The Ultimate Guide to Phone System Prices

By Aimee Bradshaw | Writer and researcher | Updated: 3 March 2020

If you’re looking to invest in a new phone system and want to know how much you’re likely to pay, take a look at our telephone system prices guide for insights


It’s pretty hard to pin down the cost of a phone system. After all, there are so many elements you need to think about – handsets, hardware, call plans, software, installation, maintenance… the list goes on. 

So while we can’t give you the exact cost of a telephone system, we can provide you with a ballpark figure. 

To break it down, we’ve split our telephone system prices guide into three sections, covering analogue phone systems, hosted VoIP phone systems, and self-hosted VoIP phone system costs. 

Just bear in mind that this is a rough guide – for exact figures, you’re better off getting in touch with suppliers for an accurate quote. Expert Market’s price comparison tool takes away the effort of trawling through websites to find telephone system prices, and sends suppliers straight to you.

Just tell us a little bit about your business, then the suppliers that best match your requirements will be in touch!


Analogue phone system prices

While it’s worth bearing in mind that BT is going to start switching off the landlines by 2025, analogue phone systems are still a good short-term solution. And with many landline handsets now having IP capabilities (the ability to connect to the internet), your analogue handsets at least won’t be a wasted investment.

PBX and key phone prices

For an analogue business phone system to offer optimum functionality, it’ll require either a PBX (private branch exchange) or a key phone. 

The difference between a PBX and a key phone is that, while a PBX digitally sends a caller to the right handset via an auto-attendant, a key phone uses a light system to display when a line is busy, enabling the right person to pick up the call. 

To give you an idea of costs:

  • A PBX that consists of two phone lines with six handsets costs around £160
  • A PBX with 16 lines and up to 64 handsets costs around £900+
  • A key phone that supports 16 handsets costs around £125 – £250

It’s worth bearing in mind that key phones aren’t as scalable as a PBX, so spending more on the off-set may mean that you won’t have to pay as much in the future.

Multi-line phone system costs

If you’re thinking that your business doesn’t need that many phones, you can always look into a multi-line phone system

These consist of a number of phone lines, plus two to 10 handsets, but don’t offer the same call handling features, such as an auto-attendant. 

Panasonic offers six-handset multi-line phone systems from £99, and BT will usually install a new landline for around £250. This means that expanding to a two-line phone system with six handsets will cost you around £350.


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Hosted VoIP phone system prices

Hosted VoIP is the most popular choice of VoIP phone system. It means that you pay a provider to host your internet phone system on their servers. Providers will usually charge a configuration and installation fee when you purchase your VoIP phone system, then there’s the cost of handsets and software to consider, too. 

The installation and configuration fee is usually in the region of £250 for half a day.

It’s easier to split the rest of the costs of a hosted VoIP phone system into handsets and software:

Phone system handset prices

The price of a phone system handset varies depending on the specification of the phone you need. Although all VoIP handsets will enable you to make full use of the features of your VoIP phone system, cheaper handsets won’t be as intuitive to use as more expensive handsets.

Below, we’ve provided you with some guideline prices:

cheap voip phone

Low spec – £50

Mid range voip phone

Medium spec – £100

top range voip phone

High spec – £150

2-30 handsets£100 – £1,500£200 – £2,000 £300 – £6,000
30-60 handsets£1,500 – £3,000£3,000 – £6,000£4,500 – 9,000
60-100 handsets£3,000 – £5,000£6,000 – £10,000£9,000 – £15,000

VoIP phone system software costs

Most phone software is charged on a per user, per month basis. And while some providers charge a set fee for the entire software package, others limit the features you can use depending on the price you pay. 

While we’ve provided you with a rough guide below, it’s best to get in touch with individual suppliers to know what’s included in each of their packages. Our price comparison service makes it really easy for you to do this. Just provide us with a few details about your business, and we’ll send you the best suppliers for your requirements. 

Small businesses  Medium businesses Enterprise
2-30 users£26 – £390/month£36 – £540/monthn/a
30-60 users£390 – £780/month£540 – £1,080/month£720 – £1,440/month
60-100 usersn/a£1,080 – £1,800/month£1,440 – £2,400/month

What do phone system software packages usually include?

Here’s a list of the features you can expect, based on the type of package you choose. 

Basic small business phone system packages generally include: 

  • Auto-attendant 
  • Call logging
  • Call queuing 
  • Call recording
  • Call conferencing

Medium business phone system packages generally include:

  • All of the above 
  • Call recording
  • Call monitoring
  • CRM integration
  • Multi-level attendant

Enterprise business phone system packages generally include:

  • All of the above
  • Web meetings
  • Video meetings

Self-hosted VoIP phone systems cost

A self-hosted system means investing in a self-hosted PBX, and to purchase and configure a PBX isn’t cheap. Including the cost of the handsets, a self-hosted PBX phone system can cost in the region of £600 to £800 per employee

You’ll also need to consider the cost of an internal or external tech team to install and configure the system. These prices will vary depending on the size of your business and the phone system features you need. 

For example, Asterisk sells free software that can turn an office computer into a dedicated onsite telephone system host. The expense isn’t in the software, or even in the server/dedicated computer, it’s in the technical team that will need to build your telephone system from scratch and maintain it


What should I do next?

Why not get an exact price for a phone system by using our cost comparison service? All you need to do is provide us with a few details about your business, and we’ll match you with the best phone system suppliers for your needs. You can compare prices, talk to suppliers, and gain a better idea of the phone system you should be investing in.

Aimee Bradshaw Writer and researcher

Aimee is Expert Market’s resident telephone systems and point of sale go-to. If she’s not writing about business products, you’ll find her daydreaming about dog walking on Dorset beaches.

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