The Potential Hidden Costs of Cloud Phone Systems
Cloud phone systems are a flexible VoIP solution that allow smaller to midsize businesses handle communications with less infrastructure. Their ability to rely on the Internet often allows for advantages not offered by local telephony services such as remote worker capabilities and scalability.
While seeking a cloud phone system solution is often done to reduce costs, there is still an amount of capital to consider. In fact, there are hidden costs associated with VoIP cloud services, usually not considered because they’re either indirect or potential afterthought.
Infrastructure
On the surface, some of the “hidden” costs involve investment. VoIP services require IP phones, special hardware which allows for connection to the internet. If a business has none of these, part of its first costs will be installing this new hardware.
There’s also the need for a capable Internet connection to handle the new VoIP service. Since cloud phone systems rely on stable networks to perform, companies might have to upgrade their current system to accommodate the new service. It’s another potential unexpected cost associated with investing in a new system.
Regulation
VoIP can involve some unexpected fees related to state and federal regulations. Because VoIP providers can operate from anywhere in the country, they may not be able to provide information about the fees. So, if on your first bill you discover an unfamiliar code or additional cost, it’s likely related to regulations.
For example, companies likely already have a Universal Service fee as part of their current communication service. The Universal Service fee is a tax put in place by the FCC to support public infrastructure like education and health and will always appear on a VoIP associated cost. The percentage may vary based on state.
Companies will also likely see an initial service charge for their first month. This is the one-time set up fee, often for establishing numbers or meeting other needs.
You also have to consider your local, state, and federal taxes. These will vary based on location, but are still associated with a VoIP service. Therefore, it’s a good idea to research the potential costs associated with local VoIP for your state so you’re not surprised by unexpected costs.
Early Termination
Though VoIP vendors try to be flexible and may not require a dedicated contract, some do. Even if not, there is always potential to pay an early termination fee. This cost obviously does not appear on monthly bills but rather when a business unexpectedly terminates their relation with a public cloud phone service.
As you can see, there are still a number of hidden costs to remember when considering a new phone service. These are usually not part of the initial contract with a provider, as they come from indirect costs. Your organization should carefully consider investment costs, taxes, regulations, and any other associated fees before utilizing a new service. This way you won’t end up scratching your head when the time comes to pay the first bill.
Leave a Reply