Time is almost up for the copper network that has enabled Britons to make and receive telephone calls for more than a century. In 2025, Openreach will switch off the UK’s analogue network. That means both businesses and homes will need to switch to a digital service before then if they haven’t already done so.
For small businesses, this represents an opportunity. Making the leap to digital could give you access to a range of new services, as well as improved pricing.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
How much will a VoIP service cost?
The good news is that this is a competitive market. But the best provider for you will depend on a range of factors: how your business uses its phone system, but also what features you need.
Typically, you will pay a monthly line-rental fee for your service, charged per user – anywhere from £10 to £50 a month per employee is common. You may also have to pay usage costs based on the calls your firm makes, particularly if you make many international calls. The other cost to consider is what you might spend on hardware – VoIP handsets, for example, although many employees simply use their existing computer headsets.
Providers will expect you to sign up for a contract but try not to tie yourself in for longer than necessary, particularly if you’ve not used VoIP before. Small businesses should be able to access 12-month deals. This will mean you don’t have to wait long to switch if you’re not happy with the first provider you choose.
Most providers offer several levels of service. You will pay more expensive rates if you want additional benefits. These vary enormously, but standard features include voicemail, call forwarding, call conferencing and call waiting. For businesses that take a large number of calls from customers, VoIP can be a useful way to keep them happy. You can access features such as hold music and messaging and automatic callbacks. You can also integrate your phone system with your customer relationship management (CRM) systems, as well as any data analytics technologies that you use. Flexibility is also important.
As your business grows, it’s useful to be able to add new employees to the system very easily. Many services provide BT plans to switch the analogue telephone network off next year a simple dashboard through which you can add users yourself. And because your ways of working may change, look for a provider that makes it easy for staff to access the system on different devices, including when they’re working remotely.
Voice over IP options for small businesses
With so many variables to consider, it’s difficult to come up with a single best-buy provider for small businesses. However, research published by the website Start-ups picked out seven providers in particular as a good place to start the search for your VoIP system.
The best all-around buy in the research is 8x8, but it also highlights Vonage, bOnline, Dialpad, GoTo, RingCentral and Nuacom as worth considering. Most of these VoIP providers will give small businesses free trials in order to give you an idea of what they offer and how they work.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
Will NS&I boost Premium Bonds prize fund rate? Why it could rise soonNS&I now has a net financing target of £13 billion for the 2025/26 financial year
-
Autumn Budget quiz: How closely were you following Rachel Reeves’s tax-raising speech?Quiz Rachel Reeves announced a slew of new tax hikes in the Autumn Budget, impacting almost every taxpayer in the UK. How closely were you following the fiscal event?
-
Chen Zhi: the kingpin of a global conspiracyChen Zhi appeared to be a business prodigy investing in everything from real estate to airlines. Prosecutors allege he is the head of something more sinister
-
Canada will be a winner in this new era of deglobalisation and populismGreg Eckel, portfolio manager at Canadian General Investments, selects three Canadian stocks
-
Jim O’Neill on nearly 25 years of the BRICSJim O’Neill, who coined the acronym BRICS in 2001, tells MoneyWeek how the group is progressing
-
Build or innovate? How to solve the productivity puzzleOpinion There are two main schools of thought when it comes to solving the productivity puzzle, says David C. Stevenson
-
More clouds gather over renewable energy trusts – is there any hope for the sector?The outlook for renewable energy trusts has gone from bad to worse this year, with the industry being caught in a 'perfect storm'
-
Should ISA investors be forced to hold UK shares?The UK government would like ISA investors to hold more UK stocks – but many of us are already overexposed
-
Why Scotland's proposed government bonds are a terrible investmentOpinion Politicians in Scotland pushing for “kilts” think it will strengthen the case for independence and boost financial credibility. It's more likely to backfire
-
How Germany became the new sick man of EuropeFriedrich Merz, Germany's Keir Starmer, seems unable to tackle the deep-seated economic problems the country is facing. What happens next?
