☁️ The Four Types of Business Phone System (and Their Cost Models)
Before comparing costs, it's important to understand what you're buying, because the cost structure varies completely:
| System Type | Upfront Cost | Monthly Cost | Best For |
|---|---|---|---|
| Hosted VoIP (cloud) | £0–£500 | £9–£25/user | Most SMEs |
| Cloud PBX | £500–£2,000 | £15–£40/user | 20–100 users |
| On-premise IP PBX | £2,000–£20,000 | £0–£5/user | 100+ users or high-security |
| Traditional analogue PBX | £1,000–£10,000 | Line rental only | Legacy (avoid) |
💷 Hosted VoIP: Full Cost Breakdown
Hosted VoIP (like Telexico's Cloud-X system) is the right choice for the majority of UK SMEs. Here's the true total cost of ownership:
| Cost Element | 5 Users | 20 Users | 50 Users |
|---|---|---|---|
| Monthly subscription | £50–£100 | £200–£400 | £500–£1,000 |
| Desk phones (one-off) | £250–£500 | £1,000–£2,000 | £2,500–£5,000 |
| Number porting (one-off) | £25–£75 | £50–£150 | £100–£250 |
| Setup / configuration | £0–£200 | £200–£500 | £500–£1,000 |
| Annual total (yr 1) | £950–£1,950 | £3,600–£7,300 | £9,100–£17,200 |
| Annual total (yr 2+) | £600–£1,200 | £2,400–£4,800 | £6,000–£12,000 |
📋 What's Usually Included — and What Isn't
- Usually included: Unlimited UK calls, voicemail, call forwarding, hunt groups, auto attendant, mobile app
- Often charged extra: International calls, call recording storage beyond 90 days, additional DDI numbers, premium support SLA
- Common surprises: Number porting fees, additional site setup fees, contract exit penalties
💰 The Real Saving vs BT or Virgin Business
A typical BT Business landline for a 10-person office (2 lines, inclusive minutes) costs around £120–£180/month. The equivalent Telexico hosted VoIP system costs £100–£150/month — with more features, mobile apps, and no line rental dependency. Over a 3-year contract, the saving is typically £1,500–£5,000.
⚠️ Mid-contract price rises
BT, Virgin and many VoIP providers apply annual price increases of RPI+3.9% or similar. On a 3-year contract starting at £150/month, this adds up to paying over £170/month by year 3. Always check the price rise clause before signing.
Get an exact cost comparison for your current phone system vs Telexico VoIP. We'll show the monthly and 3-year saving.
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