---
title: Business Phone System Cost, Explained Fee by Fee | PBXflex
description: What a business phone system costs, line by line: plans, numbers, usage, phones, setup, taxes, and what a "regulatory recovery" fee is.
url: https://www.pbxflex.com/guides/business-phone-system-cost
---

# How much does a business phone system cost?

By the PBXflex team. Updated October 10, 2026.

## The short answer

A cloud business phone system is often priced per user each month, but the plan is only one line on the bill. The others are phone numbers, usage beyond the plan's allowance, desk phones, setup, and taxes and government fees. Some providers also add a "regulatory recovery" fee, which is their own charge and not a tax. PBXflex lists its plan prices on its pricing page. On Essentials and Business, each user gets a local number and a share of pooled credits. One credit is one cent, and a US or Canada call uses 1 credit a minute. Every PBXflex plan is month to month, with no regulatory recovery fee. Porting is free, self setup costs $0, and taxes and government fees are extra.

## What goes on a business phone bill

A cloud phone system (also called a cloud PBX, hosted PBX or VoIP phone
system) is billed every month, and the plan is only one line on the bill.
These are the lines to expect, and what each one is on PBXflex.

| Line on the bill | On PBXflex |
| --- | --- |
| The plan | Per user on Essentials and Business, billed monthly |
| Phone numbers | One local number per user included |
| Calls, texts and faxes | Pooled credits included, with published rates |
| Add-ons | Only the ones you choose, from $5 a month |
| Desk phones | Optional. Buy from $89 or rent from $5 a month |
| Setup | Self setup $0. Guided setup $299 for up to 10 users |
| Taxes and government fees | Extra. Prices exclude them |
| "Regulatory recovery" or admin fee | None |

Essentials, Business and Enterprise are in the plan cards below. Every plan,
including Text & Fax, is on the [pricing page](https://www.pbxflex.com/pricing).

## Per user or per line: what a business phone line costs

A business phone line used to mean a physical line from the phone company. Many
cloud systems are priced per user instead. A user is a person, with an
extension and a phone number.

On PBXflex, Essentials and Business are priced per user. Each user gets an
[extension](https://www.pbxflex.com/features/user-phone-extension) that works on a desk phone, the web
app and mobile, and one local number.

Some phones ring for a place, not a person. A lobby phone, a warehouse phone, a
paging speaker or an analogue fax machine is a shared-device line on PBXflex,
at $10 a month each. You don't pay for a full user to keep one.

Text & Fax, for teams that keep their current phone system, is priced per
account. Enterprise, for 50 or more users or several sites, is quoted.

## What a plan includes and what is metered

Some VoIP pricing advertises unlimited calling. Other plans include an
allowance and charge for usage beyond it. PBXflex does the second, with
published call, toll-free, text and fax rates. The app shows each international
rate before you call.

Essentials includes 500 telecom credits per user each month, and Business
includes 1,000. Credits are pooled across your account, so a quiet
user covers a busy one. One credit is one cent. Calls, texts and faxes all
draw from the same balance.

| Usage | Credits | 500 credits | 1,000 credits |
| --- | --- | --- | --- |
| US or Canada call, in or out | 1 a minute | 500 minutes | 1,000 minutes |
| Toll-free call, inbound | 3 a minute | 166 minutes | 333 minutes |
| Text (SMS), sent or received | 2 a segment | 250 segments | 500 segments |
| Picture message (MMS) | 5 each | 100 messages | 200 messages |
| Fax page, sent or received | 2 a page | 250 pages | 500 pages |

Each row is an alternative, not a separate allowance. Received calls, texts and
faxes use credits at the same rates as sent ones, and a long text is split into
segments.

When your balance falls below 100 credits, auto-reload adds a pack of 2,500
credits for $25. You can switch it off and top up yourself. Credits you buy
never expire. Included credits reset each month.

## Numbers, toll-free and other monthly add-ons

These are the monthly add-ons on Essentials and Business.

| Add-on | Price a month | Note |
| --- | --- | --- |
| Extra local number | $5 | Each user already has one |
| Toll-free number | $5 | One included on Business |
| Extra call-flow feature | $5 | Essentials only |
| Extra messaging channel | $10 | Essentials includes 2 |
| Shared-device line | $10 | Lobby, warehouse or fax device |
| Standard 10DLC campaign | $15 | One low-volume campaign included |
| Desk phone rental | $5 or $9 | Standard, or executive and cordless |

Essentials includes one [IVR](https://www.pbxflex.com/features/ivr), ring group or shared voicemail.
Each further call-flow feature, such as a [call queue](https://www.pbxflex.com/features/call-queue),
is an add-on. Business includes every call-flow feature, unlimited messaging
channels and a toll-free number. A messaging channel is a shared SMS or fax
inbox.

Business texts from a local number run on a registered 10DLC campaign. Every
plan includes a low-volume campaign. A standard one is for marketing and higher
volumes. The [10DLC registration guide](https://www.pbxflex.com/guides/10dlc-registration) explains
the process.

## One-time costs: desk phones, setup and installation

With a cloud system, there is no phone system box to buy. The one-time costs
are desk phones, setup and sometimes the office network.

You don't need desk phones to start. Every extension works in the web app and
on mobile.

| Phone | Buy | Rent |
| --- | --- | --- |
| Standard desk phone | $89 | $5 a month |
| Executive desk phone | $189 | $9 a month |
| Cordless DECT phone | $229 | $9 a month |

Setup comes in three forms:

- **Self setup is $0.** You sign up and build your call flows in the app.
- **Guided setup is $299 for up to 10 users, then $15 a user.** PBXflex builds
  your IVR, queues and ring groups, ports your numbers, registers your texting
  campaign and trains your team for 30 minutes. For 14 users, that is $299 plus
  4 × $15, or $359.
- **On-site installation is quoted per site.** It is guided setup plus phones
  and network installed at your office. The quote is built from the phones
  above and these items: a phone installed and provisioned for $50, a
  VoIP-ready firewall for $449 configured or $25 a month managed, and a Cat6
  data drop for $225.

Number porting is free on every plan. To have on-site work quoted, talk to
[sales](https://www.pbxflex.com/sales).

## Taxes and government fees on a VoIP bill

Every PBXflex price excludes taxes and government fees. These are lines you may
see on any VoIP bill. Which ones appear, and how much they are, depend on the
provider and on where you are.

### Universal Service Fund

Interconnected VoIP providers must contribute to the federal Universal Service
Fund. The FCC sets the contribution factor every quarter. A provider may pass
its contribution on to you as a line item. If it does, that line may not be
more than the interstate telecom portion of your bill times the contribution
factor. So this line can change even when nothing else on your bill does.

### 911 fees

Federal law requires VoIP providers whose service connects to the public phone
network to offer 911 and enhanced 911 service. It also lets states, local
governments and tribes charge a fee on that service to pay for 911. The fee
cannot be higher than the one they charge the same kind of customer for other
phone service, and it must be spent on 911.

### State and local taxes

State and local taxes can apply on top. Washington's utility regulator, for
example, says phone companies collect federal, state, municipal utility and
sales taxes on a landline bill.

## What a regulatory recovery fee is

A regulatory recovery fee is a charge a phone provider adds to recover its own
costs. The name sounds official. It is not a tax, and no government sets the
amount.

In a 2005 order on telephone bills, the FCC sorted the charges carriers add
to recover the cost of government rules into three kinds:

1. Taxes and fees the carrier is required to collect from you.
2. Fees the carrier may pass on to you but does not have to. Universal service
   is the FCC's example.
3. The carrier's own administrative costs, and its costs of complying with
   regulations.

A fee a carrier adds to cover its own costs of compliance belongs to the third
kind, whatever it is called. The FCC said it is misleading for a carrier to
state or imply that a charge is required by the government when the carrier
itself decides whether, and how much, to recover through a separate line item.
The same order said line items are allowed as long as they are not
misleading. The FCC's truth-in-billing rules also require carriers to describe
each charge in brief, clear, non-misleading, plain language. These rules were
written for phone carriers.

With any provider, ask whether each fee is in the price you were quoted, how it
is worked out, and whether the provider can raise it.

PBXflex does not charge an administrative or "regulatory recovery" fee. Your
bill shows your plan, the add-ons you chose, any credit packs or one-time
purchases, and taxes and government fees.

## Contracts and cancellation

Ask whether a quoted price needs a term of a year or more, and what leaving
early costs.

Every PBXflex plan is month to month, with no contract, no yearly commitment
and no cancellation fee. You can cancel, or add and remove users, any time.

You can take your number with you. Under FCC rules, a VoIP provider that
connects to the public phone network must help you port a number to or from
it. It may not make an agreement that stops you porting.

## How to estimate your monthly cost

Work it out in five steps:

1. Start with the plan: your users times the Essentials or Business price in
   the plan cards below.
2. Add the monthly add-ons you need, such as a toll-free number or a
   shared-device line.
3. Estimate your usage in credits, from the usage table above. Packs of 2,500
   credits for $25 cover usage beyond your pooled allowance.
4. Add taxes and government fees.
5. Separately, add one-time costs: phones you buy, guided setup and any on-site
   work.

An example, with made-up usage: five people on Essentials share 2,500 credits a
month. In one month they make and take 1,800 minutes of US calls, send and
receive 200 text segments, and handle 60 fax pages. That is 1,800 + 400 + 120 =
2,320 credits, inside the allowance.

Now add a toll-free number, at $5 a month, and 100 minutes of toll-free calls.
Those minutes use 300 credits, so the month comes to 2,620 credits. Auto-reload
adds one $25 pack when the balance drops below 100. Credits you buy never
expire, so what is left of the pack carries into next month.

The same office pays $445 one time to buy five standard desk phones, or $25 a
month to rent them. Self setup is $0, and guided setup is $299.

## Questions to ask any provider before you sign

Ask every provider the same questions, in writing, and ask for a sample bill
with every line filled in.

| Question | PBXflex's answer |
| --- | --- |
| Is the price month to month, and what does leaving early cost? | Yes. No contract, cancel any time |
| Is there an admin or "regulatory recovery" fee? | No |
| What is included, in minutes and texts? | 500 or 1,000 credits per user, pooled |
| Do received calls and texts count? | Yes, at the same rates |
| What happens when we go over? | A $25 pack of 2,500 credits, or switch it off |
| Is there a fee to port numbers in? | No. Porting is free |
| What does texting registration cost? | Low-volume campaign included. Standard $15 a month. Ask what your plan covers for brand registration and vetting |
| How is each person's 911 address set? | Per extension, in the app |

If you also need fax, check that it is part of the plan and not a separate
service. On PBXflex, [fax](https://www.pbxflex.com/features/fax-extension) and
[business texting](https://www.pbxflex.com/features/business-sms-mms-rcs) are included on every plan.

## PBXflex plans

Month to month, with no contract. Credits are pooled across your team, and prices exclude taxes and government fees.

- **Essentials** ($30/user/mo): Calling, texting and fax for a small office with one main number.
- **Business** ($40/user/mo): Every call-flow feature included, for teams that handle a lot of calls.
- **Enterprise** (Custom): For 50 or more users, several sites, international numbers or custom terms.
- **Text & Fax** ($45/mo): Business texting and fax for teams that keep their current phone system.

[See every add-on and usage rate](https://www.pbxflex.com/pricing)

## Questions people ask

### How much does a business phone system cost per user?

Cloud phone systems are often priced per user each month, but the plan is only part of the bill. To compare quotes, add numbers, usage beyond the allowance, desk phones, setup, and taxes and government fees. PBXflex's plan prices are on its pricing page.

### What is a regulatory recovery fee on a phone bill?

A charge a provider adds to recover its own costs, such as complying with regulations. It is not a tax. PBXflex does not charge one.

### Do received calls and texts cost money?

On PBXflex, yes, at the same rates as sent ones: 1 credit a minute for a US or Canada call, and 2 credits for a text segment or fax page.

### Is there a setup fee?

Not if you set up yourself in the app, which costs $0. Guided setup is $299 for up to 10 users, then $15 a user. Number porting is free either way.

### What happens if we use more than our included credits?

Auto-reload adds a pack of 2,500 credits for $25 when your balance falls below 100. You can switch it off and top up yourself. Credits you buy never expire.

### Is there a contract or a cancellation fee?

No. Every PBXflex plan is month to month, and you can cancel any time.

### Do we pay for a full user to have a lobby or fax phone?

No. A lobby phone, warehouse phone, paging speaker or analogue fax machine can be a shared-device line, at $10 a month each.

## Sources

- [FCC, Truth-in-Billing and Billing Format, Second Report and Order, Declaratory Ruling, and Second Further Notice of Proposed Rulemaking (FCC 05-55)](https://docs.fcc.gov/public/attachments/FCC-05-55A1.pdf)
- [47 CFR § 64.2401, Truth-in-billing requirements (Cornell LII)](https://www.law.cornell.edu/cfr/text/47/64.2401)
- [47 CFR § 54.706, Contributions to universal service (Cornell LII)](https://www.law.cornell.edu/cfr/text/47/54.706)
- [47 CFR § 54.709, Computations of required contributions (Cornell LII)](https://www.law.cornell.edu/cfr/text/47/54.709)
- [47 CFR § 54.712, Contributor recovery of universal service costs from end users (Cornell LII)](https://www.law.cornell.edu/cfr/text/47/54.712)
- [47 U.S.C. § 615a-1, 911 and E911 services for IP-enabled voice service (Cornell LII)](https://www.law.cornell.edu/uscode/text/47/615a-1)
- [47 U.S.C. § 615b, Definitions (Cornell LII)](https://www.law.cornell.edu/uscode/text/47/615b)
- [47 CFR § 9.3, Definitions, interconnected VoIP service (Cornell LII)](https://www.law.cornell.edu/cfr/text/47/9.3)
- [47 CFR § 52.34, Local number porting to and from interconnected VoIP providers (Cornell LII)](https://www.law.cornell.edu/cfr/text/47/52.34)
- [Washington Utilities and Transportation Commission, A Guide to Your Phone Bill](https://www.utc.wa.gov/consumers/telephone/guide-your-telephone-bill)

## Keep reading

- [PBXflex pricing, add-ons and usage rates](https://www.pbxflex.com/pricing)
- [What a PBX is, and how a cloud PBX works](https://www.pbxflex.com/guides/what-is-a-pbx)
- [10DLC registration for business texting](https://www.pbxflex.com/guides/10dlc-registration)
- [Cloud PBX for small business](https://www.pbxflex.com/cloud-pbx)

## Contact

- Email: hello@pbxflex.com
- Phone: (877) 575 - 9527
- Address: 1001 Wilshire Blvd, Los Angeles, CA 90017
- Sign up: https://pbxflex.app/auth/sign-up