Phone Rates for Businesses

Installing a new phone line will cost your business anywhere from £0 to £140. Providers that offer a free installation will usually require to sign up for a broadband plan.

In this guide, we will take you through the process of installing a phone line and how much it will cost your business.

Did you know that by December 2025, landlines will become obsolete as BT shut down the old copper network? This means that your new phone line will be a newer, digital network. Formore on what VoIP phones are and how they work, check out our curated guide.

How much does a business phone line installation cost?

This is what providers are currently charging for new business phone lines installation:

By December 2025, landlines will no longer be used in the UK as the PSTN network it currently runs on will be cut off. This means that if your business phone system is currently running on this network, you’ll need to switch to a digital network.

A popular phone system for business is VoIP, which stands for voice over internet protocol. VoIP systems are typically affordable, reliable, and provide advanced features such as a customisable greeting, spam prevention, and a call queue.

If you’re switching from a traditional landline to a VoIP system, you’ll need to take into account costs such as new infrastructure to support VoIP as well as training for your team.

Here is how much VoIP providers are currently charging:

• RingCentral – starts from £7.99 per user, per month (annual payments) and £12.99 (monthly payments)
• 8×8 – starts from £10 per user, per month
• Nuacom – starts from £14.99 per user, per month
• bOnline – starts from £6 per user, per month
• GoTo Connect – starts from £10 per user, per month

These prices are the monthly cost of a VoIP system, as most VoIP providers don’t charge for installation.

How to get a phone line installed

Here are the steps you should take to install a new business phone line:

1. Pick a provider: you can use our guide to the best VoIP providers or small business phone systems to choose the right provider for your business.
2. Decide on a phone line: you can choose between a digital line or a VoIP system. Analog lines are becoming obsolete and analog products and services are no longer available to purchase.
3.  Contact your chosen provider: reach out to the provider to assess what new hardware you may need to purchase and talk through the installation. You should also discuss the features you’re interested in such as call queues, voicemail, or conference calling.
4. Organise new infrastructure and hardware: depending on the phone you’ve chosen, you may need to amend your current infrastructure. For example, for a VoIP system, you’ll need a reliable internet connection. If you need multiple phone lines, you’ll need the provider to install every line, if you have a traditional phone line. For VoIP systems, you can have as many as you want and can scale up and down easily.
5. Install: on installation day, your provider should send an engineer to set up the new phone line. This usually only takes a couple of hours and it might be worth scheduling outside of business hours.
6. Test the new line: once installed, check both incoming and outgoing calls. We also recommend checking all of the new features and if there are any issues, reach out to your provider to fix these before they affect BAU.
7. Training: carve out some time and resource to train you employees on the new system to ensure everyone can use it with ease.

What do I need to get a new business phone line installed?

Here is a list of what you will need to install a new business phone line:

• A business address: you’ll need to provide the full address of your physical location to get a new line installed.
• Documentation: some providers may ask for business documentation as well as proof of identity. Have these documents ready so you can avoid any delay in installing your new phoneline.
• Reliable internet connection: if you’re choosing a VoIP system, you’ll need to ensure you have a reliable internet connection that can support the system. The provider you choose will be able to tell you how much bandwidth is required, which you can test yourself using an online tool.
• Hardware: if you’ve chosen a line on the analog network, you’ll need a desk phone or a cordless phone that will work with your new line. For VoIP, you can make calls from any device that has the software downloaded.
• Equipment: you might need ethernet cables to connect computers and phone to the network. You’ll also need a router with Quality of Service capacity to provide high-call quality.

You can discuss with your provider directly what infrastructure changes need to be made based on your current infrastructure. They can directly advise you on how to install a new line quickly and with little disruption.

VoIP or PBX?

We compare the two phone lines available for you to choose from so you can figure out which one is best suited to your business.

Private Branch EXchange

A private telephone network that allows users to talk to each other.

✔ Because the wiring is in-house they are far less likely to disconnect than a VoIP phone which relies on internet connection.

✔ Traditional PBX phone handsets are built to last a lifetime.

✗ The required hardware makes them far more expensive to implement.

✗ On-site set up means they are not adaptable to change (for example if you move your office location or expand).

✗ Hardware must be maintained and upgraded to keep running smoothly (which costs extra).

✗ Call capacity is limited by the number of lines you have.

✗ Payment is done per line and the number of lines is time consuming to change.

✗ Charges will be added for long distance calls.

VoIP Business Phone Systems

In contrast, little to no new equipment is needed to set up a VoIP (Voice over Internet Protocol) Phone System, which uses IP or Cloud (also known as “hosted” or “virtual”) PBX instead of traditional wiring.
The benefits and downfalls of VoIP include:

✗ The reliance on internet capabilities to send audio back and forth may cause some (albeit infrequent) dropout in connection and call quality.

✔ Businesses are given a huge range of choice over which phones they can use.
There are hundreds of modern handset options, but even these are optional as a wide range of devices that employees may already own can also be integrated into the system, such as smartphones or laptops.

✔ The ability to connect various devices such as mobiles means that users can make calls from anywhere- perfect for those who work from home or travel.
This can also be a life saver if circumstances such as a power cut or weather conditions prevent access to your office handsets.

✔ Because no new hardware is needed, VoIP phone systems are far cheaper to implement.

✔ Perhaps most importantly, call costs are between 50% – 70% lower
This is due to the online method used, which converts sound into small digital packets.

✔ Long distance calls do not cost any extra.

✔ The number of users able to connect can be adapted within minutes.
This flexibility means you won’t need to continue paying for calling functions if an employee leaves, but can quickly add resource when someone is hired. It also allows your company to make changes in response to changing call capacity.

✔ VoIP systems have no physical limitations, removing any issues that would usually occur when changing office size or location.

✔ VoIP Business phones are just as feature-rich as PBX Systems, but also offer additional features.
For example, many VoIP phones offer voicemail to email transcription and an auto-attendant (customisable virtual receptionist). For the best auto-attendant systems, go to our page.

✔ VoIP software does not require any maintenance. It is updated and upgraded automatically.

✔ Payment is done per user/device.
This is cheaper for SME’s, but fast growing businesses approaching 50+ employees may get more value from a hybrid VoIP/ Traditional PBX Business Phone System. (Many VoIP Providers will offer this.)

For most businesses, VoIP will be the better option as it’s more affordable, more reliable, and can easily and quickly be scaled up and down. Meaning you can add and remove phone lines as well as choose add-on features.

VoIP systems typically come equipped with features such as call queueing, call conferencing, and integrations. Integrations with software such as customer relationship management (CRM) provide businesses with a smoother way to connect with customers.

Find out more about VoIP Business Phones here, including the Top 10 VoIP System Providers, and the Top 10 VoIP Desk Phones in the UK this year.

What kind of phone line packages can I get for my business?

You can choose from a few different phone line packages, here are your options:

• Broadband – this package is also known as VoIP as the phone lines operate over broadband internet connection as opposed to traditional phone lines. Essentially, you’re making and receiving calls over an internet connection. Broadband packages are typically cheaper, flexible, portable, and contain advanced features. However, any internet disruptions will also disrupt your phone lines, meaning complete loss of service or poor call quality.
• VoIP – VoIP lines operate over the internet, however, in comparison to Broadband packages, the phone line itself is virtual. VoIP lines use internet-based technology, making it one of the cheaper lines. It’s also easily scalable as it’s easy to set up, however, as it runs over your internet, any connection issues will be reflected in call quality and may lead to dropped calls.
• Leased lines – this package is a dedicated data connection service from a telecommunications provider. A leased line package is the leasing of a private line, connecting two locations. These lines provide guaranteed bandwidth and a dedicated connection, however, they typically come with a higher cost.
• Mobile – a mobile phone line package is provided by a mobile network, typically allowing you to make calls, send texts, and use the internet. Mobile packages are flexible as you can continue to make and receive calls while on the move. However, you might find that the call quality and reliability due to network issues might not be as solid as calls made over traditional lines.