Pricing & Planning 7 min read 15 February 2026

VoIP vs Telstra Business Phone — Is It Worth Switching in 2026?

Telstra is still Australia's largest telecommunications provider, and many Perth businesses default to them out of familiarity. But in 2026, VoIP providers offer significantly better value — more features, lower costs, and local support. Here is the honest comparison.

Cost Comparison: Telstra vs VoIP

Telstra's Business Phone plans (as of 2026) for a 10-person office:

  • Telstra Business bundle (10 lines): approximately $400–$650/month depending on call inclusions
  • Hardware: Telstra-leased hardware adds $30–$80/month, or upfront purchase
  • Setup fee: typically $300–$500 for on-site installation

The same setup on PC Madness VoIP Hosted PBX:

  • 10 users × unlimited plan: approximately $209/month
  • Hardware: optional, Yealink phones from $129 each (one-off purchase)
  • Setup fee: $0

Typical saving: $190–$440/month — which is $2,280–$5,280 per year.

Feature Comparison

Feature Telstra Business VoIP Hosted PBX
Auto-attendant / IVRAdd-on costIncluded
Ring groupsLimitedIncluded
Voicemail to emailAdd-onIncluded
Mobile softphone appTelstra app (extra)Free
Teams Direct RoutingYes (expensive)Yes (from $4.95/user)
Contract length24 months typicalMonth-to-month
Local Perth supportNational call centrePerth-based team

Where Telstra Still Wins

Being honest: there are scenarios where Telstra remains the better choice:

  • Remote locations with poor internet: If your business is in a remote WA location where NBN quality is unreliable, Telstra's PSTN infrastructure may be more stable.
  • Existing enterprise agreements: Large businesses with negotiated Telstra enterprise agreements may have pricing structures that are competitive.
  • Telstra-specific requirements: If you rely on Telstra-exclusive services (some government contracts specify carrier requirements).

The NBN Factor

Telstra's traditional PSTN (copper) phone network is being progressively decommissioned as Australia migrates to NBN. Telstra is pushing businesses onto NBN-based voice services — which are functionally identical to third-party VoIP.

If you are going to be on an NBN-based phone system regardless, the question becomes: why pay Telstra prices for NBN voice when independent VoIP providers offer the same infrastructure at 40–60% lower cost?

Making the Switch: What to Expect

Switching from Telstra to VoIP is simpler than most business owners expect:

  1. Sign up for a trial or plan with your new VoIP provider
  2. Port your existing Telstra number(s) — takes 5–10 business days
  3. Set up phones (IP handsets or softphone app) — usually 1–2 hours
  4. Go live — calls route to your new system

There is no period of downtime. Your Telstra service stays active until the port completes, then your VoIP system takes over.

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Frequently Asked Questions

Is VoIP cheaper than Telstra for business?
In most cases yes — typically 40–60% cheaper for equivalent features. A 10-person business can save $190–$440/month by switching from Telstra to a VoIP Hosted PBX provider.
Can I keep my Telstra number if I switch to VoIP?
Yes. Number porting transfers your existing Telstra number to your VoIP provider. The process takes 5–10 business days and your service is uninterrupted during the transfer.
What happens to my phone number when Telstra shuts down the copper network?
Telstra is migrating all customers to NBN-based services as the copper network is decommissioned. Your number is preserved through the migration, but you will be on an NBN voice service — at which point switching to an independent VoIP provider for lower cost makes excellent sense.
Is VoIP as reliable as Telstra?
Modern Hosted PBX systems run on geo-redundant data centres and are as reliable as — or more reliable than — traditional phone lines. Built-in failover routes calls to mobile if internet connectivity is lost. Uptime SLAs of 99.99% are standard.