What You Need to Know When Planning For Your Business Phone Line Installation Costs

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Business phone installation is a smart move. No matter how digital we get, people still want to talk to businesses. 71% of consumers most prefer telephone to contact small enterprises.

When looking to install a business phone system, the cost of phone line installation is one of the more common reasons why people don’t move forward. But the truth is, installation costs can be the lowest expense and even that depends on a few other key factors. 

With so many options available, it is worth your time to consider the big picture before you make a decision. In this article, we’ve outlined some of the things you need to know, and how each impacts the cost of your phone line installation. 

Factors That Impact Phone Line Installation Cost

Here are three of the main factors that can impact phone line installation cost. 

  • Type of Phone System
  • Phone Service Provider
  • Business Requirements

Types of Business Phone Systems

One of the first decisions you are going to need to make is what type of phone system will best serve your business. 

Analog PBX Phone Systems

PBX is short for Private Branch eXchange. Think of it as the original business phone system, the OG. Up until recently, PBX has only been functional with hardware on site, using an analog or digital connection. 

Basically everyone on the PBX is on the same phone system and their unique extension is plugged into the hardware. Any incoming or outgoing calls are routed from the phone company to the local site and then routed to the appropriate extension. 

PBX business telephone systems offer a variety of features including multiple options for inbound and outbound calling, business hours, call routing, voicemail, hold, transferring and more. 

While some companies still use an on site PBX system, it is becoming less and less common in favor of a digital option.  

Analog PBX Phone Systems

On-Site IP PBX or VoIP PBX

According to the FCC definition, Voice over Internet Protocol (VoIP), is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line.2 

Unlike analog PBX, VoIP uses a broadband internet connection to make and receive calls, rather than the analog or digital lines. While the company will still house all equipment on-site, the technology allows for much faster and more clear connectivity. 

VoIP systems are the most used in business. And there’s no sign of this changing anytime soon. Worldwide, the mobile VoIP sector is anticipated to grow by more than 13% until 2025.3 

There is a new type of phone system that some businesses have started using that takes onsite equipment out of the picture.


Virtual PBX or Cloud PBX

Virtual PBX systems need no on-site equipment except for physical telephones (even those are optional). Cloud PBX uses VoIP to make and receive calls. They are hosted on a cloud server rather than on site, so they are much more hands-off. And since the phone service provider is the host of the virtual server, they are the ones responsible for maintaining it. 

A cloud PBX system relies on an internet connection to work. If you have anything less than stellar connectivity, a cloud system may not be right for your business. There is also a higher risk of security or data breaches with a totally online system. Be sure to discuss security with your phone service provider.

Phone Service Provider

When considering a business phone installation, one of the most important decisions is who you choose to be your service provider. It’s important to find a vendor that can support the features, tools and benefits you are looking for from a phone system.

A service provider will charge a setup and monthly fee. Costs will depend on several things, including what type of system you choose, how many users you have, system features, level of service required and more. 

There is no shortage of quality phone service providers waiting to help you. Some of the big names are RingCentral, TRENDNet, or Datto but there are many more. 

Do your research to find the service provider that’s best for your business. Read reviews and ask for referrals from other business owners with similar businesses. Once you’ve narrowed it down to your top two or three providers, interview each one. This is a vendor-partner that you need to rely on and like working with. How is their customer service and response times? It may take a little time, but doing this hard work up front will pay off in the long run. 

Business Requirements

Along with understanding what type of phone system your business needs and selecting a service provider, here are a few of the other things that impact the cost of business phone installation. 

Size of Business

What is the size of the business? How many phone lines need to be installed? Does everyone need their own extension or will some groups share a number?

Features Needed

Voicemail, conference calling, automated directory, hold music, and call forwarding are just a few of the many options that business phone installations offer. Some come standard, but be prepared to pay an additional monthly fee for those not included in your package. 

Number of Locations

Is your business at a single location or are you looking to install a business phone system at multiple locations? If there are many locations, where are they in relation to each other? 

Type of Equipment

Are you looking to install physical desk phones? What functions do you need on each phone? Or, are you leaning towards a computer or app-based tool instead?  

Cost of Phone Line Installation

The phone line installation costs of a business phone system will vary based on the combination of system, service provider and the unique needs of your business.

Costs can start at a couple hundred dollars and go up from there. As with the service provider, find a networking company that you want to work with. Phone line installation is literally the veins of your business. You want to choose a company that you can trust.



So in the end, when planning for phone line installation costs, there are many factors to consider. One phone system does not fit all. And with all the options available, there is something out there for every business. 

It’s important that you find something that fits the specific needs of your business. When you do that, then phone line installation costs will fall in line with the needs of your business. 

If you want to find out more about business phone installation, give Network Installers a call and we can answer any questions or get you started with your business phone system.

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The Network Installers is a low voltage electrical contractor that provides data cabling, network installation, fiberoptic installation, and WIFI installation. We've been serving commercial customers since 2008 with exceptional quality, consistency, and professionalism.


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