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What does an IP phone system cost? The 5 parts of the price

The most expensive phone system is the one that looks cheap in the proposal. Surplus concurrent channels, missing maintenance and a network that does not prioritise voice are paid for every month.

Updated 17 October 20264 min read

More than 10 workstations · support contract · remote, on-site and phone support

At a glance

For decision-makers short on time.

  • 01A phone system has no price per extension: the cost has five components.
  • 02On-premises and cloud only compare over 3–5 years, with a growth scenario.
  • 03In the cloud, the bill rises with every hire without anyone deciding anything.
  • 04The most common waste is too many simultaneous channels.
In this article

The most expensive phone system is the one that looks cheap in the proposal: too many simultaneous channels, maintenance nobody included and a network that does not prioritise voice are paid for every month. Asking "how much does an IP phone system cost?" has about as useful an answer as asking how much a car costs. But the cost structure is always the same, and anyone who knows it reads every proposal differently.

The four points to remember

  • There is no price per extension The cost splits into five items, PBX, handsets, installation, call traffic, maintenance, and almost no proposal separates all five.
  • One year is a misleading horizon As a rule, the cost curves of an on-premises and a cloud system only cross in year 3 to 5.
  • Per-user charging Every hire increases the bill without a new decision.
  • Simultaneous channels Oversizing is the most frequent hidden cost.

What makes up the price?

Whatever the technology, the total cost always falls into the same five items:

ItemWhat it includes
PBXLicence or subscription, usually per extension or per simultaneous call
HandsetsIP phones, headsets and apps for computer and mobile
InstallationNumber porting, schedules, recorded messages, numbering and configuration
Call trafficCalls and SIP trunk paid to the operator
MaintenanceSupport, changes and updates over the system's lifetime

Many proposals show two or three of these lines, and comparing them with another takes extra work.

Insist on all five items separately. A monthly figure that lumps everything together could be excellent or terrible, only a breakdown tells you. And a supplier who refuses to separate them has already given you an answer.

Where does the cost sit in an on-premises system?

At the start. Almost all the investment happens up front.

  • Licences They grow with the extensions, but what surprises people are the extra modules: reports, CRM integration, call recording, queues. Almost always charged separately.
  • Phones The most underestimated item. A handset with a display and supervision keys costs little more than a basic one, until you do the maths for thirty people.
  • Installation Depends on the numbering plan. Simple call handling installs quickly; queues per department, different schedules and forwarding to mobiles require serious configuration.
  • Annual maintenance The item most often missing from proposals, and precisely the one that provides security patches.

And with a cloud phone system?

The logic is reversed: a light start, a permanent cost. The monthly fee per user dominates. It is what makes the cloud affordable in year one and expensive in year five, especially with a growing team.

Check what that monthly fee covers:

  • Number of simultaneous calls per person.
  • Whether calls to national numbers are included.
  • The extra cost of call recording.
  • How many devices per person at the same time.

Number porting usually has a one-off cost, and it is in the minimum term that seemingly identical proposals differ.

How do I compare two proposals without fooling myself?

Over three and five years, with a written growth scenario. For each solution, add up the cumulative cost in year 1, year 3 and year 5, using the expected headcount at each point. The result often defies intuition: what seemed expensive wins, and vice versa.

  • Stable company: one office, 20 to 40 workstations: on-premises tends to work out cheaper from year four.
  • Growing company: several sites or high mobility: the cloud is almost never a mistake, because the extra cost buys flexibility.

Which costs do not appear in the proposal?

  • Too many channels Waste number one. Without intensive call handling, thirty people rarely need more than 8 to 10 channels. Sizing by headcount rather than real traffic is paid for every month.
  • A network with no voice priority The new system will have poor calls, and the real cost includes work on the network infrastructure and structured cabling.
  • Backup power Every IP phone depends on a switch, and every switch on mains power. Without a UPS, a power cut leaves the company unable to answer anyone.
  • Toll fraud A phone system exposed to the internet and poorly protected can run up thousands of euros in international calls over a weekend. It is prevented with managed firewalls and correct security rules and destination limits.

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We install and manage IP PBX phone systems, on-premises or in the cloud, and present every proposal broken down item by item. No commitment.

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