It's a reasonable question to ask before switching phone systems. The upfront cost of hardware, installation, and porting can seem daunting — so does the maths actually work out?

We decided to find out by looking at our last ten system installations. For each customer, we compared their previous provider's bills against their new VoIP costs and calculated the savings over three years.

What we found

The results were compelling across the board. Here's a summary of what the data showed:

  • Combined monthly savings across all ten customers: $4,599
  • Average monthly saving per customer: $460
  • Average three-year saving per customer: $17,007
  • Savings range: 11% to 74% reduction in monthly costs
  • Average saving: 50% reduction
  • Average return on investment: under 2 years

Individual results

Some highlights from the ten deployments:

The customer with the highest savings achieved a 70% monthly reduction — their previous ISDN contract was expensive and inflexible, and they had been paying for far more capacity than they needed. Their hardware setup cost was recouped in just four months.

Two customers reused existing compatible hardware, eliminating setup costs entirely. Their savings began from month one with no capital outlay.

The customer with the lowest savings (11%) still improved — they stayed on VoIP because of the feature improvements and flexibility, not primarily for cost. Work-from-home capability was a deciding factor.

Two customers experienced a slight cost increase — they upgraded to higher-end handsets and added features they didn't previously have. Both considered it worthwhile given what they gained in functionality.

What drives the savings?

The biggest savings come when replacing:

  • ISDN contracts — ISDN lines are expensive and the costs compound as you add capacity
  • Hardware rental agreements — some businesses have been paying monthly rentals on PBX equipment for years
  • Per-call charging on international or long-distance calls — VoIP rates are typically significantly lower

The smallest savings occur when a business is already on a low-cost provider or has very simple requirements. Even then, savings are usually present — just smaller.

The bottom line: Most businesses find significant savings by moving to VoIP. The ROI is typically positive within two years, even accounting for hardware. For businesses on ISDN, the savings are usually larger and the case for switching is even clearer. Every business is different — the exact savings depend on your current provider, the number of lines you need, your call volumes, and what hardware you require. The best way to find out is to let us put together a proposal and compare it against your current bill.