VoIP vs Landline Cost Comparison Australia

Whether VoIP costs less than a traditional landline depends on the provider, plan structure, number of users and concurrent calls, included calls, hardware, and paid feature add-ons. This guide provides an indicative cost comparison; actual costs vary by provider, selected plan, hardware requirements, call usage, and paid feature add-ons. We include setup costs, monthly running costs, hardware, and the features you get (or do not get) at each price point. By the end, you will have a clear picture of total cost of ownership over 1, 3, and 5 years, and you will understand why the PSTN copper shutdown means this is no longer a choice between equals.

Quick Verdict

Under the stated Telstra BusinessLine Complete call rates and current $55 monthly charge, the landline side totals $1,134.10 a month for two lines before add-ons; the VoIP side is an illustrative $125 assumption pending verification against a named plan. Across the wider market, the result still depends on user and channel requirements, call inclusions, features, hardware and the available fixed-voice alternatives. Available fixed-voice pricing varies by provider, address, access technology and plan: some plans charge monthly access plus calls, while others bundle domestic calls or are sold as low-cost broadband add-ons. Cloud phone pricing varies by provider and may be structured per user, per line or per system; check call inclusions, channel limits and paid add-ons for the selected plan. When you add features generally unavailable on a basic analog line without PBX equipment or carrier add-ons-such as auto-attendant, ring groups, voicemail-to-email and call recording-the value comparison may favour VoIP. The only scenario where a traditional landline might still make sense is a single-line home office with minimal calls, and even then, VoIP is usually cheaper.

Monthly Cost Breakdown: Landline vs VoIP

Let us compare the actual monthly costs for a typical Australian small business. All prices are in AUD and were checked against publicly available rates in September 2026.

Traditional Landline Costs (Telstra/Optus Business)

cloud phone system Costs (Australian Providers)

Side-by-Side: What a 5-Person Business Actually Pays

Here is a worked monthly bill for a 5-person business with moderate call usage. This example assumes 22 working days a month and eight calls per person per day: three local calls averaging three minutes, two national calls averaging three minutes, and three mobile calls averaging five minutes. That is 30 minutes of calls per person per day. Local and national calls are charged per call, while each mobile call incurs a connection fee plus a per-minute charge. At the rates above, calls cost $1,024.10 a month for five people. Two shared lines add $100-$130, bringing the landline total to $1,124.10-$1,154.10 before any paid feature add-ons. Substitute your own call counts, mix and average mobile call length for an estimate tailored to your business. Notice the landline cost is for 2 lines shared across 5 people. Traditional landlines are priced per physical line, not per user. Two lines means only two people can be on calls simultaneously. If both lines are occupied and no busy-call treatment is configured, another caller may hear an engaged tone; voicemail or call-forward-busy can instead handle the call. The VoIP setup can give each of the 5 users an extension, but the number of simultaneous external calls depends on the plan's channel or line limits. For a deeper look at what to watch for in VoIP pricing, see our VoIP cost guide.

Total Cost of Ownership: 1, 3, and 5 Years

Monthly costs tell part of the story. Here is an illustrative comparison of voice-service, setup and handset costs for a 5-person business; it excludes the underlying internet service, assumed already available, and any required network upgrades or backup connectivity.

Setup and Hardware Costs (One-Time)

Total Cost Over Time

The landline range above holds the stated moderate-use scenario constant and varies the one-time setup cost from $150 at the low end to $6,000 or more for an on-premise PBX. Actual totals still depend heavily on call counts, call-type mix, mobile call length, bundled call inclusions and required features. Under this metered Telstra scenario, VoIP is dramatically cheaper because the calculated landline call charges alone are $1,024.10 a month. A business with very few calls or a fixed-voice plan that bundles domestic calls could see a much smaller gap. VoIP costs can be more predictable when the selected plan includes the relevant call types. Whether a 5-person business saves money over 5 years by switching to VoIP depends on its call volume, required features, existing equipment, provider and plan. Under the stated scenario, however, the calculated saving is $59,096-$67,346+ over five years.

The PSTN Shutdown: Why This Is No Longer Optional

Australia's copper PSTN network has been progressively decommissioned as the NBN rollout reached each area. Telstra's legacy copper services are being retired. In NBN fixed-line areas, most affected legacy copper phone services have been or will be disconnected, but Fixed Wireless and Sky Muster premises and some business, special-service and private-network connections are exceptions.This means the cost comparison above is partly academic. Traditional copper landlines are no longer available in most of Australia. If you are still on a "landline," you are likely already on VoIP without knowing it. Depending on the provider and access type, an analog phone may connect to a modem/router phone port, an NBN connection box UNI-V port, or a provider-supported ATA. ISP-supplied modem voice services are often less configurable than a hosted PBX, but their prices, included calls and calling features vary by ISP and plan.This is the hidden cost of doing nothing. ISP ATA voice pricing and features vary. Compare the actual ISP plan against a hosted PBX based on required users, concurrent calls and business features. Every missed call because your single line was busy, every customer who called after hours and got nothing, every time you could not transfer a call or check a voicemail from your phone - that is the real cost. For a full breakdown of the copper shutdown timeline and what it means, see our PSTN shutdown guide.

Hidden Costs on Both Sides

Neither option is completely transparent on pricing. Here are the costs that often surprise businesses on each side.

Hidden Landline Costs

Mobile call charges. Some landline plans charge per minute for calls to mobile numbers, while other fixed-business plans bundle standard mobile calls. At $0.35-0.55 per minute, a 10-minute call to a mobile costs $3.50-5.50. If your business calls customers and suppliers on mobiles regularly , this can add $50-200/month per line that is not visible in the headline price.

Feature add-on stacking. Feature inclusions vary: some current fixed-business plans include voicemail, call waiting and caller ID, while hunt groups and other features may be separately charged. A business adding basic functionality can pay $20-50/month in feature charges on top of line rental.

Second and third line costs. If you need more than one person on a call simultaneously, you need another line. Each additional physical line adds another line charge. The number of lines required depends on concurrent-call demand; price the required lines using the selected provider's current plan.

Break fees on contracts. Contract terms vary; check the applicable CIS for minimum terms, cancellation charges and outstanding device repayments. If you decide to switch mid-contract, you are paying to leave.

Hidden VoIP Costs

Handset costs upfront. Unlike a $30 analog phone from Officeworks, VoIP desk phones start at $80-150 for entry-level models (Yealink T31P, Grandstream GRP2602P). Mid-range models with colour screens and more line keys cost $200-350. This is a one-time cost, but it is higher than analog phones. That said, many business phone companies offer handsets on rental or include them with longer contracts.

Internet dependency. VoIP runs on your internet connection. If your NBN drops, your phones go down. A mobile hotspot or 4G failover router ($200-400) is worth considering as insurance. This is not a cost you have with copper landline (which was powered from the exchange).

Per-minute international rates. Some phone system plans advertise "unlimited calls" but the fine print says "unlimited local and national." International calls are often charged per-minute at $0.05-0.50+ depending on the destination. If your business makes regular international calls, check the international rate card before signing up.

Number porting timing. Porting fees vary by provider, and the old numbered service must remain active until the port completes. Any period and cost of overlapping services depend on the providers and migration plan. Budget for the overlap. For a comprehensive look at VoIP costs that catch businesses off guard, see our hidden costs of VoIP guide.

Feature Comparison: What You Get for Your Money

Cost is only half the story. The feature gap between landline and VoIP is where the real value difference becomes clear. The feature that matters most for small businesses is simultaneous call handling. On a traditional landline, one line equals one call at a time. If both lines are occupied and no busy-call treatment is configured, another caller may hear an engaged tone; voicemail or call-forward-busy can instead handle the call. VoIP plans can support multiple concurrent calls, subject to the plan's channel limits; overflow routing must be configured and cannot guarantee that every caller will be answered. For a business losing even one customer per month to an engaged tone, the VoIP system pays for itself. For more detail on how VoIP compares to traditional phone systems overall, see our VoIP vs traditional phone guide.

What Most Businesses Get Wrong

Mistake 1: Comparing line rental to VoIP subscription without including call charges. The most common error in VoIP vs landline comparisons is comparing the landline line rental ($50-65/month) to the VoIP per-user fee ($25-35/month) and calling it a small difference. But the landline cost does not include calls. The total cost of a landline depends on whether calls are bundled and, for metered plans, the volume and mix of calls. Some VoIP subscriptions include domestic calls, while others meter one or more call types. In the moderate-use scenario calculated above, the metered Telstra call charges are $1,024.10 a month before the $100-$130 line rental or any paid feature add-ons, so the gap is dramatically wider than the headline plan prices suggest. Businesses with very few calls or bundled domestic calls may see a smaller gap.Mistake 2: Thinking "I already have VoIP" because your ISP gave you a phone port. If your NBN modem has a green phone port and you plug an analog phone into it, you are technically using VoIP. But you are using the most basic, restricted version possible. ISP voice policies vary: some providers disclose SIP credentials and support compatible BYO equipment, while available features and scalability depend on the specific service. A hosted PBX may provide broader business features, but control, included features and cost must be compared against the specific ISP service and hosted-PBX plan.Mistake 3: Delaying the switch because "the phones still work." This is the cost-of-inaction trap. Yes, your current setup still makes and receives calls. But every engaged tone a customer hears, every after-hours call that goes nowhere, every time you cannot transfer a call or check voicemail from your mobile - that is revenue and customer goodwill you are losing. The PSTN is already shut down in most areas. The question is not whether to switch, but how long you will keep paying more for less. For an honest look at what the copper shutdown means for your business, see our PSTN shutdown guide.

Switching: What the Process Actually Looks Like

Switching from a landline (or ISP ATA) to cloud phone system is simpler than most businesses expect. Here is the typical timeline:Week 1: Choose a provider and plan. Compare 2-3 Australian business phone companies. Ask about included calls, 1300/1800 support, handset options, and setup assistance. A good provider will ask about your business before recommending a plan, not just push the most expensive option. You can request a free recommendation to shortcut this step.

Week 1-2: Order handsets. If you are using desk phones (recommended for office environments), order your handsets. Entry-level Yealink T31P or Grandstream GRP2602P models are $80-150 each and perfectly adequate for most small businesses. Your provider may offer pre-configured handsets that arrive ready to plug in.

Week 1-2: Submit number port request. Your new provider submits the porting paperwork to your current carrier. This is the longest part of the process. Keep your existing service active until the port completes.

Week 2-3: Port completes, go live. Once the port is confirmed, your existing phone number starts ringing on your new VoIP system. Plug in the handsets, test calls in and out, configure your auto-attendant and ring groups. An uncomplicated individual local-number port may fit within 2-3 weeks, but complex ports and any equipment or network work can take longer; active setup effort varies.

Your Next Steps

Use this checklist to evaluate whether switching makes sense for your business and to plan the move:1. Pull your last 3 months of phone bills. Calculate your actual monthly spend including line rental, call charges, and feature add-ons.

2. Count your lines and users. How many physical phone lines do you have? How many people need to make and receive calls? VoIP services may be priced per user, per line or channel, or as a system package, depending on the provider. This is often where the biggest saving comes.

3. Check your internet connection. Use our bandwidth calculator to confirm your NBN connection can handle VoIP for your team size. A 10/5 Mbps connection may have enough raw capacity for 5-10 calls, but suitability also depends on available bandwidth under load, latency, jitter, packet loss and network configuration.

4. Estimate your VoIP cost. Use our VoIP cost calculator to get an estimate based on your team size and call volume. Compare against your current phone bill total.

5. Check your current contract. Are you locked into a landline contract? Check the end date and any early termination fees. Whether switching saves money after paying a break fee depends on the fee, setup and hardware costs, current usage, concurrent-call requirements, and the selected plan.

6. Get quotes from 2-3 business phone companies. Ask specifically about: unlimited calling inclusions, 1300/1800 number support, handset options, number porting timeline, and whether setup assistance is included.

7. Plan for overlap. Budget for one month where you are paying both your old and new service (during the porting window). This is a one-time cost that protects you from any disruption during the switch.

For an accurate landline-to-VoIP cost comparison, start with a clear-eyed reading of your current bill. Our Phone Bill Translator decodes each line item and generates a side-by-side comparison against what a cloud VoIP service would charge for the same usage.

International calls are one area where the cost gap between VOIP and landline is most pronounced. International per-minute rates and bundled call inclusions vary by destination, provider and plan; some VOIP plans include international calls or credits, while others charge for all international calls separately. See our dedicated guide to international calls on a VOIP system in Australia for a full comparison of plan structures and per-minute rates.

Is VoIP really cheaper than a landline in Australia?

Yes. A traditional landline's total cost depends on the selected plan, whether calls and features are included, and actual usage. A cloud phone system service with unlimited domestic calls and full business features costs $25-35/user/month.

What happens to my phone number if I switch to VoIP?

You can usually keep an active local number if the new provider accepts and supports the port; confirm eligibility before cancelling the old service. Number porting allows you to transfer your existing business phone number to your new business phone company. Under ACMA's Local Number Portability Code, a standard geographic-number port generally takes 8 to 15 business days. Your number, your customers' saved contacts, your Google listing, everything stays the same. Only the underlying technology changes.

Do I need to buy new phones for VoIP?

Dedicated IP desk phones normally connect by Ethernet, but an existing analog desk phone may be reusable through a provider-supported ATA; confirm compatibility before buying hardware. Entry-level VoIP desk phones like the Yealink T31P cost $80-150 each. However, you can also use softphones (apps on your computer or mobile) at no hardware cost, which many small businesses prefer. Some providers include handsets with their plans.

What happens to my VoIP phones during a power outage?

They go offline. Unlike old copper landlines that were powered from the telephone exchange, VoIP phones need power at your premises. If the power goes out, so do your phones. Mitigation options include: A suitably sized UPS may keep the modem, router and phones operating temporarily; runtime depends on the UPS capacity, battery condition and total connected load. Other options are automatic failover to mobile phones via your business phone company's app, or a 4G backup router.

Can I still call 000 on VoIP?

Yes. Many Australian business VoIP services support 000, but ACMA states that only certain VoIP services can call 000. Confirm emergency-call support with the provider and keep the registered service address current. However, VoIP 000 calls may not automatically transmit your exact physical address to emergency services the way a fixed copper landline does. Most business phone companies let you register a service address for 000 purposes. Make sure this is configured correctly when you set up your service.

Is VoIP call quality as good as a landline?

VoIP can equal or exceed PSTN audio quality when the connection, local network, provider path and endpoints support it; FTTP, FTTC or HFC alone does not guarantee the result. VoIP can use wideband codecs and may sound clearer than narrowband PSTN when both endpoints and the end-to-end call path support wideband audio. On poor NBN connections (especially FTTN with low upload speeds), call quality can suffer. Test your connection with a VoIP bandwidth calculator before committing.

Are traditional landlines still available in Australia?

In most NBN-connected areas, traditional copper PSTN landlines have been or are being disconnected. Telstra and other carriers have been progressively retiring copper services as NBN coverage reaches each area. If you are in an NBN area and still have a working landline, it is likely operating on a legacy service that is scheduled for shutdown. In NBN fixed-line areas, services are generally connected over the NBN rather than returned to copper. Fixed Wireless and satellite areas, and USO services outside the fixed-line footprint, are treated differently; availability should be confirmed for the address.

How long does it take to switch from landline to VoIP?

An uncomplicated individual local-number port may fit within 2-3 weeks, but multi-number or otherwise complex ports can take up to 30 days, excluding equipment or remediation delays. The longest part is number porting, generally 8 to 15 business days for a standard geographic-number port. Technical setup and configuration time varies with the number of users and devices, call-flow complexity, network readiness, integrations and provider assistance.