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A business phone line costs from £7/month for VoIP, £25/month for a traditional landline, or £10/month for a virtual number. VoIP is the best option for most UK business phone lines in 2026 — it is cheaper, feature-rich and future-proof ahead of the 2027 PSTN switch-off.
Last updated: March 2026 | Reviewed by: Connection Technologies business phone lines team
Every business needs a reliable way for customers, suppliers and partners to reach them — and a business phone line remains the backbone of professional communication in 2026. But the landscape has changed dramatically. Traditional copper landlines are being switched off, cloud-based alternatives have matured, and the options available for business phone lines are wider than ever.
Whether you are setting up your first business phone line, expanding an existing system or preparing for the 2027 PSTN switch-off, this guide covers everything you need to know — types, costs, features and how to choose the right solution. If you already know you want VoIP and want to compare providers, our guide to business phone line providers in the UK is a useful companion.
What Is a Business Phone Line?
A business phone line is a dedicated telephone line used for commercial purposes. Unlike a residential phone line — which is designed for personal use — a business phone line is set up under a company name, typically comes with enhanced features and service-level agreements, and is treated differently for tax purposes.
The core differences between business and residential phone lines include:
- Features: Business phone lines include call management features such as auto-attendant, call forwarding, hunt groups and voicemail to email. Residential lines offer basic calling and little else.
- Service-level agreements: Business line providers guarantee faster fault resolution — often within hours rather than days.
- Tax treatment: The cost of a business phone line is a fully deductible business expense, and VAT-registered businesses can reclaim VAT on line rental, call charges and equipment.
- Number presentation: Business lines let you present a geographic number, national 03 number or freephone 0800 number — giving customers confidence they are dealing with an established company.
- Scalability: Business phone systems are designed to grow. Adding extensions, lines and features is straightforward.
For decades, a business phone line meant a physical copper wire from the BT exchange to your premises. In 2026, that definition includes VoIP lines delivered over the internet, SIP trunks and mobile-based solutions. The copper era is ending — Openreach will switch off the PSTN by January 2027 — but the need for a professional, reliable business phone line is as strong as ever.
Looking to cut costs? See our guide to the cheap business phone line options available in 2026.
A growing number of UK businesses are switching to a virtual landline — a cloud-based phone number that works over the internet but looks and feels like a traditional landline. Virtual phone numbers for business offer all the credibility of a local or 0800 number without the physical line rental, typically costing 60-80% less than a BT business line.
Types of Business Phone Lines in 2026
There are four main types of business phone lines available in the UK today. Each has different strengths, limitations and costs, and the right choice depends on your business size, budget and working patterns.
Traditional Landlines (PSTN/ISDN)
A traditional business landline uses the Public Switched Telephone Network — the copper wire infrastructure that has served the UK since the Victorian era. PSTN lines carry analogue voice signals, while ISDN lines carry digital signals over the same copper, supporting multiple simultaneous calls.
For decades, PSTN and ISDN were the only options for business phone lines. They are reliable and work independently of your internet connection. However, the technology is now at end of life.
Critical point: Openreach stopped selling new ISDN lines in September 2023 and is switching off the entire PSTN by January 2027. If you are still running traditional landlines, you must migrate within the next twelve months. New businesses should not install PSTN or ISDN lines under any circumstances.
Traditional landlines also lack the features modern businesses expect — no video calling, no call analytics, no CRM integration and no remote working support. Even basic features like call recording require expensive bolt-on hardware.
For a detailed look at why the old network is closing and what it means for your business, read our guide on preparing your business for the 2027 landline switch-off.
VoIP Phone Lines (Cloud/Hosted)
Voice over Internet Protocol (VoIP) is the modern replacement for the traditional business phone line. Instead of sending voice over copper wires, VoIP converts speech into digital data packets and transmits them over your broadband connection.
Hosted VoIP — also called cloud VoIP — runs the entire phone system in secure data centres rather than on hardware in your office. You plug in IP handsets or install a softphone app, and everything works through your existing internet connection.
This is what the vast majority of UK businesses should be choosing in 2026. The advantages over traditional business phone lines are substantial:
- Lower cost: Plans start from as little as £5 per user per month, with UK calls typically included and no PBX hardware to buy or maintain.
- Rich features as standard: Auto-attendant, call recording, voicemail to email, call analytics, CRM integration and video conferencing are built in.
- Work from anywhere: Staff can make and receive calls on their business number from any device, anywhere with an internet connection.
- Instant scalability: Add or remove users in minutes through an online portal — no engineer visits, no new wiring.
- HD voice quality: Wideband audio codecs deliver noticeably clearer calls than analogue landlines.
- Future-proof: VoIP replaces the PSTN. Choosing it now means you are already prepared for the 2027 switch-off.
Our hosted VoIP for business guide covers the technology in depth, including how to evaluate providers and what to look for in a plan.
SIP Trunking
SIP (Session Initiation Protocol) trunking is a middle ground for businesses that have already invested in on-site PBX hardware. A SIP trunk connects your existing phone system to the internet, replacing the ISDN or analogue business phone lines that currently feed it.
You keep your existing handsets, extensions and call routing — but calls travel over broadband instead of copper. SIP trunks are sold per channel (each channel supports one concurrent call), and pricing is competitive with hosted VoIP.
SIP trunking makes sense if you have a modern IP-PBX with years of useful life remaining. However, you still maintain the on-site hardware yourself and miss out on many cloud-based features. For most businesses evaluating their business phone lines strategy, hosted VoIP is the better long-term choice.
Mobile-Only
Some businesses — particularly sole traders, freelancers and field-based workers — use a business mobile as their primary business phone line. With the right contract, a business mobile gives you a dedicated number, inclusive calls and data, and the flexibility to work from anywhere.
A mobile-only approach works well when you are a one-person business, spend most of your time away from a fixed location and do not receive high volumes of inbound calls.
The limitations become apparent as you grow. Mobiles lack professional features like auto-attendant, hunt groups and call queues, and customers calling a mobile number may perceive your business as less established.
Many businesses use a combination — a VoIP system for the office with business phone lines and business mobiles for staff on the move. Connection Technologies can help with both as an authorised VoIP provider and O2 Select Partner for business mobiles.
Not sure which business phone line is right for you?
Our UK team compares every option — VoIP, SIP and mobile — to find the best fit for your business phone lines. Free, no-obligation quote in under 60 seconds.
Get Your Free Phone Line Quote →
Or call us on 0333 015 2615
Business Phone Line Costs 2026
The table below compares the four main business phone line options across the cost metrics that matter most. Understanding these costs is essential when choosing between business phone lines for your organisation.
| Cost Factor | Traditional Landline | Hosted VoIP | SIP Trunking | Mobile-Only |
|---|---|---|---|---|
| Setup cost | £100–£150 per line + PBX £2,000–£10,000 | £0–£100 per handset (or free with softphone) | £0–£500 (configuration only) | £0–£50 per handset (often free on contract) |
| Monthly cost per line/user | £25–£45 | £5–£15 | £5–£10 per channel | £10–£30 per SIM |
| UK call costs | Inclusive or per-minute (10p–15p to mobiles) | Usually inclusive (landline and mobile) | Per-minute or bundled | Usually inclusive |
| Features included | Basic (voicemail, caller ID) | Comprehensive (auto-attendant, recording, analytics, video) | Depends on PBX capability | Basic (voicemail, call divert) |
| Contract length | 12–36 months | 1–24 months | 1–24 months | 12–36 months |
| < Ready to switch to VoIP? Most UK businesses are moving from traditional phone lines to hosted VoIP. See our Hypercloud hosted VoIP phone system → Explore More Business Solutions We help UK businesses save on telecoms, IT and connectivity.  ©Connection Technologies 2026. All Rights Reserved. Connection Technologies Limited is authorised and regulated by the Financial Conduct Authority, reference FRN 958225 Registered office: Fareham Innovation Centre, Merlin House, 4 Meteor Way, Fareham, Lee-on-the-Solent, PO13 9FU. Registered in England and Wales, Company No. 11630924 Need a business phone system?Hosted VoIP with 60+ features, from £6/user. Free setup and number porting — no obligation. Get a VoIP Quote →Or call 0333 015 2615 |