Is VoIP Cheaper Than a Landline for Businesses?
A clear, direct answer to this question — written for UK business owners and IT decision-makers.
Direct Answer
VoIP is consistently cheaper than a traditional landline for UK businesses. Cloud-hosted VoIP costs £8–£25 per user per month, compared to £15–£35 per line for PSTN line rental alone — before call costs. Most businesses save 40–60% on total communications spend after switching. With the PSTN switch-off scheduled for January 2027, migration is no longer optional — it is a deadline.
Key Points
What you need to know.
The Short Answer
31% of UK businesses have switched to VoIP as of 2025 — the fastest adoption rate of any business communication technology in recent history.
For UK Businesses
The PSTN will be switched off by 31 January 2027. Over two-thirds of UK landlines have already been upgraded to VoIP.
Cost Considerations
VoIP systems can reduce communication costs by up to 75%. Small businesses typically see 25–50% lower costs than traditional telephony.
Next Steps
About 1 in 5 business leaders say they have lost business due to poor communication.
Quick Comparison
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Frequently Asked Questions
Most UK businesses save 40–60% on total telephony costs after switching. PSTN line rental runs £15–£35 per channel before call charges, while VoIP costs £5–£15/user/month with calls included. A 20-user business paying £600/month on ISDN lines and calls could reduce that to £200–£300/month on VoIP. The UK PSTN switch-off is scheduled for completion by January 2027 (Openreach), so the migration will become mandatory regardless.
Traditional landlines do not require internet connectivity, so there is no broadband or leased line cost to factor in. However, most businesses already have internet for email and cloud applications, making this a moot point. The only scenario where a landline may appear cheaper is a single-line, low-call-volume setup — but even then, VoIP typically matches or beats the cost once inclusive calls are factored in.
Not necessarily. VoIP softphones run on existing computers and mobile devices at no hardware cost. If you prefer desk phones, IP handsets range from £50 for basic models to £150 for feature-rich units. Teams Phone has surpassed 26 million PSTN users worldwide (UC Today), with many of those users making calls entirely through software on their laptops and mobiles.
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