Are You Overpaying for Your Business Phone Service? 6 Things to Check Before You Renew

When our business phone contract came up for renewal this July after a three-year term, I decided to take a closer look at exactly what we were paying for and whether every service on our account was still necessary.

What I discovered surprised me.

Some of our phone lines were billed at very different monthly rates, even though they appeared to serve similar purposes. For example, our main business line costs approximately $12 per month, while our fax line costs around $60 per month, and several other business lines cost approximately $50 per month each.

That immediately raised an important question:

Why are similar services priced so differently?

There may be perfectly valid reasons, such as additional features, legacy pricing, or older service packages that are no longer offered. But it also made me realize that many businesses probably renew their phone contracts without taking the time to review what they’re actually paying for.

If your contract is coming up for renewal, here are a few things worth checking before you sign.

1. Review All of Your Current Services

Start by making a complete list of every telecommunications service your business currently has.

This may include:

• Business phone lines
• Fax lines
• Internet services
• VoIP services
• Long-distance plans
• Calling features and add-ons
• Maintenance agreements

Many businesses continue paying for services that made sense years ago but are no longer being fully utilized today.

Simply knowing what you have is the first step toward identifying potential savings.

2. Compare Your Monthly Charges

Take a close look at your monthly invoice.

Do similar phone lines have significantly different monthly rates?

Are there features you’re paying for that employees rarely use?

Are there old services that were never removed after equipment upgrades?

Small monthly differences can add up over the course of a multi-year contract.

Quick Tip: If two phone lines appear to provide similar functionality but have very different monthly costs, ask your provider to explain exactly what is included with each service.

3. Consider Which Contract Length Makes Sense

Before automatically renewing your existing agreement, think about how much flexibility your business needs.

Common contract options include:

• Month-to-month
• One-year agreements
• Two-year agreements
• Three-year agreements

Longer contracts may offer lower monthly pricing, but technology changes quickly. Depending on your business, a shorter agreement may provide greater flexibility if your communication needs change.

4. Ask Questions About Unusual Charges

Don’t assume every charge on your bill is still necessary.

Ask your provider to explain:

• Why different lines have different monthly rates
• Whether you’re on legacy pricing
• Which features you’re paying for
• Whether newer plans are available
• If any services can be removed without affecting your operations

Sometimes a simple conversation uncovers savings that would otherwise go unnoticed.

5. Review Your Business Needs

Think about how your business communicates today compared to when your current contract began.

For example:

• Are employees working remotely?
• Do you still need dedicated fax lines?
• Have you moved to VoIP?
• Are there phone lines that are rarely used?

Your communications system should reflect how your business operates today—not how it operated three years ago.

6. Talk to Your Provider Before Signing Anything

Before renewing your agreement, ask your provider for a complete account review.

Request a clear explanation of:

• Every service currently on your account
• What each service costs
• Whether newer plans are available
• Which services may no longer be necessary

Taking an hour to review your account could potentially save your business money over the next several years.

Final Thoughts

Most businesses don’t think about their phone service until renewal time arrives.

That’s understandable—but it’s also when many companies miss opportunities to reduce costs, eliminate outdated services, and choose plans that better fit how they operate today.

I’m currently reviewing our own account with our phone provider to better understand why some of our phone lines are priced so differently. It may turn out there’s a perfectly reasonable explanation, or it may reveal opportunities to simplify our services and reduce unnecessary costs.

Either way, it’s a reminder that asking a few questions before renewing a contract is always worthwhile.

Written by Paul Chapman 
Owner, Teldisco 
Helping Canadian businesses buy, sell, and recycle telecom equipment for 30+ years