Quick Answer: Business Phone Line Costs in 2026
A business phone line costs between £7 and £35 per month depending on the type. VoIP lines start from £7–£15/user/month with calls included. Traditional BT landlines cost £25–£35/month for line rental alone, plus call charges. Virtual numbers cost £3–£10/month. With the PSTN switch-off in 2027, VoIP is now the most cost-effective option for most UK businesses.
Understanding what a business phone line actually costs in 2026 isn't straightforward. The price depends on the type of line, your provider, how many calls you make and whether you need additional features. Many businesses are paying far more than they need to because they haven't reviewed their phone costs since before the shift to IP-based communications.
This guide breaks down every type of business phone line available in the UK, what each one costs, and where the hidden charges lurk.
Business Phone Line Cost Comparison
| Line Type | Monthly Cost | Setup Fee | Calls | Contract |
|---|---|---|---|---|
| Traditional BT Landline | £25–£35 | £0–£150 | Pay per minute (1–10p/min) | 12–24 months |
| VoIP / Hosted Phone | £7–£20/user | £0–£50 | Inclusive UK calls on most plans | Monthly or 12 months |
| Virtual Phone Number | £3–£10 | £0 | Forwarding charges apply | Monthly rolling |
| SIP Trunk (per channel) | £3–£8 | £0–£100 | Pay per minute or bundles | Monthly or 12 months |
| ISDN2e (per channel) | £25–£35 | £100–£300 | Pay per minute | 12–36 months (being retired) |
Traditional Landline Costs
A traditional business landline from BT or another Openreach-based provider costs £25–£35 per month for line rental alone. That gets you one phone line capable of one call at a time. Calls are charged on top at rates of 1–10p per minute depending on the destination and time of day.
What You Actually Pay
For a typical small business making 500 minutes of UK calls per month on a single line, the total cost works out to approximately:
- Line rental: £28/month
- UK landline calls (500 mins at ~2p/min): £10/month
- UK mobile calls (100 mins at ~8p/min): £8/month
- Total: ~£46/month for one line
If you need multiple lines for simultaneous calls, each additional line adds another £25–£35 in rental. A business with three lines could easily be paying £100+ per month before call charges.
The Catch
Traditional landlines are being switched off. BT Openreach is retiring the PSTN by 2027, which means analogue phone lines will stop working. If you're still on a traditional landline, you'll need to switch to a VoIP or SIP-based alternative within the next 18 months. New traditional landline installations are no longer available in most areas.
VoIP Phone Line Costs
VoIP (Voice over Internet Protocol) phone lines are now the standard for UK businesses. They run over your existing broadband connection, eliminating the need for separate copper phone lines.
Pricing Structure
Most VoIP providers charge per user per month, with prices ranging from £7 to £20 depending on the features included:
- Basic plans (£7–£10/user/month): One phone number, UK landline calls included, voicemail, basic call management
- Standard plans (£10–£15/user/month): UK landline and mobile calls included, call recording, auto-attendant, mobile app, CRM integration
- Premium plans (£15–£20/user/month): Unlimited UK calls, international call bundles, advanced analytics, call centre features, wallboards
What Makes VoIP Cheaper
The cost difference comes from eliminating Openreach line rental. With VoIP, your calls travel over broadband that you're already paying for. There's no per-line charge to Openreach, no engineer visits to install new lines, and adding or removing users takes minutes rather than weeks.
For a business with five users, VoIP typically costs £50–£75/month total with calls included, compared to £150–£230/month for five traditional landlines plus call charges.
Hardware Costs
VoIP phones (IP handsets) cost £50–£200 each to buy outright, or £3–£8/month to rent. Many businesses skip desk phones entirely and use softphone apps on computers and smartphones, which are usually included free with the VoIP service.
Virtual Phone Number Costs
A virtual phone number gives you a business phone number that forwards calls to any device – your mobile, landline or VoIP system. It's the cheapest option but also the most limited.
Pricing
- Local geographic number (01/02): £3–£8/month
- National number (0333/0345): £3–£10/month
- Freephone number (0800): £5–£15/month plus per-minute charges for incoming calls
Virtual numbers are ideal for sole traders or very small businesses who want a professional business number without the cost of a full phone system. The downside is limited features – you typically get call forwarding and basic voicemail, but no call transfer, conferencing or multi-user features.
Hidden Costs to Watch For
The monthly price is rarely the full picture. Here are the charges that catch businesses out:
1. Call Charges Outside Inclusive Bundles
Many plans include UK landline calls but charge extra for mobile calls, international calls and calls to non-geographic numbers (0845, 0870 etc.). Check the per-minute rates for the types of calls your business actually makes. Mobile call charges of 8–15p per minute can add up quickly.
2. Setup and Installation Fees
Some providers charge £50–£150 for setup, number porting or configuration. Others include setup free but lock you into a longer contract. Always ask what the total first-month cost will be.
3. Hardware Rental vs Purchase
Renting phones at £5/month each sounds cheap, but over a 36-month contract that's £180 per phone – more than buying outright. If you're staying with a provider long-term, buying handsets usually works out cheaper.
4. Out-of-Contract Price Increases
Many providers offer a discounted rate for the initial contract period, then increase the price significantly when you move to a rolling contract. Check what the out-of-contract price will be and set a reminder to review before your contract ends.
5. Number Porting Fees
Moving your existing phone numbers to a new provider should be free or low-cost (£5–£10 per number), but some providers charge £20–£50 per number. Clarify this before signing up, especially if you have multiple numbers to port.
6. Early Termination Charges
Leaving a contract early typically means paying the remaining months in full. On a 24-month contract at £30/month, that could be up to £720 if you leave after just one month. Some providers offer a buy-out option at a reduced rate.
How to Reduce Your Business Phone Line Costs
1. Switch to VoIP
If you're still on traditional landlines, switching to VoIP is the single biggest saving you can make. Most businesses save 30–50% on their phone costs by moving to a hosted VoIP system. With the PSTN switch-off approaching, you'll need to make this move anyway.
2. Bundle Phone and Broadband
Combining your phone and internet services with one provider often qualifies you for a discount of 10–20% compared to buying each separately. It also simplifies your billing and support.
3. Right-Size Your Plan
Review your call data. If your inclusive minutes are barely being used, you might be on a plan that's too expensive. Conversely, if you're regularly exceeding your allowance and paying overage charges, upgrading to a higher plan could save money overall.
4. Use Softphones Instead of Desk Phones
Softphone apps on computers and smartphones are included free with most VoIP services. If your team is comfortable using headsets with their computers or taking calls on their mobiles, you can eliminate hardware costs entirely.
5. Negotiate at Contract Renewal
Providers offer their best deals to new customers and to existing customers who threaten to leave. When your contract is approaching renewal, get competing quotes and use them as leverage. Even a 10% discount on a £200/month phone bill saves £240 per year.
Find Out What You Should Be Paying
Get a free, no-obligation comparison of business phone line costs from leading UK providers. We'll show you exactly how much you could save.
Frequently Asked Questions
How much does a business phone line cost per month?
A traditional BT business landline costs £25–£35/month for line rental plus call charges. VoIP business phone lines cost £7–£20 per user per month with UK calls typically included. Virtual numbers start from £3/month.
Is VoIP cheaper than a landline for business?
Yes, significantly. VoIP costs 30–50% less than traditional landlines for most businesses. A five-user VoIP system costs around £50–£75/month total, compared to £150+ for five traditional lines before call charges.
Do I need a phone line for business broadband?
Not any more. Full-fibre (FTTP) broadband doesn't require a phone line. Older ADSL broadband does need an active phone line, but FTTP and most FTTC packages are now available without one. VoIP phone services run over your broadband connection.
What is the cheapest business phone line option?
A virtual phone number from £3/month is the cheapest option, but it only forwards calls. For a full business phone system, basic VoIP plans start from £7/user/month. For a sole trader or micro-business, a virtual number combined with your mobile is the most affordable setup.
