If you’re replacing an old landline or ageing office phone system, the first question is usually the simplest one: how much does a business phone system cost in the UK? The honest answer is that it depends on how many people need a phone, what features they use and whether you want desk phones, apps or both. This guide breaks the business phone system cost down into plain parts so you can budget with confidence.
Business phone system cost UK: the short answer
Most small and medium businesses now choose a hosted (cloud) phone system rather than buying a box for the comms cupboard. With a hosted system you pay a monthly fee per user, and the phone system itself runs in a secure data centre.
At Simplify Networks, hosted phone systems start from £14.99 per user per month. So a 10-person office on our Basic User plan would pay around £149.90 a month in user charges, before calls and any one-off costs.
What you actually pay for
When you compare quotes, it helps to split the cost into four parts.
1. Monthly per-user pricing
This is the main running cost. Our current plans are:
- Basic User – £14.99 per user per month. A desk phone with all the core phone system features: extensions, transfers, hunt groups, voicemail and so on.
- Business User – £19.99 per user per month. Adds a softphone for desktop, mobile and web, plus SMS, voicemail, call transfer, chat and Microsoft Teams integration. Ideal for hybrid and mobile staff.
- Call centre agent – £29.99 per user per month. For teams handling high call volumes who need queues and call centre tools.
You don’t need everyone on the same plan. A common set-up is reception and warehouse staff on Basic, and managers or sales staff on Business so they can take calls on their mobile. Full details are on our business phone system pricing page.
2. Handsets and headsets
If your team uses desk phones, you’ll need compatible IP handsets. Prices vary a lot by model, from simple desk phones to executive models with colour screens and extra buttons. Some businesses skip handsets entirely and use the mobile and desktop app with a good headset instead, which can bring the upfront cost right down.
It’s also worth checking whether any of your existing handsets can be reused. We’ll tell you honestly if they’re compatible.
3. Setup and installation
There is a one-off setup fee for configuring your system: building your call flows, setting up extensions, ring groups and voicemail, and getting your handsets provisioned. Your quote will show this clearly so there are no surprises. Moving your numbers across is free (more on that below).
4. Calls and connectivity
Call costs depend on your usage and the numbers you call, so ask any provider to show how calls are charged in your quote. You’ll also need a reliable broadband connection, because a hosted phone system runs over the internet. For most small offices a good business broadband line is enough, but if you have lots of simultaneous calls it’s worth checking your bandwidth first.
Example monthly costs
Here’s how per-user charges add up for typical team sizes, using our published prices (calls, handsets and the setup fee are extra):
- 10 staff, all Basic User: 10 × £14.99 = £149.90 per month
- 20 staff, 15 Basic + 5 Business: £224.85 + £99.95 = £324.80 per month
- 50 staff, 35 Basic + 10 Business + 5 Call centre agents: £524.65 + £199.90 + £149.95 = £874.50 per month
Because you pay per user, it’s easy to add people as you grow or remove licences if your team gets smaller.
Hosted vs on-premise: which costs less?
An on-premise PBX means buying hardware for your office, plus ongoing maintenance and the cost of replacing it when it reaches end of life. A hosted system swaps that upfront spend for a predictable monthly fee, with updates and maintenance handled for you.
For most businesses with 10–50 staff, a hosted PBX is the simpler and more predictable option. Larger organisations that already own a phone system can sometimes keep it and connect it with SIP trunks instead. We support 3CX, FreePBX and other platforms, so we can advise on either route.
Hidden costs to watch out for
When comparing quotes, check:
- Number porting fees. Some providers charge to move your existing numbers. We transfer your numbers free of charge.
- Minimum contract terms and what happens if you want to add or remove users.
- Features sold as add-ons, such as call recording, Teams integration or mobile apps.
- Lines you’ve forgotten about. Alarms, lifts, card machines and fax lines may still use old copper lines.
Why now is a good time to review your phone costs
The UK’s old analogue phone network (PSTN) is being switched off, with Openreach’s deadline set for 31 January 2027. If your business still relies on traditional landlines or ISDN, you’ll need to move to a digital alternative anyway, so it makes sense to compare costs properly rather than rush a decision at the last minute. Our PSTN switch-off guide explains what’s changing, and you can read our post on ISDN replacement options for small businesses.
We also offer a free PSTN switch-off check to find any lines and devices that could be affected. And if you’re new to Simplify Networks, you can get 50% off your first month’s per-user charges when you sign up by 31 October 2026.
Get a clear quote for your business phone system
Tell us how many people need a phone and how they work, and we’ll give you a straightforward quote with no surprises. New customers who sign up by 31 October 2026 get 50% off their first month.