For many growing firms, legacy telephony systems are no longer up to the task of keeping in touch with colleagues, customers and suppliers. Old-fashioned landlines are not only more expensive to run, but also less reliable, harder to maintain and offer few of the advanced features that are considered essential to modern users.
That’s why in just a few years, legacy landlines will be a thing of the past. By the end of 2025, BT Openreach will switch these networks off for good. Therefore, all businesses will need to investigate alternative phone services before too long. And for many companies – especially small enterprises – the answer will be a VoIP phone system.
However, you shouldn’t view this as simply something you have to do. Instead, it’s an opportunity to make your communications more efficient, boost the productivity of your employees, provide a better service to customers and save money, all at the same time.
What’s more, by getting ahead of the 2025 deadline, you’ll have plenty of time to evaluate your needs and make certain you’re choosing the best VoIP solution. This guarantees you don’t end up overpaying for a system that may be intended for larger firms or offers services you won’t use, for example.
So what do you need to know about VoIP phone systems for small businesses? Read on for our comprehensive guide to the technology.
Key Takeaways
- The landline switch-off is coming. BT Openreach will retire the legacy phone network by the end of 2025, so every business still on a landline needs a replacement.
- VoIP is built for small firms. Pricing is per user, there’s no engineering work, and it works on desk phones, mobiles and laptops.
- It saves money. Customers typically save 30 to 50 per cent on their total phone costs.
- You keep your numbers. A good provider will port your existing numbers across so customers notice nothing.
- Planning ahead pays off. Moving early gives you time to compare providers and avoid overpaying for features you don’t need.
VoIP (Voice over Internet Protocol) lets your business make and receive calls over broadband instead of a traditional phone line. With UK landline networks due to be switched off by the end of 2025, it’s the simplest, cheapest route for most small businesses. Plans typically start from around £6 per user, per month, and you can usually keep your existing numbers.
What Is VoIP and How Does It Work?
VoIP stands for Voice over Internet Protocol. Instead of sending your voice as an electrical signal down a copper wire, as a traditional landline does, VoIP converts it into digital data and sends it in small packets over your broadband connection.
There are two main ways to run it:
- Hosted VoIP (cloud phone system): all the connections and call routing are handled on your provider’s servers. It’s cheaper to run, and the provider looks after maintenance. This suits most small businesses.
- On-premises VoIP: the system is managed on-site in your own data centre. It gives you more control, but costs more and needs technical expertise.
All you need to get started is a broadband connection and a device to make calls on. That could be a desk phone, a mobile app, or simply a web browser and a headset on your laptop or PC.
What the Landline Switch-Off Means for Your Business
By the end of 2025 BT Openreach will be switching off legacy landline networks across the UK and replacing them with fully digital communications. What does this mean for your business? If you are still using an old-fashioned landline, you will need to find an alternative before this happens. The switch-off will also affect other services within your business. This includes;
- Traditional business telephone systems, both analogue and ISDN
- Fire and Intruder Alarm Monitoring Services
- Emergency Lift Phones
- Payment Terminals
- Door Entry Systems
- Fax Lines and other legacy equipment
- Telecare and other tele-monitoring services
If you use any of the above in your business you need to contact the relevant service provider and find out what alternative solutions they will be providing.
For most small businesses, VoIP is the obvious replacement. Alternatives such as SIP trunking are designed mainly for larger organisations with many users, so they come with extra complexity and cost that small firms rarely need. The deadline is also an opportunity. Moving early lets you improve how you communicate, give customers better service and cut costs, rather than scrambling at the last minute.
Benefits of VoIP for Small Businesses
There are many benefits for small businesses switching to VoIP, including lower communication costs, greater flexibility, and improved productivity. By using an internet connection to make and receive calls, VoIP can reduce traditional phone bills while offering features such as call forwarding, voicemail, video conferencing and team messaging:
Lower, More Predictable Costs
The cost of calls made using VoIP is significantly lower compared to traditional phone lines. VoIP can offer additional calling features such as call forwarding and voicemail at a lower cost compared to traditional phone lines.
No Long-Term Lock-In
Many VoIP services don’t tie you into long contracts, so you can add or remove users and features as your business changes.
Easy to Use and Manage
For employees, making a call feels the same as before. There are no special numbers to dial, and most handsets made in recent years already work with VoIP. According to bOnline’s customers, 91 per cent agree their VoIP system is easy to use.
Managers gain far more control. Even basic packages usually let you forward calls to specific devices, build call menus and set business hours.
Better Call Quality
Digital signals are less prone to interference than copper phone lines. VoIP improves the quality of interoffice calls and international calls, which helps businesses meet the needs of a global market.
Built for Remote and Mobile Working
Call forwarding sends incoming calls to any mobile, so no one misses an important call in the field. Home workers can use a desktop browser or a mobile app, with no dedicated office line and no rerouting.
Room to Grow
Adding a new starter means adding a new user, not installing a new line. Features such as call queuing, reporting and integrations are there when you need them.
How Much Does VoIP Cost for a Small Business?
VoIP is usually significantly cheaper than a landline. On average, customers save between 30 and 50 per cent on their total phone costs, and one Microsoft study suggests 82 per cent of users report savings. Installation is cheap too, and most setups don’t need an engineer visit.
Here’s what bOnline’s pricing looks like:
| Starter | Most Popular | |
| Price (ex VAT) | From £6 per user, per month | From £13.95 per user, per month |
| Inbound calls | Unlimited | Unlimited |
| Outbound calls | Pay as you go | Unlimited |
| Features | 40+ (including call forwarding) | 50+ |
If you need new handsets, models from brands such as Yealink start from as little as £47.
When comparing providers, check for:
- Per-user pricing with no hidden fees
- What’s included in unlimited calling
- Any set-up, porting or hardware charges
- Contract length and notice period
VoIP Features: What’s Worth Having
The best small business VoIP systems include a wide range of tools at no extra cost. At bOnline, our most popular packages offer more than 50 additional tools and services, including AI virtual receptionists.
Essentials most businesses use:
- Call forwarding
- Call menus (auto attendant)
- Customised greetings
- Out-of-hours call routing
- Voicemail to email
- Mobile and desktop calling
- Phone extensions
Useful as you grow:
- Hunt groups and call queuing
- Call recording
- Call monitoring and reporting
- Contact syncing
- Video conferencing
- Integration with CRM and Office 365 systems
If you don’t need every extra, you can choose a simpler plan focused on making and receiving calls. Having the ability to add features later means you won’t need to find a new phone solution down the line.
What You Need to Get Started
Getting started with VoIP is simple, as most small businesses only need a reliable internet connection, a VoIP service provider, and compatible devices such as smartphones, computers, or IP phones. Depending on the provider, businesses may also need headsets, VoIP software, and a suitable router to ensure clear call quality. Once the system is set up, employees can make and receive calls over the internet, access useful communication features, and stay connected whether they are working in the office or remotely.
A Broadband Connection
You don’t need blazingly fast internet. A single call needs a minimum of around 3Mbps, with about 5Mbps recommended for the best quality. Ofcom reports that the UK average broadband speed was 59.4Mbps as of 2022, up from 50.4Mbps the year before, which is more than enough for most small firms.
If you expect to run several calls at once, or your business is growing, a faster connection is worth considering. Take a look at our phone and broadband bundle deals to find one that fits.
A Device to Make Calls
- Existing handsets: many handsets bought in the last few years are VoIP compatible. Check yours, then plug them in. Older devices may not work.
- New desk phones: if you need to upgrade, you don’t need to spend much.
- Mobile or computer: with a web browser or mobile app and a headset, you can get started without a dedicated handset at all.
VoIP vs Landline vs SIP Trunking
| Traditional landline | Hosted VoIP | SIP trunking | |
| Future-proof beyond 2025 | No | Yes | Yes |
| Best for | Legacy setups | Small and growing businesses | Larger firms with existing phone systems |
| Pricing | Line rental plus call charges | Per user, usually unlimited calls | Per channel plus call charges |
| Maintenance | Engineer visits | Handled by provider | Often handled in-house |
| Setup complexity | Moderate | Low | Higher |
| Remote working | Limited | Easy | Depends on system |
Is VoIP Reliable? Risks and How to Handle Them
VoIP is a highly reliable form of communication. Most providers offer a minimum uptime guarantee, and as long as your internet connection is stable you can expect high availability. Compare that with landlines, which can be disrupted by bad weather, power outages or damage to exchanges and cables. There are a few things to plan for:
Keeping Your Phone Numbers
While switching to a new phone system is always a concern because customers have to be re-trained and contact information has to be updated, a good VoIP provider will let you keep your phone numbers and port them for free. Ask about porting times and costs.
Power and Internet Outages
While traditional landlines have no power or internet dependence, VoIP relies on both. If your service goes down, your provider should have a plan to direct phone calls to an alternative number, including a mobile number and some even have battery backups.
Call Quality
If you experience poor call quality, it’s most likely because your broadband isn’t dependable. Check your connection to see if it is good enough for call quality, and ask your provider if it has a way to check the connection.
How to Choose a VoIP Provider
Because the VoIP market in the UK is extremely competitive, there are dozens of providers to choose from. Here’s what to look for when deciding on a provider:
- Small business focus: Is the service designed for business owners rather than IT professionals? Providers built for small firms tend to offer more personal support.
- Transparent pricing: Look for clear per-user prices with no hidden fees.
- Flexible contracts: Avoid long lock-ins unless the savings justify them.
- Number porting: Confirm you can keep your existing numbers and find out how long it takes.
- Reliability and backup: Ask about uptime guarantees and what happens in an outage.
- Features you’ll actually use: Match the plan to your needs, so you don’t pay for features meant for larger firms.
- Real customer reviews: bOnline has a TrustPilot score of 4.6 out of 5, based on more than 6,000 customer reviews.
You could also look at the UK’s biggest providers, such as BT or Virgin Media Business. Whichever you pick, check that their support and expertise suit a small business.
How to Switch to VoIP: Step by Step
- Audit what you use now. List your phone lines, numbers, handsets and anything else that depends on a landline, such as alarms and card machines.
- Check your broadband. Make sure your connection can handle the number of calls you expect to make at once.
- Choose a provider and plan. Compare pricing, features and contract terms.
- Order your service and arrange number porting. Choose a go-live date that suits your business.
- Set up your devices. On your live date, plug your handsets into the router supplied by your new provider, or log in through a mobile app or web browser.
- Configure your call handling. Set up menus, greetings, business hours and call forwarding.
- Test, then go live. Place a few test calls, then pick up exactly where you left off.
In many cases the process can be completed online in as little as two minutes, with your new provider handling the work behind the scenes.
