How Businesses Can Save Costs by Modernising Their Phone Infrastructure

December 4, 2025

For many UK businesses, phone systems are one of those operational costs that are necessary but also take up a major portion of the monthly budget. Setting up a single phone system is not an independent cost; it brings with it many other expenses (maintaining PBX units, buying and managing hardware, call charges and more). Especially with outdated phone systems, these costs are not predictable. 

To save phone system-related costs, upgrading the technology is an ideal strategy for small- to medium-sized businesses in the UK, as VoIP costs are significantly less. Not only does it improve the functionality, but it also gives businesses the much-needed flexibility and reliability from their provider. From startups to corporations, all can switch to modern connectivity solutions like VoIP to reduce overhead administration costs.

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Why do traditional phone systems cost more?

The reason why traditional phone systems cost more is simply that they are an outdated technology. It is incompatible with the high-end needs of modern businesses, costs more, and makes finding replacement parts for regular maintenance harder. Let us take a closer look at each of these reasons:

  • Traditional phone systems rely on physical lines and bulky equipment laid underground. It requires the ground to be dug (which makes installation expensive),  on-site maintenance and full-time technical support. 
  • In case of long-distance calls, the charges are calculated at a per-minute rate, which increases the total spending for businesses.
  • Modern businesses, especially those in telecommunications, work with remote teams. With traditional phone systems, this means prominent charges for call forwarding or additional setup.

Switching to VoIP reduces monthly expenses

Voice over Internet Protocol (VoIP) uses your internet connection to make and receive calls, irrespective of the distance. This eliminates the need to lay down underground lines and assign an individual connection to a single employee. Businesses typically save a significant portion of their expenses because call rates are lower, international calls are cheaper, and there are no separate phone-line rental charges. 

Another major advantage of VoIP is that it does not require a separate connection for each employee. A VoIP system also does not require setting up a physical VoIP phone, as a software phone is equally functional. If a business decides to upgrade to a VoIP connection, it can continue to use its traditional old analogue telephones with the help of digital adapters. On the other hand, an IP softphone could be installed on any device with an internet connection. In both cases, the associated hardware costs are much lower than traditional phone systems.

Advantages of modern communication solutions

Here are some useful features provided by modern communication systems:

  • Modern phone systems often come bundled with features such as video meetings, instant messaging, and CRM integration with no added cost. 
  • Advanced VoIP services also provide call-tracking services, voicemail options, and a voice-to-email feature for businesses.
  • Instead of paying for all these features separately, everything is in one platform, which results in lower overhead costs.

Compare providers to find the best deal

Before switching systems, businesses should compare pricing, features, contract terms and the support levels offered by the providers. The VoIP market in the UK is vast, with multiple providers offering competitive pricing. Choosing the right option here would help your business maximise savings. ComparedBusiness helps you compare top providers in the UK, providing cost-efficient telecommunication services, including VoIP. Whether you need VoIP or a cloud system, comparing quotes makes sure you do not overspend on mediocre services or get locked into restrictive contracts. 

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