How Much Does a Business Phone Line Cost? Compare Landline, VoIP & PBX

A business phone line is a dedicated communication channel that allows companies to make and receive calls with customers, clients, or internal teams. It’s built to handle larger call volumes, multiple users, and smart features like call routing, voicemail, and analytics that go beyond what a personal phone line can offer.

In the past, businesses depended on traditional landline or PBX systems that required complex wiring and expensive hardware. Today, VoIP and cloud-based business phone systems have replaced them, offering flexible multi-line phone systems that work entirely online. These systems are easier to set up, affordable, and accessible from any device, making them ideal for both office and remote teams.

The cost of a business phone line varies based on the type of system, number of lines, included features, hardware needs, and installation requirements. Additional features, call volume, and ongoing support or maintenance can further affect total expenses.

• Type of Phone line: Traditional phone lines usually have higher setup and maintenance costs, while VoIP or cloud-based lines are more affordable and flexible.
• Number of Lines and Extensions: The more employees you need to connect, the higher the cost. Some providers charge per line, while others charge per user.
• Features Included: Add-ons like call forwarding, auto-attendants, voicemail-to-email, video conferencing, and mobile app support increase the cost of the telephone line.
• Hardware and Equipment: If you need desk phones, headsets, or a PBX system (for call routing and management), that adds to the upfront or rental cost.
• Installation and Setup: Traditional phone systems often require professional installation, which can be costly. VoIP systems, on the other hand, are easier and cheaper to set up.
• Call Volume and Usage: Call volume, duration, and international usage affect the business phone line cost, but VoIP providers offer more affordable international rates.
• Support and maintenance: On-premise systems require extra spending on maintenance and IT support, increasing the phone line cost, while cloud systems include them in subscription fees.
• Location: The cost of a business phone line can vary by location due to differences in international call rates and local telecom pricing.

There are different types of business phone lines, such as landline, VoIP, PBX, cloud PBX, and mobile lines, each with its own pricing. On average, they cost between $20 and $70 per line per month, depending on the system and features you choose.

Traditional phone systems rely on copper wiring connected to local telephone networks. While reliable, they are expensive to install and maintain. You’ll need physical hardware such as PBX boxes, wiring, and desk phones, and often have to pay setup fees for every new line added. On average, traditional landlines run about $40 to $70 per line per month, not including long-distance usage.

These systems also have limitations; they can’t easily scale, lack remote accessibility, and require in-person maintenance for upgrades.

A VoIP business phone system uses the internet to transmit voice data instead of physical cables. It is far more cost-effective and flexible compared to traditional setups. Most VoIP services cost about $20 to $40 per user per month. Also, businesses can manage multiple lines, integrate features like call recording, IVR, and AI call summaries, and scale users without buying extra hardware.

Since VoIP runs on existing internet connections, you avoid wiring and maintenance fees. It’s also ideal for remote teams because calls can be made and received from any location or device.

A PBX (Private Branch Exchange) is a phone system installed and managed within your business location. It connects internal extensions and routes calls through dedicated lines. On-premises PBX gives you full control over call management, but it often comes with high pricing.

There are large upfront expenses for hardware and installation, plus ongoing IT support and carrier fees, often reaching thousands of dollars per month. The monthly costs typically range anywhere from $300 to $1,000 or more, depending on the size of your business and the complexity of the system.

Hosted PBX delivers the same functions as a traditional PBX system but is hosted online by a provider. You get features like call routing, voicemail, and conferencing without having to maintain hardware on-site. The service is subscription-based, usually charged per user each month, which is expected to be around $25 to $50 per user per month.

The setup costs are much lower than a traditional PBX. This option is popular with businesses that want advanced features without the overhead of managing their own phone system.

Many companies now rely heavily on mobile business lines, especially for employees who work outside the office. Business mobile plans usually include unlimited calling and texting, with costs tied to the amount of data each line uses. Carriers often offer discounted rates when multiple lines are added under one account. Most business mobile plans range from $30 to $60 per line per month, depending on data allowances and carrier.

This type of service is essential for teams that need to stay connected on the move and is often paired with VoIP or cloud PBX systems for a complete communication setup.

Here’s a detailed comparison of business phone prices by type:

It’s difficult to get a clear estimate of business phone line costs when the providers follow different pricing models. However, modern VoIP and cloud-based systems have made business communication more affordable, predictable, and scalable compared to traditional setups.

For example, Calilio, an AI-powered cloud phone system, offers transparent and flexible pricing designed for businesses of all sizes.

Calilio Pricing:

• Standard Plan – $15 per user/month: Includes essential communication tools like call forwarding, voicemail, call recording, analytics, and IVR. Ideal for small teams and startups looking to streamline communication at a minimal cost.
• Premium Plan – $35 per user/month: Adds advanced features such as Power Dialer, call monitoring, custom caller ID, and AI call reports. Perfect for growing teams that need automation and detailed call insights.
• Enterprise Plan – Custom Pricing: Tailored for large or multi-location businesses that require custom routing, integrations (like Pipedrive or Pabbly Connect), and global virtual phone numbers.

You can also purchase virtual phone numbers starting at just $2/month, with options for local, mobile, or toll-free numbers from over 100 countries.

To lower your business phone line cost, use a cloud-based system, set up a multi-line virtual setup, and choose annual billing. Using existing devices, enabling BYOD, and monitoring call analytics further help reduce ongoing expenses.

Instead of a traditional landline, VoIP services use your internet connection. They eliminate installation fees, maintenance costs, and hardware investments. It’s one of the fastest ways to cut down recurring expenses.

Instead of managing multiple physical lines, choose a virtual multi-line system that works online. This allows multiple calls at once using the same connection, reducing the need for extra lines and minimizing overall costs.

Avoid investing in new desk phones or separate connections. Most modern systems work seamlessly with existing computers and mobile devices.

Let employees use their own phones, laptops, or tablets for business calls through secure VoIP apps. It cuts hardware costs, reduces setup expenses, and gives employees more flexibility.

Many service providers offer discounts for yearly billing compared to monthly payments. Paying annually can lower your total business phone line cost by 10–20% or more.

Regularly reviewing call analytics helps identify unnecessary calls, reduce long hold times, or underused lines.

Many providers offer combined services like voice calls, SMS, and analytics in one plan. These bundled packages are cheaper and give you all communication tools under a single subscription.

The cost of a business phone line depends on your system type, the number of users, and the features you need. While traditional landlines still serve some offices, they often come with high setup, maintenance, and hardware costs. In contrast, VoIP and cloud-based business phone systems offer a smarter and more affordable alternative.

If your goal is to improve communication efficiency while keeping expenses under control, Calilio is the smarter choice. As a cloud business phone system, Calilio eliminates installation fees, reduces calling costs, and combines advanced call management, AI-powered call reporting, and global virtual numbers into one easy-to-use platform.

With plans starting at just $12 per user per month (for a yearly subscription), you can connect your team, manage calls worldwide, and track performance easily, all with clear pricing and no hidden fees.