Still on a Traditional Phone System? Here’s What It’s Costing Your Australian Business in 2026

Your Phone System Is Holding Your Business Back

If your Australian business is still running on a traditional landline or ISDN phone system, there is an uncomfortable truth worth confronting: that system is slowly becoming a liability.

Not because it doesn’t make calls — it probably does that fine. But because it cannot do the dozens of things a modern cloud phone system can do. Things like routing calls to remote workers, integrating with your CRM, enabling video conferencing, providing call analytics, sending voicemail to email, scaling instantly when you hire new staff, and working seamlessly with Microsoft Teams or Cisco Webex.

More urgently: Telstra has been progressively decommissioning its legacy ISDN and PSTN network infrastructure across Australia. If your phone system relies on this infrastructure, the question is no longer whether you will need to upgrade — it is when, and whether you will do it on your terms or be forced into it under pressure.

At BroadConnect, we have been helping Australian businesses make this transition for over 30 years — and a hosted cloud phone system from just $35 per month is how we make it accessible for businesses of every size.

Broadconnect is listed on Selectra broadband comparison platform
💡 Did You Know? Australia’s copper-based telephone network is being progressively retired. Businesses that rely on ISDN connections face mandatory migration to IP-based systems. BroadConnect helps you get ahead of the deadline — and get more for your money in the process.

1. The Hidden Cost of Keeping Your Old Phone System

Most business owners assume their old phone system is a sunk cost — already paid for, already running, nothing to change. But legacy phone systems carry a surprisingly high ongoing cost that rarely appears as a single line item on any invoice. It’s distributed across maintenance contracts, inflexibility, missed capability and staff frustration.

Cost CategoryTraditional / Legacy Phone SystemBroadConnect Cloud VoIP
Monthly line rentalHigh — ISDN or PSTN line fees per channelSignificantly lower — no physical lines
Call ratesOften high, especially STD and mobile callsSave up to 70% on call costs
Hardware maintenance$500–$5,000+/yr in servicingNo on-site hardware to maintain
Adding new lines/extensionsExpensive technician visit requiredAdd extensions in minutes, online
Remote work capabilityLittle to none — desk-boundFull feature access from anywhere
System upgradesCostly hardware replacements every 5–10 yrsAutomatic cloud updates — always current
Disaster recoveryPhysical damage = total outageCloud redundancy — calls reroute automatically
Microsoft Teams integrationNot availableNative integration available
Call analytics & reportingBasic or non-existentFull dashboard — call volumes, wait times, etc.
Setup time for new staffDays — requires technicianMinutes — self-service portal

When you add up line rental savings, reduced call rates, eliminated maintenance costs and the staff productivity gains from better tools, most Australian businesses find that switching to a BroadConnect hosted phone system pays for itself within the first 3–6 months — and delivers ongoing savings of 30–70% on total communication costs every year thereafter.

📞 Real Client Result: ‘The price quoted to change from a Telstra account to Broadconnect is almost half of what we have been paying. Within a day we had all changed over without any problems and the changeover took less than 30 mins.’ — Jennifer Beemsterboer, Machinery Forum Pty Ltd

2. What Is a Cloud Phone System — and How Does It Work?

If you have not made the switch yet, the terminology can feel overwhelming. VoIP. Hosted PBX. Cloud telephony. UCaaS. Let’s cut through the jargon and explain what actually matters for your business.

The Simple Version

A cloud phone system works just like a traditional phone system — you dial numbers, you answer calls, you transfer calls and use voicemail — except that instead of running through copper phone lines and expensive on-site hardware boxes, it runs through your internet connection and is managed in the cloud.

This means your phone system is no longer a physical asset sitting in a server room. It is software, hosted and managed by BroadConnect, accessible from any device with an internet connection — a desk phone, a laptop, a mobile, or all three simultaneously.

The Technical Version (Plain English)

VoIP stands for Voice over Internet Protocol. It converts your voice into digital data packets and sends them over the internet — just like an email or a web page. A hosted PBX (Private Branch Exchange) is the cloud-based equivalent of the traditional on-site telephone exchange box that used to sit in your comms room. BroadConnect manages that PBX in its data centres, and you access all its features — call routing, hold music, IVR menus, conference calls, call recording — via your internet connection and a simple online admin portal.

🌐 Key Insight: You don’t need to understand the technology to benefit from it. What matters is that a BroadConnect cloud phone system gives your business capabilities that cost tens of thousands of dollars to implement 10 years ago — for as little as $35 per user per month today.

3. Features Your Old Phone System Simply Cannot Offer

The capability gap between a legacy ISDN system and a modern BroadConnect cloud phone system is not minor. It is the difference between a fax machine and a smartphone. Here is what your business gains when you make the switch:

FeatureWhat It Does for Your Business
Auto-attendant / IVRProfessionally greets callers 24/7, routes them to the right person or department without a receptionist
Hunt groups & ring queuesMultiple team members’ phones ring simultaneously — no call goes unanswered
Call recordingEvery call recorded automatically — for compliance, training and dispute resolution
Voicemail to emailVoicemails transcribed and emailed to you instantly — never miss a message again
Softphone (app for laptop/mobile)Make and receive business calls from anywhere using your laptop or mobile — same number, same features
Microsoft Teams Direct RoutingUse Teams as your office phone system — calls in and out through your existing Teams setup
Conference callingMulti-party calls with no per-minute charges — built in as standard
Call analytics dashboardSee call volumes, wait times, missed calls, peak periods and agent performance in real time
Number portingKeep your existing phone numbers when you switch — zero disruption to customers
Disaster recovery failoverIf your internet or office goes down, calls automatically reroute to mobiles or another site
Instant scalabilityAdd or remove extensions in minutes via the web portal — no technician, no waiting
Multi-site unified systemAll offices and remote staff on one phone system, one number range, one management portal

Every one of these features is included in a BroadConnect hosted phone system from $35 per month per user. There are no expensive add-ons for the basics — call recording, voicemail-to-email and the management portal are all standard. Explore the full feature set at broadconnect.com.au.

4. Remote Work and Hybrid Offices: The Feature Your Old System Can’t Handle

One of the most significant business shifts of the past five years has been the normalisation of remote and hybrid work. According to the Australian Bureau of Statistics, over 37% of employed Australians now work from home at least part of the time — a trend that shows no sign of reversing.

A traditional desk-bound phone system is structurally incompatible with this reality. When your staff member works from home, they are either unreachable on their business number, forwarding calls to their personal mobile (unprofessional and untrackable), or simply not answering business calls at all.

A BroadConnect cloud phone system solves this completely:

Traditional Phone System — Remote Work RealityBroadConnect Cloud System — Remote Work Reality
Staff member works from home — unreachable on office numberStaff member works from home — full office phone features on laptop/mobile
Call forwarding to personal mobile — looks unprofessionalBusiness calls ring on their softphone app — caller sees your business number
No visibility of remote staff’s call activityFull call analytics for every user regardless of location
Conference calls require expensive bridging servicesMulti-party conferences built in — no extra cost
New remote hire needs a technician visit to set up a lineNew remote hire sets up their softphone in 5 minutes
Office closure or disaster = business phones completely downCalls automatically reroute to mobiles or backup numbers
Team spread across multiple offices with no unified systemAll offices and remote staff on one system, one portal

For businesses with multiple offices across Australia — Sydney, Melbourne, Brisbane, Perth — a BroadConnect cloud system means all locations share a single unified phone system. Staff can transfer calls between offices, share call queues and appear under the same number range regardless of where they are physically located.

5. Microsoft Teams as Your Business Phone: The BroadConnect Advantage

If your business already uses Microsoft Teams for meetings, chat and collaboration — and most Australian businesses do — then you are sitting on an underused asset. BroadConnect’s Microsoft Teams Direct Routing and Flex service allows you to make and receive real phone calls directly within Teams — using your existing business numbers.

This means your staff never have to leave Teams to make a business call. The same app they use for video meetings and instant messaging becomes their complete business phone — on their laptop, their desktop or their mobile.

Business ScenarioWithout Teams CallingWith BroadConnect Teams Direct Routing
Making an outbound business callOpen a separate softphone app or pick up desk phoneCall directly from Teams — one app for everything
Receiving an inbound customer callRings desk phone only — miss it if away from deskRings in Teams on laptop and mobile simultaneously
Transferring a call to a colleagueManual process via desk phoneOne-click transfer within Teams
Call recording for complianceSeparate recording system or manual processAutomatic recording integrated into Teams calling
New staff member onboardingWait for IT to configure a new desk phoneAdd them to Teams Calling in minutes
Working from homeEither unreachable or using personal mobileFull office phone capability through Teams on any device

BroadConnect also supports Cisco Webex for businesses that prefer the Webex ecosystem. Both integrations are managed end-to-end by BroadConnect’s Australian team — you get enterprise-grade unified communications without the enterprise-grade complexity.

6. Cloud Phone Systems by Industry: How Australian Businesses Are Using BroadConnect

The benefits of a cloud phone system apply across every industry — but they manifest differently depending on how your business communicates. Here is how Australian businesses in key sectors are getting value from BroadConnect:

IndustryKey Phone System ChallengesHow BroadConnect Cloud Solves Them
Healthcare / MedicalAfter-hours calls missed; high call volume; multiple sitesIVR routing, after-hours auto-attendant, multi-site unified system, call recording for compliance
Legal PracticesClient calls must be answered professionally; call recording for files; remote lawyersHunt groups ensure no call missed; automatic call recording; softphones for remote staff
Automotive DealershipsMultiple departments (sales, service, parts); high inbound volumeDepartment ring groups, call queues with hold music, analytics to track department performance
Construction & TradesStaff on-site and in the office; job coordination requires reliable commsMobile softphones for on-site staff; site-to-office transfer; GPS-agnostic business number
Retail & HospitalityMultiple store locations; seasonal call volume spikesMulti-site single system; instantly scale up lines for peak periods; centralised management
Professional ServicesProfessional image; voicemail management; client communication trackingAuto-attendant, voicemail-to-email, call analytics, CRM integration
EducationLarge campus with multiple departments; student and parent enquiry volumeUnlimited internal extensions; call routing by department; usage reporting
Government & Not-for-ProfitBudget constraints; reliability; 1300/1800 number managementCost-effective per-user pricing; built-in redundancy; inbound number integration

7. Switching to BroadConnect: What the Migration Actually Looks Like

The most common reason businesses delay switching their phone system is fear of disruption. What if calls drop during the changeover? What if staff can’t figure out the new system? What if we lose our number?

These concerns are understandable — and based on our 30+ years of experience migrating Australian businesses, they are largely unfounded when the migration is handled properly. Here is exactly what BroadConnect’s migration process looks like:

StageTimeframeWhat HappensYour Involvement
1. DiscoveryDay 1–2BroadConnect audits your current system, call volumes, staff numbers and feature needsOne meeting with your IT contact or office manager
2. DesignDay 3–5We design your new phone system — call routing, IVR menus, hunt groups, user extensionsReview and approve the proposed setup
3. Number portingDay 5–10Your existing phone numbers are ported to BroadConnect — no number change for customersSign porting authority — we handle the rest
4. Hardware/softwareDay 7–12Desk phones shipped and configured; softphone apps installed on staff laptops/mobilesStaff install the app (5 minutes)
5. TrainingDay 12–13BroadConnect runs a live training session for your team — typically 45 minutesStaff attend one short session
6. Go LiveDay 14Your new system goes live — calls route correctly, all features active, your old system decommissionedFlip the switch — business as usual
7. SupportOngoingDedicated Australian account manager, 1300 880 330 support line, performance monitoringCall us anytime — we answer

Most BroadConnect business migrations are completed within 10 to 14 business days from the first conversation. And because number porting means your customers keep calling the same number, they never even know the change happened — they just notice the calls get answered better.

google-5-star-reviews

We have worked with BroadConnect for several years now and their service has been amazing. When we transitioned our office phones and internett to BC, the team was quick to answer queries and gave regular updates during the process. The support team is always quick to respond to queries and provide updates to our phone system and provide solutions to any issues we have.

8. Real Numbers: What Businesses Pay Before and After Switching

Let’s put concrete numbers to the savings. The following comparison is based on typical Australian business scenarios — actual figures will vary depending on your current setup, call volumes and number of users.

Business SizeTypical Legacy Monthly CostBroadConnect Cloud Monthly CostMonthly SavingAnnual Saving
5-user office (SMB)$420–$650/month~$175–$225/month$200–$425/month$2,400–$5,100/yr
10-user office$750–$1,200/month~$350–$450/month$350–$800/month$4,200–$9,600/yr
20-user office$1,400–$2,200/month~$700–$900/month$700–$1,400/month$8,400–$16,800/yr
Multi-site (3 locations)$2,500–$4,000/month~$1,100–$1,600/month$1,000–$2,800/month$12,000–$33,600/yr
50-user enterprise$3,500–$6,000/month~$1,750–$2,500/month$1,500–$3,500/month$18,000–$42,000/yr

Legacy costs include line rental, per-minute call charges, maintenance contracts and hardware amortisation. BroadConnect costs based on hosted phone system plans from $35/user/month plus usage. Figures are indicative — contact BroadConnect for a custom quote.

The savings compound further when you factor in the productivity gains from better features — less time on hold, faster call resolution, better routing, voicemail-to-email — and the risk reduction from built-in disaster recovery and redundancy.

9. Beyond the Phone System: BroadConnect’s Complete Business Communications Suite

One of the strongest reasons to choose BroadConnect for your cloud phone system is that it is not a standalone product — it is the centrepiece of a complete business communications ecosystem that has been serving Australian businesses for over 30 years.

BroadConnect ServiceStarting FromWhat It Adds
Hosted Phone System$35/user/monthCore cloud PBX — calls, IVR, recording, analytics
Microsoft Teams & FlexCustom pricingUse Teams as your business phone — full PSTN calling
Cisco WebexCustom pricingEnterprise video + voice unified communications
SIP TrunkingCustom pricingConnect your existing PBX to VoIP — hybrid approach
Business Mobile SIMs$25/month/SIMTelstra & Optus SIMs integrated with office system
Business NBN$85/monthReliable internet purpose-built for VoIP performance
Enterprise Fibre / 4G/5GCustom pricingDedicated high-speed connectivity for large offices
1300 / 1800 Inbound NumbersCustom pricingNational inbound routing with call flow management
Contact CentreCustom pricingCloud contact centre for customer-facing teams
Managed IT & NetworkCustom pricingSD-WAN, firewall, cybersecurity, managed network

When your phone system, mobile SIMs, internet connection, Teams calling and contact centre all come from one Australian provider, the result is a simpler, more integrated, more accountable communications environment — with one invoice, one support number and one team that knows your entire setup. Explore the full BroadConnect service range at broadconnect.com.au.

10. Frequently Asked Questions

Q: Do we need a fast internet connection to use VoIP?

VoIP requires a stable, reasonably fast internet connection — but the bandwidth requirements are much lower than most people expect. A single HD voice call uses approximately 100 Kbps of bandwidth. A 10-user office running simultaneous calls needs around 1 Mbps dedicated to voice — well within the capacity of a standard BroadConnect Business NBN plan. For larger deployments, BroadConnect conducts a network readiness assessment before migration to ensure optimal call quality.

Q: Can we keep our existing phone numbers?

Yes — 100%. BroadConnect handles number porting for all Australian geographic numbers (02, 03, 07, 08), mobile numbers and 1300/1800 numbers. The porting process is managed entirely by BroadConnect and typically takes 5–10 business days. Your customers keep calling the same number and notice no interruption.

Q: What happens if our internet goes down?

BroadConnect cloud phone systems include built-in failover configuration. In the event of an internet outage, calls automatically reroute to nominated mobile numbers or a backup site — ensuring your business remains reachable. This is a significant improvement over a traditional phone system, which typically has no failover capability whatsoever.

Q: We have multiple offices across different states. Can one system cover all of them?

Yes — and this is one of the most compelling use cases for a BroadConnect cloud system. All of your Australian offices can operate on a single unified phone system regardless of physical location. Staff can transfer calls between Sydney and Melbourne as easily as between two desks. Call reporting covers all sites. Management is through a single online portal. Contact BroadConnect to discuss multi-site configurations.

Q: We already use Microsoft Teams — can we integrate it with BroadConnect?

Absolutely. BroadConnect’s Microsoft Teams Direct Routing and Teams Flex service enables full PSTN calling directly within Teams — meaning your team can make and receive external calls from within the Teams interface they already use every day. BroadConnect manages the entire integration, including number porting and dial plan configuration.

Q: How does BroadConnect’s support compare to going direct with Telstra or Optus?

BroadConnect is a 100% Australian-owned and operated business with offices in Sydney, Melbourne, Brisbane and Perth. When you call 1300 880 330, you speak to an Australian team member who knows your account. We do not operate offshore call centres or automated troubleshooting queues. Our clients consistently highlight responsiveness and personal service as the primary reasons they stay with BroadConnect after more than 30 years in the market.

Conclusion: The Clock Is Ticking on Legacy Phone Systems — Make the Switch on Your Terms

Australia’s legacy telecommunications infrastructure is being retired. The question every business owner needs to ask is not whether to upgrade their phone system, but whether to do it proactively — on a timeline that suits them — or reactively, when they have no choice.

The businesses that switch to a BroadConnect cloud phone system today do not just solve a compliance problem. They gain a competitive advantage: lower costs, better features, remote-work capability, Microsoft Teams integration, built-in disaster recovery and a scalable system that grows with their business — all backed by an Australian team that has been doing this for over three decades.

Starting from $35 per user per month, with no lock-in contracts and a 14-day migration that causes zero disruption to your customers, there has never been a better time to make the switch. Visit broadconnect.com.au or call 1300 880 330 to book your free phone system review today.

Contact Us

Talk to our Sydney-based team today to find out how BroadConnect can transform your business communications.
📞 Book a Consultation or email us at hello@broadconnect.com.au to get started.

Getting connected with Broadconnect is simple and quick:

Visit us: Level 26, 1 Bligh Street, Sydney NSW 2000 
Call: 1300 880 330
Email: hello@broadconnect.com.au

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