What is a good price for an office phone per month?

Well, you might in that difficult position where your existing phone system is no longer supported by the people initially made it or, HAPPY NEWS, your office is expanding but bad news, your existing PBX reached its maximum capacity. In both cases, you will be looking for a new PBX system. Everyone around you talks only about how everything is getting to the cloud and goes virtual, in a digitized form or another… including your phone! Hmm, for starters, that old beige phone might not be compatible with the new PBX if it is not talking IP protocol, like any other “Thing” around you, including the fridge, the car, the security video-camera, the TV, the thermostat, the door, the garage door, you name it…


So, you start looking on the web pages of the service providers, you talk to couple of friends that have comparable businesses with yours to have an idea of possible solutions. You will see some of them want full control of their systems, they already have the network and cabling infrastructure, thus they buy the new IP PBX system and install it in their existing data center. Some others, will not want to invest upfront in any network infrastructure and would rather pay a price per phone per month and let somebody else to take care of the voice communication system maintenance.

Question is the cost for a user per month? The lines below will give an example for the cost components. You can take this as a negotiation starting point with the sales person in front of you, like having an idea of the dealer invoice price when you shop for a new car…

Business context

An existing office with 30 people needs a new ON-SITE IP PBX system. The old PBX is already connected to PSTN using 8 analog lines (1FL). The existing phones cannot be reused for the new system.

The office already has the required network infrastructure to support the implementation of the new IP PBX:

  • CAT5E cabling for each an every place a new IP phone will be installed. If a cable is already in place for the User’s PC, the Phone will use the same cable for the network connectivity, too.
  • Network switch ports with Power Over Ethernet capabilities. One port per phone is required, since the phone is powered on via the network cabling by the network switch
  • Internet Connectivity terminated with statefull firewall. This will be required for the new PSTN connectivity using the SIP protocol. One Mbps traffic in both upstream and downstream directions will be added by the PSTN voice connectivity.
  • OPTIONAL – an UPS will power all the network components and the IP PBX system components for an unwanted power failure up to 30 min.


Solution proposal and components

The proposed solution is based on the commercial version of the well-known ASTERISK platform called FREEPBX has the following components:


  • Migration of 8 existing PSTN phone lines to SIP connectivity while maintain the existing phone number
  • Installation and configuration of 30 extensions/phones, one per user. The existing dialing plans will be maintained. Includes voicemail initial definition. Voice messages will not be migrated from the old system to the new one
  • Configuration of one auto attendant, that includes dial by extension.
  • One hour receptionist training.



Business Features Calling Features User Control Panel
·         Interactive Voice Response (IVR)
  • Three-Way Calling Support
·         Responsive GUI (Desktop, Tablet, and Mobile Device)
·         Find Me / Follow Me Calling
  • Voicemail
·         Voicemail

o    Visual Voicemail – Playback and Management

o    Notification Options

o    Greetings Managemet

·         Hunt/Ring Groups
  • Caller ID Support
·         Conference Room Management
·         Music on Hold
  • Call Transfer


·         Call History (Details and Recording Playback / Download)
·         Built-In Conference Bridge
  • Call Recording


·         Settings Management

o    Find Me / Follow Me

o    Call Forwarding, Call Waiting, Do Not Disturb

o    Call Confirmation

·         Announcements
  • Call Waiting
Zulu UC Desktop Application, Outlook and Browser Integration
·         Text to Speech
  • Do Not Disturb


Third Party Phone Support (for Non-Sangoma IP Phones)
·         Calling Queues (ACD)
  • Call History / Call Detail Records


·         Flexible Time-Based Call Routing ·         Speed Dials




The cost is calculated per user per month, supposing a period of 36 months usage.

For this example, we do get around 17 CAD per user per phone per month.

During the 36 months, two software updates for the PBX system and the phones will be performed.

The management of the system and ordinary changes (MACD) for the system configuration are estimated at 30 min per day, for an already existent network technician on-site and on staff.


One time costs qty price total
PBX ACT UC 60 1 895 895.00
IP phone Sangoma S500 30 149 4,470.00
SBC SMB 10 conc calls 1 695 695.00
Installation 1 800 800.00
SIP PSTN migration 8 75 600.00
CAT5 cabling 30 0 0.00
TOTAL COST - one time USD     7,460.00
TOTAL COST - one time CAD     9,698.00
Monthly costs
PBX Software version upgrade 2 179 358.00
SIP PSTN line 36 months 8 180 1,440.00
Internet Access 1 0 0.00
firewall and switch management 2 0 0.00
0.06 FTE for PBX management 36 150 5,400.00
Xchange rate USD to CAD 1.3
Contract length in months 36
Total ongoing for 3 years     7,198.00
Yearly cost for system 5,632.00
Cost per user per month w/o PSTN 15.64
Total per month per user w PSTN     16.89

That's all, you have a starting point for the negotiation with your sales person.

For a custom calculation of a possible office cost for your specific case, email info@collabpro.ca


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