IP Phone Rental vs Buying: Which Should You Choose?
In 1995, the voice over internet protocol (VoIP) phone system was introduced to the world. It was mainly developed as a way to make long-distance and international calls cheaper. In the last decade, however, this solution evolved into something that’s much more than just a way to save money. Thanks to its scalability, numerous features, and more, the humble internet phone has managed to revolutionize business communication.
Nowadays, VoIP is the preferred option when it comes to business phones. With traditional landline phones in steady decline, it’s no longer a question of picking between these two choices. Rather, the question that needs to be asked is, “Should I rent or purchase my VoIP equipment?” In this blog, we discuss the differences between leasing vs owning a phone of this type and how to decide which option is right for you.
IP Phone Rental vs Buying: Which Should You Choose?
Deciding whether to buy or rent your VoIP solution can be a difficult and even intimidating process. Finding the right answer is dependent on a variety of factors and may not be immediately obvious. You need to consider your business processes and strategy for growth. It’s also important to crunch the numbers and weigh both options for how they may benefit you.
Although it may seem stressful, keep in mind that there are no wrong answers. It’s simply a matter of finding which solution works better for your needs. To help you on this mission, here are some of the advantages and disadvantages associated with owning or leasing your phone system.
VoIP Phone System Leasing
Leasing is a cost-effective payment option that allows you to use the hardware you need without the burden of owning it. By working with a telecom provider, the phone system is installed in your office and ready to use. This is a turnkey solution where the vendor takes care of maintenance, upgrades, repairs, and so on. All that’s required is for you to pay a fixed monthly fee. Depending on your provider, you may also have a second option of lease-to-own.
- Advantages of renting IP phones
- Minimal upfront costs: When you rent your VoIP phone, the main cost you’re going to pay is the monthly subscription fee. This means there’s no need for you to purchase expensive hardware.
- Always have the best equipment: Telecom providers often offer access to the latest and greatest technology. As their client, you get state-of-the-art devices at no cost to you. This ensures your communications are always functioning at the highest level.
- Regular upgrades: Similar to upgrading your smartphone at your carrier, you can periodically upgrade your phone to the latest model.
- Tax deductible: Leasing equipment is usually tax deductible as an operating expense. Unlike with buying, you know your costs ahead of time and can plan your taxes accordingly.
- Disadvantages of renting IP phones
- Fewer options: There is a wide variety of VoIP phones on the market today. With so many of these devices around, it’s impossible for a provider to carry every single model. This means you have to choose from the hardware they offer. However, the models telecom vendors offer are always top of the line.
- Upgrade schedules: The technology landscape moves fast, and your cutting-edge equipment won’t stay cutting edge forever. Since leases have upgrade schedules—similar to mobile phones—you’ll have to wait until it’s your time to upgrade to a new phone.
- Monthly fees: Leasing VoIP hardware allows you to avoid high upfront costs, but in return, you’re required to make regular monthly payments. Most businesses consider this only a minor disadvantage, however. This is because rental fees include additional services and are bundled into your regular phone payment schedule.
Buying a VoIP Phone
Although renting is the preferred method for most commercial entities, there are some that choose to buy their phones. These organizations tend to be big businesses that can afford the expense. While there are significant upfront costs to contend with, buying is often simpler than renting. Once you purchase the equipment, it’s yours—simple as that. Of course, this comes with advantages and disadvantages as well.
- Advantages of buying
- Wider selection: If you want to buy your VoIP phone, then you can get it from anywhere. As a result, you can choose from all the options available on the market.
- Flexibility: With your own VoIP phone hardware, you can choose your own upgrades, customizations, and software.
- Disadvantages of buying
- Higher initial costs: If you go down the purchase route, you’re going to pay more for the privilege of owning your own VoIP technology. The cost may not be worth it for some companies.
- Maintenance and repairs: One of the biggest reasons to rent your VoIP solution is the service you get from your provider. They take care of any and all maintenance or repair needs as part of your package. When you own your VoIP phone, you’re stuck with the bill.
- Hardware replacement: By renting, you can replace your old device at no extra charge when it’s time for your scheduled upgrade. When you buy your equipment, it’s up to you to pay the hefty upfront cost for new hardware all over again.
Should You Buy or Rent?
At the end of the day, the decision is up to you and the needs of your business. Most organizations choose to rent because there are more benefits with leasing. However, if you’re a part of a big corporation, it may make sense to purchase your phone.
Rent Your VoIP Solution
CCT Telecomm is an industry-leading telecom provider that wants to help you get the solution your business requires. That’s why we offer VoIP phones that are optimized for your network. With our rental program, we make it easy for you to get the technology you need at the right cost.
Contact us today to learn more about our services.