How much does a business telephone system cost
Knowing how much a phone system for businesses costs depends on the model — cloud or on-site — and the number of lines. Here is the point-by-point comparison and the reference values.
Cloud or on-premisesRead more...Cloud or on-premises: which to choosePoint-by-point comparison of the two models
When each one is more worthwhileRead more...
In a cloud model, for small businesses.
On top of that, the location usually breaks even from the 3rd/4th year.
Keep the current numbers, by law.
An IP telephone system for a small business starts at around €20 per extension per month for a cloud model, or a few thousand euros initial investment for an on-premise model. The distance between these two numbers is explained by three things: how many branch lines, what features, and who is responsible for keeping the thing running. This page breaks down the bill.
The two models, and what changes in cost
Cloud-based PBX (hosted)
Pay per extension and per month. There are no servers to buy or licences to manage, updates and maintenance are included, and capacity scales up or down according to the team. It is the model that makes sense for most companies of up to around fifty extensions, and for those with multiple sites or a large number of remote workers.
Typical cost: monthly fee per extension, plus traffic costs, plus IP phones (one-off purchase) and installation.
On-premise installation central
Buy the equipment and licences, install them in your rack and you're left with a monthly cost just for maintenance and traffic. After three to four years it usually works out cheaper than the cloud, and it's the mandatory choice when there are isolation requirements, integration with on-premises systems or an old central office to make use of.
Typical cost: initial investment in equipment and licences, plus installation, plus an annual maintenance contract.
What makes the price go up
| Factor | Why does it weigh |
|---|---|
| Number of extensions | It is the basis of cloud computing and the main licensing factor on-premises |
| IP phones | A basic terminal and a receptionist one with a screen and supervisory keys have very different prices |
| Simultaneous calls | Determine how many channels are needed; oversizing costs money, undersizing gives a busy signal |
| Call recording | Additional licence and storage, with GDPR implications |
| Automated answering and queues | Menus, timetables, transfers and queues add licensing |
| CRM integration | Caller ID, automatic call logging, click-to-dial |
| Number portability | One-off cost, and that's what guarantees that nobody loses the contact they have on the card |
| Network status | Voice over a network without quality of service results in dropouts. Sometimes the realistic budget includes the network, not just telephony |
What is often missing from budgets
When comparing proposals, check whether these four points are there. They are the ones that usually turn up later on the invoice:
- Number portability. Switching switchboards without taking your numbers is losing years of communication.
- The call plan configuration. Schedules, holidays, groups, mobile divert. It's work, and it's what makes the difference between a call centre that works and one that irritates.
- The network. If the network doesn't have priority for voice, the new switchboard will suffer from the same dropouts as the old one.
- The support after it has been installed. Who answers when an extension stops ringing on a Monday morning.
How do we budget
We give a fixed price after three questions: how many extensions, how many simultaneous calls, and what features you actually need. If there's any doubt about the network, we check it before proposing — we'd rather say that the network needs to be sorted out first than install a system that's going to fail.
See also the IP PBX for business and the comparison between cloud and on-premise.
Frequently Asked Questions
How much does a telephone system cost for a 10-person company?
In a cloud model, the monthly fee for the extensions plus the IP phones and installation. In an on-premise model, an initial investment that typically pays for itself in three years. We provide both scenarios side by side so you can compare over five years, which is the correct time horizon for this decision.
Can I keep my phone numbers?
Go ahead. Portability is provided for by law and we will handle the process. It is one of the first things to secure in writing on any proposal.
Do I need to change my network to install VoIP?
Not always, but it needs to be checked. Voice over IP requires traffic prioritisation and a stable connection. In a well-sized network, configuration is normally enough; in an old, unmanaged network, some prior intervention is commonly required.
What happens if the internet goes down?
In a well-configured switchboard, calls are automatically routed to the designated mobile phones. It is about configuration, not luck, and it must be tested on the day of installation.
Is it worth recording calls?
In sales and customer support teams, it is usually worthwhile. It has GDPR implications — prior information to those involved, retention periods and access control — which must be defined before switching on the feature.
Request a quote
Tell us how many extensions you have and what you need the switchboard to do. Call +351 211 459 950 or write to sales@dataroad.pt.
This service is provided exclusively under an IT Unlimited contract.
DataRoad does not provide one-shot support or sell equipment on a standalone basis. We work on a monthly contract basis, with full responsibility for the client's environment.
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Updated values in 2026. Availability and response times depend on the plan and the contracted SLA; 24/7 monitoring is exclusive to IT Unlimited Premium 365.