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What’s the Average Telephone Bill Per Month for Small Businesses?

hand flying out of the screen holding a smartphone with an invoice notification for an average telephone bill per month for small business

By now you know that, as a small business owner, you should focus on managing your expenses as much as you do on marketing and selling your products, serving your customers, and generating revenue. One of the best places to start when cutting back on your expenses is your phone system. In fact, with the right system, you can save up to 75% on your communication costs. 

But what is the average telephone bill per month for small businesses? And how much can you expect to pay for different phone systems? In this post, we’ll look at these questions in more detail. 

How Much Does an Average Phone Bill Cost?

Let’s start by looking at how much the average telephone bill is per month for small businesses. Unfortunately, this isn’t as simple as it sounds. This is because how much businesses pay on phone costs depends on several factors, including:

  • Employees. With more employees, you can expect your call volume and the number of phones you have to increase. As a result, your phone bill will also be higher compared to businesses with smaller teams. 
  • Business size. Your business’s size, like the number of employees, also has a direct impact on your phone costs. For example, if you’re a small business with one location, your phone costs will generally be less than a larger company with several stores or offices. Apart from increased call volumes, larger companies also have more infrastructure.  
  • The system, pricing plan, and features. Your business’s phone costs will also, to a large extent, depend on the phone system and pricing plan you choose, as well as the features the system has. For example, you’ll pay more per user for a lower-tier plan compared to higher-tiered plans. The system you choose will also dictate what equipment and infrastructure you’ll need, which has an impact on costs.

Estimated Cost of Phone System for Small Businesses

Considering the factors mentioned above, especially relating to the system you choose, let’s look at the estimated costs for different systems. In this way, you’ll be able to consider which system meets your business’s needs and expectations when looking for a phone system

Small Business VoIP Phone Systems

With a VoIP system, you generally don’t need any special equipment, as the system relies on a stable and reliable internet connection. As such, you also won’t have any equipment you need to maintain, as the infrastructure will be maintained by your VoIP provider. This allows you to keep your initial and ongoing maintenance costs low. 

There are, however, monthly charges you’ll need to pay. Here, you’ll pay a monthly subscription that varies based on the specific pricing plan you pick. In addition, you’ll typically pay an additional monthly amount for any add-ons or extra features you choose. If you choose to use desk phones with your system, you’ll have to budget for these too.

You can expect to pay anything from $15 to $40 per user per month for a small business VoIP system, and then a monthly amount for the add-ons or features you choose. 

Business Landline Phone Systems

Your next option would be a business landline phone system, also known as a Plain Old Telephone Service (POTS). Here, you’ll have hardware and installation costs and line rental you’ll need to consider.

Generally, line rentals start at about $50 per line per month, with extra lines being charged for at a lower rate. For example, you might pay $50 per month for the service and then $20 per month for every additional line you need. 

In respect of hardware and installation costs, your phone company will need to install your phone lines, and you’ll have to buy analog phones to use with the system. Installation costs start at about $150 with basic phones starting at $50. In addition, you’ll also have ongoing maintenance costs to maintain the hardware and the equipment.  


When it comes to PBX systems, you can choose between on-site PBXs or virtual PBXs. With the on-site option, you’ll pay for hardware, phones, installation, and software licenses. This can amount to anything up to $15,000. In contrast, with a virtual PBX, you’ll generally only have to pay for phones, which will cost you about $2,000. 

How VoIP Helps You Cut Phone Bill Expenses

There are several ways in which VoIP helps you reduce your phone expenses. For one, as mentioned earlier, with VoIP systems, you don’t have major hardware costs when you implement the system. Typically, you’ll only need to pay for desk phones if you choose to use them with the system. In turn, this also means that you won’t have any maintenance costs. 

Because VoIP uses the internet for calling, it’s also easier to move the system when you move offices. This makes it more flexible compared to on-site systems. Using the internet also has another advantage. Here, you’ll have far lower local calling fees and reduced international calling fees. In fact, with many plans, local calling is free.  

Save More on Phone Bill Cost with Small Business VoIP Phone Systems

Taking everything mentioned above into account, it’s easy to see how VoIP can help you drastically reduce your business’s phone bills. And considering the other benefits it offers, from more efficiency and productivity to advanced features, more flexibility, and being able to offer better customer service, it’s a win-win.

If you want to cut your business’s phone costs, get in touch with ULTATEL. Our small business phone systems are the perfect solution for your small business phone system needs and can help you be more efficient. And starting at only $24.95 per month, they’re cost-efficient too. To learn more about ULTATEL and how we can help you, request a demo today.

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