Vonage Review: Vonage Business Plans and Contract Terms

The verdict

Vonage Business Communications is a capable cloud phone system with one of the lowest per-line prices among major cloud phone systems, but only if you sign a 1-year contract, and its terms are stricter than most. Leaving an annual contract early can cost up to the full contract price, monthly plans get no refunds on cancellation, and desk phones and call recording sit on the higher plans. Read the terms below before you buy.

Vonage Business at a glance

Vonage plans: what each one unlocks

Inclusions from Vonage's plan cards. The App Center "includes over 20 third party integrations," per Vonage's footnote (Vonage). Price tables for 1 to 25 users: Vonage Business pricing.

Recording is the expensive jump: Advanced costs $7 more per line than Premium on the annual contract, and it is the only Vonage plan that records calls.

The contract terms, in Vonage's words

Vonage's pricing page carries two blocks of terms. The block for annual plans says:

• "Minimum 1-year contract required for new annual accounts only."
• "Early Termination Fees for an annual contract term can range up to the total price of your service contract."
• "There are no early termination fees for monthly contracts. However, if cancelled, no refunds will be provided."
• "The promotional discount of 30% off the standard rate is for the duration of the service for annual contracts only. Monthly contracts are not eligible for 30% off promotion."
• The discount "only applies to monthly recurring voice extension charges for online purchases up to 99 lines."

Quoted from Vonage's pricing page.

Annual contract vs month to month

Our math: the per-line difference times lines times 12. The saving is real, but it buys a commitment: under Vonage's terms, leaving early can cost up to the total price of the contract. For five Premium lines that ceiling is the full year, $1,259.40. If you might shrink or switch within a year, the monthly plan's flexibility may be worth its higher price.

Vonage monthly cost at other team sizes

A worked example: an 8-person office where six people need desk phones and two managers record calls could pay for 6 Premium and 2 Advanced lines: $181.92 a month on annual contracts, or $2,183.04 a year, before taxes and fees, if Vonage lets you mix plans on one account. Ask before you plan around it; the pricing page does not say.

What it costs to move up a plan

For five lines, moving from Mobile to Premium adds $35 a month on the annual contract ($50 monthly), and moving to Advanced adds $70 ($100 monthly). Because an annual contract locks in the plan you sign, decide on desk phones and recording before you commit.

A 5-person office with desk phones: Vonage vs two rivals

List prices before taxes and fees. All three support desk phones. Ooma Office and Zoom Phone both list a phone menu on every plan.

Reading Vonage's price labels

The labels change with the billing choice. Annual prices are "per month/per line" and monthly prices "per month/per extension," both "plus taxes & fees." The footnote adds that a main local company number is included with online purchases, and the terms say the standard monthly charge for one local number is waived for the life of the account (Vonage). The 30% saving is applied by a promo code at online checkout.

An annual Vonage contract, start to finish

What two years of Vonage really costs

Our math: five lines on Premium for 24 months cost $2,518.80 if the 30% discount lasts, as the terms say; $3,058.80 if it ended after month 12, as the badge suggests; and $3,598.80 on month-to-month billing. The difference between the first two readings is $540. Taxes and fees are not included, and Vonage says additional charges may apply (Vonage).

Where Vonage is strong

• Price on a contract. $13.99 a line on Mobile is among the lowest entry prices on office phone systems.
• Texting from the start. SMS and MMS come with every plan, including Mobile.
• Video and collaboration on Premium. Unlimited video meetings for up to 200 participants, team messaging and single sign-on.
• Integrations. The VBC App Center includes over 20 third-party integrations.
• A number included. A main local company number comes with online purchases, and one local number's standard monthly charge is waived for the life of the account.

Where Vonage falls short

• Exit costs. Early termination fees on an annual contract can reach the total contract price.
• No refunds on monthly plans. You can leave without a fee, but money already paid is not returned.
• Desk phones cost a tier. Mobile does not support desk phones, so an office with handsets starts at $20.99 a line.
• Recording is capped. Only Advanced records, and only up to 15 hours a month.
• Texting fees. Campaign Registry fees apply to the mandatory business registration for SMS (Vonage).
• Online discount limit. The 30% discount applies to online purchases of up to 99 lines.

Desk phones, texting and switching

Recording has a price of its own: moving five lines from Premium to Advanced to get call recording costs $420 a year on the annual contract.

Vonage compared with other office systems

From each company's pricing page. Head to head with Ooma: Ooma vs Vonage.

Which Vonage plan fits

Common problems to plan for

With Vonage, the terms to plan for are written on the pricing page: annual contracts with termination fees up to the full contract value, no refunds on cancelled monthly plans, and features (desk phones, recording) that require a higher tier than the advertised price. Settle which plan you need before signing, because the cheapest way to change your mind is before the contract starts.

How reliable is VoIP for a business?

Vonage, like every cloud phone system, depends on your internet connection and power. Federal rules require interconnected VoIP providers to provide E911 as a condition of service (47 CFR 9.11), and the FCC says they may not let customers opt out and must collect your physical location before service starts (FCC). Providers whose service is not powered by the phone line must offer a backup battery with at least 24 hours of standby (FCC). See VoIP vs landline.

Is Vonage worth it?

For a team that knows its size for the next year and wants the lowest per-line price with texting included, Vonage is good value: Mobile at $13.99 a line is cheaper than most entry plans. It is worse value for an office that needs desk phones and recording, because those push you to Premium and Advanced, and for anyone who may need to leave within a year. Settle the plan first, then decide whether the annual saving is worth the exit cost.

Who should skip Vonage

• Businesses that will not sign a 1-year contract and need desk phones: Vonage Premium monthly is $29.99 a line, against Ooma Office at $19.95 with phones and a menu on every plan.
• Teams that record most calls: the 15-hour monthly cap on Advanced may not be enough.
• Larger rollouts over 99 lines: the online discount stops there.

Vonage for different kinds of teams

Questions to ask Vonage

1. Does the 30% discount last for the whole contract or only 12 months? Get the answer in writing.
2. What exactly would early termination cost us in month 6?
3. Which offer end date applies to us, December 30 or December 31, 2026?
4. Do we need desk phones? If so, budget for Premium.
5. What are the Campaign Registry fees for registering our texting?
6. Is our number of lines under the 99-line online limit?