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5 Things to Double-Check Before Signing a VoIP Contract

March 26th, 2024 | 5 min. read

By Marissa Olson

Imagine you're at the finish line of upgrading your business communications. You've done the demos, talked through dozens of options, and finally settled on a VoIP (Voice over Internet Protocol) provider that promises to slash your phone bill and bring you into the 21st century.

But just as you're about to sign on the dotted line, you pause. Did you read the fine print? Do you really know what you're agreeing to?

Many businesses' problem isn’t finding a VoIP service but understanding the VoIP contract. These contracts can be long, filled with jargon, and, let’s be honest, pretty dull.

But here’s the deal: the devil is in the details, and those overlooked details can cost you more than just frustration.

However, we have great news for you! By the end of this article, you'll know exactly what to watch out for before you commit to a VoIP phone system contract.

And trust me, you'll be glad you did the homework. Let's make sure your leap into modern communication is smooth and beneficial.

Why VoIP Contracts Demand Your Attention

Switching to VoIP can be a transformative decision for your business. It offers not just cost savings but also advanced features like call forwarding, voicemail to email, and video conferencing that traditional phone lines can't match.

The technology behind VoIP is impressive, turning simple internet connections into global communication networks.

However, the brilliance of the technology shouldn’t overshadow the importance of the contract that governs its use.

A detailed look into your VoIP contract before signing can prevent surprises down the road. Understanding the contract can help you avoid being locked into long-term agreements without clear-outs or being subject to rate increases with little to no notice.

The contract dictates what you pay and the quality and reliability of the service you’re subscribing to—it’s your blueprint for a mutually beneficial relationship with your VoIP provider.

Double Check #1: Service Level Agreements (SLAs)

SLAs are essentially a promise from your VoIP provider about the level of service you can expect. They cover everything from call quality to system uptime.

But it's not just about having SLAs in place; it's about understanding them. For example, if an SLA guarantees 99.9% uptime, this translates to about 44 minutes of potential downtime per month, which may be critical depending on your business operations.

When reviewing SLAs, also look for the procedures for reporting issues. Some providers may require reports within a specific timeframe to acknowledge a breach of the SLA.

This section of your contract ensures that you have recourse if the service you receive falls short of what was promised, making it a critical component to understand fully.

Double Check #2: Hidden Fees and Charges

VoIP services often advertise low monthly rates, but the final bill can sometimes tell a different story. In addition to installation and equipment fees, look out for charges like number porting fees, network upgrades, or additional features that aren’t included in your base package.

International calling rates are another area where costs can add up quickly if not carefully monitored.

A thorough review of the contract can help you identify these potential fees. Be bold about asking for a complete list of all possible charges. It's better to negotiate these points before signing the contract than to be caught off guard later.

Remember, every fee should be justifiable and clearly explained by your provider.

Double Check #3: Scalability and Flexibility

The ideal VoIP service grows with you, offering the flexibility to adjust your service as your business needs change.

Whether adding new employees, opening a new office, or scaling back, your VoIP contract should accommodate these changes without penalizing you. Look for terms that specify the process for changing your service level and any associated fees.

Additionally, consider the VoIP service's technology integration capabilities. As your business evolves, you should integrate your phone system with CRM software, email platforms, or other tools.

Ensure your contract doesn’t limit these integrations, which are crucial for maintaining efficiency and maximizing the benefits of your VoIP system.



Downtime can be incredibly costly in the digital age. That’s why it’s essential to have a VoIP provider that offers robust support and demonstrates a proven track record of reliability and customer satisfaction.

Examine the support options—are they available 24/7? Can you reach them via phone, email, and live chat? These details matter when you’re in a pinch.

Also, consider the provider's infrastructure and technology. Are they using the latest VoIP technology to ensure the best call quality and reliability?

Your contract should give you some insight into the standards the provider adheres to, ensuring they’re not cutting corners at your expense.

Double Check #5: Compliance and Security Measures

With digital security threats increasing, your VoIP provider must take rigorous measures to protect your data. This includes encrypting calls, secure data storage, and regular security updates.

Also, if your business operates in a regulated industry like healthcare or finance, your VoIP service must comply with relevant regulations, such as HIPAA or PCI DSS.

The contract should clearly outline the provider's commitments to security and compliance. It should also detail the protocols in place for responding to data breaches or other security incidents.

Knowing these measures can give you peace of mind and protect your business from potential legal and financial ramifications.

The Fine Print Matters

Reading through a contract can be tedious, but understanding every clause is crucial. Pay special attention to terms related to contract renewal and termination and any clauses that could lead to additional charges.

If anything is unclear, ask for clarification. Remember, once you sign the contract, you agree to its terms, so it’s better to be fully informed from the outset.

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Signing Your VoIP Contract: Next Steps After Your Due Diligence

Armed with this comprehensive guide, you're now ready to navigate the complexities of VoIP contracts confidently.

The effort you put into understanding your VoIP phone system contract can save your business from unexpected costs, ensure you receive the service you expect, and ultimately support your business’s growth and success.

If you're looking for more advice on using office technology effectively in your business, read our blog, How to Find the Best Office Telecom (Phone Systems) Provider Near Me.

When you’re ready to discuss your VoIP needs, the team at AIS is here to help. With our expertise, we can guide you to a VoIP solution that fits your business perfectly, ensuring a smooth transition to cutting-edge communication technology.

Remember, a well-chosen VoIP service can be a catalyst for business growth, offering not only cost savings but also enhanced communication capabilities. Take the time to choose wisely, and you'll set your business up for success in the digital age.

Marissa Olson

A true southerner from Atlanta, Georgia, Marissa has always had a strong passion for writing and storytelling. She moved out west in 2018 where she became an expert on all things business technology-related as the Content Producer at AIS. Coupled with her knowledge of SEO best practices, she's been integral in catapulting AIS to the digital forefront of the industry. In her free time, she enjoys sipping wine and hanging out with her rescue-dog, WIllow. Basically, she loves wine and dogs, but not whiny dogs.