If you are running a small business, your phone bill probably feels like a fixed cost that you just have to accept. Yet the way we pay for calls, numbers and collaboration is changing fast. Around a third of businesses now use VoIP systems, and the UK’s old PSTN landline network is due to be switched off by January 2027, which means every business will have to move to some kind of digital phone service.
So when you ask “How do I compare business phone plans for small companies?”, the real question is “How do we choose something that works now and still makes sense in a few years’ time?”
In this article, we will break that down into clear steps you can follow, even if you are not a telecoms expert.
Key takeaways
- Start by mapping how your team actually works, then compare business phone plans for small companies against those needs, not just on price or headline minutes.
- Focus on the high cost and value drivers: users, features, call bundles, connectivity, support and contract length, especially as VoIP and digital lines become the default.
- Avoid common pitfalls such as overbuying minutes, ignoring internet quality, or staying on legacy lines that will be forced to change with the PSTN switch-off.
How to compare business phone plans for small companies
Start with how your team actually uses phones
Before we look at tariffs, we need a simple picture of how your business communicates day to day. Ofcom’s research shows that small and medium businesses rely on a mix of mobiles, landlines and internet services, and that dissatisfaction usually comes from service quality rather than price alone.
Ask yourself:
- How many people make or take calls as a core part of their job?
- Do most conversations happen with customers, suppliers or internally between colleagues?
- How many staff work remotely or on the road, compared with in the office?
If most of your calls happen at desks or on laptops, a VoIP or unified communications system will often be the best fit. If your team is mainly out in the field, mobile heavy plans with strong 4G or 5G coverage may matter more.
Know your main technology options
For most small companies in the UK today, realistic choices are:
- Cloud VoIP or hosted PBX: Calls run over the internet, with softphones on laptops and mobiles or IP desk phones. This is the direction the market is moving, driven by cost savings and flexibility. Embryo+1
- Mobile-centric setups: Each user has a business mobile plan, sometimes with an app that presents a business number.
- Hybrid systems: A cloud phone platform that integrates mobiles, desk phones and collaboration tools such as Teams or similar.
Legacy analogue or ISDN systems that still use copper lines are being phased out, so you should treat those as short-term at best.
The key components that really drive cost and value
Once you know how you work, you can compare the moving parts of a plan side by side. A lot of small businesses pay more than they need to because they do not unpack what is inside the bundle.
Users, features and bundles
You will usually see pricing built around a cost “per user, per month”. Independent pricing guides show that typical VoIP plans for small businesses range from about £7 to £30 per user per month, depending on features and whether unlimited calls are included.
A simple way to compare plans is to use a table like this:
| Plan element | What to check | Why it matters for small companies |
|---|---|---|
| Users or seats | How many users are included, and how easy it is to add or remove seats mid term | Avoid paying for unused licenses as staff numbers change |
| Call allowance | UK landline, UK mobile, international, and fair usage limits for “unlimited” minutes | How many users are included, and how easy it is to add or remove seats mid-term term |
| Core features | Voicemail to email, call forwarding, hunt groups, IVR menus, softphone apps | These features often save more time than small price differences |
| Advanced features | Call recording, analytics, integration with CRM or helpdesk, contact centre tools | Only pay for these where they support real processes such as sales or support |
| Hardware | Desk phones included, rented or bought, and whether mobiles are part of the deal | Prevent bill shock from out-of-bundle calls |
When we work with small businesses, we often find that a modest plan with a few smart features beats the “top” bundle that throws in everything. For example, voicemail to email and call routing will usually add more value than rarely used international minutes.
Connectivity and internet quality
VoIP and cloud phones rely on your broadband. The PSTN switch-off means that even traditional “landline” style services are moving on to digital or IP networks by 2027. 2
So, when you compare phone plans, always consider:
- What broadband or leased line do you already have, and is it reliable at your location?
- Does the provider offer quality of service controls to prioritise voice traffic?
- What backup is in place, such as 4G or 5G failover, if the main line goes down?
A provider like circle.cloud can combine the phone system with the right connectivity and support, so you are not stuck between your IT company and your phone company when something goes wrong.
Support, SLAs and contract terms
Price comparison is not just about pounds per month. Ofcom guidance for small businesses highlights the need to look at service quality, support and contract rights, especially for micro businesses with fewer than ten staff.
When you compare plans, you should:
- Check support hours, response times and whether you can get help by phone as well as tickets.
- Ask how quickly they commit to restoring service if your phones go down.
- Look at contract length, mid-term price rise clauses and exit fees.
For many small companies, a slightly higher monthly cost with strong support and a flexible contract is a better deal than the cheapest long-term tie-in.
Typical mistakes and how to avoid them
There are a few traps we see again and again when small businesses compare phone plans.
One mistake is treating consumer mobile or broadband deals as “good enough”. Business packages often come with better service levels, static IPs and protections that matter when your phones support revenue and customer service, not just staff chatter.
Another misconception is that VoIP is always lower quality than “proper” landlines. Modern VoIP over stable full fibre or well-managed connections delivers very strong call quality, and a large share of businesses already benefit from it.
A third issue is ignoring the PSTN switch-off because it feels far away. The deadline may be 2027, but many providers have already stopped selling traditional lines and are urging customers to move now. Waiting until the last minute can limit your options and risk rushed migrations.
Practical ways to avoid these problems:
- Get at least two like-for-like quotes that match your user numbers, features and contract terms.
- Ask each provider to map your migration from your current system to the new one, including training and number porting.
- Test a small pilot group of users first if you are moving to a new platform.
What future trends mean for your next phone plan
Choosing a plan is not just about this year’s bill. Communications for small businesses are going through one of the biggest shifts in decades.
The move from analogue lines to digital services is driven by cost, reliability and new ways of working. Government and Ofcom guidance makes it clear that traditional copper-based PSTN services will be retired and replaced with IP networks.
At the same time:
- VoIP adoption is rising worldwide, with estimates that around a third of businesses already use it and that the market will keep growing strongly through the 2020s.
- Remote and hybrid work patterns are pushing small companies towards softphones, mobile apps and browser-based calling that work anywhere.
- New features such as call analytics, simple automation and AI-assisted transcripts are trickling down into small business plans, not just enterprise systems.
This means that when we compare phone plans today, we should ask two extra questions:
- Will this platform still be supported and evolving in three to five years?
- How easily can we add new features or integrate it with the tools we use, such as CRM, ticketing or collaboration platforms?
If you choose a flexible, IP-based system now, you will be in a much better position to adapt to these trends without another disruptive change.
Conclusion
Comparing business phone plans for small companies does not have to be a guessing game. If we start by understanding how our teams actually communicate, then break each offer into users, features, connectivity, support and contract terms, the picture becomes clearer.
The key is to look beyond headline prices. A well-chosen VoIP or hybrid plan, backed by reliable connectivity and helpful support, can reduce costs, improve customer experience and prepare you for the PSTN switch-off and future growth. A cheaper but rigid or outdated plan can do the opposite.
The next step is simple. Take twenty minutes to map your current usage and pain points, then assess two or three providers against that reality. If you do that, you are already ahead of most small businesses when it comes to phone decisions.
Reach out to us
If you would like a second pair of eyes on your current contract, or you are trying to decide between a couple of VoIP quotes, our team at circle.cloud can help you sense check the options and design something that fits how you really work, rather than how the tariff is marketed.
What is the one thing about your current phone setup that frustrates you most, and what would a “perfect” setup look like for your team? Share that with us so we can point you in the right direction.
FAQs: comparing business phone plans for small companies
How much should a small business expect to pay for a phone plan?
Most small businesses using VoIP will pay somewhere between about £7 and £30 per user per month, depending on whether they need basic calling only or advanced features and unlimited minutes. More advanced setups with call recording, international minutes or contact centre tools can cost more per user.
Is VoIP always better than traditional landlines for small businesses?
VoIP is not always better in every situation, but with the PSTN switch off coming and the growth of full fibre and stable broadband, VoIP is becoming the default for many firms. It offers flexibility, remote access and rich features, as long as your internet connection is strong and well managed.
What is the PSTN switch-off and why should I care?
The UK is retiring the old Public Switched Telephone Network, which underpins traditional landlines and some broadband services. By January 2027, calls will run over digital, IP based services instead. If you still rely on analogue lines or older phone systems, you will need to upgrade to stay connected.
How long should I sign up for on a phone contract?
A contract of two or three years is common, but if your business is growing quickly or you expect changes in staff or location, look for shorter terms or flexible options. Make sure you understand any price rise clauses and what happens if you need to scale up or down mid term.
Can I keep my existing business phone numbers when I switch plans?
In most cases, yes, you can port your existing numbers to a new provider. There are rules and industry processes in place to support switching and number porting, so ask your new provider to handle this and to explain any downtime risk and fees in advance.