How Much Does a Cloud Phone System Cost?

yealinkWith a mobile workforce, many businesses are moving more systems to the cloud. Many companies have moved to a cloud solution for their telephone systems to communicate effectively and collaborate with colleagues. Cloud phone systems, or hosted PBX as they are also known, are run through the internet with Voice over Internet Protocol (VoIP). These systems reduce the capital investment that on-premise phone systems require, but provide the same or better quality and feature sets. The one question asked most often is how much does a cloud phone system cost?

The cost of cloud phone systems varies based on several factors. To gain a better perspective on what your costs might be for your business, ask yourself these questions:

  1. How many users will need your phone system?
  2. Would you like to purchase phone equipment outright, or lease them for a set fee per month?
  3. Does your phone system need to integrate with your current business systems such as your CRM, customer ticketing system, or other cloud services such as Google's G Suite or Microsoft 365?
  4. Will you need your technology to handle advanced functionality such as video conference rooms, webinars or call centers?

Once you know what your business needs, you can get a better idea of pricing. Fraser's typical price range for a cloud phone system ranges from $18 to $36 per user, depending on the features you require, the term of the contract (36 or 60 months) and the total number of users. Call center monthly costs can vary widely, depending on the type of features delivered and the depth of third party application integration. Fraser offers a basic call center application that costs between $10 and $20 per agent/month and can include call recording for an additional $4 per agent/month.


Your new cloud phone system will require some setup, and as with features, installation can change your price. Based on your telephone system's current configuration and wiring, you may incur some additional installation charges. Make sure your provider is asking questions about your organization when discussing making your purchase or lease. There are many details to take into account, and you'll want to be sure to cover all bases for a successful deployment.

Standard Functionality vs. Additional Costs

When you partner with a reputable business communications provider, such as Fraser, your cloud phone system will come with a standard set of features. These may include:

  • Unlimited calling in the United States
  • Find me-follow me functionality
  • Conference calling
  • Call forwarding
  • Auto-attendant
  • Detailed call reporting
  • Video calling

There are plenty of other features available like office intercoms, mobile apps and more that may add to your overall monthly costs. You should carefully review all of your options and select a reputable provider that can walk you through the specs your business truly needs and ensure a reasonable cost.

Bandwidth and Phone Usage

When referring to bandwidth, we are talking about "the maximum data transfer rate of a network or internet connection" per Tech Terms. When moving to cloud phones or VoIP, you'll need to use your business's internet service to "power" your phones. Slower internet speeds will result in lower call quality, so make sure to discuss your internet service speeds with your telecom provider, ensuring you have the bandwidth necessary to have the highest quality calling.

Device Locations

If you're a company with multiple locations or does a lot of international business, your bill's pricing can vary widely. Often, long distance calls within the United States and even Canada are part of your plan, but international calls are billed by the minute based upon the destination of the call. By sharing what your telecom needs are in the beginning, you will gain a better understanding of the charges involved and what you might expect to pay on a monthly bill.

As you can see, the cost of a cloud phone system varies depending on your business's size, needs, and current setup. With the current pandemic situation, a cloud phone system allows users to forward calls from their desktop phone to their mobile devices and computers, so mobile work is seamless. Ultimately, moving to a cloud phone system sets your business up for success and allows the system to grow as your business does.

At Fraser, our Unified Voice Cloud Phone Systems come full of features that set your physical office location up with the best in communications AND allow your workforce to stay connected in mobile situations. With financing, you can stick to a predictable, budgeted cost for both hardware and service. To learn more about our Unified Voice Cloud Phone Systems, reach out to us today.