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How telecoms costs have changed in recent years

With continuous developments in technology, the landscape for telecoms is always evolving. As part of this, price is something that is changing alongside technological advances. It’s a simple fact that we are becoming ever more reliant on technology and connectivity. Businesses have always been highly dependent on having a good quality connection, however, today it is essential as more and more businesses are taking their proceedings onto Cloud services. Whether it is backing up work, working remotely, working collectively or simply communicating, connectivity plays a vital role.

Businesses are demanding more connectivity and capability. In demanding a better service there is, of course, a demand on the price of connectivity. This blog post will look at how telecoms costs have changed in recent years and what this means for businesses.

When thinking about telecoms costs, it is important to think about what is being gained from a service. Cost doesn’t just mean the price that is being paid; it also means whether that price is worth it. Older technology types are becoming less affordable to many. This is not because the price is rising, but because modern technological demands are greater. As an example, T1 is still a popular choice among smaller businesses because it is reliable and (for them) reasonably priced. However, for a large company that needs flexibility and a broad range of service, this service is becoming unaffordable.


Connection prices have plummeted in recent years. With the demand of internet connections becoming greater, technological development provides new options. Broadband prices have fallen in a drive to allow providers to develop ultra-fast technologies. This allows connection at a lower price. However, this does signify the need for developing new technologies to match user demands. This tends to eventually rule out older connection types.

In addition to this, we are seeing that faster speeds are becoming cheaper. This is in comparison to what they have been in the past. Today it is relatively cheap to receive connection speeds through fibre cables that are up to 100 times faster than their copper predecessors. The speeds that can be achieved today for a relatively cheap price, were the fastest speeds available 5 years ago, and potentially unimaginable 10 years prior to that.


Equipment prices are also falling. This is partly due to technologies improving, and therefore, more basic equipment becoming cheaper. However, it is largely due to businesses taking their work onto Cloud-based platforms. This means that servers, and memory hardware and software has been transferred to a software based medium. This, of course, means that equipment can become simpler and cheaper. Any computer connected to the internet can store information on a Cloud service.

Call price

The price of telephone calls is coming down. In the UK, the majority of the populations telephone connection is via BT lines. With the price of providing the service dropping for BT, certain customers have seen a 37% decrease in call prices. In the US, the drop in call prices are even more significant. With a regular demand for inner- and inter-state calling, the price of long-distance calling can make a big difference to a business. Another development that has reduced long distance calls is the use of the internet. Skype, Skype for Business, WhatsApp Calling, Facebook Calling and Facetime are all examples of Internet hosted calls.

Device cost

Device cost is something that has increased in recent years. This is, however, due to improvements in technology. With a great dependency on technology and a demand for improved capabilities, communication devices are rising in price. Nonetheless, with their improved capabilities comes the opportunity for improved productivity.

For more information please do not hesitate to see our blog or request a quote.

January 18, 2019