Here’s the Truth Behind the Claim
You’ve probably heard the pitch:
“Switch to the cloud and save up to 70% on your phone bill!”
It sounds impressive — but is it true?
At WTCO, we’ve worked with hundreds of Australian businesses transitioning from old phone systems to modern solutions. While savings are often real, the 70% figure is usually based on outdated comparisons, best-case assumptions, and selective cost breakdowns.
Here’s what’s really behind the claim, and what you should know before making the switch.
1. Where the “70% Savings” Claim Comes From
Cloud phone system providers typically compare their services to legacy on-premise phone setups, which include:
A physical PBX box (costing thousands upfront)
Expensive ISDN or PSTN lines
Onsite technician call-outs for every change
High per-minute call rates (especially to mobiles)
Downtime due to aging equipment
They bundle in savings from:
No PBX hardware
No dedicated phone lines
Cheaper local and international call rates
Free internal calls
Less need for IT support
So yes — if you’re moving from a clunky 15-year-old system with five landlines and per-extension costs, you might see big savings. But that’s not most businesses today.
2. What’s Included in That Calculation?
The “70%” figure often includes:
Upfront install vs no install
Telstra-style landline pricing vs VoIP call rates
Maintenance contracts vs free cloud updates
Even the assumed productivity gain from features like voicemail-to-email or auto-attendants
It’s rarely apples-to-apples.
Some providers even inflate the comparison with:
“Phantom” call costs that don’t exist anymore
Assumptions that your team needs every feature in the bundle
Ignoring discounts or deals you already have with your current provider
3. What’s Often Left Out
There are real costs to switching — even to a cloud system. These often go unmentioned:
Upgraded business-grade internet (especially for NBN)
New handsets or headsets for your team
Configuration and training
Transition downtime or tech support
And monthly fees aren’t always lower. In fact, some cloud systems cost more long-term when you start adding integrations, extra users, or premium features like call analytics or mobile softphone apps.
4. Who Actually Saves 70%?
The only businesses who may truly save 70% are those that:
Still use legacy on-premise PBX systems with physical phone lines
Have high-volume international calling
Routinely pay for tech support to make basic system changes
Most Australian businesses moving from a basic SIP/VoIP setup, or those already on a modern system, typically save between 15–35%, depending on usage and setup.
5. Smart Questions to Ask a VoIP Provider Before You Switch
To avoid surprises, ask:
“What are the total monthly costs — including licensing, handsets, support?”
“How does your system compare to my current setup — can you model that?”
“Are there extra charges for features like call recording or mobile apps?”
“What happens if I scale up or down in staff — are there lock-ins?”
“Will I need to upgrade my internet to support this?”
6. What a Good System Should Deliver — Beyond Price
At WTCO, we don’t believe in overpromising. While savings are important, what matters more is:
Uptime and reliability – no missed calls, no downtime
Clear, flexible call flows – so customers never get lost
Remote-ready systems – mobile apps, softphones, and remote admin access
Local support – so you’re not stuck in a queue overseas
Yes, cloud systems can save money — but only when they’re the right fit for your business goals.
✅ Want to Know What You’d Actually Save?
Book a free 30-minute consult with our local team. We’ll review your current phone setup and give you a real-world breakdown of costs, options, and improvements.
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