing documentation on company VoIP use policies. This isn’t a huge expense, but could take some time away from regular business activities.

The magnitude of additional costs you might incur depends on the size of your company and the current state of your network. Every company will face different costs. Be sure to choose a provider that can give you accurate cost estimates and guarantee a seamless transition to VoIP.

Ready to Make the Transition to VoIP?

Read about our risk-free roadmap to VoIP.

And for more information, contact BullsEye Telecom to speak with one of our VoIP experts. Tell us about your current network status and your telecom needs and we’ll do our best to show you a realistic path to VoIP implementation.