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Should I lease my telecoms?
Why Leasing a Telephone System Could Cost You More Than You Expect?
Leasing telephone services might seem like an easy, cost-effective solution for your business—but is it really? While it promises low upfront costs and convenience, the reality is often far from ideal. Hidden fees, lack of ownership, and limited flexibility can quickly turn leasing into a financial and operational burden.
In this article, we’ll explore why leasing telephone services is a risky choice, highlight the potential long-term pitfalls, and explain why investing in your own communication infrastructure could save your business money and headaches. If you’re considering leasing or are already locked into an agreement, read on to discover the alternatives that offer better value and control.
Don’t lease what you cannot touch…
You’re all familiar with the saying “don’t touch what you can’t afford” well, we’re advising businesses to avoid VoIP system leasing – don’t ever lease something you can’t touch.
As the BT ISDN switch-off (or what we like to call the Great British Switch-off) quickly approaches, we’ve heard of many Telecom providers persuading customers to sign up for long-term contracts by financing or leasing subscription services for VoIP phone systems.
What is VoIP leasing?
VoIP leasing is advertised as an alternative way of purchasing a VoIP license, including a handset, all installation costs, and ongoing maintenance and calls. This is often sold as a “low cost” way to purchase the services, and the monthly cost does often look appealing, and it is disguised as an exclusive discount or even a warranty.
This is great for the Telecoms provider, as no matter how they badly treat you, how much they charge you, or even if the service is not fit for purpose, your obligation to the leasing company is concrete, meaning your provider receives all the payments upfront. Do not sign on the dotted line…
It may seem like a great way to save money and reduce your company’s monthly outgoings, but you could be exposing your company to risk and excessive costs by leasing a VoIP system:
WORST RISK – If the telecoms provider stops trading for any reason: your services could be cut off, but you would still be obliged to make the repayments to the finance company – (That’s right, you would have to pay for a service you cannot use)
• You will likely be paying over the odds!
• You cannot walk away if the service is rubbish – you’re stuck with it.
• You could be stuck with out-of-date equipment– when you might want to adopt newer technology.
If you sign a lease, the provider gets all the money up-front, and you have to pay the lease, regardless of whether you are using the services or not. So if your provider goes bust…….
What should you do if you are pressured to sign a lease?
Consider this key measure with a VoIP leased line – can you touch what you’re buying? If not – walk, no. Run away, as fast as you can! No matter how helpful, generous, and charming the salesperson is.
Ask yourself:
• Why is the provider asking you to commit to such a long contract – what’s in it for you? (and if you’re thinking of a ‘bargain’, we promise you’re wrong).
• What happens if you’re not happy with your purchase – you can’t return it or stop paying for it?
• What is this really costing me – compared to a standard subscription (look at the total cost of the entire contract)?
• What if my business changes and I need to downsize?
When is leasing a good idea?
I know it seems like we’re backtracking here, but leasing isn’t always a bad idea.
If you want to upgrade all your business mobiles, and your employees want the iPhone 13 or a Samsung S22 ultra, then a combination of leasing mobile handsets and buying SIM-only for your airtime is incredibly cost-effective – and much more flexible than many network hardware/airtime bundles.
If you need a large new on-premises telephone system leasing this hardware is an effective way to spread the costs. Plus, there’s a strong probability that leasing a new system and therefore, adopting newer SIP/VoIP based technology is very profitable compared to an old system and ISDN services.
Why choose a Cloud Phone system from easyNetworks?
We will not trap you with a lengthy contract, but we will remove a whole host of bills:
• Minimal capital expenditure – invest your capital to grow your business
• No hidden system upgrade costs, maintenance costs or costly engineer visits
• No call costs to UK landlines and UK mobiles
• No line rental or ISDN circuit charges
• No upgrades or software license costs – the platform is constantly updating at no additional cost
• No monthly number costs – and display any outgoing geographical local number
• No long-term commitments – we allow you to flex users up or down on a 30-day rolling contract
• Handsets are no longer necessary with the free Cisco Webex softphone we provide to every user
Switch to easyNetworks Today!
For business continuity, you should consider making the switch sooner rather than later to avoid delays. For more details on how Cloud Phone can work for your business, use the following form to book a call with one of our cloud phone experts or call us today.
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Our conclusion
WiFi has become a core requirement for todays applications and devices, and providing flawless fast WiFi will have massive productivity advantages. In our opinion not providing brilliant WiFi is a total false economy as it has an effect on productivity, especially when so many office applications are migrating away from on-premise servers to cloud applications.
