Pricing

Price is where everything gets serious. Many first-time VoIP buyers are seduced by promises of big savings over their existing telephone system. But apart from basic residential service there are no longer huge savings as regular telephone companies have cut long distance rates to remain competitive. There are still savings, but they aren't as large as some providers may try to lead you to believe. Nevertheless, that's no reason not to be cost-conscious.

Look at three basic cost areas – even for residential service. What the startup cost will be in terms of equipment, other first-time fees and services to get up and running. Look at monthly (or whatever period you prefer) operating costs ongoing, and look at termination costs if any – costs to end a contract, etc. All of these are factors.

For residential service you can pay as little as $17 per month or as much as about $40 depending on where you can call for free, included features, etc. Most services are in the $20 to $25 per month range for a single line with unlimited free long distance throughout the US.Small businesses can pay as little as $50 per line per month from hosted plans to as high as $200 per month, again depending on services, features and other issues. If you choose to buy equipment and operate with a lower operating cost per month from a provider but a higher capital outlay you can expect to shell out from about $1000 to $5000 in equipment costs for from five to ten or so people plus a monthly operating charge of from $100 per month total to as much as $1000 per month. The price range is higher here but so are the range of options and features on offer.

Medium and large businesses move into total capital costs expressed typically as a cost per line of between $300 and $1000 and operating costs in the several thousands per month. But if the number of lines is large, that can still translate to a very low cost per line.