Telecom Solutions for Small Business: IP Phone Renting vs. Buying
In 1995, the voice over internet protocol (VoIP) phone system was introduced to the world 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 and numerous features, the humble internet phone has revolutionized 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 you rent or buy telecom equipment? In this blog, we’re going to discuss the differences between leasing and owning a VoIP phone and how to decide which option is right for you.
Telecom Solutions for Small Business: Renting vs. Buying
Deciding whether to buy or rent your VoIP solution can be a difficult process. The right answer depends on a variety of factors and may not be immediately obvious. You’ll need to consider your business processes, your budget, and your strategy for growth.
Although it may seem stressful, renting vs. buying is 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.
What You Need To Know About VoIP Leasing
Leasing is a cost-effective payment option that allows you to use the hardware you need without the burden of owning it. A provider that offers telecom solutions for small businesses install the phone system in your office and make sure it’s ready to use. This is a turnkey offering where the vendor takes care of maintenance, upgrades, repairs, and so on. All that’s required from you is paying a fixed monthly fee. Depending on your provider, you may also have a second option of leasing 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.
- – High-quality equipment: Providers that offer telecom solutions for small businesses 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 communication solutions are always functioning at the highest level.
- – Regular upgrades: Similar to upgrading your smartphone at your carrier, you can periodically upgrade your IP phone to the latest model.
- – Tax deductions: 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’s a wide variety of VoIP phones on the market today. With so many of these devices around, it’s impossible for a provider that offers telecom solutions for small businesses to carry every single model. However, the models that quality telecom vendors offer are always top of the line.
- – Upgrade schedules: The technology landscape moves fast, and your cutting-edge equipment won’t stay that way forever. Since leases have upgrade schedules—similar to mobile phones—you’ll have to wait to upgrade to a new phone.
- – Monthly fees: Leasing VoIP hardware allows you to avoid the high upfront costs of VoIP phone systems, but in return, you’re required to make regular monthly payments. Most businesses consider this only a minor disadvantage, however, because rental fees include additional services and are bundled into your regular phone payment schedule.
What You Need To Know About Buying a VoIP Phone
Although renting is the preferred method for most commercial entities, there are some that choose to buy used office phones or brand-new ones. These organizations tend to be big businesses that can afford the expense. While there are significant upfront costs to contend with, buying can be simpler than renting. Once you purchase the equipment, it’s yours—simple as that. Of course, this comes with certain advantages and disadvantages.
Advantages of Buying
- – Wider selection: If you want to buy your VoIP phone, you can get it from anywhere and choose from all of 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 upfront 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. Providers that offer telecom solutions for small businesses take care of any 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 large corporation, it may make sense to purchase your phones.
Get the Best Telecom Solution for Your Small Business
CCT Telecomm is an industry-leading provider of telecom solutions for small businesses. Our mission is to deliver services that can enhance your business operations. If you need a VoIP phone for your office, we offer internet voice equipment rentals that include all the features your business needs. Our rental program makes it easy for you to get the best technology at the right cost.
Contact us today to learn more.